What is the common examiner trap about Economy in UPSC exams?

Do not confuse FPI with FDI (Foreign Direct Investment). Also, note that the escalation rate increased (17.2% vs 16.2%) even though total complaints dropped. Another trap: the 9% decline is relative to FY25, not absolute reduction. The drop in options volume is 52%, not 15% (that’s futures).

What should UPSC aspirants remember about Economy for Prelims?

1. Target this Data: 61,788 complaints in FY26 (down 9% from 68,132); FPI ownership at 15.8% (17-year low); DII net inflows Rs 8.5 lakh crore. 2. Target this Nodal Body: Securities and Exchange Board of India (SEBI) – regulator of capital markets, including SCORES platform. 3. Target this Legal Point: SCORES 2.0 mechanism – automatic escalation to SEBI if grievance not resolved within 21 days of filing.

EconomyBanking_Regulation

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News 0 of 24

SEBI SCORES Complaints Drop 9% in FY26; FPI Ownership at 17-Year Low of 15.8%

Q: Which regulatory body operates the SCORES platform for investor grievance redressal?

Securities and Exchange Board of India (SEBI), SCORES (SEBI Complaints Redress System) is a digital platform managed by SEBI to handle investor complaints against market intermediaries. The article explicitly mentions SEBI as the regulator behind SCORES.

Q: Consider the following statements: 1. Complaints on SEBI’s SCORES platform dropped by over 9% in FY26 compared to FY25. 2. The escalation rate under SCORES 2.0 decreased in FY26 compared to FY25. 3. Under SCORES 2.0, grievances are automatically escalated to SEBI if not resolved within 21 days. Which of the statements given above is/are correct?

Both 1 and 3, Statement 1 is correct: complaints dropped from 68,132 to 61,788 (a 9% decline). Statement 2 is incorrect: the escalation rate increased from 16.2% to 17.2%. Statement 3 is correct: SCORES 2.0 introduces auto-escalation after 21 days if unresolved.

Q: According to the article, what was the foreign portfolio investors’ (FPI) ownership in Indian equities in FY26?

15.8%, The article states that FPI ownership dropped to a 17-year low of 15.8% in FY26. Option D (19.69%) is the FPI outflow amount in billion dollars, not ownership percentage.

Q: What was the primary reason attributed to the drop in investor complaints on the SCORES platform in FY26?

Lower F&O volumes due to SEBI’s regulatory measures, Experts cited increased regulatory scrutiny and lower F&O volumes as key reasons. SEBI’s measures (minimum lot size, rationalised weekly expiries, upfront options premium collection) reduced derivatives volumes, leading to fewer disputes. The toll-free helpline calls actually fell, indicating shift to digital, not increased capacity.

EconomyHIGH

Target:UPSC GS-IIIMPSCBankingSSC GATeachingPrelims HighMains MediumStatic GK Link

07 Aug 2026

~2 min

Source: Indian Express

Key Data:61,788 complaints15.8% FPI ownershipRs 8.5 lakh crore DII inflows$19.69 billion FPI outflows52% options volume decline15% futures volume decline

Bodies:SEBI

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~2 min · Quick mode

What This Article Covers

1.SEBI’s SCORES grievance platform recorded 61,788 complaints in FY26, down 9% from 68,132 in FY25, attributed to lower F&O volumes and enhanced regulatory scrutiny.

2.FPI ownership in Indian equities dropped to 15.8% (17-year low) with net outflows of $19.69 billion, while DIIs provided a counterbalance with record net inflows of Rs 8.5 lakh crore.

3.Complaints against stockbrokers fell to 20,756, but complaints against listed companies rose to 12,316 due to a blockbuster IPO year. Resolution rate exceeded 97%.

The Big Picture

Prelims · HighMains · Medium

SEBI’s SCORES platform saw a 9% drop in investor complaints in FY26 due to regulatory tightening in F&O trading, while FPI ownership in Indian equities fell to a 17-year low of 15.8% amid outflows of $19.69 billion. Domestic institutions absorbed the pressure with record inflows of Rs 8.5 lakh crore. This signals a structural shift in market participation and the effectiveness of SEBI’s regulatory measures.

