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Stock Broker Complaint Monitor

Stock and commodity exchanges in India i.e. BSE, NSE and MCX have established a strong mechanism to resolve investors' grievances. Dedicated departments exist in each exchange to redress investor's complaints and ensure quick and transparent resolution.

Below list shows teh total number to investor complaints received against brokers. You can further drill down to get more detail.

Complaint Against Stock Broker - NSE and BSE

FY	Exchange	Unique Active Clients	Total Complaints	Detail Report
2019-20	NSE	7,157,665	412	Broker wise Complaints
2018-19	NSE	8,259,184	5,254	Broker wise Complaints
2018-19	BSE	1,889,743	429	Broker wise Complaints
2017-18	BSE	3,649,948	1,143	Broker wise Complaints
2017-18	NSE	7,617,014	7,099	Broker wise Complaints
2016-17	BSE	2,261,563	635	Broker wise Complaints
2016-17	NSE	5,447,609	3,603	Broker wise Complaints
2015-16	NSE	4,759,170	4,494	Broker wise Complaints
2015-16	BSE	2,269,942	1,131	Broker wise Complaints
2014-15	NSE	4,706,552	6,888	Broker wise Complaints
2014-15	BSE	3,133,160	1,633	Broker wise Complaints
2013-14	NSE	3,955,300	4,781	Broker wise Complaints
2013-14	BSE	19,656,679	1,339	Broker wise Complaints
2012-13	BSE	19,067,782	1,654	Broker wise Complaints
2012-13	NSE	19,586,024	4,661	Broker wise Complaints
2011-12	BSE	17,812,130	2,918	Broker wise Complaints
2011-12	NSE	18,068,014	5,318	Broker wise Complaints

How investor's complaints or grievances are handled at the exchange?

Phase 1 - Filing the complaint
1. Investor downloads the 'Complaint Form' from the exchange's website.
2. Investor fills the 'Complaint Form' and send through post or submit in person to the exchange's Investor Service Centre. Addresses and phone numbers of the service centers are provided in the 'Complaint Form'. A reference number is issued to the investor once the complaint is accepted by the exchange.
3. Following are some of the documents you will need to attach with the complaint form. The detail list of supporting documents is available in the form.
  1. Copies of contract notes and bills, showing the sale and purchase transactions.
  2. Copy of proof of delivery of shares/debentures, etc.
  3. Copy of ledger account
Phase 2 - Initial Resolution through 'Investors' Grievances Redressal Committee'
1. The complaint is sent to the broker. 3 working days are given to the broker to respond once the broker receives the complaint.
2. If no response is received in 3 working days or exchange is not happy with the response; the complaint is given to Investors' Grievances Redressal Committee (IGRC) of the exchange.
3. The redressal committee sends notice to both the parties to be present personally. This is to give one more opportunity to both the parties to resolve the issue by themselves.
4. Brokers are penalized for not responding to the complaints in the given time or if they are not present for redressal committee's meeting.
Phase 3 - Disciplinary Action Committee
1. If the broker fails to implement the terms agreed before IGRC for the given complaint; the complaint is forwarded to the exchange's Disciplinary Action Committee.
2. The disciplinary action committee levies the tough penalties to the broker including hefty fines, cancellation of membership etc.

How to file a complaint against a broker?

Download 'Investors complaint form against trading member' from exchange's website i.e. bseindia.com, nseindia.com. Some exchange also allows online application through their website.
Fill the form; attach the required documents and submit it to exchange's investor service center. You can send it by post or in person.
Once accepted; you will receive a reference number; which can be used for any future communications with the exchange.

What types of complaint against broker are resolved by exchanges?

Investor <> Broker <> Exchange

Each broker is a member of an exchange. As per the SEBI guidelines; the exchange provides a comprehensive mechanism to resolve verity of issues investors face with a broker.

If an investor doesn't get an appropriate response from the broker; he can file a complaint about the broker with the exchange. Following are some of the common problem where exchanges provide:

Non-Issuance of the Documents by the Trading Member
Non-receipt of funds / securities
Non-receipt of margin/security deposit given to the Trading Member (TM)
Non-Receipt of Corporate Benefit (dividend / interest / bonus etc.)
Auction value / closeout value received or paid
Execution of Trades without Consent
Excess Brokerage charged by Trading Member / Sub-broker
Non-receipt of credit balance as per the statement of account
Non-Receipt of Funds / Securities kept as margin
Excess Brokerage Charged (other than on Option Premium)