Global Markets
Home›Global Markets›Trade & Tariffs›Sebi proposes faster online dispute resolution for inv…
Sebi proposes faster online dispute resolution for investors
The regulator estimates its changes could cut ODR timelines by 21 calendar days and would require a party challenging an award to deposit 100% of the award amount.
Securities and Exchange Board of India (Sebi) has proposed an overhaul of its online dispute resolution framework, aiming to reduce delays and speed up how investors get grievances addressed, according to a consultation paper published on Thursday.
The plan shifts core dispute resolution roles, including conciliation and arbitration, from independent ODR institutions to market infrastructure institutions such as stock exchanges, depositories, and clearing corporations. Sebi said the change would improve accountability because these entities are already better positioned to run proceedings and enforce compliance for most intermediaries and listed entities.
Sebi also proposed restoring investor participation in arbitrator selection, with both sides indicating preferences from an approved panel. If there is no common choice, the arbitrator would be picked through a centralized allocation process, and conciliators would be appointed directly by MIIs from their empanelled pool.
To shorten timelines, Sebi suggested merging steps conducted under the SCORES platform with the pre-conciliation stage, and it estimated the update would reduce timelines by 21 calendar days. It also proposed stronger safeguards after arbitration, including a requirement that if a regulated entity challenges an award in court, it must deposit 100% of the award amount with the concerned MII.