Corrigendum cum Amendment to Circular dated July 31, 2023 on Online Resolution of Disputes in the Indian Securities Market
Summary
This circular amends the guidelines for online dispute resolution in the Indian securities market by substituting several clauses of the original July 31, 2023 circular. It mandates that all listed companies and intermediaries enroll on the ODR Portal within specified timelines and outlines the escalation process from direct grievance to SCORES and finally to ODR. The amendments also clarify exclusions from the ODR Portal, appoint conciliators, adjust fee structures, and define venue rules for proceedings.
Text
All listed companies / specified intermediaries / regulated entities... shall enrol on the ODR Portal within the timelines as specified at paragraphs 46 and 47... Facility to enrol Market Participants into the ODR Portal by utilising the credentials used for SEBI SCORES portal / SEBI Intermediary portal may be also provided
An investor/client shall first take up his/her/their grievance with the Market Participant... 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
The dispute resolution through the ODR Portal can be initiated when the complaint/dispute is not under consideration... or not pending before any arbitral process, court, tribunal or consumer forum or are non-arbitrable... (including when moratorium under the Insolvency and Bankruptcy Code is in operation)
The ODR Institution... shall appoint a sole independent and neutral conciliator from its panel of conciliators. Such conciliator shall have relevant qualifications or expertise... and should not be connected with or linked to any disputing party
In the first sentence of Clause 20.c. of the circular, “75%” shall stand substituted with “100%”
In Clause 21 of the circular, at the end of the first and the third sentences, the following is added: “…and receipt of fees, costs and charges as applicable.”
In Clause 24, at the end of the first sentence, the following is added: “..in the ODR Portal for onward notification to the party/ies in whose favour the arbitral award has been passed and the relevant MII.”
In the first sentence of Clause 25 of the circular, “75%” shall stand substituted with “100%”
The venue and seat of the online proceedings shall be deemed to be the place: a) In case of disputes between investor/client and listed companies... where the investor resides permanently... b) In case of disputes between institutional or corporate clients... where the institutional or corporate clients has its registered in India...
Clause 49 shall also include the following circulars: n-i. Circular No.: CIR/MIRSD/11/2013 dated October 28, 2013
All matters that are appealable before the Securities Appellate Tribunal in terms of Section 15T of SEBI Act, 1992... Sections 22A and 23L of Securities Contracts (Regulation) Act, 1956 and 23A of Depositories Act, 1996 shall be outside the purview of the ODR Portal
The following intermediaries / regulated entities are added in Schedule A: 2A. Commodities Clearing Corporations; 9A. Research Analyst
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Source: SecMarx — Corrigendum cum Amendment to Circular dated July 31, 2023 on Online Resolution of Disputes in the Indian Securities Market. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.