The Lacunae in the Current Dispute Resolution Mechanism in SEBI

  • Siva Ram and Suvam Chakraborthy
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  • Siva Ram

    Student at Symbiosis Law School, India

  • Suvam Chakraborthy

    Student at Symbiosis Law School, India

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Abstract

In today's growing world, a strong and healthy capital market is vital to a country's financial structure as it encourages and acts as a reliable guide to corporate firms' financial position and performance. Thus, the capital market plays a vital role in the country's economy—India's securities and exchange board (SEBI). SEBI is a statutory body of a business organization that acts as a market regulatory which interns controls securities, market, and capital markets in India. Before SEBI came into existence, the regulatory authority had been in control of India's capital securities and exchanges. Before SEBI came into existence, the controller of capital issues was the regulatory authority and got statutory powers through the capital issue act 1947 The SEBI board is led by its own board of members and includes a separate chairman, full-time members, and part-time members. The chairman is chosen by the union government, and of the seven members, two are chosen by the finance ministry and one is chosen from the reserve bank of India (RBI). The remaining five members are chosen by the federal government. SEBI primarily works with stock exchanges, shareholder rights, and obtaining shareholder investment guarantees. For successful functioning of the capital market there is an need for the very effective dispute resolution mechanism in order emphasis on the customer disputes and securities market issues to be resolved in an efficient manner. As an alternative dispute resolution (ADR) mechanism for various agreements between regulated entities and their clients, SEBI is exploring the possibility. To provide investors and regulated entities with effective dispute resolution, the regulator says. Securities Exchange Board of India's Investor Grievance Redressal System (IGRS) is an online complaints redressal system launched to provide a fast and effective resolution of investor grievances. SEBI Complaints Redress System (SCORES): This provides a centralized platform for investors to resolve their complaints against listed companies and market intermediaries.

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Research Paper

Information

International Journal of Law Management and Humanities, Volume 6, Issue 4, Page 2227 - 2242

DOI: https://doij.org/10.10000/IJLMH.115215

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