SEBI Proposes Overhaul of Investor Online Dispute Resolution Framework

The Securities and Exchange Board of India proposed a comprehensive overhaul of its online dispute resolution framework on July 23, 2026. The plan aims to accelerate investor grievance redressal and strengthen enforcement by shifting the administration of conciliation and arbitration from independent institutions to market infrastructure institutions, including stock exchanges, depositories, and clearing corporations.

Under the proposal, the regulator would integrate the SEBI Complaints Redress System with the dispute framework, a move estimated to reduce resolution timelines by 21 days. The new system would allow parties to select preferred arbitrators from an approved panel. To ensure compliance, regulated entities would be required to pay a ₹6,000 conciliation fee upfront and deposit 100% of any arbitration award with the market infrastructure institution if they choose to challenge a ruling in court.

Additionally, the proposal grants investors in Alternative Investment Funds the option to use contractual dispute mechanisms instead of the mandatory platform. Public comments on these proposed changes are open until August 13.