Sebi to digitise processing of investor service requests, complaints by RTAs
June 8, 2023
Synopsis
The Securities and Exchange Board of India (Sebi) will digitise processing of investors’ service requests and complaints in two phases to provide a mechanism for services and complaints through online mode by registrars to an issue and transfer agents (RTAs). The digitisation will provide benefits, including a database for service requests and complaints, according to Sebi. In the first phase, all RTAs servicing listed firms will have to display a basic website having detailed service request procedures and FAQs. In the second phase, a common website will be operated by qualified RTAs from July 1, 2022.
Capital markets regulator Sebi on Thursday decided to provide a mechanism for processing of investors' service requests and complaints through online mode by RTAs and thereafter track the status as well as obtain periodical updates. Looking to digitise the process in two phases, Sebi said that the mechanism would provide benefits such as a database for service requests and complaints, online acknowledgement and intimation to the investor and online tracking of status of service requests and complaints, online acknowledgement and intimation to the investor and online tracking of status of service requests and complaints by investors.
At present, holders of physical security certificates are required to submit various documents to the registrars to an issue and share transfer agents (RTAs) with respect to various service requests such as issuance of duplicate security certificates, folio consolidation and services through depository participants such as dematerialisation and rematerialisation.
In the first phase, Sebi said that all RTAs servicing listed companies will have a functional website. Such a website will mandatorily display basic details of the RTA like registration number, registered address of head office and branches, names and contact details of key managerial personnel (KMPs) including compliance officer, according to a circular.
In addition, such websites will have to display step-by-step procedures for various service requests, Frequently Asked Questions (FAQs), procedure for filing a complaint and finding out the status of the complaint.
Further, all RTAs will have to set up a user-friendly online mechanism or portal for service requests with certain minimum features.
Sebi has directed qualified RTAs or QRTAs to implement the direction of an online system along with a functional website from January 1, 2024, while the same for all RTAs is June 1, 2024.
Thereafter in the second phase, the markets regulator said that a common website will be made and operated by QRTAs from July 1, next year, through which investors will be redirected to individual web-based portals of the concerned RTA for further resolution by putting the name of the listed company.
This website will have the functionality of adding companies and RTAs to its search list as and when required.
This new framework will be applicable to the RTAs which deal in folios of listed companies. Also, while transferring the business from one RTA to another, the listed company will have to ensure that the new RTA is in compliance with the framework.
[The Economic Times]
