The Securities and Exchange Board of India (SEBI) has unveiled a strategic proposal to overhaul the online dispute resolution (ODR) framework. By transferring administrative responsibilities to Market Infrastructure Institutions (MIIs), the regulator aims to remove bureaucratic bottlenecks currently hindering investor justice.
Under the new structure, MIIs will take charge of managing conciliators and arbitrators. This decentralization is designed to inject greater efficiency into the system, with internal estimates suggesting a reduction in the total resolution timeline by approximately 21 days.
Key procedural enhancements include:
- Increased investor autonomy in selecting arbitration representatives.
- Direct appointment of conciliators by MIIs to ensure neutrality.
- Enhanced oversight mechanisms to track case progress in real-time.
By shifting these operational duties, SEBI intends to create a more agile ecosystem where grievances are addressed with increased transparency and speed, ultimately fostering greater confidence among retail participants in the Indian capital markets.
