Sebi asks MIIs to develop common Online Dispute Resolution Portal

Sebi on Monday asked market infrastructure institutions to set up and operate a common Online Dispute Resolution Portal

New Delhi: Capital markets regulator Sebi on Monday asked market infrastructure institutions (MIIs) to set up and operate a common Online Dispute Resolution Portal (ODR Portal). The portal will harnesses online conciliation and online arbitration for resolution of disputes arising in the Indian securities markets.

The MIIs– stock exchanges, depositories and clearing corporations– will have to make joint efforts to develop and operationalize the ODR Platform, Sebi said in a circular.

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All listed companies, specified intermediaries and regulated entities– collectively called market participants — in the securities market will have to enroll on the ODR Portal.

“The MIIs shall, in consultation with their empanelled ODR Institutions, establish and operate a common ODR Portal,” Sebi said.

Disputes between investors and listed companies, specified Intermediaries and regulated entities would come under the ambit of ODR.

With regard to initiation of the dispute resolution process, Sebi said that an investor will have to first take up his/her grievance with the market participant by lodging a complaint directly with the concerned market participant.

If the grievance is not redressed satisfactorily, the investor may escalate the same through the SCORES portal. After exhausting all available options for resolution of the grievance, if the investor is still not satisfied with the outcome, he/she/can initiate dispute resolution through the ODR Portal.

Alternatively, the investor 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.

Moreover, concerned market participant may also initiate dispute resolution through the ODR Portal after having given due notice of at least 15 calendar days to the investor for resolution of the dispute which has not been satisfactorily resolved between them.

The ODR Portal will have the necessary features and facilities to enrol the investor and the market participant, and to file the complaint and to upload any documents or papers pertaining thereto. It will also have a facility to provide status updates on the complaint which would be obtained from the ODR Institution.

The new framework will be implemented in two phases starting August 1.

The first phase will include– development of the ODR Portal, empanelment of ODR Institutions by the MIIs, empanelment of conciliators and arbitrators by such ODR Institutions by August 1. Registration of trading members and depository participants on the ODR Portal would be by August 15.

The commencement of registering complaints against brokers and depository participants and their resolution will be on August 16.

In the second phase, registration of all other market participants on the ODR Portal is proposed by September 15, while commencement of registering of complaints against all other market participants and their resolution will be from September 16.