CIRCULAR

SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/191 December 20, 2023

To,

All Recognized Stock Exchanges (including Commodity Derivatives)

All Clearing Corporations
All Depositories
All Stock Brokers
All Depository Participants
All SEBI Registered Intermediaries / All SEBI Regulated Entities
All Listed Companies
All Registrar & Share Transfer Agents
All Asset Management Companies

Sir / Madam,

Subject: Amendment to Circular dated July 31, 2023 on Online Resolution of

Disputes in the Indian Securities Market

1. SEBI issued circular no. SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/131 dated July 31,

2023 providing the guidelines for online resolution of disputes in the Indian securities
market. Amendments cum Corrigendum to the same was issued vide circular no.
SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/135 dated August 04, 2023. These regulatory
norms were consolidated vide Master Circular No. SEBI/HO/OIAE/OIAE_IAD-
1/P/CIR/2023/145 dated August 11, 2023.

2. Pursuant to feedback received for providing clarity on certain aspects, it has been decided
to modify the circular dated July 31, 2023 (as amended) as under:

I. In clause 2 of the circular, the words and brackets “(including institutional/corporate

clients)” are added after the words “Investors/Clients”.

II. In Clause 3(b) of the circular, the words ‘independent institutional’ are added before
the word ‘conciliation’ and the word ‘online’ as appears before the words ‘arbitration
institution in India’ is substituted with the word ‘independent’.

III. In Clause 3(b) of the circular, after the end of the existing paragraph, the following is
added:

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 “The seat and venue of mediation, conciliation and/or arbitration shall be in India and
can be conducted online.

The fees, charges and costs for the independent mediation institution or independent
conciliation institution and/or independent arbitration institution (and of the
mediators/conciliators/arbitrators), and other applicable costs, charges and expenses
may be as prescribed by such institution/s or as agreed upon by the parties with such
institution/s.

The claims / complaints / disputes that arise from the activities or roles performed or
to be performed by the specified intermediaries or regulated entities pertaining to the
Indian securities market are in scope of this clause1.”

IV. Clause 5 of the circular shall include the following as a footnote to ‘ODR Portal’:

URL - https://smartodr.in/login

V. Clause 8 of the circular shall include the following after the end of the last line: “Entities
that obtain registration from the Board as an intermediary or issuers that are getting
their securities listed on or after the date of implementation of this circular, shall enrol
in the ODR Portal immediately upon grant of registration or listing, as the case may
be”.

VI. In Clause 13 of the circular, the following are added at the end of the line: “or is against
the Government of India / President of India or a State Government / Governor of a
State. It is clarified that Listed companies (and their registrars and transfer agents),
specified intermediaries and regulated entities specified in Schedules A and B as well
as institutional or corporate clients shall initiate claims or disputes in accordance with
Clause 3(a) and/or 3(b), as applicable, unless the matter is non-arbitrable in terms of
Indian law (including when moratorium under the Insolvency and Bankruptcy Code is
in operation due to the insolvency process or if liquidation or winding up process has
been commenced) or is against the Government of India / President of India or a State
Government / Governor of a State.”

VII. In Clause 20(a) of the circular, at the end of the current paragraph, the following
sentence is added: “The nature of determination made by the conciliator is only to
provide an admissible claim value of the complaint / dispute for purposes of
appropriate slab for computation of fees being applied for online arbitration. Subject
to the forgoing, the investor / client, the market participant and the arbitrator/s would
not be bound by such determination for the making or defending or deciding the claim
/ complaint / dispute, as the case may be”.

1 For example, non-disclosure agreements signed by specified intermediaries or regulated entities with
their institutional or corporate clients for receiving confidential corporate or other information by itself would
not be related to the Indian securities market. Separately, regulated entities such as Credit Rating Agencies
or Debenture Trustees also undertake non-securities market related work which would be outside the scope
of the clause

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 VIII. In Clause 20(b) of the circular, at the end of the current paragraph, the following
sentence is added: “The Market Participant against whom the investor/client pursues
the online arbitration shall participate in the arbitration process. Accordingly, within 10
days of the initiation of the online arbitration by the investor/client, the Market
Participant shall make the deposit of 100% of the admissible claim value with the
relevant MII and make the payment of the fees as applicable for online arbitration.
Non-adherence of the foregoing by the Market Participant may result in action against
the Market Participant by MIIs and/or the Board.”

IX. In Clause 20(c) of the circular, the first sentence is substituted as follows: “In case the
Market Participant wishes to pursue online arbitration (which will be administered by
the ODR Institution which facilitated the conduct of conciliation), it shall intimate
the ODR Institution within 10 days of the conclusion of the conciliation process of its
intent to do so and within further 5 days of this intimation, shall deposit 100% of the
admissible claim value with the relevant MII and make the payment of fees as
applicable for online arbitration for initiating the online arbitration”.

X. In Clause 28(c) of the circular, the slab ‘Above Rs. 50 lakh’, stands modified as follows:

Above Rs. 50 lakh – Rs. 1 crore

Arbitrator’s Fee Rs. 1,20,000/-**
ODR Institution’s Fees, in addition to the Rs. 15,000/-
arbitrator’s fees (to be collected by the
ODR institution)
Applicable GST, Stamp Duty, etc. on
actual outgoings

Further, for claims of Rs. 1 crore and above, an ad valorem fees @ 1% of the claim
value or Rs.1,20,000/-, whichever is more, towards Arbitrator’s Fees** (to be collected
by the ODR institution and paid to the arbitrator) and fees @ Rs 35,000/- towards
ODR Institution’s Fees, in addition to the arbitrator’s fees (to be collected by the ODR
institution), together with Applicable GST, Stamp Duty, etc. on actual outgoings, shall
be applicable.

XI. In Clause 28 (c) of the circular, at the end of the first paragraph appearing after the
table, the following sentence is added: “The investor may choose to initiate arbitration
for a higher claim value subject to payment of applicable fees and charges”.

XII. In Clause 28 (c) of the circular under ‘Late Fee’, after the last line, the following is
added: “……The concerned ODR Institution may collect this fee on behalf of the MII
as per mutually agreed terms between them.”

XIII. Schedule A of the circular shall also include the following:

1 A. Banker to an Issue and Self-Certified Syndicate Banks2

2including for any claims / complaints / disputes pertaining to compensation to investors for grievance
emanating from application to Public Issues using UPI payment with ASBA.

