Master Circular for Online Dispute Resolution (Updated as on August 11, 2023)
Summary
This section establishes a streamlined dispute resolution mechanism in the Indian securities market using online conciliation and arbitration via a common ODR Portal. It defines the scope of disputes covered, distinguishing between retail investors and institutional clients, and mandates the establishment of the portal by Market Infrastructure Institutions. The text outlines the procedural steps for initiating disputes, requiring prior grievance redressal through SCORES before accessing the ODR Portal. This section outlines the procedural framework for initiating and resolving disputes through the Online Dispute Resolution (ODR) Portal, including limitation periods and portal features. It details the allocation of complaints to ODR Institutions via a round-robin system and mandates the appointment of independent conciliators to facilitate amicable settlements within specified timelines. Furthermore, it establishes protocols for post-conciliation steps, including online arbitration initiation, financial deposits by Market Participants, and enforcement mechanisms for settlement agreements. Paragraphs 21 through 25 establish the procedural framework for online arbitration, including a
Text
existing dispute resolution mechanism... is being streamlined under the aegis of Stock Exchanges and Depositories (collectively referred to as Market Infrastructure Institutions (MIIs))... by establishing a common Online Dispute Resolution Portal (“ODR Portal”)
Disputes between Investors/Clients and listed companies... or any of the specified intermediaries / regulated entities... will be resolved in accordance with this circular and by harnessing online conciliation and/or online arbitration
Disputes between institutional or corporate clients and specified intermediaries / regulated entities... can be resolved, at the option of the institutional or corporate clients: a. in accordance with this circular... OR b. by harnessing any independent institutional mediation...
Disputes between MII and its constituents which are contractual in nature shall be included in the framework at a future date... expressly excluding disputes/appeals/reviews/challenges pertaining to the regulatory, enforcement role and roles of similar nature played by MIIs
The MIIs shall, in consultation with their empaneled ODR Institutions, establish and operate a common Online Dispute Resolution Portal (“ODR Portal”). The MIIs will make joint efforts to develop and operationalize the ODR Platform.
Each MIIs will identify and empanel one or more independent ODR Institutions which are capable of undertaking time-bound online conciliation and/or online arbitration... that harness online/audio-video technologies and have duly qualified conciliators and arbitrators.
All the MIIs shall participate on the ODR Portal and provide investors/clients and listed companies... and the specified intermediaries / regulated entities... access to the ODR Portal for resolution of disputes... through time bound online conciliation and/or online arbitration.
All listed companies / specified intermediaries / regulated entities in the securities market (collectively referred to as “Market Participant/s”) shall enrol on the ODR Portal within the timelines as specified at paragraphs 46 and 47... and shall be deemed to have been enrolled on the ODR Portal at the end such specified timeline.
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 his/her/their grievance with the Market Participant by lodging a complaint directly... If the grievance is not redressed satisfactorily, the investor/client may... escalate the same through the SCORES Portal... After exhausting these options... he/she/they can initiate dispute resolution through the ODR Portal.
Alternatively, the investor/client can initiate dispute resolution through the ODR Portal if the grievance lodged with the concerned Market Participant was not satisfactorily resolved or at any stage of the subsequent escalations mentioned in the paragraph 11 above... The concerned Market Participant may also initiate dispute resolution... after having given due notice of at least 15 calendar days
The dispute resolution through the ODR Portal can be initiated when the complaint/dispute is not under consideration in terms of the paragraph 11 above or SCOREs guidelines as applicable or not pending before any arbitral process, court, tribunal or consumer forum or are non-arbitrable in terms of Indian law
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Source: SecMarx — Master Circular for Online Dispute Resolution (Updated as on August 11, 2023). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.