New Delhi, July 23: The Securities and Exchange Board of India (SEBI) is planning a series of changes to streamline the Online Dispute Resolution (ODR) framework in the securities market, aimed at improving efficiency, reducing timelines and enhancing enforceability.
A key proposal is to shift the responsibility for handling dispute resolution from ODR institutions to market infrastructure institutions (MIIs), including stock exchanges and depositories.
While retaining a fully technology-driven process, MIIs would manage the entire workflow, leveraging their closer regulatory oversight of intermediaries and listed entities.
The regulator has also suggested revising the appointment process for arbitrators and conciliators.
Related Posts
Parties to a dispute would be required to submit preferences from a panel of arbitrators, with MIIs selecting a candidate based on these choices.
Conciliators, meanwhile, would be appointed directly by MIIs from their empanelled pool.
In a move to expedite grievance redressal, unresolved complaints on the SCORES platform would be escalated directly to the conciliation stage under ODR after review by designated bodies, cutting the process timeline by 21 days.
To address investor concerns, Sebi has proposed allowing Alternative Investment Fund (AIF) investors the option of resolving disputes through mechanisms agreed upon in pre-existing contracts, instead of mandatorily using the ODR platform.
Further, Sebi has proposed extending legal protections currently available to AIF investors structured as trusts to those investing through companies or limited liability partnerships, ensuring uniform safeguards irrespective of the fund’s structure. (BVI)
