Investor protection
In this chapter: Investor grievance — SCORES · Arbitration and ombudsman
SEBI runs the SCORES (SEBI Complaints Redress System) portal where investors lodge complaints against intermediaries. The exchange-level Investor Grievance Redressal Committee (IGRC) handles broker-related complaints first. Unresolved cases go to arbitration (NSE/BSE/MCX have arbitrators on panels). The Investor Protection Fund (IPF) compensates investors of defaulted brokers up to ₹35 lakh per claim.
Complaint flow: Client first complains to broker; if unresolved in 30 days, escalates to exchange IGRC; if still unresolved, to arbitration; final option is consumer court or SAT (Securities Appellate Tribunal). SCORES tracks complaint status with deadlines for each stage; SEBI monitors broker complaint metrics. The IPF was activated in cases like Karvy, Anugrah, and historical Madhavpura — clients of defaulted brokers can claim against the IPF after the broker is declared a defaulter by the exchange. Operations teams handle the complaint paper-trail, response drafting, and arbitration coordination.
A nuanced angle: "claims against IPF" require the client to have actually traded through the broker and have outstanding settlement-related dues. Pure "investment advice gone wrong" or "front-running" complaints don't qualify for IPF — those go through SCORES/arbitration but no automatic compensation. Distributors recommending brokers must understand this — the IPF protects against operational/settlement default, not against poor advice or fraud. Operations staff often field these distinctions when complainants approach them.