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 5 A. Merchant Bankers3

Further, entry 2A and 10 are modified as under:

2A. Commodities Clearing Corporation4
10. Stock brokers5 (including Online Bond Platforms & Online Bond Platform
Providers)

XIV. Schedule B of the circular shall also include the following:

1A. Commodities Clearing Corporations6

5A. ESG Ratings Providers and their clients

3. This circular shall come into force with immediate effect.

4. This Circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of investors
in securities and to promote the development of, and to regulate the securities market.
This circular is issued with the approval of the competent authority.

5. This Circular is available on the SEBI website at https://www.sebi.gov.in/ under the link
“Legal > Circulars”. The Master Circular for Online Dispute Resolution is available on
the SEBI website at www.sebi.gov.in under the link “Legal> Master Circulars”.

Yours faithfully,

S. Manjesh Roy
General Manager
Tel no.: 022- 2644 9710 & 4045 9710
Email: [email protected]

3 For any claims/complaints/disputes arising on account of compensation to investors for grievances

emanating from application for public issues.
4 Including for any claims / complaints / disputes raised by investors/clients on account of Warehouse

Service Providers / Vault Service Providers

5 Including for any claims/compalints/disputes arising on account of Authorised Persons of the Trading

Members
6 For any claims / complaints / disputes arising between or amongst Warehouse Service Providers / Vault

Service Providers and depositors / ginners.

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 MASTER CIRCULAR FOR ONLINE DISPUTE RESOLUTION
(Updated as on August 11, 2023)

SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/145
July 31, 2023
(Updated as on August 4, 2023)

To,

All Recognized Stock Exchanges (including Commodity Derivatives)

All Clearing Corporations
All Depositories
All Stock Brokers
All Depository Participants
All Listed Companies
All SEBI Registered Intermediaries / All SEBI Regulated Entities

Sir / Madam,

Subject: Master Circular for Online Resolution of Disputes in the Indian

Securities Market

1. After extensive public consultations and in furtherance of the interests of investors

and consequent to the gazette notification (dated July 3, 2023) of the SEBI
(Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023 the
existing dispute resolution mechanism in the Indian securities market is being
streamlined under the aegis of Stock Exchanges and Depositories (collectively
referred to as Market Infrastructure Institutions (MIIs)),1 by expanding their scope
and by establishing a common Online Dispute Resolution Portal (“ODR Portal”)
which harnesses online conciliation and online arbitration for resolution of
disputes arising in the Indian Securities Market.

1 presently excluding Clearing Corporations and its constituents

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Investors and Listed Companies/Specified Intermediaries/Regulated entities
under the ambit of ODR

2. Disputes between Investors/Clients and listed companies (including their registrar

and share transfer agents) or any of the specified intermediaries / regulated
entities in securities market (as specified in Schedule A) arising out of latter’s
activities in the securities market, will be resolved in accordance with this circular
and by harnessing online conciliation and/or online arbitration as specified in this
circular. Listed companies / specified intermediaries / regulated entities OR their
clients/investors (or holders on account of nominations or transmission being
given effect to) may also refer any unresolved issue of any service requests /
service related complaints2 for due resolution by harnessing online conciliation
and/or online arbitration as specified in this circular.

3. Disputes between institutional or corporate clients and specified intermediaries /

regulated entities in securities market as specified in Schedule B can be
resolved, at the option of the institutional or corporate clients:

a. in accordance with this circular and by harnessing online conciliation and/or

online arbitration as specified in this circular; OR

b. by harnessing any independent institutional mediation, conciliation and/or

online arbitration institution in India.

For existing and continuing contractual arrangements between institutional or

corporate clients and specified intermediaries / regulated entities in the
securities market as specified in Schedule B, such option should be exercised
within a period of six months, failing which option as specified in (a) above will
be deemed to have been exercised. For all new contractual arrangements,
such choice should be exercised at the time of entering into such
arrangements.

4. Disputes between MII and its constituents which are contractual in nature shall
be included in the framework at a future date as may be specified3 while

2 Service related complaints shall include non-receipt/ delay of account statement, non-receipt/ delay of
bills, closure of account/branch, technological issues, shifting/closure of branch without intimation,
improper service by staff, freezing of account, alleged debit in trading account, contact person not
available, demat account transferred without permission etc.
3 As and when the same is made operational, in order to avoid conflict of interest, in case of a

complaint/dispute involving a MII or its holding or subsidiary or associate company, the same will not be
allocated to that MII and the ODR Institution empaneled by such MII or to the direct competitor of such
MII and the ODR Institution empaneled by such MII: such dispute will be directed to another MII and the
ODR Institution empaneled by it. For instance, any dispute against NSE shall be allocated to CDSL and
in case of a dispute in relation to BSE, the same be allocated to NSDL and vice versa.

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 expressly excluding disputes/appeals/reviews/challenges pertaining to the
regulatory, enforcement role and roles of similar nature played by MIIs.

Introduction of the common Online Dispute Resolution Portal

5. 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. For
the purposes of implementation of this circular, the MIIs shall enter into an
agreement amongst themselves, which will, inter alia, outline the nature of their
responsibilities, the cost of development, operating, upgradation, maintenance
(including security of data of investors and intermediaries as specified by the
Board from time to time) and for inspection and/or audit of the ODR Platform. The
Board may, from time to time, undertake inspection in order to ensure proper
functioning of ODR Portal and MIIs shall provide complete cooperation to the
Board in this regard.

It is clarified that MIIs which are initially excluded from the round robin system (as
described below) are not required to incur any costs for development and
maintenance of the ODR Portal during the period of such exclusion.

6. 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 (in accordance with the Arbitration and Conciliation Act, 1996 and any
other applicable laws) that harness online/audio-video technologies and have
duly qualified conciliators and arbitrators. The norms for empanelment of ODR
Institutions are specified in Schedule C of this circular as also the continuing
obligations of the ODR Institutions. The ODR Portal shall have due connectivity
with each such ODR Institution as is required for undertaking the role and
activities envisaged in this circular. Such ODR Portal shall establish due
connectivity with the SEBI SCORES portal / SEBI Intermediary portal.

7. All the MIIs shall participate on the ODR Portal and provide investors/clients and
listed companies (including their registrar and share transfer agents) and the
specified intermediaries / regulated entities in the securities market access to the
ODR Portal for resolution of disputes between an investor/client and listed
companies (including their registrar and share transfer agents) and the specified
intermediaries / regulated entities in the securities market, through time bound
online conciliation and/or online arbitration.

8. All listed companies / specified intermediaries / regulated entities in the securities

market (collectively referred to as “Market Participant/s”) shall enrol on the ODR

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 Portal within the timelines as specified at paragraphs 46 and 47 of this circular
and shall be deemed to have been enrolled on the ODR Portal at the end such
specified timeline. The enrolment process shall also include executing electronic
terms/agreements with MIIs and the ODR Institutions, which shall be deemed to
be executed at the end such specified timeline. 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 in the ODR
Portal.

