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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023

16-Aug-2023 | SEBI/LAD-NRO/GN/2023/146

Securities and Exchange Board of India (SEBI) has issued the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023, effective from August 16, 2021.

The key highlights of the regulations are as follows:

1. Merchant Bankers Regulations, 1992:
a. A new regulation 28C is inserted after regulation 28B, focusing on the Grievance Redressal Mechanism.
b. Merchant Bankers are required to promptly address investor grievances within twenty-one calendar days of receiving them, as per guidelines specified by SEBI.
c. SEBI may also recognize a corporate body responsible for overseeing and managing the grievance redressal process.

2. Debenture Trustees Regulations, 1993:
a. A new regulation 14B is added after regulation 14A, addressing the Grievance Redressal Mechanism for debenture trustees.
b. Debenture trustees are mandated to resolve investor grievances within twenty-one calendar days of receiving them, following SEBI's guidelines.
c. SEBI has the authority to acknowledge a corporate body to handle and supervise the grievance redressal procedure.

3. Alternative Investment Funds Regulations, 2012:
a. After regulation 24, a new regulation 24A is introduced, focusing on the Grievance Redressal Mechanism for Alternative Investment Funds (AIFs).
b. AIF Managers are obligated to address investor grievances in a timely manner, not exceeding twenty-one calendar days from the grievance receipt date, adhering to SEBI's specifications.
c. SEBI is empowered to designate a corporate entity to manage and monitor the grievance redressal process.

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