SEBI has come up with a consultation paper seeking suggestions from the stakeholder on proposed ways to strengthen the existing complaint redressal process in the securities market by making use of online dispute resolution mechanisms. SEBI has suggested measures to deepen the existing Market Infrastructure Institution or MII-administered mediation and arbitration mechanism by making these processes more accessible and effective. MIIs are stock and commodities exchanges and depositories.

As per the SEBI, these processes should be conducted online on an end-to-end basis using the capacity, technology, and other assistance of online dispute resolution institutions and proposed to modify the existing processes for the benefit of the investor. The proposed modifications in the existing MII-administered mediation and arbitration mechanism include re-labelling the IGRC (Investor Grievance Redressal Committee) process, providing for a sole mediator or arbitrator irrespective of the amount of the dispute, and abolishing appellate arbitration system. The IGRC will be re-labelled as a panel of mediators. When matters arise, a sole mediator should be appointed for conducting online mediation or conciliation process. Such a process is expected to be concluded within 21 days or three weeks (currently 15 working days) from the notification of the mediator.
 

Click the icon for the SEBI Consultation paper