SEBI on Monday extended deadline till January 27 for submission of public comments on a proposal to strengthen the existing complaint redressal process in the securities market by making use of online dispute resolution mechanisms.
The capital markets regulator had placed the consultation paper on its website on December 19, 2022 and had sought comments by January 9, 2023.
"It has been decided to extend the timeline for submission of comments to January 27, 2023," the Securities and Exchange Board of India (SEBI) said.
In its consultation paper, 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.
According to 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 relabelling the investor grievance redressal committee process, providing for a sole mediator or arbitrator irrespective of the amount of the dispute, and abolishing appellate arbitration system.
One of the suggestions is to extend the MII-administered mediation and arbitration mechanism for resolution of investor grievances against all specified securities market intermediaries.
This will make the grievance redressal process more simplified, streamlined and efficient for the investors.
With the coronavirus pandemic, the MII-administered conciliation and arbitration mechanism happened online, using video conferencing tools.
The existing partially online mode can be enhanced further by effective use of tools, technologies and platforms, which will enable an end-to-end online experience for investors, intermediaries, mediators and arbitrators in conducting the arbitration process online, SEBI had said.
Presently, in case an investor is facing any issue, the investor first approaches the concerned intermediary for resolution of the complaint. If the investor is not satisfied with the resolution, a complaint is lodged with the SCORES portal.
In case the investor is still unsatisfied with the response, then he or she can opt for MII-based mediation.