{"id":5262,"date":"2025-07-09T20:26:44","date_gmt":"2025-07-09T14:56:44","guid":{"rendered":"https:\/\/lawjurist.com\/?p=5262"},"modified":"2025-07-09T20:36:26","modified_gmt":"2025-07-09T15:06:26","slug":"effectiveness-of-scores","status":"publish","type":"post","link":"https:\/\/lawjurist.com\/index.php\/2025\/07\/09\/effectiveness-of-scores\/","title":{"rendered":"EFFECTIVENESS OF SCORES"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5262\" class=\"elementor elementor-5262\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6056d415 e-flex e-con-boxed e-con e-parent\" data-id=\"6056d415\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7da4cd6e elementor-widget elementor-widget-text-editor\" data-id=\"7da4cd6e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\n<p>Prerna Upadhyay , B.A.L.L.B , School of Law, Gautam Buddha University<br><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8f83e9a e-flex e-con-boxed e-con e-parent\" data-id=\"8f83e9a\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-960d3d1 elementor-widget elementor-widget-text-editor\" data-id=\"960d3d1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3 data-start=\"126\" data-end=\"144\"><strong data-start=\"128\" data-end=\"144\">Introduction<\/strong><\/h3>\n<p data-start=\"146\" data-end=\"693\"><strong data-start=\"146\" data-end=\"156\">SCORES<\/strong> (SEBI Complaints Redress System) was launched by the Securities and Exchange Board of India (SEBI) via a circular dated <strong data-start=\"277\" data-end=\"293\">June 3, 2011<\/strong>. The system aims to facilitate grievance redressal for investors against listed companies and SEBI-registered intermediaries. A <strong data-start=\"422\" data-end=\"465\">master circular dated December 18, 2014<\/strong>, replaced earlier guidelines, mandating listed companies and intermediaries (except stock brokers, sub-brokers, and depository participants) to obtain SCORES authentication within <strong data-start=\"646\" data-end=\"657\">30 days<\/strong> and resolve any pending grievances.<\/p>\n<h3 data-start=\"700\" data-end=\"754\"><strong data-start=\"702\" data-end=\"754\">Direct Complaint Mechanism and Limitation Period<\/strong><\/h3>\n<p data-start=\"756\" data-end=\"1057\">Prior to 2018, investors frequently bypassed companies and filed complaints directly on SCORES. To streamline the process, <strong data-start=\"879\" data-end=\"926\">SEBI issued a circular dated March 26, 2018<\/strong>, requiring investors to first approach the listed company or intermediary before using SCORES. The following conditions now apply:<\/p>\n<ul data-start=\"1059\" data-end=\"1332\">\n<li data-start=\"1059\" data-end=\"1332\">\n<p data-start=\"1061\" data-end=\"1179\"><strong data-start=\"1061\" data-end=\"1083\">Limitation Period:<\/strong> A complaint must be filed on SCORES within <strong data-start=\"1127\" data-end=\"1138\">3 years<\/strong> from the cause of action, provided that:<\/p>\n<ul data-start=\"1182\" data-end=\"1332\">\n<li data-start=\"1182\" data-end=\"1256\">\n<p data-start=\"1184\" data-end=\"1256\">The investor first approached the concerned listed company\/intermediary.<\/p>\n<\/li>\n<li data-start=\"1259\" data-end=\"1332\">\n<p data-start=\"1261\" data-end=\"1332\">The complaint was rejected, not responded to, or inadequately resolved.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p data-start=\"1334\" data-end=\"1456\">Failure to meet this timeline disqualifies the complaint on SCORES, though the investor may seek legal recourse elsewhere.