SEBI Clears 4,493 Investor Complaints in May via SCORES Portal in May

India’s capital markets regulator, SEBI, stayed busy in May. Through its online complaint system, SCORES, it resolved an impressive 4,493 investor complaints, showing strong follow-through on investor concerns.

SEBI received 4,793 new grievances in May alone, bumping up the number of unresolved cases to 4,563 by month’s end. That’s up from 4,263 in April. So, while SEBI is doing solid work, the increasing volume is starting to outpace its progress.

On the plus side, complaint turnaround times haven’t slipped. Entities submitted their Action Taken Reports (ATRs) in about eight days on average, the same as in April. And when complaints escalated to a First Level Review, the average resolution time was just five days, nearly matching the four-day average in April. Despite the higher workload, SEBI is maintaining consistency.

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How SCORES Works and Why It Matters

Launched in 2011 and upgraded to SCORES 2.0 in April 2024, the portal allows investors to file and track complaints against companies, brokers, and exchanges. It’s pretty user-friendly:

• Complaints are automatically assigned to the correct party.
• Entities have 21 days to respond with an Answer to Response (ATR).
• Investors can escalate their concerns to SEBI in two steps: first, a first-level review, and then a second-level review.
• Alternatively, they can opt for Online Dispute Resolution (ODR), which resolves the issue and closes the complaint.
   

As of May 31, one entity, Smartowner Capital Growth Trust, stood out for the wrong reasons. It’s the only organisation with complaints pending for over three months. All other players seem to be keeping up.

How Does May Stack Up?

Let’s take a quick look:

• April: 4,239 resolved | 4,341 received | 4,263 pending
• March: 4,371 resolved | 4,156 received | 4,161 pending
• SEBI is resolving more complaints month over month, but the rise in incoming issues means there’s still a growing queue.
   

Why This Matters For Investors

Here’s what SEBI’s performance tells us:

• They’re responsive: Thousands of complaints are handled in days, not months.
• They’re transparent: Clear steps, timeframes, and escalation paths.
• They’re boosting trust: Fast action helps investors feel heard and secure.
   

What’s Next For SEBI?

To keep up with the rising tide, SEBI might:

• Automate more of the complaint-handling process.
• Keep a closer eye on slow-responding entities.
• Enhance the Online Dispute Resolution system for even smoother operation.
   

If new complaints continue to come in faster than resolutions, SEBI may need to allocate more resources to the system or tighten rules to encourage companies to move more quickly.

Bottom Line

SEBI is holding firm, resolving a high number of complaints with consistent turnaround times. However, the growing backlog is a sign of both increasing investor engagement and the need for expanded capacity. Smartowner and any other slow movers will need to catch up.
Keep an eye on SEBI’s upcoming quarterly reports for more clues on whether this positive momentum persists and if pending complaints begin to decline.