Exam Lens

Quick Exam Facts From News

SCORES Complaints (FY26)61,788

SCORES Complaints (FY25)68,132

Complaints vs Stockbrokers (FY26)20,756

Escalation Rate (FY26)17.2%

FPI Ownership (FY26)15.8%

FPI Net Outflows (FY26)$19.69 billion (Rs 1.8 lakh crore)

DII Net Inflows (FY26)Rs 8.5 lakh crore

Futures Volume Decline (YoY)15%

Options Volume Decline (YoY)52%

Toll-free Helpline Calls (FY26)62,298

1-Minute Revision

›SCORES Complaints (FY26): 61,788
›SCORES Complaints (FY25): 68,132
›Target this Data: 61,788 complaints in FY26 (down 9% from 68,132); FPI ownership at 15.8% (17-year low); DII net inflows Rs 8.5 lakh crore.
›Target this Nodal Body: Securities and Exchange Board of India (SEBI) – regulator of capital markets, including SCORES platform.
›Target this Legal Point: SCORES 2.0 mechanism – automatic escalation to SEBI if grievance not resolved within 21 days of filing.

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News Snapshot

🔍

SCORES Complaints Drop 9%

Investor complaints on SEBI’s grievance platform fell to 61,788 in FY26 from 68,132 in FY25, driven by lower F&O volumes and regulatory tightening.

📉

FPI Ownership at 17-Year Low

Foreign portfolio investors’ share in Indian equities dropped to 15.8% in FY26, with net outflows of $19.69 billion amid geopolitical uncertainties and high valuations.

📈

DIIs Counterbalance FPI Outflows

Domestic institutional investors absorbed foreign selling with record net inflows of Rs 8.5 lakh crore, supported by mutual fund SIPs.

Detailed Analysis & Strategic Depth

Context / Background

SEBI’s SCORES (Complaints Redress System) was introduced in 2011 to digitally handle investor grievances. SCORES 2.0, effective April 2024, automates escalation: if an entity does not resolve a complaint within 21 days, it is automatically escalated to SEBI. The FY26 data shows a 9% drop in total complaints, indicating improved compliance and investor protection.

Core Analysis & Implications

The drop in complaints is largely attributed to SEBI’s measures to curb speculative F&O trading: increasing minimum lot size, rationalising weekly expiries, and collecting options premiums upfront. These actions reduced derivatives volumes significantly (futures -15%, options -52%), leading to fewer disputes. However, complaints against listed companies rose due to a blockbuster IPO year, reflecting increased corporate activity.

FPI vs DII Dynamics

FPI ownership fell to 15.8%, the lowest in 17 years, driven by US tariffs, high valuations, and slowing earnings. Net outflows widened to $19.69 billion. In contrast, DIIs (banks, insurance, mutual funds, NPS) made record net purchases of Rs 8.5 lakh crore, acting as a stabilizing force. This structural shift reduces India’s vulnerability to foreign capital flight but raises questions about domestic liquidity sustainability.

Future Outlook / Way Forward

SEBI is likely to continue tightening F&O regulations, which may further reduce complaints. The shift to digital redress (SCORES, SMART ODR, SECURE) will reduce reliance on helplines, as seen in the sharp drop in calls. However, rising complaints from listed companies suggests that as IPO activity remains high, grievance mechanisms must scale accordingly. The FPI ownership trend may persist if global uncertainties continue.

Key Facts at a Glance

SCORES Complaints (FY26)61,788

SCORES Complaints (FY25)68,132

Complaints vs Stockbrokers (FY26)20,756

Escalation Rate (FY26)17.2%

FPI Ownership (FY26)15.8%

FPI Net Outflows (FY26)$19.69 billion (Rs 1.8 lakh crore)

DII Net Inflows (FY26)Rs 8.5 lakh crore

Futures Volume Decline (YoY)15%

Options Volume Decline (YoY)52%

Toll-free Helpline Calls (FY26)62,298

You've read the full analysis. Now test your understanding.

Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC, Banking, State PSC

Which regulatory body operates the SCORES platform for investor grievance redressal?

Q2Statement-basedHardUPSC, SSC, Banking

Consider the following statements:

1. Complaints on SEBI’s SCORES platform dropped by over 9% in FY26 compared to FY25.

2. The escalation rate under SCORES 2.0 decreased in FY26 compared to FY25.

3. Under SCORES 2.0, grievances are automatically escalated to SEBI if not resolved within 21 days.

Which of the statements given above is/are correct?

Q3Data-centricMediumUPSC, Banking, SSC

According to the article, what was the foreign portfolio investors’ (FPI) ownership in Indian equities in FY26?

Q4Application/ImpactMediumUPSC, Banking, SSC

What was the primary reason attributed to the drop in investor complaints on the SCORES platform in FY26?

All 25 MCQs ▸

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SEBI SCORES Complaints Drop 9% in FY26; FPI Ownership at 17-Year Low of 15.8%

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

SCORES Complaints Drop 9%

FPI Ownership at 17-Year Low

DIIs Counterbalance FPI Outflows

Detailed Analysis & Strategic Depth

Context / Background

Core Analysis & Implications

FPI vs DII Dynamics

Future Outlook / Way Forward

Prelims Flashpoints

Key Facts at a Glance