SEBI (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023

The Securities and Exchange Board of India (SEBI) on July 04, 2023, issued the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023.

The following Acts have been amended namely: -

• Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992:

New regulation 28B has been inserted namely: -

“All claims, differences or disputes between a merchant banker and its client arising out of or in relation to the activities of the merchant banker in the securities market shall be submitted to a dispute resolution mechanism that includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by the Board.”

• Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993:

New regulation 14A has been inserted namely: -

“All claims, differences or disputes between a debenture trustee and a body corporate which has appointed the debenture trustee, arising out of or in relation to the activities of the debenture trustee in the securities market shall be submitted to a resolution mechanism that includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by the Board.

(2) No loss or damage or expenses incurred by the debenture trustee or the body corporate which has appointed the debenture trustee shall be met out of the trust property.”

• Securities and Exchange Board of India (Vault Managers) Regulations, 2021:

New regulation 16A has been inserted namely: -

“All claims, differences or disputes between a vault manager and a beneficial owner arising out of or in relation to the activities of the vault manager in the securities market shall be submitted to a dispute resolution mechanism that includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by the Board.”

This has come into force on July 04, 2023.

Please refer to the document for more amendments

[Notification No. SEBI/LAD-NRO/GN/2023/137]