<\/p>\n<h3 data-start=\"1463\" data-end=\"1511\"><strong data-start=\"1465\" data-end=\"1511\">Procedure for Lodging Complaints on SCORES<\/strong><\/h3>\n<p data-start=\"1513\" data-end=\"1623\">From <strong data-start=\"1518\" data-end=\"1536\">August 1, 2018<\/strong>, registration on SCORES became mandatory for lodging complaints. The process involves:<\/p>\n<ol data-start=\"1625\" data-end=\"2158\">\n<li data-start=\"1625\" data-end=\"1673\">\n<p data-start=\"1628\" data-end=\"1673\">Visit <a class=\"\" href=\"https:\/\/scores.gov.in\" target=\"_new\" rel=\"noopener\" data-start=\"1634\" data-end=\"1672\">SCORES Portal<\/a>.<\/p>\n<\/li>\n<li data-start=\"1674\" data-end=\"1732\">\n<p data-start=\"1677\" data-end=\"1732\">Click on <strong data-start=\"1686\" data-end=\"1705\">\u201cRegister here\u201d<\/strong> under <strong data-start=\"1712\" data-end=\"1731\">Investor Corner<\/strong>.<\/p>\n<\/li>\n<li data-start=\"1733\" data-end=\"1841\">\n<p data-start=\"1736\" data-end=\"1766\">Fill in the mandatory details:<\/p>\n<ul data-start=\"1770\" data-end=\"1841\">\n<li data-start=\"1770\" data-end=\"1778\">\n<p data-start=\"1772\" data-end=\"1778\">Name<\/p>\n<\/li>\n<li data-start=\"1782\" data-end=\"1793\">\n<p data-start=\"1784\" data-end=\"1793\">Address<\/p>\n<\/li>\n<li data-start=\"1797\" data-end=\"1809\">\n<p data-start=\"1799\" data-end=\"1809\">Email ID<\/p>\n<\/li>\n<li data-start=\"1813\" data-end=\"1820\">\n<p data-start=\"1815\" data-end=\"1820\">PAN<\/p>\n<\/li>\n<li data-start=\"1824\" data-end=\"1841\">\n<p data-start=\"1826\" data-end=\"1841\">Mobile number<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"1842\" data-end=\"1916\">\n<p data-start=\"1845\" data-end=\"1916\">Upon registration, credentials will be sent to the registered email ID.<\/p>\n<\/li>\n<li data-start=\"1917\" data-end=\"1967\">\n<p data-start=\"1920\" data-end=\"1967\">Log in and select <strong data-start=\"1938\" data-end=\"1966\">\u201cComplaint Registration\u201d<\/strong>.<\/p>\n<\/li>\n<li data-start=\"1968\" data-end=\"2058\">\n<p data-start=\"1971\" data-end=\"1978\">Choose:<\/p>\n<ul data-start=\"1982\" data-end=\"2058\">\n<li data-start=\"1982\" data-end=\"2012\">\n<p data-start=\"1984\" data-end=\"2012\">Correct complaint category<\/p>\n<\/li>\n<li data-start=\"2016\" data-end=\"2031\">\n<p data-start=\"2018\" data-end=\"2031\">Entity name<\/p>\n<\/li>\n<li data-start=\"2035\" data-end=\"2058\">\n<p data-start=\"2037\" data-end=\"2058\">Nature of complaint<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"2059\" data-end=\"2102\">\n<p data-start=\"2062\" data-end=\"2102\">Write complaint (up to 1000 characters).<\/p>\n<\/li>\n<li data-start=\"2103\" data-end=\"2158\">\n<p data-start=\"2106\" data-end=\"2158\">Option to upload supporting documents in PDF format.<\/p>\n<\/li>\n<\/ol>\n<p data-start=\"2160\" data-end=\"2359\">A <strong data-start=\"2162\" data-end=\"2202\">unique complaint registration number<\/strong> is generated and shared via SMS\/email. Investors can log in anytime to track their complaint status. The system ensures transparency via an <strong data-start=\"2343\" data-end=\"2358\">audit trail<\/strong>.<\/p>\n<h3 data-start=\"2366\" data-end=\"2405\"><strong data-start=\"2368\" data-end=\"2405\">Procedure for Handling Complaints<\/strong><\/h3>\n<h3>A. <strong data-start=\"2414\" data-end=\"2482\">Where complaint is not first filed with the company\/intermediary<\/strong>:<\/h3>\n<ol data-start=\"2484\" data-end=\"2803\">\n<li data-start=\"2484\" data-end=\"2557\">\n<p data-start=\"2487\" data-end=\"2557\">Complaint is routed to the entity with a <strong data-start=\"2528\" data-end=\"2547\">30-day deadline<\/strong> to reply.<\/p>\n<\/li>\n<li data-start=\"2558\" data-end=\"2636\">\n<p data-start=\"2561\" data-end=\"2636\">If no reply, complaint is escalated to <strong data-start=\"2600\" data-end=\"2635\">Designated Stock Exchange (DSE)<\/strong>.