Frequently Asked Questions on SEBI complaints Redress System (SCORES)

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Attention: Please be informed that you should try to contact the person or company that is the cause of your complaint. You might be able to resolve your problem more quickly by speaking to them directly rather than waiting for a response to your complaint.
1. Which are the complaints dealt by SEBI?
Complaints arising out of issues that are covered under SEBI Act, Securities Contract Regulation Act, Depositories Act and rules and regulation made thereunder and provisions that are covered under section 55A of Companies Act.
2. Which are the complaints not dealt by SEBI?
Following complaints are not dealt by SEBI
• Complaints against unlisted/delisted/wound up/liquidated/sick companies
• Complaints that are sub-judice
• Complaints falling under the purview of other regulatory bodies viz.RBI, IRDA, PFRDA, CCI, etc., or under the purview of other ministries viz. MCA, FMC, etc.
Link for some of the regulators is given below:
http://iepf.gov.in/Regulates_Entity.asp
3. How do I register my complaint online in SCORES?
To register a complaint online on SCORES portal, click on “Complaint Registration” under “Investor Corner”. The complaint registration form contains personal details and complaint details. There are certain mandatory fields on the Form. These fields include Name, Address for correspondence, State, Email Address of Investor. Besides this, select the complaint category, entity name, nature of complaint related to, complaint details in brief (up to 1000 characters). A PDF document (up to 1MB of size for each nature of complaint) can also be attached along with the complaint as the supporting document.
On successful submission of complaint, system generated unique registration number will be displayed on the screen which may be noted for future correspondence. An e-mail acknowledging the complaint with complaint registration number will also be sent to the complainant’s e-mail ID entered in the complaint registration form.
In case, you are not able to register a complaint online, you can send your complaint through post to any of the SEBI offices whose addresses are given under the menu “Contact Us”.
4. While lodging complaint, certain characters are not accepted?
Certain characters are not accepted for security reasons. However, the characters which are permissible are mentioned against each field while lodging the complaint. In case certain non-usable characters are entered, then a clear explicit error message is displayed.
5. I could not find the name of the company/intermediary against whom I want to register the complaint?
Unlisted companies and name of the entities that are not registered with SEBI are not available in SCORES. It is possible that the said company/entity might have changed its name, merged into another entity or delisted or its registration with SEBI might have expired.
However, you can send your complaint by post to any of the Offices of SEBI and if the complaint pertains to a listed company/registered intermediary, the same will be taken up by SEBI.
6. If I want to lodge a complaint against a company before listing, in which category should I lodge?
You should lodge it in “Prelisting/Offer document” category under Listed Companies menu.


7. How to attach a document along with my Complaint?
If any supporting document is required to be attached along with the complaint, you can upload that document (only PDF) at the time of lodging the complaint.
There is a field with name “Upload Supporting Document” followed by a button “Browse”. On clicking the browse button, a pop-up window will be opened, prompting you to select the PDF document to be uploaded. After selecting the PDF file, click “Attach” button to enclose the selected document with the complaint. Please note that for security reasons, only PDF file can be attached. You can upload a file in PDF format up to a maximum size of 1 MB for each nature of complaint.
8. If I want to attach a document of more than 1MB, what should I do?
You can attach a document file size up to 1MB for each nature of complaint and each complaint can have up to a maximum of 5 natures. If the document size exceeds 1MB, then the document quality (dpi) may be reduced to shrink the document size to 1MB and upload only the necessary documents. In case you have more than 1MB to be loaded for each nature, then that can be sent by post to any of our SEBI offices whose addresses are given under the menu “Contact Us”.
9. What do I do if I am not able to register a complaint online?
The website of SCORES is best viewed in browsers Internet Explorer 7.0 and above or Mozilla Firefox 3.0 and above. However, if you are still unable to lodge the complaint, you can check your internet settings. Otherwise, you may contact us on telephone No.022-26449188 /9199 or you may send the complaint physically by post to any of the Office of SEBI.
10. How do I check the status of my Complaint?
To check your complaint status, click on “View Complaint Status” under “Investor Corner” on the homepage

Step 1 :	Provide the complaint registration number which was allotted at the time of registration of your complaint.
Step 2 :	Please enter your password.
	a. In case of web complaint, your e-mail address is your password.
	b. In case of physical complaints sent to SEBI, please enter the password which was communicated by SEBI in the acknowledgement letter sent to you.

