CIRCULAR
SEBI/HO/MRD/MRD-POD- 3/CIR/P/2023/104
June 26, 2023
To
All Recognized Stock Exchanges
(Excluding Commodity Derivatives Exchanges)
Dear Sir/Madam,
Sub: Investor Service Centres of Stock Exchanges
1. SEBI vide Circular No.SMD/POLICY/CIR-32/97 dated December 03, 1997 advised all
stock exchanges to open or maintain atleast one Investor Service Centre (ISC) for the
benefit of the investors. Such centres are required to, inter alia, provide counseling
service and provide certain basic minimum facilities to the investors. The major stock
exchanges were allowed to open as many ISCs as required.
2. Subsequently, vide SEBI Circulars No. CIR/MRD/DSA/03/2012 dated January 20,
2012, No.CIR/MIRSD/2/2012 dated February 15, 2012 and No. CIR/MRD/ICC/21/2013
dated July 05, 2013, it was mandated that apart from the ISCs that are operating in
metro cities (viz., New Delhi, Mumbai, Chennai and Kolkata), stock exchanges having
nationwide terminals shall open ISCs in Ahmedabad, Hyderabad, Kanpur, Indore,
Bangalore, Pune, Jaipur, Ghaziabad, Lucknow, Gurgaon, Patna and Vadodara.
3. Considering significant development in the securities market including technological
advancements since the issuance of abovementioned circulars, a need was felt to
review the provisions related to ISCs of stock exchanges. Based on consultation with
the stock exchanges, the following have been decided:
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3.1. In order to reach out to the investors across India, the stock exchanges shall make
use of the existing ISCs at locations mentioned at paragraph-2 above and open
additional ISCs wherever required; or as specified or to be specified by the Board
from time to time. The ISCs can be set up either by one stock exchange or jointly
by two or more stock exchanges as per their mutual agreement.
3.2. ISCs shall at least provide the following basic minimum facilities:
i. Four financial daily newspapers with at least one in the regional language of the
place where the ISC is situated. In case, the financial newspaper is not
available in the regional language of the place, any leading newspaper in that
regional language shall be provided.
ii. A dedicated desktop or laptop with internet connectivity to enable the investors
to access various relevant information available in public domain and also to
access SEBI’s and stock exchange’s grievance redressal portals.
iii. Facilities for receiving investor complaints in both physical and electronic form.
One dedicated staff shall be posted at the ISC to register investor complaints
and also to guide & counsel the investors. The updated status of all complaints
shall be maintained in electronic form.
iv. Facilitation desks at all ISCs to assist the investors in the dispute resolution
process. These desks shall, inter alia, provide investors the required documents
or details, if any, for making application to investor Grievance Redressal Panels
and filing arbitration applications (including appellate arbitration).
v. Arbitration and appellate arbitration facility at all ISCs including video-calling
facility to investors for attending their online arbitration (including appellate
arbitration) or Grievance Redressal meetings, if any.
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vi. A meeting room for at least 5 to 6 persons and additional sitting space for at
least 5 to 6 persons.
vii. Other infrastructure facilities such as telephone, photocopier, printer, scanner,
internet access, furniture, etc.
viii. A library on relevant laws (including Acts, Rules, Regulations, Circulars or
master circulars, Guidelines, etc. and bye-laws, rules, regulations and circulars
or master circulars of stock exchanges, clearing corporations and depositories),
common booklets on various areas of securities markets, educational materials,
etc. for the investors. In case of receipt of request for physical copies of relevant
laws, the same shall be provided at a minimal cost.
ix. A register or database of visitors (including investors) for future
correspondence, whenever required.
3.3. For up-gradation of knowledge of officials at ISCs, stock exchanges shall ensure
that:
i. All the officials at ISCs have been provided adequate training on various areas
of securities market, how to counsel or guide the investors to appropriately
lodge their complaints (including lodging of complaints on SCORES platforms),
how to resolve the investor grievances, promotion of investor education and
awareness to enhance securities market literacy and retail participation, etc.
ii. The training on securities market should, inter-alia, cover the following areas:
a) Overview of securities market (both primary and secondary markets);
b) Functions and operations of Stock Exchanges, Clearing Corporations and
Depositories;
c) Functions and operations of market intermediaries dealing with investors
such as, Stock Brokers, Depository Participants, Mutual Funds, Investment
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Advisers, Research Analysts, Portfolio Managers, Registrar and Transfer
Agents, etc.
iii. The officials at ISCs should also have requisite NISM certification covering the
areas mentioned at paragraph 3.3(ii) above.
4. Applicability:
4.1. The provisions of this circular, except provisions at paragraph 3.3 above, shall
come into effect from the 90th day of issuance of this circular.
4.2. The requirements at paragraph 3.3 above shall be complied with in a phased
manner i.e. by at least one official at ISCs shall comply with the requirements
within 6 months and all officials at ISCs shall comply within 12 months, from the
date of issuance of this circular.
4.3. The existing provisions on ISCs issued through various SEBI circulars
mentioned as under shall be rescinded with effect from the date of implementation
of this circular:
i. SEBI Circular No. SMD/POLICY/CIR-32/97 dated December 03, 1997.
ii. Para 4 of SEBI Circular No. CIR/MRD/DSA/03/2012 dated January 20, 2012.
iii. SEBI Circular No. CIR/MIRSD/2/2012 dated February 15, 2012.
iv. SEBI Circular No. CIR/MRD/ICC/21/2013 dated July 05, 2013.
v. Para 5 of SEBI Circular No. CIR/MRD/ICC/30/2013 dated September 26,
2013.
5. All recognized stock exchanges are advised to:
a) take necessary steps and put in place necessary systems for implementation of the
above.
b) make necessary amendments to the relevant bye-laws, rules and regulations,
wherever required, for the implementation of the above; and
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c) bring the provisions of this circular to the notice of market participants (including
investors) and also to disseminate the same on their website;
6. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 and Section 10 of the Securities
Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and
to promote the development of, and to regulate the securities markets.
7. This circular is available on SEBI website at www.sebi.gov.in at “Legal Framework-
Circulars.”
Yours faithfully,
Hruda Ranjan Sahoo
Deputy General Manager
Tel no.: 022-26449586
Email: hrsahoo@sebi.gov.in
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