<\/p>\n<\/li>\n<li data-start=\"2637\" data-end=\"2735\">\n<p data-start=\"2640\" data-end=\"2735\">If the response is unsatisfactory, investor can seek <strong data-start=\"2693\" data-end=\"2715\">\u201cComplaint Review\u201d<\/strong> within <strong data-start=\"2723\" data-end=\"2734\">15 days<\/strong>.<\/p>\n<\/li>\n<li data-start=\"2736\" data-end=\"2803\">\n<p data-start=\"2739\" data-end=\"2803\">If resolved or review is not filed, the complaint is <strong data-start=\"2792\" data-end=\"2802\">closed<\/strong>.<\/p>\n<\/li>\n<\/ol>\n<h3 data-start=\"2805\" data-end=\"2864\">B. <strong data-start=\"2812\" data-end=\"2863\">Where complaint is first filed with the company<\/strong>:<\/h3>\n<ol data-start=\"2865\" data-end=\"3180\">\n<li data-start=\"2865\" data-end=\"2956\">\n<p data-start=\"2868\" data-end=\"2956\">Details such as event date, complaint date, and communication address must be submitted.<\/p>\n<\/li>\n<li data-start=\"2957\" data-end=\"3009\">\n<p data-start=\"2960\" data-end=\"3009\">DSE forwards the complaint to the listed company.<\/p>\n<\/li>\n<li data-start=\"3010\" data-end=\"3092\">\n<p data-start=\"3013\" data-end=\"3092\">Company has <strong data-start=\"3025\" data-end=\"3036\">30 days<\/strong> to respond and submit an <strong data-start=\"3062\" data-end=\"3091\">Action Taken Report (ATR)<\/strong>.<\/p>\n<\/li>\n<li data-start=\"3093\" data-end=\"3180\">\n<p data-start=\"3096\" data-end=\"3180\">If not resolved, DSE issues a <strong data-start=\"3126\" data-end=\"3138\">reminder<\/strong> for redressal within another <strong data-start=\"3168\" data-end=\"3179\">30 days<\/strong>.<\/p>\n<\/li>\n<\/ol>\n<h3 data-start=\"3187\" data-end=\"3229\"><strong data-start=\"3189\" data-end=\"3229\">Legal Implications and Key Case Laws<\/strong><\/h3>\n<h3 data-start=\"3231\" data-end=\"3283\">1. <strong data-start=\"3238\" data-end=\"3283\">Penalty for Failing SCORES Authentication<\/strong><\/h3>\n<p data-start=\"3285\" data-end=\"3530\">In <strong data-start=\"3288\" data-end=\"3328\">M\/s Vidarbha Industries Ltd. v. SEBI<\/strong>, the Securities Appellate Tribunal (SAT) held that failure to obtain SCORES authentication violates SEBI directions and attracts <strong data-start=\"3458\" data-end=\"3474\">Section 15HB<\/strong> of the SEBI Act, 1992. Penalty: <strong data-start=\"3507\" data-end=\"3529\">\u20b91 lakh \u2013 \u20b91 crore<\/strong>.<\/p>\n<blockquote data-start=\"3532\" data-end=\"3587\">\n<p data-start=\"3534\" data-end=\"3587\">Reaffirmed in <strong data-start=\"3548\" data-end=\"3586\">Port Shipping Company Ltd. v. SEBI<\/strong>.<\/p>\n<\/blockquote>\n<h3 data-start=\"3589\" data-end=\"3620\">2. <strong data-start=\"3596\" data-end=\"3620\">Reduction of Penalty<\/strong><\/h3>\n<p data-start=\"3622\" data-end=\"3709\">In <strong data-start=\"3625\" data-end=\"3657\">Shikar Advisers Ltd. v. SEBI<\/strong>, penalty of \u20b98 lakhs was reduced to \u20b91 lakh due to:<\/p>\n<ul data-start=\"3710\" data-end=\"3830\">\n<li data-start=\"3710\" data-end=\"3741\">\n<p data-start=\"3712\" data-end=\"3741\">Trading suspension since 2003<\/p>\n<\/li>\n<li data-start=\"3742\" data-end=\"3766\">\n<p data-start=\"3744\" data-end=\"3766\">New management in 2016<\/p>\n<\/li>\n<li data-start=\"3767\" data-end=\"3830\">\n<p data-start=\"3769\" data-end=\"3830\">Immediate compliance upon receiving show-cause notice in 2017<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"3832\" data-end=\"3880\">3. <strong data-start=\"3839\" data-end=\"3880\">Pending Grievances Not a Precondition<\/strong><\/h3>\n<p data-start=\"3882\" data-end=\"4041\">In <strong data-start=\"3885\" data-end=\"3924\">Rencal Chemicals India Ltd. v. SEBI<\/strong>, the SAT clarified that absence of pending grievances doesn&#8217;t exempt a company from obtaining SCORES authentication.