On verifying the correctness of registration number, password and security code, the current status of your complaint is displayed.
11. What should I do if I forget my password to see my complaint status?
If you have lodged a web complaint, then your password is your e-mail ID. However, in case you have lodged a physical complaint, then the password is given in the acknowledgement letter sent to you. If you have not received your acknowledgement or the acknowledgement is misplaced, you may contact the help desk at 022-26449188 /9199.
12. Can I have a single password for all my complaints?
You can have a single password for all web complaints i.e. your e-mail ID. Also, if you become a registered user, you can get a single password.
13. How do I become a registered user?
To become a registered user of SCORES, you can click on “Register here” appearing on the homepage of the portal. You will have to fill in Registration form. The username and password of SCORES will be sent to your registered e-mail ID.
14. What is the advantage of becoming a registered user?
Personal details need not be entered for every new complaint once you become a registered user. You can also track all your complaints (including previous complaints that were lodged with same e-mail ID) with a single login.
15. How to send reminder for my Complaint?
If you want to send a reminder for your earlier lodged complaint, then click on the link “Send Reminder” under “Investor Corner” on the homepage. Provide details like Registration number, Reminder details and the security code.
16. How to reply to a clarification sought from me?
If a clarification has been sought by SEBI or the entity against which complaint is lodged, you can send the reply online. The reply can be sent by clicking on the link “Send Reply” while viewing the status of your complaint through “View Complaint Status Form” (Please refer to the reply to question “How do I check the status of my Complaint?” to view status of the complaint).In case, you are not able to send reply to clarification online, you can send it through post to any of the SEBI offices whose addresses are given under the menu “Contact Us” by providing your unique registration number.
17. Can I complain about market or price manipulation or violation of Insider trading regulations?
Yes. You can lodge your complaint about market or price manipulation or violation of Insider trading regulations under ‘Information to SEBI’.


However, status of your complaint cannot be disclosed since SEBI conducts examinations and investigations confidentially. As a result, SEBI will neither confirm nor deny the existence of any investigation. Any regulatory actions taken by SEBI are published at SEBI website at www.sebi.gov.in after the proceedings are completed.
18. Can I give suggestions through SCORES website?
You can send your suggestions, if any, to e-mail id sebi@sebi.gov.in
19. How is my complaint handled?
SEBI examines your complaint and decides whether the subject-matter falls under the purview of SEBI and whether it needs to be referred to concerned entity. After examination, SEBI forwards the complaint to the concerned entity with an advice to send a written reply to you and file an action taken report in SCORES.
20. How long does it take the entity to respond to my complaint?
Generally, the complaint will be responded within a few days after the receipt of your complaint. If your complaint is complex, it may take a little longer.
21. What is the timeline to get my complaint resolved?
Entities are required to submit the action taken report within a reasonable period but not later than 30 days.
22. Why is my complaint pending for a long time?
The complaint may be pending due to various reasons viz., non-receipt of satisfactory reply from the entity, non-receipt of information/documents sought by the entity/SEBI from the investor, court matter, entity not traceable or vanished companies, etc.
23. When is my complaint treated as disposed of?
On receipt of satisfactory action taken report along with supporting documents, if any, from the entity or the concerned Stock Exchange/Depository, or if the complainant fails to give complete details/documents required for redressal of his complaint within the prescribed time, the complaint is treated as disposed of.
24. Whether I will receive intimation about disposal of my complaint?
Yes. An e-mail is sent to the complainant’s e-mail ID available in SCORES. Complainant can also view the disposal details online by following the procedure given above in answer to “How do I check the status of my Complaint?”
25. What shall I do if I am not satisfied with the disposal of the complaint?
In case the complainant is not satisfied with the disposal of the complaint, a fresh complaint can be lodged or an e-mail can be sent to the concerned Dealing Officer or escalate the complaint by sending an e-mail to Senior Officers whose e-mail IDs are given at the menu “Contact Us”. Further, you can initiate appropriate legal proceedings against the entity.
26. What are the limitations in dealing with my complaint?
Sometimes a complaint is successfully resolved when the entity was advised to send reply to you. But in certain cases, the entity or company denies wrongdoing, and it remains unclear as to who is wrong or whether any wrongdoing occurred at all. If this happens, SEBI cannot act as a judge or an arbitrator and force the entity or company to resolve your complaint. Further, SEBI cannot act as your personal representative or attorney. But the law allows you to take legal action on your own.
27. Can I take legal action on my own?
Securities and other laws provide important legal rights and remedies if you have suffered wrongdoing. Acting on your own, you can seek to resolve your complaint through the courts, consumer courts, or arbitration.
To take advantage of these laws, you must take legal action promptly or you may lose the right to recover funds. Please note that as per the “law of limitations,” there are some time periods within which court proceedings should be initiated.
28. When can SEBI take action for non-resolution of my complaint?
While the entity is directly responsible for redressal of your complaint, SEBI initiates action against recalcitrant entities on the grounds of their failure to redress large number of investor complaints as a whole. For redress of your complaint, you may have to pursue appropriate legal/arbitration remedies.
29. When can I refer my case to arbitration?
If you have an account with the broker or a depository participant (DP), you probably agreed to use only arbitration to settle all disputes with your broker or DP. But even if you did not, you may choose to use arbitration to settle disputes. You generally cannot pursue an issue through arbitration if it is barred by limitation prescribed. When deciding whether to arbitrate—or, if it is a choice, to sue in court—bear in mind that if your broker or DP goes out of business or declares bankruptcy, you might not be able to recover your money—even if the arbitrator or court rules in your favour. However, with certain restriction to the nature of transactions, Stock Exchanges may settle the claim of an investor up to a limit prescribed in the ‘investor protection fund’ guidelines of the respective Stock Exchange.
Simplified arbitration can be a less costly alternative. You should carefully review the rules governing simplified arbitration before you file a claim. Again, you should always weigh the costs of arbitrating against the likelihood of being able to collect any award in your favour, especially if the brokerage firm has left the industry or gone bankrupt. Firms that stay in business typically pay the arbitration awards levied against them, but defunct firms may not.
To obtain information about how to file an arbitration claim,
BSE: http://www.bseindia.com/invdesk/Arbitrage.asp
NSE: http://www.nseindia.com/content/assist/asst_investser.htm
30. How do I learn more on other issues related to securities market?
You may learn more on other issues related to securities market through FAQs provided in the link below.
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1315458767512.pdf
http://www.sebi.gov.in/sebiweb/home/list/4/37/0/1/FAQs
http://investor.sebi.gov.in


