SCORES (SEBI Complaints Redressal System)

SCORES, the Securities and Exchange Board of India Complaints Redressal System, is an online investor grievance redressal mechanism introduced to strengthen investor protection and enhance transparency in India’s financial markets. In the domain of banking, finance, and the Indian economy, SCORES represents an important institutional framework through which investors can lodge complaints against listed companies, market intermediaries, and other entities regulated by the capital market regulator. By providing a centralised, technology-driven platform, SCORES has contributed to improving trust, accountability, and efficiency within the financial system.
The system reflects India’s broader efforts to modernise financial regulation, safeguard investor interests, and promote orderly development of capital markets, which are integral to economic growth and financial stability.

Concept and Meaning of SCORES

SCORES is an online complaints management system launched by Securities and Exchange Board of India to facilitate the redressal of investor grievances in a transparent and time-bound manner. The platform allows investors to submit complaints electronically and track their status until resolution.
The system covers complaints related to securities markets, including issues concerning shares, debentures, mutual funds, portfolio management services, stockbrokers, depositories, and listed companies. SCORES is not a dispute resolution or judicial forum but a regulatory mechanism aimed at ensuring that registered entities address investor complaints promptly and fairly.

Background and Rationale

Before the introduction of SCORES, investor complaints were handled largely through physical correspondence, which was time-consuming and often lacked transparency. With the expansion of India’s capital markets and increasing participation of retail investors, the need for an efficient and accessible grievance redressal system became more pronounced.
SCORES was designed to leverage digital technology to streamline the complaint-handling process. Its introduction aligned with broader financial sector reforms focused on strengthening regulatory oversight, improving investor confidence, and enhancing the credibility of financial markets. By institutionalising complaint redressal, SEBI sought to reduce information asymmetry and protect investors from unfair practices.

Structure and Working of SCORES

The SCORES platform operates as a centralised online system accessible to investors across the country. Investors are required to register on the platform and submit their complaints along with relevant details and supporting documents. Once a complaint is lodged, it is automatically forwarded to the concerned entity, such as a company or market intermediary.
Entities against whom complaints are made are required to respond within a stipulated time frame. SEBI monitors the progress of complaints and ensures compliance with regulatory timelines. Investors can track the status of their complaints online, which enhances transparency and accountability in the redressal process.

Scope of Complaints Covered

SCORES covers a wide range of issues related to the securities market. These include non-receipt of dividends, interest, or bonus shares, problems in dematerialisation or transfer of securities, mis-selling of financial products, unauthorised trading by brokers, and delays in redemption of mutual fund units.
However, the system does not entertain complaints that fall outside SEBI’s regulatory jurisdiction or those that are sub judice. Matters involving pricing of securities, commercial decisions of companies, or disputes requiring adjudication are generally excluded from SCORES and are expected to be resolved through appropriate legal or arbitration mechanisms.

Role in the Financial System

In the financial system, SCORES acts as a key investor protection mechanism. By ensuring that grievances are addressed efficiently, it reinforces discipline among market participants and encourages compliance with regulatory norms. This contributes to the overall integrity and stability of financial markets.
The system also serves as an important feedback channel for the regulator. Patterns and trends in complaints provide valuable insights into systemic issues, market misconduct, and areas requiring regulatory intervention. Thus, SCORES supports evidence-based regulation and continuous improvement of market practices.

Importance in Banking and Finance

Although SCORES is primarily associated with capital markets, its relevance extends to the broader banking and finance ecosystem. Banks operating as intermediaries, such as merchant bankers, custodians, or depository participants, fall within the scope of SEBI regulation and are subject to the SCORES framework.
By holding financial institutions accountable for investor-related services, SCORES strengthens consumer protection in financial intermediation. This enhances confidence in financial products and services, which is essential for deepening financial markets and promoting long-term investment.

Contribution to the Indian Economy

The effective functioning of SCORES contributes indirectly to the Indian economy by fostering investor confidence and participation in capital markets. Well-regulated and transparent markets facilitate efficient mobilisation of savings and allocation of capital, which are critical for economic development.
By reducing grievances and improving redressal efficiency, SCORES helps create a more investor-friendly environment. This supports domestic investment and also enhances India’s attractiveness to foreign investors, thereby contributing to capital inflows and economic growth.

Investor Awareness and Financial Inclusion

SCORES plays an important role in improving investor awareness and empowerment. The availability of an accessible online grievance redressal system encourages investors, particularly retail participants, to assert their rights and seek remedies for deficiencies in services.
As financial inclusion expands and more individuals participate in securities markets, the role of SCORES becomes increasingly significant. It complements investor education initiatives by reinforcing the principle that regulatory institutions are responsive and accessible.