Archive / Investment Adviser (Level 1) / Grievance Redress Mechanism

nism-series-xa-listed-company-shareholder-grievance-timeline[ INVESTMENT ADVISER (LEVEL 1) ]

Under SEBI regulations, what is the mandatory timeline for listed companies to redress shareholder grievances received directly?

[ A ]Within 21 calendar days from the date of receipt of the grievance, updating the status on SEBI SCORES.[ CORRECT ]

[ B ]Within 24 hours.

[ C ]Listed companies are under zero legal obligation to respond to shareholders.

[ D ]Within 365 days.

Takeaway

Listed companies must redress shareholder grievances received directly within 21 calendar days of receipt, with the resolution status updated on SEBI's SCORES portal.

Derivation

SEBI's investor-grievance framework applies a uniform statutory turnaround time across regulated entities to prevent open-ended delays in resolving shareholder complaints, whether the complaint relates to non-receipt of dividends, transfer/transmission issues, or other corporate-action disputes. The 21-day clock and the SCORES status-update requirement together create both a service-level obligation and a transparency mechanism, since unresolved or overdue complaints become visible on the regulator's tracking system, which can trigger escalation. This standardized 21-day figure recurs across multiple grievance-related SEBI questions in the syllabus (companies, intermediaries), and the exam tests whether candidates correctly recall this specific numeric turnaround time.

Why the others fail

B — Within 24 hours.

24 hours is far shorter than the actual statutory turnaround window; SEBI's prescribed timeline for listed companies to redress shareholder grievances is 21 calendar days, not one day.

C — Listed companies are under zero legal obligation to respond to shareholders.

Shareholder grievance redressal within the prescribed timeline is a mandatory statutory listing-compliance obligation for listed companies, not something they can legally decline to address.

D — Within 365 days.

365 days grossly exceeds the actual statutory turnaround standard; SEBI mandates listed companies resolve shareholder grievances within 21 calendar days, not up to a full year.