 

PPF Investment Limit increased to 1 lakh from 1.12.2011 and interest on loan against PPF will cost 2 percent extra

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Public Provident Fund (Amendment) Scheme, 2011 – Amendment in paragraphs 3, 11 and Form A
NOTIFICATION [F.No. 1/9/2011-NS-II], dated 25-11-2011
In exercise of the powers conferred by sub-section (4) of section 3 of the Public Provident Fund Act, 1968 (23 of 1958), the Central Government hereby makes the following further amendment to the Public Provident Fund Scheme, 1968, namely :-
1. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2011.
(2) It shall come into force on the 1st day of December 2011.
2. In the Public Provident Fund Scheme, 1968, -
(i) in paragraph 3, in sub-paragraph (1), for the letters and figures “Rs 70,000/-”, the letters and figures “Rs 1,00,000″ shall be substituted;
(ii) in paragraph 11, in sub-paragraph (2), for the words “one per cent, per annum”, the words “two per cent, per annum” shall be substituted;
(iii) in Form-A, in paragraph (iv), for the letters and figures “Rs 70,000/-”, the letters and figures “Rs 1,00,000″ shall be substituted.


 

CBEC declares Rate of exchange of conversion of each of the foreign currency with effect from 1st January, 2012

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Notification No.88 / 2011 – Customs (N.T.), Dated the 28^th December, 2011

S.O. (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.82/2011-CUSTOMS (N.T.), dated the 28^th November, 2011 vide number S.O. 2684(E), dated the 28^th November, 2011, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 1^st January, 2012 be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

SCHEDULE – I

S.No.	Foreign Currency	Rate of exchange of one unit of foreign currency equivalent to Indian rupees
(1)	(2)	(3)
		(a)	(b)
		(For Imported Goods)	(For Export Goods)
1.	Australian Dollar	54.30	53.10
2.	Canadian Dollar	52.35	51.15
3.	Danish Kroner	9.40	9.15
4.	EURO	69.90	68.30
5.	Hong Kong Dollar	6.85	6.75
6.	Norwegian Kroner	9.00	8.70
7.	Pound Sterling	83.45	81.65
8.	Swedish Kroner	7.80	7.55
9.	Swiss Franc	57.10	55.80
10.	Singapore Dollar	41.30	40.35
11.	US Dollar	53.25	52.45

SCHEDULE-II

S.No.	Foreign Currency	Rate of exchange of 100 units of foreign currency equivalent to Indian rupees
(1)	(2)	(3)
		(a)	(b)
		(For Imported Goods)	(For Export Goods)
1.	Japanese Yen	68.65	66.90

Companies (Accounting Standards) (Second Amendment) Rules, 2011 – Amendment in sub-heading ‘Accounting Standard (AS) 11’ relating to The Effects of Changes in Foreign Exchange Rates

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MINISTRY OF CORPORATE AFFAIRSNOTIFICATION

New Delhi, dated 29 December, 2011

GSR :- In exercise of the Powers conferred by clause (a) of sub-section (1) of section 642 read with sub-section (1) of section 210A and sub-section (3C) of section 211 of the Companies Act, 1956 ( 1 of 1956), the Central Government in consultation with the National Advisory Committee on Accounting Standards, hereby makes the following amendments in the Companies (Accounting Standards) Rules, 2006, namely :-
1. (1) These rules may be called the Companies (Accounting Standards) (Second Amendment) Rules, 2011,

(2)They shall come into force on the date of their publication the Official Gazette.

