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SEBI Proposes Direct Arbitration for Big Disputes

23 April 20251 min read
BANKING & FINANCESEBI ProposesDirect Arbitrationfor Big Disputes23 April 2025safalsetu.com

Why in the news

In April 2025 SEBI floated a plan to send some complaints straight to arbitration to settle large and repetitive disputes faster.

Key facts

  • Trigger: claims over ₹10 crore, repeat complaints, cases from certain institutions or trading members, early-flagged time-barred or legal issues, or mutual consent.
  • Platform: depositories to be added to the Online Dispute Resolution (ODR) system, with SOPs.

Process

  • A party that declines arbitration sees the ODR complaint closed, though other legal routes stay open.
  • SOPs will be public online and reviewed yearly.

Impact

  • Faster handling of complex cases, lighter court load and better market confidence.

Exam angle

  • Regulator: SEBI; platform: ODR.
  • Threshold: ₹10 crore.

Test yourself

1. SEBI's direct arbitration proposal targets disputes above which amount?

The notes give a ₹10 crore threshold for high-value claims.

2. Which portal would SEBI integrate depositories into for handling direct arbitration cases?

Depositories would be integrated into the Online Dispute Resolution system.

3. What happens if a party refuses arbitration under SEBI's proposal?

The ODR complaint is closed, though legal channels remain open.

This topic is part of Daily Current Affairs 23 April 2025 (23 topics).

All topics of the dayDay quizApril 2025

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