Sebi proposes faster online dispute resolution, bigger role for exchanges and depositories

SEBI has proposed overhauling its three-year-old online dispute resolution framework, shifting conciliation and arbitration from independent ODR institutions to stock exchanges, depositories, and clearing corporations. Key changes include restoring investor participation in arbitrator selection, merging the SCORES review with pre-conciliation to cut timelines by 21 days, requiring regulated entities to deposit 100 percent of any challenged arbitration award, and tightening procedural timelines for responses and awards. Public comments on the consultation paper have been invited until 13 August.