Market regulator Securities and Exchange Board of India said on Friday it has no plans to abandon the ombudsman scheme.

"Sebi has no plans to abandon the Ombudsman scheme," the market regulator said in a clarification to a report that Sebi had scrapped ombudsman plan.

"Action has already been initiated to select appropriate candidates for appointing them as regional ombudsmen," Sebi said dismissing the report 'baseless.'

Ombudsman role would be to attend to investors' grievances against the listed firms when they are approached by an aggrieved party.

At present, investors route their complaints against listed firms to stock exchanges, the first level regulators.

Stock exchanges in turn take up the matter with the concerned corporates and then the unresolved complaints are referred to the market regulator.

Sebi had invited applications for the post of ombudsman in November last year. Other regulators like the Reserve Bank of India [Get Quote] and Insurance Regulatory and Development Authority already have regional ombudsman in place.