How to Report SEBI Regulation Violations in India

How can I report a violation of SEBI regulations?

Reporting a violation of SEBI (Securities and Exchange Board of India) regulations through formal, recognised grievance and complaint mechanisms, depending on who committed the violation (broker, intermediary, listed company, mutual fund, etc.) and the nature of the issue.

Below is a clear, step-by-step guide, suitable for investors, clients of stock brokers, and compliance teams.

1. Report Through SCORES (SEBI’s Official Grievance Portal)

SCORES (SEBI Complaints Redress System) is SEBI’s online platform for lodging complaints against:
- Stock brokers / sub-brokers
- Depository participants (DPs)
- Mutual funds / AMCs
- Portfolio managers
- Investment advisers / research analysts
- Listed companies
Scores is used when our grievance is not resolved by the intermediary. However, if unresolved within 30days, file on scores are registered as an Investor. Select the intermediary and violation category and Upload supporting documents (contract notes, emails, statements).

2. Use Stock Exchange / Depository Grievance Mechanism

If the violation involves:
Trading-related issues → NSE / BSE grievance redressal
Demat-related issues → NSDL / CDSL grievance portals

These bodies can:
- Impose penalties
- Escalate matters to SEBI
- Refer disputes to arbitration

3. Arbitration (Investor–Broker Disputes)

If a grievance involving monetary loss is not resolved by the broker, the investor may approach the concerned stock exchange for arbitration. Fast-track and regular arbitration mechanisms are available. The arbitral award is binding and enforceable as per law.

4. Reporting of Serious Regulatory Violations (Whistleblower)

Serious violations such as market manipulation, insider trading, front-running, forged KYC, or misuse of client accounts may be reported directly to SEBI. Complaints should be supported with relevant documents, and confidentiality may be requested where permitted. SEBI may initiate investigation or enforcement action.

5. Information to be Provided in a Complaint

Complaints should clearly state the client and intermediary details, nature of the violation, transaction particulars, and relevant dates and amounts. Supporting documents should be enclosed for proper examination. Incomplete complaints may lead to delay or closure.

6. Action by SEBI on Complaints

Based on its review, SEBI may direct resolution of the grievance, impose penalties, suspend or cancel registration, order disgorgement or refunds, or initiate prosecution in serious cases. SEBI acts as a regulator and not as a civil court for awarding compensation beyond prescribed mechanisms.

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