Mumbai, July 23 : The Securities and Exchange Board of India (SEBI) on Thursday proposed a comprehensive revamp of the Online Dispute Resolution (ODR) framework for the securities market, with an aim to make the grievance redressal mechanism more efficient, transparent and investor-friendly. The capital markets regulator has sought public comments on the proposal until August 13, 2026.
As part of the proposed reforms, SEBI has suggested transferring the responsibility for administering the ODR mechanism from existing ODR institutions to Market Infrastructure Institutions (MIIs), including stock exchanges, depositories and clearing corporations. These institutions will be responsible for operating the technology-driven online conciliation and arbitration platform, as well as the empanelment, appointment and monitoring of conciliators and arbitrators.
According to SEBI, the proposed changes are intended to simplify and strengthen the dispute resolution process by leveraging the existing regulatory framework of MIIs. The regulator noted that these institutions already exercise supervisory control over intermediaries and listed entities, enabling them to ensure better compliance and enforceability of dispute resolution outcomes.
The regulator observed that most intermediaries, listed companies and market participants are already registered with one or more MIIs in different capacities. This, SEBI said, places the institutions in a better position to facilitate faster dispute resolution, improve accountability and reduce procedural delays for investors seeking redressal of grievances.
The proposed framework also aims to create a more seamless, technology-driven system by integrating conciliation and arbitration under a single digital platform managed by MIIs. The move is expected to enhance transparency, improve accessibility for investors across the country and reduce the time taken to resolve disputes arising in the securities market.
SEBI said the review follows its assessment of the existing ODR mechanism and feedback received from various stakeholders since the framework was introduced. Based on the experience of implementation, the regulator believes certain structural changes are necessary to improve operational efficiency and ensure a more effective dispute resolution ecosystem.
The proposal forms part of SEBI’s broader efforts to strengthen investor protection, enhance confidence in India’s capital markets and promote ease of doing business through faster and technology-enabled grievance redressal. The regulator has invited comments and suggestions from investors, market participants, industry associations and other stakeholders before finalising the revised framework.
After the consultation period ends on August 13, SEBI is expected to review the feedback before issuing the final guidelines for implementation of the revamped Online Dispute Resolution framework.