<\/p>\n<h3 data-start=\"4043\" data-end=\"4089\">4. <strong data-start=\"4050\" data-end=\"4089\">Failure to Respond Equals Admission<\/strong><\/h3>\n<p data-start=\"4091\" data-end=\"4267\">In <strong data-start=\"4094\" data-end=\"4133\">Sanjay Kumar Tayal &amp; Others v. SEBI<\/strong>, SAT ruled that not replying to a show-cause notice and failing to appear for a personal hearing amounts to <strong data-start=\"4242\" data-end=\"4266\">admission of charges<\/strong>.<\/p>\n<h3 data-start=\"4274\" data-end=\"4290\"><strong data-start=\"4276\" data-end=\"4290\">Conclusion<\/strong><\/h3>\n<p data-start=\"4292\" data-end=\"4628\">SCORES has significantly simplified investor grievance redressal in the securities market. The transition from manual complaints to a digital interface, including mobile applications, has reduced costs, improved transparency, and ensured faster resolution. It stands as a <strong data-start=\"4564\" data-end=\"4585\">one-stop platform<\/strong> for resolving investor issues efficiently.<\/p>\n<h3 data-start=\"4635\" data-end=\"4651\"><strong data-start=\"4637\" data-end=\"4651\">References<\/strong><\/h3>\n<ol data-start=\"4652\" data-end=\"5002\">\n<li data-start=\"4652\" data-end=\"4714\">\n<p data-start=\"4655\" data-end=\"4714\">SEBI Circular dated June 3, 2011 \u2013 Introduction of SCORES<\/p>\n<\/li>\n<li data-start=\"4715\" data-end=\"4764\">\n<p data-start=\"4718\" data-end=\"4764\">SEBI Master Circular dated December 18, 2014<\/p>\n<\/li>\n<li data-start=\"4765\" data-end=\"4844\">\n<p data-start=\"4768\" data-end=\"4844\">SEBI Circular dated March 26, 2018 \u2013 Mandating prior approach to companies<\/p>\n<\/li>\n<li data-start=\"4845\" data-end=\"4921\">\n<p data-start=\"4848\" data-end=\"4921\">SEBI Circular dated August 13, 2020 \u2013 Role of Designated Stock Exchange<\/p>\n<\/li>\n<li data-start=\"4922\" data-end=\"5002\">\n<p data-start=\"4925\" data-end=\"5002\">SAT Judgment in <em data-start=\"4941\" data-end=\"4979\">M\/s Vidarbha Industries Ltd. v. SEBI<\/em>, Appeal No. 95 of 2014<\/p>\n<\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d328367 e-flex e-con-boxed e-con e-parent\" data-id=\"d328367\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1845af0 elementor-widget elementor-widget-text-editor\" data-id=\"1845af0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Prerna Upadhyay , B.A.L.L.B , School of Law, Gautam Buddha University Introduction SCORES (SEBI Complaints Redress System) was launched by the Securities and Exchange Board of India (SEBI) via a circular dated June 3, 2011. The system aims to facilitate grievance redressal for investors against listed companies and SEBI-registered intermediaries. A master circular dated December [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/posts\/5262"}],"collection":[{"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/comments?post=5262"}],"version-history":[{"count":6,"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/posts\/5262\/revisions"}],"predecessor-version":[{"id":5270,"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/posts\/5262\/revisions\/5270"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/media\/5043"}],"wp:attachment":[{"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/media?parent=5262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/categories?post=5262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lawjurist.com\/index.php\/wp-json\/wp\/v2\/tags?post=5262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}