Archive / Investment Adviser (Level 1) / Grievance Redress Mechanism

nism-series-xa-scores-21-day-intermediary-grievance-timeline[ INVESTMENT ADVISER (LEVEL 1) ]

Under SEBI's updated complaint redressal framework, what is the mandatory timeline for an intermediary to resolve an investor grievance received on the SCORES portal?

[ A ]Within 24 hours.

[ B ]Within 365 calendar days.

[ C ]Within 21 calendar days from the date of receipt of the grievance, failing which automatic escalation and regulatory enforcement proceedings are initiated.[ CORRECT ]

[ D ]Intermediaries are under zero legal obligation to respond to SCORES complaints.

Takeaway

Intermediaries must resolve investor grievances filed on SEBI's SCORES portal within 21 calendar days from receipt, failing which the system triggers automatic escalation and potential enforcement action.

Derivation

SCORES (SEBI Complaints Redress System) is the centralized online platform through which investors can escalate complaints against any SEBI-regulated intermediary, and SEBI enforces a strict, uniform 21-day resolution window to prevent intermediaries from indefinitely stonewalling investor complaints. Because SCORES tracks aging automatically, a complaint left unresolved past 21 days is flagged for escalation, which can trigger regulatory scrutiny or penalty action against the intermediary — creating a real compliance incentive, not just a best-practice guideline. This same 21-day figure recurs across several grievance-mechanism questions in the syllabus (companies, intermediaries, SCORES itself), and the exam tests recall of this specific, consistent statutory number.

Why the others fail

A — Within 24 hours.

24 hours is far shorter than SEBI's actual prescribed SCORES resolution window; the statutory turnaround time mandated for intermediaries is 21 calendar days, not one day.

B — Within 365 calendar days.

365 calendar days is a gross violation of SEBI's actual investor grievance turnaround standard — the correct statutory window is 21 days, not a full year.

D — Intermediaries are under zero legal obligation to respond to SCORES complaints.

Resolving SCORES complaints within the prescribed 21-day window is a mandatory statutory legal obligation for SEBI-regulated intermediaries, not a discretionary matter they can ignore.