REDRESSAL OF INVESTOR’S GRIEVANCES
SEBI has instituted a mechanism for redressal of investor grievances related to issue of securities. The grievances are in the nature of delays extending beyond the permitted time-ftame by issuers in transfer of securities, dispatch of certificates to allottees, refund of application money and payment of dividends.
SEBI enjoys the power to prosecute companies for these violations. SEBI has now made it mandatory for all issuers to deposit 1 % of the size of the issue as security deposit with the regional stock exchange. This amount will be released only after all the investor grievances have been redressed to the satisfaction of SEBI.
A new product called Stockinvest was introduced which allows investors to use funds earmarked for interest bearing bank deposits (held in their own name) to apply for primary market issues. SEBI has also reduced the maximum time period for allotment to 30 days ftom the closure of the issue.
In order to prevent fraudulent encashment of refund orders, applicants are required to indicate their bank account numbers in the application form, on which the refund orders are to be drawn.
SEBI has also recognized investor associations to further the cause of investor protection. The use of Consumer Courts to bring class action suits against erring issuers is being encouraged. SEBI is educating the investors and making them.
SEBI has instituted a mechanism for redressal of investor grievances related to issue of securities. The grievances are in the nature of delays extending beyond the permitted time-ftame by issuers in transfer of securities, dispatch of certificates to allottees, refund of application money and payment of dividends.
SEBI enjoys the power to prosecute companies for these violations. SEBI has now made it mandatory for all issuers to deposit 1 % of the size of the issue as security deposit with the regional stock exchange. This amount will be released only after all the investor grievances have been redressed to the satisfaction of SEBI.
A new product called Stockinvest was introduced which allows investors to use funds earmarked for interest bearing bank deposits (held in their own name) to apply for primary market issues. SEBI has also reduced the maximum time period for allotment to 30 days ftom the closure of the issue.
In order to prevent fraudulent encashment of refund orders, applicants are required to indicate their bank account numbers in the application form, on which the refund orders are to be drawn.
SEBI has also recognized investor associations to further the cause of investor protection. The use of Consumer Courts to bring class action suits against erring issuers is being encouraged. SEBI is educating the investors and making them.