The Securities and Exchange Board of India (Sebi) has presented a series of proposals to change the structure of Online Dispute Resolution (ODR) in the securities market. The goal of these changes is to increase process efficiency, reduce case review times, and improve the enforceability of decisions.
One of the central proposals is the transfer of dispute resolution functions from ODR institutions to Market Infrastructure Institutions (MIIs), which include custodians and stock exchanges. The process will remain entirely technology-based, but MIIs will manage the entire workflow, utilizing their closer regulatory oversight over intermediaries and listed companies.
The regulator also proposed adjustments to the procedure for appointing arbitrators and mediators. Parties to the dispute must provide their preferences from a list of arbitrators, after which MIIs will select a suitable candidate. As for mediators, they will be appointed directly by MIIs from their approved pool.
To speed up the claims settlement process, it was proposed that unresolved complaints on the SCORES platform would be directed straight to the mediation stage within ODR after verification by designated authorities. This will reduce the process timeframe by 21 days.
To address investor concerns, Sebi proposed allowing investors in Alternative Investment Funds (AIFs) to resolve disputes through mechanisms agreed upon in previously concluded contracts, instead of mandatorily using the ODR platform. Furthermore, Sebi proposed expanding legal protection, currently available to AIF investors structured as trusts, to investors operating through companies or limited liability partnerships, thereby ensuring uniform guarantees regardless of the fund's structure.
The Securities and Exchange Board of India (Sebi) has introduced several amendments to its service regulations for employees. These changes aim to strengthen norms related to conflicts of interest, investment restrictions, and expanded disclosure requirements.
Under the Sebi (Employees' Service) (Amendment) Regulations, 2026, the definitions of 'family' and 'dependent' have been broadened. They now include adopted and foster children, as well as individuals who are significantly reliant on the employees. This substantially increases the scope of compliance obligations, particularly in areas of investment and data disclosure.
Another significant change is the introduction of a two-year cooling-off period. During this time, former employees are prohibited from representing clients before the regulator in proceedings or dispute resolutions. Furthermore, employees are required to notify about any job negotiations within one month of those negotiations commencing.
A clear distinction has been made between prohibited and permitted investments. Employees are now barred from making direct investments in stocks, equity convertible instruments, and derivatives. However, investments through regulated asset pools, such as mutual funds and REITs, are exempt from this prohibition.
The notification states that an employee or their family members must not make new investments in non-permitted asset classes during the employee's tenure at the Board. The rules also establish a limit on exposure to certain regulated investment products—25 percent of the employee's total investment volume. Limited exceptions are provided, for instance, for employee stock options granted to spouses and discretionary portfolio management services.
Rules concerning gifts have been tightened. The threshold for disclosing gifts has been raised from ₹10,000 to ₹50,000, and acceptable customs for gift exchange have been clarified.
