SEBI issues consultation paper Streamlining the Online Dispute Resolution Framework in Indian Securities Market

The Securities and Exchange Board of India (“SEBI”) has issued a consultation paper on Streamlining the Online Dispute Resolution Framework in Indian Securities Market. The Consultation Paper invites comments/suggestions on proposal by August 13, 2026.

Key Proposals under the Consultation Paper:

1. All Entities, including registered Market Intermediaries and Listed Companies, upon receipt of an investor complaint through SCORES, must resolve the complaint and submit the Action Taken Report (ATR) on SCORES within 21 calendar days from the date of receipt of such Complaint.

2. The complaints filed through SCORES are forwarded to the relevant Designated Body (DB), which oversees the timely submission of ATRs within 21 calendar days and monitors their quality, providing guidance where necessary.

3. For complaints against AIFs, VCFs, KRAs, and CRAs, where no Designated Body is specified, complainants may directly access the ODR mechanism if they are dissatisfied with the entity’s resolution or if no ATR is submitted within 21 calendar days.

4. If a grievance remains unresolved within the prescribed timeline, the entity fails to update its response on SCORES, no Designated Body is specified, or the complainant is dissatisfied with the entity’s response, the complainant may lodge the dispute on the ODR Portal to seek conciliation under the ODR mechanism.

5. In cases of non-compliance, the concerned Designated Body shall take appropriate enforcement action in accordance with its applicable byelaws, registration requirements, and the prescribed SOP.

6. The MIIs are required to jointly formulate an SOP for the ODR Portal, outlining the operational framework, including detailed procedures, stages, and requirements for handling its various operational aspects.

7. All MIIs shall participate in the ODR Portal and facilitate access for investors, complainants, market intermediaries, and listed companies to resolve securities market disputes through time-bound online conciliation and/or arbitration.

The comments/suggestions, if any, may be submitted latest by 13th August 2026, through the following link:

https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes

In case of any technical issue in submitting your comment through web based public comments form, you may highlight the issues(s) to iad@sebi.gov.in.

While sending the email, kindly mention the subject as, “Public Comments w.r.t Draft Circular on Streamlining the Investor Grievance Redressal and Online Dispute Resolution Framework in Indian Securities Market”.

Source: Securities and Exchange Board of India