Online Resolution of Disputes in the Indian Securities Market
Summary
This circular streamlines the dispute resolution mechanism in the Indian securities market by establishing a common Online Dispute Resolution (ODR) Portal under Market Infrastructure Institutions. It mandates the use of online conciliation and arbitration for resolving disputes between investors, listed companies, and regulated entities. The document outlines eligibility criteria, enrollment requirements, and procedural steps for initiating and managing disputes through the new portal. This section details the allocation of disputes to Online Dispute Resolution (ODR) Institutions based on the relevant Market Infrastructure Institution and specifies exclusions for certain commodity exchanges. It outlines the conciliation process, including the appointment of neutral conciliators, timelines for resolution, and procedures for settlement agreements or escalation to arbitration if unresolved. The text further governs online arbitration, covering arbitrator appointments, fee deposits by market participants, interim relief mechanisms, and strict penalties for non-compliance with arbitral awards. The document outlines the procedures for enforcing arbitral awards, including payment timeline
Text
The existing dispute resolution mechanism is being streamlined under MIIs by expanding their scope and establishing a common Online Dispute Resolution Portal (“ODR Portal”) which harnesses online conciliation and online arbitration.
Disputes between Investors/Clients and listed companies or specified intermediaries/regulated entities arising out of latter’s activities will be resolved using online conciliation and/or online arbitration.
Disputes between institutional/corporate clients and specified intermediaries can be resolved via this circular's ODR process OR independent institutional mediation/arbitration; option must be exercised within six months for existing contracts.
Disputes between MII and its constituents which are contractual in nature shall be included in the framework at a future date, expressly excluding regulatory/enforcement roles.
MIIs shall establish and operate a common ODR Portal in consultation with empaneled ODR Institutions, entering into agreements outlining responsibilities, costs, and maintenance.
Each MII will identify and empanel one or more independent ODR Institutions capable of undertaking time-bound online conciliation and/or online arbitration.
All MIIs shall participate on the ODR Portal and provide access to investors/clients and listed companies for resolution of disputes through time bound online conciliation and/or online arbitration.
All listed companies / specified intermediaries / regulated entities shall enroll on the ODR Portal within specified timelines and execute electronic terms/agreements.
All market participants and MIIs are advised to display a link to the ODR Portal on the home page of their websites and mobile apps.
An investor/client shall first take up grievance with the Market Participant; if not redressed satisfactorily, escalate via SCORES Portal; if still unsatisfied, initiate dispute resolution through ODR Portal.
Investor/client may initiate ODR if grievance not satisfactorily resolved; Market Participant may also initiate after giving due notice of at least 15 calendar days.
Dispute resolution through ODR Portal can be initiated when complaint is not under consideration elsewhere or pending before any arbitral process, court, tribunal or consumer forum.
You have read the preview. Create a free account to read the full document and see every order that applied it.
Free accounts include 10 searches/day with full text access.
Source: SecMarx — Online Resolution of Disputes in the Indian Securities Market. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.