9. 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.

10. The modalities of the ODR Portal along with the relevant operational guidelines
and instructions may be specified by the Board from time to time.

Initiation of the dispute resolution process

11. An investor/client shall first take up his/her/their grievance with the Market
Participant by lodging a complaint directly with the concerned Market Participant.
If the grievance is not redressed satisfactorily, the investor/client may, in
accordance with the SCORES guidelines, escalate the same through the
SCORES Portal in accordance with the process laid out therein. After exhausting
these options for resolution of the grievance, if the investor/client is still not
satisfied with the outcome, he/she/they can initiate dispute resolution through the
ODR Portal.

12. 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 (prior to or at the end of such escalation/s). The
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/client for resolution of the dispute which has not been satisfactorily
resolved between them.

13. 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
(including when moratorium under the Insolvency and Bankruptcy Code is in
operation due to the insolvency process or if liquidation or winding up process
has been commenced against the Market Participant).

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14. The dispute resolution through the ODR Portal can be initiated when within the
applicable law of limitation (reckoned from the date when the issue
arose/occurred that has resulted in the complaint/date of the last transaction or
the date of disputed transaction, whichever is later).

ODR Portal and allocation system

15. The ODR Portal shall have the necessary features and facilities to, inter alia, enrol
the investor/client and the Market Participant, and to file the complaint/dispute
and to upload any documents or papers pertaining thereto. It shall also have a
facility to provide status updates on the complaint/dispute which would be
obtained from the ODR Institutions. The features and facilities shall be periodically
reviewed and upgraded by the MIIs as well as new features and facilities added
from time to time as required by the Board. The ODR Portal shall be subject to
inspection and/or audit for, inter alia, verifying the adherence to these norms and
applicable SEBI regulations, circulars and advisories.

16. A complaint/dispute initiated through the ODR Portal will be referred to an ODR
Institution empaneled by a MII and the allocation system on a market-wide basis
will be a round-robin system to govern the allocation of each such dispute among
all such empaneled ODR Institution/s subject that for an initial period (as specified
by the Board):

a. complaints/disputes arising with a specific trading member for an exchange

transaction or a listed company, shall be referred to the ODR Institution/s
empaneled by the relevant Stock Exchange4, and disputes arising with a
specific depository participant, shall be referred to the ODR institution/s
empaneled by the relevant DepositoryIf the MII has empaneled more than one
ODR Institution, then at such level as well, a round robin system will govern
allocation of references among them.

b. Further, Stock Exchanges operating only commodities segment, the ODR

Institution/s empaneled by such Stock Exchange is/are excluded from the
market-wide round robin system. Other conditions in (a) above will continue
to apply to such Stock Exchanges and ODR Institution/s.

c. Further, references to ODR Institutions shall be made after a review of such

4For instances where the dispute pertains to an intermediary linked to more than one Stock Exchange/
Depository (or a company listed on more than Stock Exchange) then the Stock Exchange/ Depository
with which the complaint was escalated becomes the relevant Stock Exchange/ Depository, otherwise it
shall be subject to round robin

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 complaint/dispute by the relevant MII with the aim of amicable resolution and
which review shall be concluded within 21 calendar days (or such other period
that the Board may specify).

Conciliation

17. The ODR Institution that receives the reference of the complaint/dispute shall
appoint a sole independent and neutral conciliator from its panel of conciliators.
Such conciliator shall have relevant qualifications or expertise (please refer to
Schedule D), and should not be connected with or linked to any disputing party.
MIIs shall ensure that appropriate measures are put in place regarding
appointment of conciliators by the ODR Institutions.

18. Such conciliator shall conduct one or more meeting/s for the disputing parties to
reach an amicable and consensual resolution within 21 calendar days (unless
extended for a maximum period of 10 calendar days by consent of the disputing
parties to be recorded in writing/electronically) from the date of appointment of
conciliator by the ODR Institution, which shall do so within 5 days of receipt of
reference of the complaint/dispute by the ODR Institution. Apart from attempting
to actively facilitate consensual resolution of the complaint/dispute, the conciliator
may consider advising the Market Participant to render required service in case
of service-related complaints/disputes and/or consider issuance of findings on
admissibility of the complaint/dispute or otherwise in case of trade related
complaints/dispute (as the case may be).

19. If the process of conciliation is successful, the same shall be concluded by a duly
executed settlement agreement between the disputing parties. Such an
agreement shall be executed and stamped through an online mode, as
permissible in law. When such agreement requires the Market Participant to pay
the admissible claim value to the investor/client, the MII shall monitor the due
payment/adherence to the terms of the settlement agreement until due receipt by
the investor/client and/or performance of the required terms of settlement
agreement.

20. In case the matter is not resolved through the conciliation process within the 21
calendar days (or within the extended period of 10 calendar days, extended by
consent of the disputing parties):

a. the conciliator should ascertain the admissible claim value of the

complaint/dispute that the conciliator determines is payable to the
investor/client and notify the disputing parties as well as the ODR Institution
and the MII of the same. Such determination should also be made in all
claims/complaints/disputes where the monetary value has not been ascribed

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 by the person initiating the dispute;

b. An investor/client may pursue online arbitration (which will be administered by

the ODR Institution which also facilitated the conduct of conciliation) on or after
the conclusion of a conciliation process when the matter has not been resolved
through such process, subject to payment of fees as applicable for online
arbitration;

c. In case the Market Participant wishes to pursue online arbitration (which will
be administered by the ODR Institution which facilitated the conduct of
conciliation), then the Market Participant must deposit 100% of the admissible
claim value with the relevant MII prior to initiation of the online arbitration and
make the payment of fees as applicable for online arbitration. In case the
Market Participant fails to deposit the amount then they may not initiate online
arbitration and they may also face consequences as determined necessary or
appropriate by the Stock Exchange and could also be liable to be declared as
not ‘Fit and Proper’ in terms of the SEBI (Intermediaries) Regulations, 2008
and would be, inter-alia, liable to have their registration cancelled or their
business activities suspended. A listed company that fails to deposit the
amount may also face consequences as determined necessary or appropriate
by the Stock Exchange. On an application made by the investor/client in this
behalf to the relevant MII, the MII may, from the deposit received, release such
amount to the investor/client not exceeding Rs 5,00,000/- (Rupees Five lakhs)
or such sum as may be specified from time to time. On or before release of
the said amount to the investor/client, the MII shall obtain appropriate
undertaking/ indemnity / security in such form, manner and substance from the
investor/client to ensure return of the amount so released, in case the
arbitration proceedings are decided against the investor/client. If the arbitration
proceeding is decided against the investor/client, subject to the terms of the
arbitral award, such investor/client should return the released amounts. If the
investor/client fails to return the amount released, then the investor/client
(based on PAN of the investor/client) shall not be allowed to trade on any of
the Stock Exchanges or participate in the Indian Securities Market till such
time the investor/client returns the amount to the Market Participant. Further,
the securities lying in the demat account(s) or the mutual fund holdings of the
investor/client shall be frozen till such time as the investor/client returns the
amount to the Market Participant. If security had been obtained, the same
could be enforced/realised and adjusted towards the amount required to be
returned. In the event, the arbitration proceeding is decided in favour of the
investor/client, subject to the terms of the arbitral award, the MII shall release
the balance deposit held by it (as deposited by the Market Participant) to the
investor/client. The MII shall also monitor the due compliance by the Market

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 Participant with the terms of the arbitral award.

