SEBI Proposes Direct Arbitration for Big Disputes
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.