In a corporate ecosystem driven by transparency, trust, and accountability, the
Stakeholders Relationship Committee (SRC) plays a crucial role in safeguarding
the
interests of investors and other stakeholders. Its core function lies in ensuring fair
treatment, timely redressal of grievances, and effective communication between the
company and its stakeholders.
Understanding the Stakeholders Relationship Committee
Under Section 178 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, the Stakeholders Relationship Committee is mandated for
listed companies and others as specified. The committee’s key responsibilities include:
- Resolving grievances of security
holders (including shareholders, debenture holders, deposit holders).
- Monitoring the effectiveness of
the redressal mechanism.
- Reviewing measures to improve
relations with investors and other stakeholders.
- Ensuring compliance with statutory
and regulatory requirements related to stakeholder services.
The committee is the first line of defense against stakeholder dissatisfaction and a
bridge for trust-building with the capital markets and broader community.
My Value Addition as an Independent Director
1. Legal and Compliance-Oriented Perspective
As a practicing advocate, I bring strong domain knowledge of corporate laws, securities
regulations, and investor protection frameworks. My legal acumen will support the
committee by:
- Ensuring that all stakeholder
grievances are addressed in compliance with SEBI norms and the Companies Act.
- Monitoring adherence to timelines
and procedures prescribed for grievance resolution.
- Reviewing shareholder-related
disclosures in annual reports and filings for legal accuracy and clarity.
This ensures that stakeholder engagement remains not only efficient but also legally
sound.
2. Upholding the Principles of Fairness and Transparency
As an Independent Director, one of my key roles is to ensure fair and unbiased
treatment of all stakeholders. I will:
- Advocate for equitable handling of
grievances, irrespective of the size or influence of the stakeholder.
- Encourage transparent reporting of
the number, nature, and status of complaints in periodic board updates.
- Support timely and accurate
dissemination of information to shareholders, particularly in the event of corporate
actions, reorganizations, or regulatory developments.
My presence on the committee will reinforce a culture of fairness and openness.
3. Strengthening the Grievance Redressal Mechanism
A responsive and accountable grievance redressal system is a hallmark of good governance.
I will help the SRC:
- Evaluate the efficiency of current
investor service processes and propose enhancements.
- Periodically review the root
causes of recurring complaints to recommend systemic improvements.
- Monitor the effectiveness of the
Registrar and Transfer Agent (RTA) and ensure their service standards are in line
with SEBI expectations.
By focusing on both symptom and cause, we can build a more resilient and
stakeholder-friendly system.
4. Bridging Stakeholders and the Board
Often, stakeholders—especially minority shareholders—struggle to have their concerns
heard. I view the SRC as an opportunity to bridge that gap by:
- Acting as a neutral voice who
brings stakeholder sentiments and expectations into boardroom discussions.
- Promoting proactive communication,
particularly around dividend policy, voting rights, AGM proceedings, and major
corporate decisions.
- Ensuring that stakeholder
engagement is not limited to grievance handling, but also includes feedback,
dialogue, and education.
Informed and involved stakeholders are long-term allies in value creation.
5. Promoting Shareholder Inclusivity and Digital Access
Today, shareholders are geographically dispersed, digitally savvy, and more engaged. I
will contribute by:
- Recommending digitized grievance
platforms for faster, trackable resolutions.
- Ensuring inclusivity in
shareholder communication—language accessibility, mobile-friendliness, and use of
e-voting platforms.
- Supporting investor awareness
initiatives to help stakeholders better understand their rights and the company’s
responsibilities.
An inclusive approach strengthens institutional and retail investor confidence alike.
6. Risk and Reputation Protection
Unresolved or poorly handled stakeholder issues can result in reputational damage,
regulatory penalties, and market backlash. I bring a risk-aware lens that helps the
committee:
- Identify potential reputational
risks emerging from stakeholder dissatisfaction.
- Monitor social media sentiment or
public forums for early indicators of stakeholder unrest.
- Recommend proactive steps to
prevent escalations to regulatory authorities.
Stakeholder trust is not just a goodwill metric—it’s a risk buffer. I will help preserve
and grow it.
7. Monitoring Regulatory Trends and Best Practices
With frequent updates to SEBI regulations, investor protection norms, and disclosure
requirements, staying current is essential. I will:
- Keep the committee updated on
relevant legal and regulatory changes.
- Benchmark the company’s practices
against industry best standards.
- Advocate for continuous
improvement in stakeholder engagement policies and processes.
My goal is to help the company move from minimum compliance to proactive excellence.
8. Whistleblower and Ethical Reporting Alignment
Although primarily under the purview of the Audit Committee, I believe the SRC must work
in alignment with whistleblower policies where stakeholder complaints point to ethical
lapses or governance failures. I will ensure that:
- All serious complaints are
escalated appropriately without delay.
- Cross-functional alignment exists
between stakeholder redressal and ethics frameworks.
- No stakeholder is discouraged or
penalized for raising genuine concerns.
This fosters a culture where stakeholder voices are respected, and integrity is
non-negotiable.
Collaborative Committee Functioning
Effective stakeholder management requires coordination across departments—legal,
secretarial, compliance, investor relations, and finance. As an Independent Director, I
will:
- Encourage collaborative resolution
frameworks that bring speed and substance to grievance handling.
- Support structured review
mechanisms that track key stakeholder issues and escalate them systematically.
- Promote documentation and
knowledge-sharing to prevent repetitive errors or omissions.
A well-functioning committee must be structured, sensitive, and strategic.
A Stakeholder-Centric Governance Approach
Stakeholders are not just external entities—they are partners in a company’s journey. As
an Independent Director with legal expertise and a strong belief in ethical governance,
I am committed to making the Stakeholders Relationship Committee a cornerstone of trust,
compliance, and inclusivity.
My contributions will be anchored in:
- Legal clarity and compliance
consciousness.
- Transparent, timely, and fair
grievance handling.
- A deep respect for stakeholder
rights and expectations.