Arbitration

21. When the investor/client and/or the Market Participant pursue online arbitration,
the ODR Institution shall appoint a sole independent and neutral arbitrator from
its panel of arbitrators within 5 calendar days of reference and receipt of fees,
costs and charges as applicable. Such arbitrator shall have relevant qualifications
or expertise (please refer to Schedule D), and should not be connected with or
linked to any disputing party. In the event that the aggregate of the claim and/or
counter-claim amount exceeds Rs 30,00,000/- (Rupees Thirty Lakhs) or such
amount as the Board may specify from time to time, the matter shall be referred
to an Arbitral Tribunal consisting of three Arbitrators within 5 calendar days of
reference and receipt of fees, costs and charges as applicable. MIIs shall ensure
that measures are put in place regarding appointment of arbitrators by the ODR
Institutions. In the instance where the parties wish to withdraw from arbitration
before the arbitrator has been appointed then the fees shall be refunded after
deducting the applicable expenses not exceeding Rs 100/- (Rupees One
Hundred). However, withdrawal shall not be permitted after appointment of an
arbitrator.

22. Subject to value of claim and/or counter-claim being in excess of Rs 1,00,000/-

(Rupees One Lakh), the Sole Arbitrator or Arbitral Tribunal shall conduct one or
more hearing/s and pass the arbitral award within 30 calendar days (or such other
period as the Board may specify) of the appointment in the matter. When the
value of claim and/or counter-claim is Rs 1,00,000/- (Rupees One Lakh) or below
(or such other sum as the Board may specify from time to time), the Sole Arbitrator
shall conduct a document-only arbitration process and pass the arbitral award
within 30 calendar days (or such other period as the Board may specify) of the
appointment in the matter.5 However, the arbitrator, for reasons to be recorded in
writing/electronically , may grant a hearing to the parties to the dispute. The Sole
Arbitrator or Arbitral Tribunal shall be at liberty to extend such time for disputes
exceeding claims and/or counterclaims of Rs 1,00,000/- (Rupees One Lakh) (or
such other sum as the Board may specify from time to time), upto a further period
of 30 calendar days (or such other period as the Board may specify) and for
reasons to be recorded in writing/electronically, when the matter requires detailed
consideration. The Sole Arbitrator or Arbitral Tribunal may, having regard to the
nature of the claim and/or counterclaim, provide interim relief as may be required

5 If parties to the dispute do not provide any representation in the arbitral proceedings, the arbitrator
may pass an ex-parte order after giving a notice of 7 calendar days to the concerned non-cooperative
party(ies).

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 for reasons to be recorded after affording hearing to the parties to the dispute.
The parties may make an application under the relevant section of the Arbitration
and Conciliation Act, 1996 for correction/rectification of the award.

23. Upon the conclusion of the arbitration proceedings and issuance of the arbitral
award, subject to the terms of the arbitral award, when such arbitral award
requires payment of any amount by the Market Participant or performance by it
of a certain nature, then such payment shall be made by the Market Participant
within a period of 15 calendar days from the date of the arbitral award (unless
such award requires payment sooner), and/or performance within such period as
specified by the arbitral award. The MII shall monitor the due payment/adherence
to the terms of the arbitral award until due receipt by the investor/client and/or
performance of the terms of arbitral award. In the event, the parties do not comply
with the arbitral award, the relevant MII shall inform the Board regarding such
non-compliance on a periodic basis. Furthermore, the relevant MII shall provide
necessary assistance to the investor/client for enforcement of the arbitral award.

24. Upon the issuance/pronouncement of the arbitral award, the party against whom
order has been passed, will be required to submit its intention to challenge the
award under Section 34 of the Arbitration Act within 7 calendar days in the ODR
Portal for onward notification to the party/ies in whose favour the arbitral award
has been passed and the relevant MII. Further, in the course of such a challenge,
if a stay is not granted within 3 months from the date of the receipt of award,
complete adherence to the terms of the arbitral award must be done.

25. If the Market Participant wishes to challenge such an arbitral award, then the
Market Participant must deposit 100% of the amounts payable in terms of the
arbitral award with the relevant MII prior to initiation of the challenge. In case the
specified intermediary/regulated entity fails to deposit the amount then they may
also face consequences as determined necessary or appropriate by the Stock
Exchange and could also be liable to be declared as not ‘Fit and Proper’ in terms
of the SEBI (Intermediaries) Regulations, 2008 and would be inter-alia, liable to
have their registration cancelled or their business activities suspended. A listed
company that fails to deposit the amount may also face consequences as
determined necessary or appropriate by the Stock Exchange. On an application
made by the investor/client in this behalf to the relevant MII, the MII may, from the
deposit received, release such amount to the investor/client not exceeding Rs
5,00,000/- (Rupees five lakhs) or such sum as may be specified from time to time.
On or before release of the said amount to the investor/client, the MII shall obtain
appropriate undertaking/ indemnity / security from the investor/client to ensure
return of the amount so released, in case the challenge is decided against the
investor/client. If the challenge is decided against the investor/client, subject to

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 the judgement of the appellate forum, such investor/client should return the
released amounts. If the investor/client fails to return the amount released, then
the investor/client (based on PAN of the investor/client) shall not be allowed to
trade on any of the Stock Exchanges or participate in the Indian Securities Market
till such time the investor/client returns the amount to the Market Participant.
Further, the securities lying in the demat account(s) or the mutual fund holdings
of the investor/client shall be frozen till such time as the investor/client returns the
amount to the Market Participant. If security had been obtained, the same could
be enforced/realised and adjusted towards the amount required to be returned.
In the event, the challenge is decided in favour of the investor/client, subject to
the terms of the judgement of the appellate forum, the MII shall release the
balance deposit held by it (as deposited by the Market Participant) to the
investor/client. The MII shall also monitor the due compliance by the Market
Participant with the terms of the arbitral award/judgement of the appellate forum.

