The investor has the option of taking the following steps incase they want to lodge a complaint against a member of the Stock Exchange.
- Amicable Settlement- I
It is sometimes faster and more effective for investors to try and resolve their problems directly. If however, no amicable agreement can be reached, then they can seek arbitration.
- Arbitration Committees of Stock Exchange:
The investor also has the alternative of lodging their complaint with the management of the concerned Stock Exchange. They have their own Arbitration Committees that look into the grievances/disputes between the Investor and the Members. The Arbitration Committees after perusing the documents and providing the parties an opportunity of being heard passes an Arbitration Award in accordance with the relevant Rules and Regulations of the Exchange.
The client has the option to lodge his/her complaint with the Vigilance Cell which has been setup at SECP to ensure that grievances/complaints of the general public are heard and appropriately handled, in a quick and efficient manner.
- Civil Courts:
The investor can also file his/her complaint with the Civil Courts.
The SECP’s Role in Complaint Handling
The SECP helps protect investors’ rights by providing them with an opportunity to lodge complaints against Stock Exchange Members. The SECP, with the help of the complaint information, can identify the weak areas or lack of compliance with existing regulations and can take the necessary action to correct any wrong-doing against investors.
There are certain malpractices against which a client can lodge a complaint. They are:
- Non-supply of statements of account
- Unauthorized trading (Sale/Purchase)
- Non-supply of trade confirmations within 24 hours
- Unauthorized transfer/movement of shares
- Overcharged Commission
- Failure to execute investors’ instructions/orders
- Suspension of payment
- Non-Delivery of Securities
The complaint can first be taken up with the member directly and if no settlement can be reached, the investor has the option of filing the complaint with the Vigilance Cell of the SECP on the prescribed Complaint Registration Form (“CRF”) which is available, free of cost, in the offices of Stock Exchanges and the Commission, including the Company
Registration offices (“CROs”).
All the complaints are then forwarded to the relevant Stock Exchanges for resolution. In case a dispute cannot be resolved through the Stock Exchange, they are then forwarded to the Investor Complaint Wing (“ICW”) of the Securities Market Division (“SMD”) for further processing. After carefully perusing the documents and giving the parties an opportunity of being heard, they can pass an Order according to the relevant Rules and Regulations.