2. In the Companies (Accounting Standards) Rules, 2006, (hereinafter referred to as the said rules), in the Annexure, Under the heading “B. ACCOUNTING STANDARDS”, in the sub-heading “Accounting Standard (AS) 11″ relating to The Effects of Changes in Foreign Exchange Rates”, after paragraph 46, the following paragraph shall be inserted, namely,-

” 46A. (1) In respect of accounting periods commencing on or after the 1st April, 2011, for an enterprise which had earlier exercised the option under paragraph 46 and at the option of any other enterprise (such option to be irrevocable and to be applied to all such foreign currency monetary items), the exchange differences arising on reporting of long-term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements , in so far as they relate to the acquisition of a depreciable capital asset, can be added to or deducted from the cost of the asset and shall be depreciated over the balance life of the asset, and in other cases, can be accumulated in a “Foreign Currency Monetary Item Translation Difference Account” in the enterprise’s financial statements and amortized over the balance period of such long term asset or liability, by recognition as income or expense in each of such periods, with the exception of exchange differences dealt with in accordance with the provisions of paragraph 15 of the said rules.

(2) To exercise the option referred to in sub-paragraph (1), an asset or liability shall be designated as a long term foreign currency monetary item, if the asset or liability is expressed in a foreign currency and has a term of twelve months or more at the date of origination of the asset or the liability:

Provided that the option exercised by the enterprise shall disclose the fact of such option and of the amount remaining to be amortized in the financial statements of the period in which such option is exercised and in every subsequent period so long as any exchange difference remains unamortized.”

 

Companies (Accounting Standards) Amendment Rules, 2011 – Amendment in date of Applicability of Accounting Standard (AS) 11 relating to ‘The Effects of Changes in Foreign Exchange Rates’

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MINISTRY OF CORPORATE AFFAIRS

Notification

Date- 29th December, 2011

GSR. :- In exercise of the powers conferred by clause (a) of sub‑ section (1) of Section 642 read with sub-section (1) of Section 210A and sub-section (3C) of Section 211 of the Companies Act, 1956 (1 of1956), the Central Government in consultation with the National Advisory Committee on Accounting Standards, hereby makes the following amendment in the Companies (Accounting Standards) Rules, 2006, hereinafter called the said rules, namely:-
1. (1) These rules may be called the Companies (Accounting Standards) Amendment Rules, 2011.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the said rules, in the annexure under the heading “B. Accounting Standard”, in the sub-heading “Accounting Standard (AS) 11″ relating to “The Effects of Changes in Foreign Exchange Rates”, in paragraph 46, for the words and figures “46. In respect of accounting periods commencing on or after 7^th December, 2006 and ending on or before 31′ March, 2012″, the following shall be substituted, namely :-

“46. In respect of accounting periods commencing on or after 7^th December, 2006 and ending on or before 31′ March, 2020.

 

A view on deductibility of TDS on service tax and other expenses included in Bill amount

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There are 18 Sections in Income Tax Act, 1961 that provides for Deduction of Tax at Source. Out of these 18, only 3 sections [194C, 194J and 194L] use that phrase “on income comprised therein”. Further these words appear at the end of the taxing provision and naturally can not be ignored. All the other 15 do not contain this phrase.

Now the question that arises is WHY only for these 3 sections [194C, 194J and 194L] and not for other 15. It is very very simple, because in the case of the remaining 15 sections the question of “income and non income does not and can not arise.” In was only when Service Tax was introduced for Rent on commercial property the non income component namely the ST arose and the government promptly issued notification excluding the tax from TDS provision.

The very fact that this phrase “on income comprised therein” has been used naturally means that there can be non income component also being part of a payment. Further payments situation covered under these three sections alone can have both income and non-income component. [See the example given below]

If the legislatures’ intention was to tax on the whole payment this phrase “on income comprised therein” has no place in these sections / entire Income Tax Act, 1961.