Form of Proceedings

26. The ODR Institutions shall conduct conciliation and arbitration in the online mode,
enabling online/audio-video participation by the investor/client, the Market
Participant and the conciliator or the arbitrator as the case may be. The
investor/client may also participate in such online conciliation and arbitration by
accessing/utilizing the facilities of Investor Service Centers (ISCs) operated by
any of the MIIs.

27. 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 (including

their registrar and share transfer agents) or any of the specified intermediaries
/ regulated entities in securities market (as specified in Schedule A): where
the investor resides permanently or, where the investor is not an individual,
the place where it is registered in India or has its principal place of business
in India, as provided in the relevant KYC documents

b) In case of disputes between institutional or corporate clients and specified

intermediaries / regulated entities in securities market as specified in
Schedule B:

(i) where the institutional or corporate clients has its registered in India
or has its principal place of business in India, as provided in the
relevant KYC documents, and

(ii) if in case the the institutional or corporate client is not registered in

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 India or does not have its principal place of business in India, then
the place where the specified intermediaries / regulated entities in
securities market as specified in Schedule B has its registered in India
or has its principal place of business in India or

(iii) such court of competent jurisdiction in India as the institutional or

corporate clients and specified intermediaries / regulated entities in
securities market as specified in Schedule B may agree upon.

Fees & Charges

28. The costs of the dispute resolution mechanism on the ODR Portal will be borne
in the following manner:
a. There shall be no fees for registration of a complaint/dispute on the ODR
Portal.

b. Fees for conciliation process (irrespective of claim or counter-claim value)

will be as under:
Amount in Rupees
Conciliator’s fee (to be collected by ODR Institution and
paid to Conciliator)
- for successful conciliation ₹ 4,800/-
- for unsuccessful conciliation ₹ 3,240/-
ODR Institution’s fees, in addition to the conciliator’s fees ₹ 600/-
(to be collected by ODR Institution)
Applicable GST, Stamp Duty, etc. on actual outgoings
shall be borne by the concerned Market Participant

Such fees may be borne by the MIIs and will be recoverable by them from
the concerned Market Participant against whom the complaint/dispute is
raised. Such fees shall be borne directly by the concerned Market
Participant if it is initiating the dispute process. The Market Participant shall
not shift the incidence of such fees to the investor/client at any time.

Unsuccessful Conciliation: In the event the disputing parties are not able to
arrive at a settlement within the stipulated time (or such extended period as
agreed to by them) it shall be said to be unsuccessful conciliation.

Late Fees: Initiation of conciliation process after six months from the date of
transaction/dispute arising will require payment of Rs 1,000/- by the initiator
of the complaint/dispute (whether such initiator be the investor/client or the
Market Participant) and shall be collected by the MIIs and applied as

Page 11 of 28
 specified by the Board from time to time.

c. The fees for the arbitration process will be as under:

Rs 0 – Above Above Above Above Above Rs

1 lakh Rs 1 Rs 10 Rs 20 Rs 30 50 lakh
* lakh - lakh - lakh - lakh -
10 20 lakh 30 lakh 50 lakh
lakh
Arbitrator’ ₹4,800 ₹8,000 ₹12,000 ₹16,000 ₹60,000 ₹1,20,000
s fee (to /- /- /- /- /-** /-**
be
collected
by ODR
Institution
and paid
to
Arbitrator)

ODR ₹600/- ₹1,000 ₹1,500/- ₹2,000/- ₹7,500/- ₹15,000/-

Institution’ /-
s fees, in
addition
to the
arbitrator’
s fees (to
be
collected
by ODR
Institution
)
Applicabl
e GST,
Stamp
Duty, etc.
on actual
outgoings
* This slab will be applicable for service request related disputes also
** Fee for panel of arbitrators shall be split into a ratio of 40:30:30 with the
higher proportion being payable to the arbitrator writing the arbitral award

Such fees will be payable at the time of initiation of the arbitration by the

Page 12 of 28
 initiator (whether the investor/client or the concerned Market Participant),
and by the person against whom the arbitration has been initiated. When
the person initiating the arbitration has not specified a claim amount or has
specified a lower claim amount, the admissible claim value as determined
by the conciliator shall be reckoned for arriving at the claim value in such
arbitration being initiated.

Such fees have to be deposited at the time of choosing to initiate arbitration

through the ODR Portal within 7 days or such period as specified from time
to time. In case the person against whom the arbitration has been initiated
fails to deposit the fee payable within such period as specified then the
person choosing to initiate the arbitration can deposit the fees payable on
such person’s behalf and shall be recoverable from such person through the
arbitration process.

Subject to the terms of the arbitral award, the person who is successful in
the arbitration proceedings shall receive a refund of amounts deposited by
such person.

Late Fees: Arbitration initiated after one month of failure of conciliation and
upto six months, the fees payable would be double of the non-refundable
fees specified in the table above. Arbitration initiated after six months by a
Market Participant will require payment of, additional fee of 50% of the fees,
specified in the table above applicable per additional month of delay and
which shall be on non-refundable basis. Such late fees shall be collected by
the MIIs and applied in relation to operationalization and effective
functioning of the ODR Platform and for the purposes as specified by the
Board from time to time.

The fees shall be uniform across MIIs, ODR Institutions, conciliators and
arbitrators.

29. All other usage or administrative fees as well as out-of-pocket expenses borne by
the MIIs or the ODR Institutions in the management or operation or use of the
ODR Portal would be subsumed in these fees and would not be separately
chargeable.

Empanelment and Training of the Panel of Conciliator and Arbitrators

30. All MIIs and the ODR Institutions empaneled by the MIIs shall ensure that:

a. The number of conciliators and arbitrators on the panel of the ODR

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 Institutions is commensurate to the number of references of
complaints/disputes received so that a conciliator / arbitrator / panel of
arbitrators handle a reasonable number of references simultaneously and
that all references are disposed of within the prescribed time.

b. The conciliators and arbitrators on the panel of the ODR Institutions should
have undergone training and certification program/s or possess sufficient
experience for such individual being regarded qualified or expert in online
dispute resolution (conciliation or arbitration) and technology, finance,
securities law, securities product or services, etc. to cater to the specific
nature of a given complaint/dispute arising in the Indian securities market or
such programs as specified by the Board from time to time (including
courses provided by National Institute for Securities Market – NISM). Such
training shall be taken on a periodic basis and at least annually. Initially, all
the members of IGRCs or arbitrators who have been at present approved
by the Board shall be eligible to be empaneled by the ODR Institutions.

c. The conciliators and arbitrators on the panel of the ODR Institutions shall be
evaluated annually. MIIs will require the empaneled ODR Institution to
submit an evaluation report to the MII.

d. Information on conciliators and arbitrators on the panel of the ODR

Institutions will be disseminated on the website of each ODR Institution,
including brief profile, qualifications, training and certifications, areas of
experience, number of conciliation/arbitration matters handled, etc.

e. The mode and manner for an individual to be added to the panel of the ODR
Institutions shall be specified by it, including the required experience and/or
training and certifications.

f. The conciliator or arbitrators should be neutral and independent in respect

of each and every matter or reference received by them, and not connected
with or linked to any disputing party in any manner whatsoever.

