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Sebi proposes revamp of online dispute resolution to speed investor cases
The overhaul would move administration of conciliation and arbitration from private ODR firms to market infrastructure institutions, and would route unresolved SCORES complaints directly into conciliation.
India's market regulator, the Securities and Exchange Board of India, is proposing a broad overhaul of its online dispute resolution framework to make investor grievance redressal faster and more accountable, according to LiveMint Markets.
The proposed revamp would shift administration of conciliation and arbitration from private ODR institutions to market infrastructure institutions such as stock exchanges, depositories, and clearing corporations. Sebi said these entities are better placed to oversee the process because they already supervise most market intermediaries and listed entities.
Under the framework, the mechanism begins after an investor's complaint remains unresolved through Sebi's SCORES grievance redressal platform. If conciliation fails, the dispute moves to arbitration, where an award can be challenged in court.
Sebi's plan would also expand investors' role in choosing arbitrators from approved panels, tighten proceedings timelines, keep conciliation free for investors, and require appellants to deposit award amounts. LiveMint Markets notes Sebi developed the proposals after feedback citing delays in appointing and paying conciliators and arbitrators, lengthy proceedings, and weak enforcement of arbitral awards.