SEBI proposes shifting dispute resolution oversight to market infrastructure institutions
India’s market regulator plans to transfer online dispute resolution oversight to market infrastructure institutions to accelerate grievance redressal and strengthen compliance enforcement.
The Securities and Exchange Board of India (Sebi) has proposed transferring oversight of the Online Dispute Resolution (ODR) mechanism to Market Infrastructure Institutions (MIIs). The regulatory shift aims to accelerate grievance redressal for investors and streamline how disputes are managed in the Indian financial market.
Under the new framework, MIIs will assume key responsibilities currently managed by independent ODR institutions. These duties include empanelling and appointing both conciliators and arbitrators, as well as overseeing the entire dispute resolution proceedings.
Sebi noted that this restructuring follows feedback from MIIs, investors, and other stakeholders regarding the existing ODR mechanism. The regulator emphasized that MIIs possess stronger regulatory control over intermediaries and listed companies. This existing leverage makes them better positioned to enforce compliance effectively.
The proposal also introduces greater investor agency in the arbitration process. Both parties involved in a dispute will be asked to indicate their preferred arbitrator names from an approved panel before the MII makes the final appointment. Conciliators, by contrast, will be appointed directly by the MIIs.
To further reduce delays, Sebi plans to streamline the initial grievance pipeline. Complaints that remain unresolved after review by designated bodies under the SCORES platform will now be allowed to move directly to the conciliation stage of the ODR mechanism.
Sebi estimates that these combined procedural changes will shorten the overall resolution process by 21 days. For investors and market professionals, a faster, more predictable dispute resolution framework reduces legal uncertainty and operational friction. By anchoring the process within institutions that already monitor market conduct, the regulator aims to deliver more enforceable outcomes and reinforce overall market integrity.