Roles and Responsibilities of MIIs

31. MIIs shall enter into appropriate agreements with ODR Institutions outlining the
role and responsibilities of each party in adherence to this circular, and also
specify mechanism for handling and resolution of their inter-se disputes. The MIIs
and the ODR Institutions empaneled by MIIs may also enter into necessary and
appropriate contractual frameworks with the Market Participants, for them and
their investors/clients in the Indian Securities Market, participating on the ODR

Page 14 of 28
 Portal and in the ODR mechanism as specified.

32. All MIIs (and the ODR Institutions empaneled by MIIs as applicable) shall enter
into agreements with financial institutions/Banks for opening accounts and
effective receipt, payment and disbursal of any amount including the fees,
payments as required to be made vide the settlement agreement / arbitral awards
or at the time of initiating an arbitration or challenge to an arbitral award, etc.

33. MIIs shall ensure that resolution of complaints/disputes referred on the ODR
Portal are undertaken by the ODR Institutions empaneled by the MIIs within the
stipulated timelines.

34. MIIs and the ODR Institutions empaneled by the MIIs, shall maintain Management
Information Systems (MIS) reports, which shall be shared with the concerned
Market Participant so the latter can adequately track timelines of any dispute. The
Board may also require MIIs to furnish MIS reports in such form and on such
periodicity as it may specify.

35. MIIs and the ODR Institutions empaneled by the MIIs, shall maintain relevant
records, including directions/recommendations/orders passed at pre-conciliation,
conciliation and arbitration stage for the period as specified in the extant law, and
produced to relevant authorities as and when required. MIIs shall also ensure, in
terms of their internal processes and contractual arrangements with ODR
Institutions, that documents are adequately preserved, including in cases of
change in the ODR Institution.

36. The ODR Portal and the facilities provided by the ODR Institutions will be user-
friendly and accessible online/through audio-video to all the concerned parties
and stakeholders, at all times.

37. The ODR Institutions to whom the dispute is referred and the Market Participant
which is party to the dispute shall provide complete cooperation to the conciliator
and/or arbitrator and/or panel of arbitrators including providing any information
required to resolve the complaint in effective manner and within stipulated
timelines.

38. MIIs, ODR Institutions and the Market Participants shall make reasonable efforts
to undertake promotion of investor education and investor awareness
programmes through seminars, workshops, publications, training programmes
etc. aimed at creating awareness about the ODR Portal for the Indian Securities
Market.

Page 15 of 28
39. The MIIs shall lay down or modify their Code of Conduct, outlining the ethical
standards that every party viz. the ODR Institution empaneled by the MIIs, Market
Participants, the conciliators, the arbitrators must follow, and espouse the
interests of investors in the Indian Securities Market, and resolve their
complaints/disputes efficiently and in a time-bound manner.

40. The MIIs and the ODR Institution empaneled by the MIIs shall publish at such
frequency as specified, statistics on the ODR Portal which provide information as
to:
a. Aggregate references of complaints/disputes received

b. Aggregate number of complaints/disputes resolved by means of conciliation

c. Aggregate number of complaints/disputes resolved by means of arbitration

d. Aggregate value of claims decided in favour of investors/clients

e. Summary of complaints/disputes on the ODR Portal against each category of

specified intermediary or regulated entity and against listed companies

Responsibilities of the Market Participants

41. All agreements, contractual frameworks or relationships entered into by Market

Participants with investors/clients in the Indian Securities market presently
existing or entered into hereafter shall stand amended or be deemed to
incorporate provision to the effect that the parties agree to undertake online
conciliation and/or online arbitration by participating in the ODR Portal and/or
undertaking dispute resolution in the manner specified in this Circular.

42. The Market Participants shall promptly attend to all complaints or disputes raised
by its investors or clients in accordance with applicable SEBI rules, regulations
and circulars. The communications shall clearly specify, the availability of the
SCOREs portal and the ODR Portal to the investor/client and that the same could
be accessed by such investor/client if unsatisfied with the response (or the lack
thereof) of the Market Participant.

43. The Market Participants shall duly train their staff in attending to
complaints/disputes and in handling the references arising from the SCOREs
portal or the ODR Portal, and in participating in online conciliation and arbitration.
Due cooperation and coordination with the MIIs and with the ODR Institutions
shall be ensured by the Market Participants.

44. The Board may require the Market Participants to maintain such level of interest-
free deposit with the MIIs or with the concerned designated body identified vide

Page 16 of 28
 the revised SCOREs guidelines and shall be such sums that it considers
necessary and appropriate for honouring of any arbitral awards or amounts
payable pending initiation of arbitration or challenge to an arbitral award. The
amount of such deposit may vary depending on the category of Market Participant
and may factor in the extent and nature of complaints or disputes against any
specified Market Participant that are observable.

Timelines for Implementation

45. The provisions of this Circular will be implemented in phases:

46. The first phase shall include:

a. development of the ODR Portal, empanelment of ODR Institutions by the MIIs,

empanelment of conciliators and arbitrators by such ODR Institutions on or
before August 1, 2023

b. registration of Trading Members and Depository Participants on the ODR

Portal by August 15, 2023, and

c. commencement of registering of complaints/disputes against brokers and

depository participants and their resolution on and from August 16, 2023.

47. The second phase shall include:

a. registration of all other Market Participants on the ODR Portal by September

15, 2023

b. commencement of registering of complaints/disputes against all other Market

Participants and their resolution on and from September 16, 2023, and

c. implementation of related processes and requirements envisaged in this

Circular shall be in effect by September 16, 2023.

48. The Market Participants are directed to bring the provisions of this circular to the
notice of the investors/clients and also to disseminate the same on their website.

