Sebi requested stock exchanges on Monday to enhance the expertise of staff members at Investor Service Centers (ISCs) and offer some basic minimum services to investors at these centers in light of recent technological developments in the securities market.
Sebi advised stock exchanges to utilise the current ISCs and build more centers, if needed, to serve investors throughout all of India. According to their mutual agreement, one stock exchange, two exchanges, or more exchanges may establish ISCs individually or collectively.
The Securities and Exchange Board of India (Sebi) said in a circular that the new directive will take effect 90 days from this Monday, while those linked to knowledge upgradation would be collected gradually.
In order to serve investors’ interests, the markets regulator requested in December 1997 that all stock exchanges operate or retain a minimum of one ISC. These facilities must provide investors counseling services and some fundamental minimal amenities. The main stock exchanges were permitted to open whatever many ISCs they saw necessary.
In response, Sebi mandated in July 2013 that stock exchanges with nationwide terminals open ISCs in Ahmedabad, Hyderabad, Kanpur, Indore, Bangalore, Pune, Jaipur, Ghaziabad, Lucknow, Gurgaon, Patna, and Vadodara in addition to the ISCs that are currently operating in metro cities — New Delhi, Mumbai, Chennai, and Kolkata.
Regarding the bare minimum amenities for investors, Sebi stated that ICS would be required to supply a dedicated desktop computer or laptop with internet access so that investors could access various pertinent details that were in the public domain as well as the portal for filing grievances with the market regulator and stock exchanges.
ICSs will need to provide both physical and electronic facilities for receiving investor complaints. A dedicated employee would also be stationed at the ISC to file investor complaints as well as to assist and advise investors.
Such investor centers must provide financial daily publications, at least one of which is in the local tongue of the area where the investor center is located. Any major newspaper in that regional language would be offered in the event that the financial newspaper is not accessible in that language. Additionally, all ISCs must to include capabilities for online arbitration and appellate arbitration, as well as a video-calling feature for investors to join their grievance redressal sessions.
Stock exchanges must make sure that all ISC officials have received adequate training on the various aspects of the securities market, how to advise or guide investors to lodge their complaints appropriately, including lodging complaints on SCORES platforms, how to resolve investor grievances, and how to promote investor education and awareness to improve securities market literacy and retail participation.
The course would cover an overview of the primary and secondary markets, the roles and activities of exchanges, clearing houses, and depositories, as well as the roles and activities of market intermediaries that interact with investors, such as stock brokers, depository participants, mutual funds, advisers, research analysts, portfolio managers, registrars, and transfer agents (RTAs).
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