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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Investor Grievances and Arbitration

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

SEBI's ODR mechanism is an online institutional platform for conciliation and arbitration of disputes between investors and market participants. It is generally used after the investor has first approached the entity and SCORES. It does not replace courts, is open to domestic investors, and is not a trading facility.

  1. AIt is an online institutional mechanism for conciliation and arbitration of disputes between investors and market participants, used after the complaint has been raised with the entity and on SCORESCorrect
  2. BIt replaces all courts for securities disputes
  3. CIt is available only to foreign portfolio investors
  4. DIt is a facility to trade securities online without a broker

Explanation

SEBI's ODR framework offers online conciliation and arbitration through ODR institutions for disputes between investors and market participants, generally after the investor has tried the entity's grievance process and SCORES. It does not replace courts, is not limited to FPIs, and is not a trading facility.

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