Sebi asks exchanges to put in place dispute resolution SOPs on investor services
Premium- The exchanges were given time till 1 June to put in place the mechanism for operationalising resolution of all disputes emanating from investor services
Capital markets regulator Sebi has asked stock exchanges to put in place standard operating procedures (SOPs) for resolution mechanism for disputes between a listed company and its shareholders.
The exchanges were given time till 1 June to put in place the mechanism for operationalising resolution of all disputes emanating from investor services such as transfer of shares, demat, issue of duplicate shares, transposition of holders etc.,.
"Stock exchanges are advised to put in place by June 01, 2022, Standard Operating Procedures (SOP) for operationalizing the resolution of all disputes pertaining to or emanating from investor services such as transfer/transmission of shares, demat/remat, issue of duplicate shares, transposition of holders, etc. and investor entitlements like corporate benefits, dividend, bonus shares, rights entitlements, credit of securities in public issue, interest /coupon payments on securities, etc," Sebi said in a circular.
Further, in respect of disputes in matters where Registrar and Share Transfer Agents (RTA) are offering services to shareholders on behalf of listed companies, the RTAs must continue to be subjected to the stock exchange arbitration mechanism.
The recognized stock exchanges were also directed to bring the provisions of the circular and the SOPs put in place in this regard to the notice of listed companies and also to disseminate the same on their website.
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Sebi's rules provide for dispute resolution under the stock exchange arbitration mechanism for contentions between a listed company and its shareholder or investor.
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