SEBI Introduces Alternate Dispute Resolution Amendment Regulations 2023

The Securities and Exchange Board of India (SEBI) issued a notification on July 3, 2023, introducing amendments to the Alternative Dispute Resolution Mechanism Regulations.

These regulations may be called the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023.

Accordingly, respective amendments have been carried out in various regulations such as:

1. Amendments to the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992:

A new regulation, 28B, is inserted, which mandates the submission of all claims, differences, or disputes between a merchant banker and its client to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

2. Amendments to the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993:

A new regulation, 15B, is inserted, requiring all claims, differences, or disputes between a registrar to an issue and share transfer agent and its client/investor to be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

3. Amendments to the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993:

A new regulation, 14A, is inserted, stating that all claims, differences, or disputes between a debenture trustee and a body corporate that has appointed the trustee shall be submitted to a resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

4. Amendments to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996:

A new regulation, 59B, is inserted, requiring all claims, differences, or disputes between an asset management company and investors to be submitted to a dispute resolution echanism. The mechanism includes mediation, conciliation, and/or arbitration.

5. Amendments to the Securities and Exchange Board of India (Custodian) Regulations, 1996:

A new regulation, 17A, is inserted, stating that all claims, differences, or disputes between a custodian and its client shall be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

6. Amendments to the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999:

A new regulation, 14A, is inserted, mandating the submission of all claims, differences, or disputes between a credit rating agency and its client to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

7. Amendments to the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999:

A new regulation, 14A, is inserted, requiring all claims, differences, or disputes between a Collective Investment Management Company and investors to be submitted to a resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

8. Amendments to the Securities and Exchange Board of India (KYC Registration Agency) Regulations, 2011:

A new regulation, 16B, is inserted, stating that all claims, differences, or disputes between a KYC Registration Agency and an Intermediary shall be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

9. Amendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012:

Regulation 25 is substituted with a new version, requiring all claims, differences, or disputes between investors and the Alternative Investment Fund or the Manager to be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

10. Amendments to the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013:

Regulation 21 is modified, mandating that all claims, differences, or disputes between an Investment Adviser and its client shall be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

11. Amendments to the Securities and Exchange Board of India (Research Analysts) Regulations, 2014:

A new regulation, 26A, is inserted, stating that all claims, differences, or disputes between a research analyst or research entity and its client shall be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

12. Amendments to the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014:

A new regulation, 22A, is inserted, requiring all claims, differences, or disputes between investors and the investment manager of an Infrastructure Investment Trust to be submitted to a resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

13. Amendments to the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014:

A new regulation, 22A, is inserted, stating that all claims, differences, or disputes between investors and the manager of a Real Estate Investment Trust shall be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

14. Amendments to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015:

The requirement for arbitration in case of claims, differences, or disputes under regulation 40 is omitted. Instead, all claims, differences, or disputes between a listed entity and its investor shall be submitted to a dispute resolution mechanism.

15. Amendments to the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019:

A new regulation, 24A, is inserted, mandating the submission of all claims, differences, or disputes between a foreign portfolio investor and a designated depository participant to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

16. Amendments to the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020:

A new regulation, 22A, is inserted, requiring all claims, differences, or disputes between investors and a portfolio manager to be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

17. Amendments to the Securities and Exchange Board of India (Vault Managers) Regulations, 2021:

A new regulation, 16A, is inserted, stating that all claims, differences, or disputes between a vault manager and a beneficial owner shall be submitted to a dispute resolution mechanism. The mechanism includes mediation, conciliation, and/or arbitration.

Click Here To Read/Download Notification