CIRCULAR, CIR/MIRSD/11/2013,
dated October 28, 2013
To
All
Recognized Stock Exchanges
1. Please refer to SEBI Circular no.
MRD/DoP/SE/Cir-10/2009 dated September 03, 2009 on the captioned subject which
inter alia prescribes the formats for disclosing the details of complaints
lodged by clients/investors against stock brokers on the website of stock exchanges.
The ‘Report 1C’ prescribes the format for disclosure of redressal
of complaints lodged by clients against stock brokers during the financial
year.
2. In order to bring more transparency in
the disclosure of complaint redressal status of the stock brokers on the
website of stock exchange, in consultation with the stock exchanges and the
associations of stock brokers, it has been decided to modify the format by including
following information:
a. Number of active
clients of each stock broker. “Active client” means the client who has traded
at least once in the last year.
b. Percentage of
number of complaints received as against number of active clients of the stock
broker (to be calculated by dividing the number of complaints received against
stock broker with number of active clients)
c. Percentage of
complaints resolved as against complaints received by the stock broker (to be
calculated by dividing number of total complaints redressed with number of complaints
received against stock broker)
3. The stock exchanges
shall also disclose separately in a prominent manner (i) total number of
complaints received against all the stock brokers of the Exchange, number of
their active clients and its percentage and (ii) overall market redressal rate by
dividing total number of complaints redressed with total number of complaints received
against all stock brokers of the Exchange.
4. The above
modifications will result in disclosure of complaint redressal rate of
individual stock broker and also overall redressal rate at stock exchange
level. This will indicate the efficiency of complaint redressal process.
5. This circular is
issued in exercise of powers conferred under Section 11(1) of the Securities
and Exchange Board of India Act, 1992, to protect the interests of investors in
securities and to promote the development of, and to regulate the securities
market.
6. The above provisions
shall be implemented with effect from the quarter ended December 2013. All
other provisions mentioned in the circular dated September 03, 2009 remain unchanged.
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