The departmental circular “715 of 08-08-1995” makes this phrase “on income comprised therein” redundant [or unwanted; useless], and this can not be intention of the legislature. Otherwise they could have simply said “on such payment” instead of using the phrase “on income comprised therein”

SC decision on ACC will be dealt with appropriately in the end of this article.

Now the question is why only these 3 sections have this phrase “on income comprised therein”

Let us take an example (as amended by Finance Act 2010):

A CA raises a bill on his client Rs. 24,000 as Prof Fee + Rs. 4,000 towards hotel bill [bill produced as proof for reimbursement] + Rs. 2,472 towards service Tax Totalling to: Rs. 30,472.00. Then TDS is deductible. But the hotel bill which is a reimbursement and service tax can under no stretch of imagination be treated as income. Hence the TDS is to be made on Rs. 24,000.00 only (even though this alone does not exceed the threshold limit) which is the “income component” of the total bill.

Now the SC case: The detailed agreement of ACC has to be read before commenting on the SC judgement. How ever to a limited extent it can be said since the phrase “on income comprised therein” is used at the end of the taxing provision and, there are no punctuations between “…. deduct an amount equal to … of such sum as income-tax” and the phrase “on income comprised therein” the phrase can not excluded while reading or interpreting these three sections.

It is true that it is not the intention of the legislature to thrust on the deductor the task of finding the income component in general but any layman can say that a reimbursement that is supported with document and the indirect TAX component are not, repeat not, and can never constitute an income

I can see few professionals jumping on to their feet and question how I can hold SC wrong, quoting Article 141 of the Constitution that says that the Act defined by the SC is final.

Please read Article 137 also, that precedes Article 141:

137. Review of judgments or orders by the Supreme Court :— Subject to the provisions of any law made by Parliament or any rules made under article 145, the Supreme Court shall have power to review any judgment pronounced or order made by it.

After all they are human beings hence the “Lady Blindfolded” holding the Physical-Balance in hand is given as symbol for judiciary.

This amply means that even God can mistake and He and only He has the power to rectify it, either suo-moto or on appeal.

Please Note:- Currently Department insist on deduction of TDS on Gross amount which includes Service tax except in the case of Rent. In case of Rent Assessee need to deduct TDS only on Rent amount ,not on service tax component but in case of other expenses Assessee need to deduct TDS on service tax component also.

Waiver of principal amount of working capital loan not a capital receipt; Amount waived off taxable as deemed business profit u/s 41(1)

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ROLLATAINERS LTD. Vs. COMMISSIONER OF INCOME TAX (DELHI HIGH COURT)

The assessee, Rollatainers Ltd was declared as a sick company by Board for Industrial Financial Reconstruction (BIFR) due to poor financial position and erosion of entire net worth. Pursuant to Restructuring Package as approved by Corporate Restructuring Cell, the bank waived off the interest and principal amount of working capital loan granted in the form of ‘Cash Credit’ to the assessee. The assessee treated the waiver of principal amount of loan as capital receipt and hence argued that the same was not taxable. A division bench of Delhi HC, rejecting assessee’s contention, ruled that waiver of principal amount of working capital loan in the form of Cash Credit was ‘revenue’ in nature.

HC thus held that Sec 41(1) was applicable and waiver of principle amount of loan was taxable as income. HC relied on its own decision in Logitronics Pvt. Ltd. [ TS-54-HC-2011(DEL) ] wherein it was held that taxability of waiver of loan amount depends upon purpose of borrowing. In Logitronics’s case, HC had observed that waiver of loan taken for acquiring a capital asset, would be treated as non taxable capital receipt and where the loan is taken for trading or ongoing business operations, it would be treated as taxable income.

 

Waiver of unsecured loan is a capital receipt non chargeable to tax

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High Court of Karnataka

CIT Vs. M/S Compaq Electric Ltd.,

ITA No. 172 Of 2011,

Date Of Order : 18/10/2011

Honorable High Court held that waiver of unsecured loan is a capital receipt non chargeable to tax u/s 41(1) of the Act since there is no prior deduction/allowance of the same to assessee. The condition precedent is that there should be an allowance or deduction in the assessment for any year in respect of loss, expenditure or trading liability incurred by the assessee. then, subsequently, during any previous year, if the creditor remits or waives any such liability, then the assessee is liable to pay tax under section 41. The whole object is to avoid double benefit to the assessee. In the instant case, the amount claimed as capital receipt is in respect to which there was no allowance or deduction claimed by the assessee for the previous year. therefore when his creditor has waived the repayment of the said amount, it amounts to a capital recipt and not a revenue receipt as the assessee did not have the benefit of any allowance or deduction in respect of the said amount section 41 is not attracted.