COMPLAINT HANDLING AND GRIEVANCE REDRESSAL

Document History

Policy on Complaint Handling and Grievance Redressal (“Policy”) – Niyam Group Services IFSC Private Limited

1. INTRODUCTION

Niyam Group Services IFSC Private Limited (“Niyam IFSC”) is duly registered with the International Financial Services Centres Authority (“IFSCA” or “Authority”) as service company of Lloyd’s IFSC under the provisions of the IFSCA (Registration of Insurance Business) Regulations, 2021.

In accordance with the IFSCA Circular on “Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC” dated December 2, 2024 (“Circular”), every regulated entity is required to establish a board-approved policy that ensures a structured framework for complaint handling and grievance redressal. This Policy outlines the responsibilities of Niyam IFSC in addressing Consumer Complaints effectively, ensuring timely resolution, and maintaining compliance with IFSCA’s regulatory requirements.

Niyam IFSC is committed to ensuring a fair, transparent, and effective mechanism for handling complaints and grievances of its Consumers in compliance with the Circular. This Policy outlines the procedures and governance framework for complaint handling and grievance redressal.

2. OBJECTIVES

The objective of this Policy is to protect the interests of financial Consumers. It ensures an efficient and effective mechanism for handling complaints and resolving grievances. The Policy provides a clear framework for receiving, processing, and addressing Complaints fairly and transparently and timely resolutions.

In formulating the structure for complaint handling and grievance redressal, the objectives of this Policy shall be followed. The framework shall be appropriate to the nature of grievances, the Consumers involved, and the overall functioning of the Niyam IFSC. It shall ensure a balanced approach that considers Consumer protection, operational efficiency, and regulatory compliance.

3. APPLICABILITY

This Policy applies to all Complaints received from Consumers, excluding group entities. It is applicable to all financial products and services offered by Niyam IFSC. The Policy sets out a broad framework to protect the interests of financial Consumers. It ensures an efficient and effective mechanism for handling complaints and resolving grievances. The Policy provides a clear framework for receiving, processing, and addressing Complaints fairly and transparently.

4. DEFINITIONS

(a) "Complaint" can be defined as any expression of dissatisfaction from a Consumer regarding a financial product, service or action of Niyam IFSC. An indicative list of matters not considered as ‘complaint’ has been mentioned at Schedule-I of the Circular.

(b) "Complaint Redressal Appellate Officer" or "CRAO" shall have the same meaning as assigned to it under clause (c) of definitions of the Circular.

(c) "Complaint Redressal Officer" or "CRO" shall have the same meaning as assigned to it under clause (d) of definitions of the Circular.

(d) "Consumer" shall have the same meaning as assigned to "Client" or "Customer" under Clause 1.3.11 of the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022.

5. GOVERNANCE FRAMEWORK

Niyam IFSC shall designate a Complaint Redressal Officer (CRO) responsible for handling Complaints and a Complaint Redressal Appellate Officer (CRAO) for managing appeals. The details and contact information of CRO and CRAO shall be prominently displayed on the Niyam IFSC’s website under the “Complaint Handling and Grievance Redressal” section.

Niyam IFSC shall be responsible for ensuring compliance with the requirements set by IFSCA.

6. COMPLAINT HANDLING PROCEDURE

When a Complaint is received, the CRO shall evaluate its validity and importance. Based on this evaluation, the following steps will be followed:

(a) Acknowledgement of Complaints:

1. If the Complaint is accepted, Niyam IFSC shall acknowledge it in writing within 3 (three) working days.
2. If the Complaint is not accepted, Niyam IFSC shall inform the complainant within 5 (five) working days, providing the reasons for the decision.

(b) Fair and Impartial Processing:

1. Niyam IFSC shall handle the Complaint in a way that is fair, transparent, professional and impartial.
2. The CRO must have the authority to resolve the Complaint or access to other employees who can handle it impartially. If the CRO is or was involved in the financial transaction subject to the Complaint, the matter shall be handled by another designated officer.

(c) Request for Additional Information:

During the process, Niyam IFSC may ask the complainant for more information to better understand the issue.

(d) Resolution Timeframe:

1. Complaints should be resolved preferably within 15 (fifteen) days of acceptance, but no later than 30 (thirty) days from the date of acceptance.
2. The Complaint can either be resolved or rejected within this timeframe.

(e) In Case of Rejection:

If the Complaint is rejected, Niyam IFSC shall provide the complainant with a written explanation of the reasons for rejection.

7. APPEAL MECHANISM

If the complainant is dissatisfied with the resolution provided by the CRO or if the Complaint has been rejected, they may file an appeal with the CRAO of Niyam IFSC, preferably within 21 (twenty-one) days from the receipt of the decision from the CRO. The CRAO shall review and dispose of the appeal within 30 (thirty) days from the date it is filed.

8. COMPLAINT BEFORE THE AUTHORITY

If a complainant is not satisfied with the decision of the CRAO and has gone through the appeal process, they can file a complaint with the Authority at grievance-redressal@ifsca.gov.in within 21 (twenty-one) days of receiving the decision.

If the Complaint involves a trading member, clearing member, depository participant, bullion trading member or bullion clearing member, the complainant must first approach the relevant market infrastructure institution within the same 21 (twenty-one) days period.

(a) These institutions shall have clear grievance redressal processes on their websites.

(b) If the complainant is still dissatisfied with the market institution’s decision, they can then file a complaint with the Authority via email within 21 (twenty-one) days.

9. MAINTENANCE OF RECORDS

(a) Niyam IFSC shall maintain comprehensive records related to all Complaints received, including:

1. Complaints received and processed;
2. Correspondence between Niyam IFSC and complainants;
3. Information and documents used in processing Complaints;
4. Outcome of the Complaints;
5. Reasons for rejecting Complaints, if any;
6. Timelines for processing Complaints; and
7. Data of all handled Complaints.

(b) Records shall be preserved in electronic retrieval form for at least 6 (six) years from the date of disposal of the Complaint.

(c) If any litigation or legal proceedings are pending, records shall be maintained until the final resolution of the case.

10. REPORTING AND DISCLOSURE

Niyam IFSC shall include a section on “Complaint Handling and Grievance Redressal” in its annual report, detailing the number of Complaints received, resolved, rejected, and pending. If Niyam IFSC is not required to file an annual report, it shall disclose this information on its website under the same heading. Niyam IFSC may develop an online system for Complaint handling, considering the nature, scale and complexity of its business.

11. ONLINE SYSTEM FOR COMPLAINT HANDLING

Niyam IFSC may choose to develop an online system for handling Complaints, based on the nature, scale, complexity of its business and its size and organizational structure.

12. COMPLIANCE AND REGULATORY OVERSIGHT

The compliance officer of Niyam IFSC shall ensure that Complaints are handled and disposed of as per the regulatory requirements set by IFSCA.

13. MISCELLANEOUS

This Policy shall be reviewed periodically and amended as necessary to comply with evolving regulatory requirements and best practices.