49. This Circular supersedes the circulars/directions (and /or sections of the same
dealing with mediation, conciliation and arbitration) issued by the Board till date
on the subject matter and such supersession shall be the date of implementation
of the first phase or second phase, as applicable, specified above. For ease of
reference, such circulars are listed below:
a. Circular No. SEBI/HO/MRD1/ICC1/CIR/P/2022/94 dated July 4, 2022

Page 17 of 28
 b. Circular No. SEBI/HO/MRDSD/DOS3/P/CIR/2022/78 dated June 3, 2022
c. Circular No: SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/76 dated May 30,
2022
d. Circular No.: SEBI/HO/CFD/SSEP/CIR/P/2022/48 dated April 8, 2022
e. Circular No SEBI/HO/CDMRD/DoC/P/CIR/2021/649 dated October 22, 2021
f. Circular No. SEBI/HO/MRD1/ICC1/CIR/P/2021/625 dated September 2,
2021
g. Circular No. SEBI/HO/MIRSD/DOC/CIR/P/2020/226 dated November 6,
2020
h. Circular No. SEBI/HO/MRD/DDAP/CIR/P/2020/16 dated January 28, 2020
i. Circular No. CIR/CDMRD/DCE/CIR/P/2018/48 dated March 14, 2018
j. Circular No. CIR/CDMRD/DEICE/CIR/P/2017/77 dated July 11, 2017
k. Circular No: CIR/CDMRD/DEICE/CIR/P/2017/53 dated June 13, 2017
l. Circular No: SEBI/HO/MRD/DRMNP/CIR/P/2017/24 dated March 16, 2017
m. Circular No. SEBI/HO/DMS/CIR/P/2017/15 dated February 23, 2017
n. Circular No. CIR/CDMRD/DIECE/02/2015 dated November 16, 2015
n-i. Circular No.: CIR/MIRSD/11/2013 dated October 28, 2013
o. Circular No. CIR/MRD/ICC/30/2013 dated September 26, 2013
p. Circular No. CIR/MRD/ICC/20/2013 dated July 05, 2013
q. Circular No. CIR/MRD/ICC/8/2013 dated March 18, 2013
r. Circular No. CIR/MRD/ICC/ 29 /2012 dated November 7, 2012
s. Circular No. CIR/MIRSD/2/2012 dated February 15, 2012
t. Circular No. CIR/MRD/DSA/03/2012 dated January 20, 2012
u. Circular No. CIR/MRD/DP/4/2011 dated April 7, 2011
v. Circular No. CIR/MRD/DSA/2/2011 dated February 09, 2011
w. Circular No. Cir. /IMD/DF/13/2010 dated Oct 05, 2010
x. Circular No. CIR/MRD/DSA/29/2010 dated August 31, 2010
y. Circular No. CIR/MRD/DSA/24/2010 dated August 11, 2010
z. Circular No. CIR/MRD/DP/19/2010 dated June 10, 2010
aa. Circular No. SEBI/MRD/ OIAE/ Dep/ Cir- 4/2010 dated January 29, 2010

50. Notwithstanding such supersession,

a. anything done or any action taken or purported to have been done or taken
under the superseded circulars, prior to such supersession shall be deemed
to have been done or taken under the corresponding provisions of this
Circular;

b. the previous operation of the superseded circulars or anything duly done or

suffered thereunder, any right, privilege, obligation or liability acquired,
accrued or incurred under the superseded circulars, any penalty, incurred in
respect of any violation committed against the superseded circulars, or any

Page 18 of 28
 investigation, legal proceeding or remedy in respect of any such right,
privilege, obligation, liability, penalty as aforesaid, shall remain unaffected
as if the superseded circulars have never been superseded;

c. Matters or references currently under consideration of the IGRC or in

arbitration (sole, panel or appellate arbitration) shall be disposed of as per
the superseded circulars and within the timelines specified in such circulars;

d. For disputes pertaining to claims against defaulting trading members the

same shall be addressed through the existing mechanism via the Core
Settlement Guarantee Fund (Core SGF); and

e. All matters that are appealable before the Securities Appellate Tribunal in
terms of Section 15T of SEBI Act, 1992 (other than matters escalated
through SCOREs portal in accordance with SEBI SCOREs Circular),
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.

51. The MIIs are directed to:

a. make necessary amendments to the relevant bye-laws, rules and
regulations for the implementation of the above decision immediately;

b. disseminate the aforesaid provisions on their website and bring the same to
the notice of all stakeholders including the Market Participants and
investors/clients in the Indian Securities Market.

52. This Circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market. This circular is issued with the approval of the competent
authority.

53. This Circular is available on the SEBI website at www.sebi.gov.in under the link
“Legal > Master Circulars”. This circular consolidates the circulars listed at
Annexure I.

Yours faithfully,
S. Manjesh Roy
General Manager
Tel no.: 022- 26449710
Email: [email protected]

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Schedule A
(See Paragraph 2 of the Circular)

Specified Intermediaries and Regulated Entities

List of securities market intermediaries / regulated entities against whom investors

may invoke the ODR process:

1. AIFs – Fund managers

2. CIS – Collective Investment management company
2A. Commodities Clearing Corporations
3. Depository Participants
4. Investment Advisors
5. InvITs - Investment Manager
6. Mutual Funds - AMCs6
7. Portfolio Managers
8. Registrars and Share Transfer Agents
9. REITs – Managers
9A. Research Analyst
10. Stock brokers7

6 Including for any claims/complaints/disputes arising on account of Mutual Fund Distributors of the
Mutual Fund AMCs
7 Including for any claims/complaints/disputes arising on account of Authorised Persons of the Trading

Members

Page 20 of 28
Schedule B
(See Paragraph 3 of the Circular)

Specified Intermediaries and Regulated Entities

1. Clearing Corporations and their constituents

2. Credit Rating Agency and rating clients
3. Custodians and their clients/FPIs
4. Debenture Trustees and issuers
5. Designated Depository Participant and their clients/FPIs
6. KYC Registration Agency and their clients/intermediaries
7. Merchant Banker and issuers
8. Mutual Funds and Mutual Fund Distributors
9. Proxy Advisory and their clients
10. Proxy advisors and listed entities
11. Registrars and Share Transfer Agents and their clients
12. Research Analyst and their clients
13. Stock brokers and their Authorised Persons
14. Trading Members and Clearing Members
15. Vault Managers and beneficial owners

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Schedule C

Norms for empanelment of ODR Institutions by MIIs and continuing obligations

of ODR Institutions

MIIs role and responsibility:

1. An MII shall empanel one or more ODR Institutions as a service provider and
enter into relevant agreements with such ODR Institution(s) in accordance with
guidelines issued by the Board on outsourcing of activities by stock exchanges,
depositories and clearing corporations (as amended from time to time) and this
circular. An MII should ensure that the primary/first ODR Institution to be
empaneled with it, is not empaneled as the primary/first ODR Institution with any
other MII .

