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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Grievance Redress Mechanism

Which of the following best describes the role of the Online Dispute Resolution (ODR) mechanism introduced by SEBI for the securities market?

ODR is an institutional online platform for conciliation and arbitration of disputes between investors and market intermediaries or listed companies. It supplements internal grievance handling and SCORES, rather than replacing them, and it is not a trading or penalty mechanism.

  1. AIt provides a institutional online platform for conciliation and arbitration of disputes between investors and market intermediaries or listed companiesCorrect
  2. BIt replaces the need for any intermediary to maintain an internal grievance process
  3. CIt allows SEBI to levy penalties directly on investors
  4. DIt is a trading platform for settling securities transactions

Explanation

The ODR framework offers online conciliation and arbitration for disputes arising in the securities market, typically after the investor has first approached the entity and then SCORES. It supplements, not replaces, internal grievance handling, and it has no role in trading or penalising investors.

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