Consumer Protection Act • Investor Grievance Redressal • SCORES & ODR • IA Grievance System • Capital Market / Banking / Insurance / Pension Redressal • Securities Appellate Tribunal • Other Fora
Enacted for "better protection of the interests of consumers" — establishes consumer councils and authorities for settling consumer disputes.
"Consumer" includes any person who:
Investors may have grievances about: accuracy/extent of information or advice, fees/expenses/penalties, or delayed/unattended service requests. First line of action: approach the concerned product/service provider; if unresolved, approach the industry regulator.
Complaint must relate to issues covered under relevant Acts (SEBI Act, SCRA, Depositories Act, Companies Act)
Must fall within prescribed time limits — prevents system clogging with stale complaints
Must meet the definition of a "complaint" — eliminates frivolous filings
Clear pathway — first the entity's internal system, then external agency if unresolved
Investor can track progress — builds confidence in the system
Resolution within a defined period ensures closure and maintains trust
Allows dissatisfied complainants to escalate to an independent party
SEBI mandates IAs to display: Compliance Officer's details, and CEO/Partner/Proprietor's name, address, email, phone — at their offices. If unsatisfied with the IA's response, the client can escalate to SEBI via SCORES.
Lodge the complaint directly with the concerned market participant (broker, IA, AMC, DP, etc.)
If unresolved/unsatisfactory, escalate via SEBI's SCORES system following its guidelines
If still dissatisfied after exhausting prior options, initiate dispute resolution via the Smart ODR portal (the market participant may also initiate ODR after due notice)
Approach the relevant court within the prescribed law-of-limitation period if still unsatisfied (ODR must also be initiated within the limitation period, reckoned from the date the issue/disputed transaction arose)
SEBI's online mechanism for complaints relating to all SEBI-regulated products/entities — share issuers, mutual funds, PMS providers, VCFs, brokers, merchant bankers, depositories/DPs, RTAs, distributors and financial advisers. SEBI examines, forwards to the entity, which must respond with an Action Taken Report (ATR) in stipulated time; status trackable online.
BCSBI (Banking Codes and Standards Board of India) — an RBI-set-up autonomous watchdog — published the "Code of Banks' Commitments to Customers", setting minimum standards/benchmarks. Most banks voluntarily adopt it as their Fair Practice Code. Each bank has a customer redressal department; if unsatisfied, the customer can approach the Banking Ombudsman (RBI-appointed).
Covers complaints on: fund receipt/payment services, interest/penalty/fee disputes, ATM/debit/credit card issues, unjustified loan refusal, etc. Approach the Ombudsman if no satisfactory resolution within one month of approaching the bank. Filing: online, email, or in person. Process: Ombudsman attempts a settlement first; failing within one month, passes a binding award after hearing both sides.
"Grievance/Complaint": any communication expressing dissatisfaction about an action/inaction, service standard or deficiency by an insurer/intermediary, or seeking remedial action.
Appointed under the Redressal of Public Grievance Rules, 1998. Grounds for complaint:
Excluded from NPS grievances: incomplete/non-specific complaints, suggestions, requests for guidance, matters beyond PFRDA's powers, inter-intermediary disputes, and sub-judice matters.
Subscriber raises grievance via call centre or written communication to the CRA (Mumbai head office)
If unresolved or unsatisfactory after 30 days, escalate to the NPS Trust, which follows up and must respond within a further 30 days (per PFRDA's Redressal of Subscriber Grievance Regulations, 2015)
If still unresolved after 30 days at the NPS Trust stage, the subscriber may appeal to the Ombudsman against the intermediary/entity
SAT (Section 15U, SEBI Act) is not bound by the Code of Civil Procedure but follows principles of natural justice and regulates its own procedure. It has civil-court powers: summoning/examining persons on oath, requiring document discovery/production, receiving affidavit evidence, issuing commissions for witness/document examination, reviewing its own decisions, and setting aside ex-parte orders. Its proceedings are deemed judicial proceedings under the Indian Penal Code.
Complaints about non-repayment of deposits or non-payment of interest by an NBFC → National Company Law Tribunal (NCLT) or the Consumer Forum, in the prescribed format for the area where the company's registered office is located.
Complaints about non-repayment of deposits by companies, or bonds/debentures issued by unlisted companies → Ministry of Company Affairs (via its website).
| Sector | First-Level Redressal | Apex / Escalation Forum |
|---|---|---|
| Investment Advisers / Capital Market | Market participant / IA's compliance officer | SCORES → ODR Portal → Courts |
| Banking | Branch → Zonal Manager → GM-Customer Service | Integrated (Banking) Ombudsman → CPGRAMS |
| Insurance | Insurer's grievance cell | IGMS → Insurance Ombudsman → Courts/Consumer Protection Act |
| Pension (NPS) | CRA / Grievance Redressal Officer | NPS Trust → Ombudsman |
| Securities Appeals | — | Securities Appellate Tribunal → Supreme Court |
| NBFC deposits | — | NCLT / Consumer Forum |
| Unlisted company deposits/bonds | — | Ministry of Company Affairs |
1. What is the correct escalation sequence for a capital market grievance per SEBI's framework?
2. Which of the following complaints will SCORES NOT address?
3. A bank customer should approach the Banking Ombudsman if the bank fails to provide a satisfactory resolution within:
4. Under Section 15T of the SEBI Act, an appeal against an order of the SEBI Board must be filed with the Securities Appellate Tribunal within:
5. A complaint regarding non-repayment of deposits by an NBFC should be registered with: