Grievance Redressal — Broker, Exchange, SCORES, IPF
SEBI mandates a layered grievance-redressal framework — (1) investor complains to broker first, (2) escalates to exchange Investor Grievance Cell, (3) escalates...
Escalation Ladder + IPF
SEBI mandates a layered grievance-redressal framework — (1) investor complains to broker first, (2) escalates to exchange Investor Grievance Cell, (3) escalates to SEBI SCORES portal, (4) arbitration or Securities Appellate Tribunal (SAT). Investor Protection Fund (IPF) of each exchange compensates investors up to defined limits in broker-default cases.
Step 1 — Broker: must respond within 21 days. Step 2 — Exchange: if broker fails, investor files with NSE/BSE Investor Grievance Cell; 30-day SLA. Step 3 — SEBI SCORES (online portal, scores.sebi.gov.in): complaints against any SEBI-registered intermediary; tracked with ticket numbers. Step 4 — Arbitration / SAT: for claims up to ₹10 L, investor + broker arbitrate at exchange; SAT appeals allowed. IPF Cover: NSE ₹25 L per investor per broker default; BSE ₹15 L. Coverage excludes bad investment decisions — only broker fraud / insolvency.
Broker → Exchange → SCORES → SAT
₹25 L cover per investor (NSE) for broker default
Every complaint tracked with unique ID
Securities Appellate Tribunal at Mumbai
A Practical Example
If broker had been insolvent: NSE's IPF would have paid her ₹1.2 L (within ₹25 L cap) within ~60 days — insulating investors from broker failures.
What Makes This Important
Frequently Asked Questions
No. IPF covers losses arising from broker default, fraud or insolvency — NOT from poor investment decisions by the investor themselves. A stock going down does not qualify.
🧠 Quick Quiz
2 questions to check your understanding