Sebi brings new dispute resolution mechanism for investors, intermediaries

Investors will now get a review by a designated body if they aren't satisfied with a resolution. If an investor is dissatisfied even with the first review, Sebi will do a second review

The Securities and Exchange Board of India (Sebi) has enacted a new framework for dispute resolution and grievance redressal between investors and intermediaries such as mutual funds, portfolio managers, investment advisors and brokerages.

With the latest amendments, investors will now be able to avail a review by a designated body if they are dissatisfied with the resolution provided. If the investor is still dissatisfied after the first review, the second review will be done by Sebi.

“The Sebi regulations have been amended to include a dispute resolution clause for resolution of disputes between the intermediary and investors through mediation /conciliation /arbitration,” noted Regstreet Law Advisors.  

 

Further, in its efforts to revamp the Sebi Complaint Redress System (SCORES), the markets regulator had also approved reducing timelines, introduction of auto-routing of complaints, and auto-escalation of complaints in case the prescribed timelines have not been adhered to.