Sebi mulls overhaul of online dispute resolution framework; seeks public comments till August 13
SEBI has proposed a major overhaul of the Online Dispute Resolution (ODR) framework for the securities market to improve efficiency. The plan suggests shifting dispute resolution responsibilities from ODR institutions to Market Infrastructure Institutions (MIIs) to reduce procedural bottlenecks.
Why it matters
This regulatory shift aims to streamline investor grievance redressal and enhance the accountability of market intermediaries.
Markets regulator Securities and Exchange Board of India (SEBI) on Thursday (July 23, 2026) proposed a revamp of the Online Dispute Resolution (ODR) framework for the securities market, including shifting the responsibility of dispute resolution from ODR institutions to Market Infrastructure Institutions (MIIs), to make the system more efficient and investor-friendly.
Under the proposal, stock exchanges, depositories and clearing corporations (MIIs) will operate the technology-driven online conciliation and arbitration platform, besides handling the empanelment and appointment of conciliators and arbitrators.
SEBI said it received feedback from MIIs, investors and other stakeholders highlighting issues in the existing ODR framework, including delays in the appointment of arbitrators, payment to arbitrators, enforcement of arbitration awards, and procedural bottlenecks.
To address these concerns, the regulator has proposed incorporating certain features of the pre-ODR mechanism, under which MIIs had greater control over empanelment and administration of conciliators and arbitrators.
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