Outlook Business Desk
Investor complaints against listed companies surged to a record 12,473 in FY25, marking a 43% increase from the previous year. Of these, over 12,200 were resolved, leaving 691 pending, reported Mint.
Digital investment platforms have made it easier for retail investors to raise complaints. Issues that might have gone unnoticed in the past are now being reported, showing where companies are falling short and highlighting gaps in how grievances are handled.
The rise in investor complaints in FY25 is linked to unregistered financial influencers (finfluencers) and easier online filing. Retail investors are now more proactive in reporting issues, exposing mis-selling and gaps in company practices.
Many investor complaints take a long time to resolve, sometimes stretching over months or even years. These delays are often caused by procedural hurdles, incomplete responses from companies, and poor follow-up systems.
SEBI introduced SCORES 2.0 in April 2024 to improve investor grievance redressal. The upgraded system has streamlined complaint handling, with over 68,000 complaints logged so far. Features like auto-routing, auto-escalation, and two-level review ensure faster and more efficient resolution.
SEBI is now also engaging with social media platforms like Meta, YouTube, and Telegram to curb misleading financial advice from unregistered finfluencers. By collaborating with these platforms, SEBI aims to prevent the spread of incorrect information that leads to investor losses and subsequent complaints.
Experts emphasise that improving investor awareness and education is crucial to reducing complaints. With better understanding of financial products and risks, investors are less likely to rely on unverified advice from finfluencers.