From UPSC perspective, the following things are important :
Prelims level: SCORES 2.0, SEBI
Mains level: NA
Why in the news?
The Securities and Exchange Board of India (SEBI) unveiled the upgraded version of the SEBI Complaint Redress System (SCORES 2.0) marking a significant advancement in the investor complaint redressal mechanism in the securities market.
About Securities and Exchange Board of India (SEBI)
|
What is SCORES 2.0?
- SCORES 2.0 refers to the upgraded version of the SEBI Complaint Redress System (SCORES) launched by the Securities and Exchange Board of India (SEBI).
- SCORES is an online platform designed to facilitate the lodging and resolution of complaints by investors in the securities market.
- Complaints can be lodged for any issues covered under the:
- SEBI Act, 1992
- Securities Contract Regulation Act, 1956
- Depositories Act, 1966
- Companies Act, 2013
Complaints on SCORES 2.0 can be launched against:
- Listed companies / registrar & transfer agents
- Brokers / stock exchanges
- Depository participants / depository
- Mutual funds
- Portfolio Managers
- Other entities (KYC Collective investment scheme, Merchant banker, Credit rating, Foreign institutional investor etc.)
Features of SCORES 2.0:
- Reduced Timelines: SCORES 2.0 implements reduced and standardized timelines for addressing investor grievances, ensuring a maximum redressal period of 21 calendar days from the date of complaint receipt.
- Auto-Routing and Escalation: The new version incorporates an auto-routing mechanism to swiftly direct complaints to the relevant regulated entity. Additionally, it introduces a two-tier review process, with complaints undergoing review first by the designated body and subsequently by SEBI if investors remain dissatisfied with the resolution provided.
- Integration with KYC Database: SCORES 2.0 is seamlessly integrated with the KYC Registration Agency database, streamlining the registration process for investors onto the platform.
- Enhanced Efficiency: Through features such as auto-routing, auto-escalation, and stricter monitoring protocols, SCORES 2.0 aims to enhance the efficiency and effectiveness of the investor complaint redressal process.
Significance of SCORES 2.0
- Improved Regulatory Oversight: By introducing stricter timelines and oversight mechanisms, SEBI aims to enhance regulatory efficiency and transparency, fostering a more accountable and responsive market ecosystem.
- Technological Advancements: The integration of advanced technological features, such as auto-routing and KYC database linkage, reflects SEBI’s proactive approach towards harnessing digital innovations to modernize regulatory processes and services.
PYQ:2013: The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.
Practice MCQ:Consider the following statements about the SCORES 2.0 Platform recently launched by the Securities and Exchange Board of India (SEBI): 1. It is an online platform designed to facilitate the lodging and resolution of complaints by investors in the securities market. 2. It addresses complaints pertaining to the SEBI Act, 1992 only. 3. It ensures a maximum redressal period of 21 calendar days. How many of the above statements is/are correct? (a) One (b) Two (c) Three (d) None |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
