SEBI’s New Master Circular on Stockbrokers: How Investors Can File Complaints

When you trade in the stock market, your stockbroker is your gateway to the exchange. So, you naturally expect them to be responsive, transparent, and on top of things. But what if they aren’t? Maybe your funds are stuck, your trade execution has gone wrong, or you’ve raised a concern that no one’s responding to. What’s your next move?

In such cases, investors often feel stuck. The good news is that India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has set up clear mechanisms for grievance redressal.

With its latest master circular for stockbrokers released on June 17, 2025, SEBI has tightened the framework and streamlined processes for tackling investor complaints. This circular is quite significant – it is the first update since the earlier one issued on August 9, 2024, and it covers everything from registration and supervision of stockbrokers to investor grievance handling, tax compliance, and beyond.

In this blog, let’s focus on what matters most to investors: How you can file a complaint against your stockbroker and what SEBI’s new circular means for you.

Can You File Complaints Against Stockbrokers?

The short answer is: Yes, absolutely. If investors face any kind of trouble with their stockbroker, they are fully entitled to raise a complaint. This right has now been further reinforced by SEBI’s guidelines.

The master circular makes it clear:

• Every registered stockbroker must designate an exclusive email ID solely for handling investor complaints.
  
• This email ID should directly reach the grievance redressal division or the compliance officer at the brokerage.
  
• That means no more confusion about where to send complaints or whether the issue will reach the right desk.

In fact, SEBI insists on visibility. Stockbrokers are not only required to create this complaint ID but also:

• Display it prominently on their websites and portals.
• Make sure the grievance email is clearly visible – not just on the website, but in every pamphlet, ad, or investor awareness drive. 

That way, if something goes wrong, investors immediately know who to contact.

The Complaint Escalation Process

Now, let’s understand the complaint process step by step.

Step 1: Contact Your Broker Directly

Your first course of action should be to reach out to your stockbroker using their dedicated grievance redressal email ID. Since SEBI has made this mandatory, you should find it easily accessible.

• Clearly describe your issue.
  
• Share all supporting documents (transaction details, contract notes, etc.).
  
• Allow the broker some time to respond.

If the matter isn’t resolved satisfactorily, you can escalate it further.

Step 2: Approach the Stock Exchange via SCORES

If your broker does not resolve the issue, SEBI has built a robust system to handle such complaints: the SCORES platform (SEBI Complaints Redress System).

Here’s how SCORES works:

• It is an online centralised platform for lodging complaints.
  
• When an investor files a complaint through SCORES, SEBI channels it electronically to the relevant stock exchange.
  
• The stock exchange then takes it up directly with your stockbroker.

This system makes your complaint part of a central database, ensuring traceability and accountability. You don’t have to run pillar to post or write physical letters – it’s all structured online.

Complaint Timelines You Should Know

One of the most reassuring parts of SEBI’s circular is the strict timeline commitments for resolving investor grievances.

Here’s what you can expect:

• 15 Working Days – The stock exchange must ensure that investor complaints are resolved within fifteen working days from the date of receipt.
  
• 7 Working Days – If the broker or exchange needs more information to process the complaint, they must reach out to the investor within 7 working days of getting the initial complaint. 

These timelines are in place to keep things on track – so complaints don’t get lost in the system and investors have a clear sense of when they can expect a response or resolution.

Why This Matters for Investors

Trust is the backbone of the markets. When investors feel ignored or brushed aside, it dents their confidence. With these updated rules, SEBI is stepping in to:

• Make investor redressal quicker and more transparent.
  
• Place greater accountability on stockbrokers.
  
• Increase investor awareness of their rights.

The introduction of a dedicated complaint email ID may seem like a small change on paper, but in practice, it’s a big step toward improving communication. Investors no longer have to chase for contacts or worry their email may get lost in a generic mailbox.

Similarly, the emphasis on exchanges resolving complaints within defined timelines brings speed and assurance for investors.

Recap of Key Points from SEBI’s Circular

Let’s sum up the investor-related takeaways of the June 17, 2025 master circular:

1. Mandatory grievance redressal email ID – Every registered stockbroker must have an exclusive complaint email ID linked to their compliance officer.
   
2. Visibility matters – This ID must be displayed on the broker’s website, portals, and even promotional materials.
   
3. SCORES continues – The SEBI Complaints Redress System is the centralised platform for escalating complaints.
   
4. Clear deadlines: Brokers now have up to 15 working days to resolve complaints. If they need more info from the investor, they must ask for it within 7 working days.
5. Handled through exchanges: Instead of going directly to SEBI, complaints are routed through the stock exchanges. This adds an extra layer of oversight and keeps the resolution process accountable.

Practical Tips for Investors While Filing Complaints

Not every investor feels comfortable filing a complaint. But when you do need to raise an issue, how you go about it can make a big difference in how quickly and seriously it’s handled.

• Keep it short and to the point. Describe exactly what happened. Don’t over-explain – just lay out the facts.
  
• Attach proof. Things like your contract note, ledger statement, or even a screenshot can help support your case.
  
• Send it to the right place. Use the broker’s official grievance email ID – that’s the one SEBI monitors.
  
• Don’t delete anything. Keep a copy of your email or submission for your own records.
  
• Follow through. If you don’t hear back in the expected time, go to SCORES and escalate it there.

What This Signals About SEBI’s Approach

This master circular shows SEBI’s evolving approach toward investor protection. By demanding transparency and accountability from intermediaries like stockbrokers, SEBI is working to make India’s capital markets more investor-friendly.

It also signals that regulatory oversight is becoming more digitally integrated. Systems like SCORES are designed to reduce bureaucracy and push intermediaries toward quicker resolutions.

For stockbrokers, these are compliance requirements. For investors, these are protections and rights.

Final Thoughts

Investing in the stock market comes with its ups and downs but dealing with your broker’s inefficiencies or lapses should not be one of them. Thanks to SEBI’s June 17, 2025 master circular, you now have a clearer, stronger path to raise and resolve complaints.

So the next time you feel unheard by your stockbroker, remember:

1. You have the right to complain.
   
2. You can use the broker’s dedicated grievance redressal email ID.
   
3. If needed, escalate through SCORES and track your complaint online.
   
4. SEBI and the exchanges are bound to resolve matters within set timelines.

And that’s exactly how trust gets built in our markets – when rules protect investors, accountability is enforced, and redressal is made simple.