Consider a situation where a long-term client contacts you, agitated because a systematic withdrawal plan (SWP) from their balanced advantage fund has not credited their bank account for two consecutive months. While you might be tempted to dismiss this as a minor technical glitch, your role as an MFD requires you to treat this as a formal investor grievance.
SEBI has established a structured grievance redressal mechanism, often referred to as SCORES (SEBI Complaints Redress System), which acts as a safety net for investors when direct communication with the Asset Management Company (AMC) or the Registrar and Transfer Agent (RTA) proves insufficient. Understanding this process is not merely a regulatory requirement; it is a critical component of maintaining your client’s long-term trust.
When a client faces a genuine issue, such as a missing redemption amount or incorrect personal details on their account statement, the first point of contact should always be the AMC’s customer service or the RTA like CAMS or KFintech. If the resolution is delayed or unsatisfactory, the investor has the right to escalate the matter. As an MFD, you should guide your client through this hierarchy rather than attempting to resolve complex operational disputes yourself.
By facilitating the formal lodging of a complaint through proper channels, you demonstrate professional integrity and protect yourself from being perceived as a barrier to the client’s rightful resolution.
In the context of the NISM examination and your daily practice, recognizing the limits of your authority is paramount. You are expected to educate your clients on their right to seek redressal, which may eventually extend to the Securities Appellate Tribunal if the issue remains unresolved after exhausting all administrative remedies. Your value lies in being the informed bridge between the retail investor and the complex regulatory infrastructure.
When you proactively provide information on how and where to register a grievance, you empower the client, which in turn reinforces your position as a trusted and transparent partner in their financial journey.
Ultimately, viewing grievances not as professional failures but as opportunities to demonstrate institutional support will set your practice apart. A calm, systematic approach to resolving these friction points ensures that the investor remains focused on their long-term goals rather than getting lost in the machinery of market operations.
Nuance
Check Your Understanding
An investor is dissatisfied with the response from an AMC regarding an incorrect redemption amount and wishes to escalate the issue. Which platform is specifically designed by SEBI for investors to lodge their grievances against market intermediaries?
If an investor remains unsatisfied with the resolution provided by the AMC and the RTA regarding a grievance, what is the standard hierarchical path for further escalation?
This is a companion read for Section 4.2 — Role of Securities and Exchange Board of India from Ace the NISM Mutual Fund Distributors Exam by Akhilesh Gururani, available on Amazon Kindle.
Copyright © 2026 Akhilesh Gururani. All rights reserved.