- SEBI proposes revamp of online dispute resolution for Indian securities market to simplify processes
- The review follows feedback and SEBI's experience since the framework's 2023 introduction
- Key proposals include streamlining dispute referrals, standardising workflows, and clarifying roles
Markets regulator the Securities and Exchange Board of India (SEBI) has proposed a comprehensive revamp of the online dispute resolution (ODR) framework for the Indian securities market, seeking to simplify dispute resolution, remove procedural bottlenecks and make the mechanism faster and more effective for investors and market participants.
In a consultation paper issued on Thursday, the markets regulator said the review follows feedback from investors, market intermediaries, market infrastructure institutions and ODR institutions, as well as its own experience since the framework was introduced in 2023.
SEBI said the objective is to streamline the framework while preserving a robust and transparent dispute resolution mechanism.
The regulator noted that the current framework has encountered "operational bottlenecks" during implementation, prompting the need for a comprehensive review. It said certain processes have proved cumbersome, resulting in avoidable delays and inconsistencies that warrant simplification.
Among the key proposals, SEBI has suggested simplifying the process for referring disputes to the ODR platform, rationalising procedural timelines, standardising workflows and clarifying the roles and responsibilities of market intermediaries, market infrastructure institutions and ODR institutions. It has also proposed greater use of digital processes to make the system more efficient and easier for investors to navigate.
The consultation paper seeks to harmonise the conciliation and arbitration process under a single streamlined framework, while reducing operational complexity and improving accountability across participants. SEBI said the proposed changes are aimed at enhancing the overall user experience without diluting investor protection.
The ODR framework, introduced in 2023, enables disputes involving investors and regulated entities, including stock brokers, depositories, listed companies, mutual funds and other SEBI-registered intermediaries, to be resolved through an online conciliation and arbitration platform.
SEBI has invited public comments on the consultation paper before finalising the revised framework, saying the proposed changes are intended to strengthen investor confidence by making securities market dispute resolution more seamless, efficient and technology-driven.
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