2. An MII shall collect requisite information of a ODR Institution desirous of being

empaneled for providing ODR services for the Indian Securities Market. Such
information shall include: copies of registration certificate, memorandum of
association and articles of association/ constitutional documents, rules
governing conciliation and arbitration, PAN, Legal Entity Identifier number,
composition of its board of directors, governing bodies and advisory councils, if
any, and details of its shareholders and investors, and list of its authorised
officials / signatories. Changes if any to any of these may be notified to the
concerned MII promptly. An MII may drop an ODR Institution from its panel, if
there is a delay in notifying or if the changes are viewed by the concerned MII
as not conducive to continuance of the ODR institution on the panel.

3. An ODR Institution shall also furnish other credentials that are deemed relevant
to the empanelment process including: details of conciliators and arbitrators
empaneled by the ODR Institution, norms for such empanelment, fees, costs
and charges levied for conduct of online conciliation and arbitration,
institutional/corporate clients or other ecosystems where rendering online
conciliation and arbitration, aggregate number of disputes received for
resolution whether for online conciliation or arbitration, aggregate number of
disputes resolved by means of online conciliation and arbitration, aggregate
value of disputes resolved by means of online conciliation and arbitration, types
and nature of disputes resolved by mean of online conciliation and arbitration,
technologies, platform, platform features and facilities in conducting online
conciliation and arbitration. Such credentials shall be furnished at the time of
empanelment and thereafter on a quarterly basis (April/July/October/January).

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 4. The details of conciliators and arbitrators required to be furnished shall include:
unique count of conciliators and arbitrators trained in the securities market,
along with the education, training and professional qualification, number of years
of experience, previous experience in conciliation / arbitration including
experience in specific types, natures or sectors, languages conversant with
(spoken/written) and other demographic details such as age, sex, location.

5. MIIs shall ensure that the ODR Institutions eligible for empanelment have the
ability to integrate their own platform/systems with the ODR Portal for
requirements and purposes as specified from time to time, and on or prior to
empanelment undertake necessary integration. MIIs shall also ensure that the
ODR Institutions also have sufficient technologies to ensure due secrecy,
confidentiality and cyber-security for the dataflow between the ODR Portal and
its platform/systems, collection of fees and charges (or its refund) and for the
conduct of online conciliation and arbitration. MIIs shall also ensure the ODR
Institution deploys and makes available such features or facilities on its
platform/systems as required by the Board from time to time.

6. MIIs shall ensure that the ODR Institution and its conciliators and arbitrators
abide by the Code of Conduct (Schedule E) and highest standards of
independence, impartiality, ethics and confidentiality as befits conciliation and
arbitration, and interests of Indian Securities Market and with the applicable laws
including the Arbitration and Conciliation Act, 1996.

ODR Institutions’ role and responsibility:

7. An ODR Institution empaneled by an MII should be/become a member of

association/trade body having as its members MII empaneled ODR Institutions
for the Indian Securities Market on or before October 31, 2023. Details of such
association / trade body shall be furnished to the MIIs and the Board, and shall
include: copies of registration certificate, memorandum of association and
articles of association/ constitutional documents, PAN, Legal Entity Identifier
number, composition of its board of directors, governing bodies and advisory
councils, if any, and details of its members, and list of its authorised officials /
signatories. Such association / trade body shall undertake such activities and
perform such roles and responsibilities as may be specified from time to time.

8. Any complaint received against a conciliator or arbitrator shall be promptly

examined by the ODR Institution and the findings/conclusions/actions taken will
be reported to the MII. MII may conduct its own review into such a process
and/or specific matter. Any complaint against an ODR Institution shall be

Page 23 of 28
 promptly examined by the MII and post the findings/conclusions, MII shall take
appropriate actions.

9. An ODR institution may seek to be removed as an empaneled ODR Institution

after disposal of all pending references. Further, in the event of a breach by the
ODR Institution of the norms of empanelment specified, and/or SEBI
regulations, circulars and advisories or norms of the MII, the MII may
suspend/terminate the empanelment of the ODR Institution, without prejudice to
its rights to take any further action against the ODR Institution. No new
complaints/disputes will be assigned after the receipt of its notice to such effect.

10. MII shall ensure that each ODR institution shall abide by the following norms for
furthering transparency and evolving precedents:
a) Publish at pre decided regularity, data regarding disputes assigned, count
of disposal of such references through conciliation, and count of disposal
of references through arbitration (indicating to the extent feasible, decisions
in favour of investors and in favour of intermediaries), which will be available
freely to the public in such form, manner and mode as the Board may
specify, and
b) Publish decisions of the arbitrators, redacted or masked to ensure identity
of the parties is not ascertainable, to help develop a database of matters
and decisions, which will be available freely to the public in such form,
manner and mode as the Board may specify.

11. MIIs shall inspect and/or audit the ODR Institution directly or through such
person or firm that it may appoint, for, inter alia, verifying the adherence to these
norms and applicable SEBI regulations, circulars and advisories.

12. MIIs shall ensure that the ODR Institutions abide by the SEBI regulations,
circulars and advisories on online conciliation and online arbitration as
applicable. MIIs shall ensure empaneled ODR institutions shall furnish an
irrevocable, unconditional undertaking that it shall abide by the norms of
empanelment specified, and SEBI regulations, circulars and advisories or norms
as may be notified by SEBI and the respective MII from time to time. The ODR
institutions shall also acknowledge through such undertaking that the grievance
redressal and dispute resolution mechanisms have been set up by the Board as
a part of its institutional framework to provide robust dispute resolution
processes for the investors and Market Participants.

13. Any complaints/grievances against the ODR Institutions with respect to their
services pursuant to this circular shall be resolved in accordance with
agreements entered into the MIIs with their ODR Institutions.

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14. MIIs shall ensure that the empaneled ODR Institutions have adequate
infrastructure, manpower and resources to assist the former in maintaining
compliance with their responsibilities under paragraphs 31 – 40 of this circular.

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Schedule D
Suggested norms for empanelment of Conciliators and Arbitrators

The following factors are suggested for empaneling a person as a conciliator or

arbitrator by the ODR Institutions:

1. Age: between 35 years to 75 years.

2. Qualification in the area of law, finance including securities market, accounts,

economics, technology, management, or administration.

3. Experience: Minimum 7 years of experience as provided below.

4. Professional experience as outlined below could be considered:

a. Financial services including securities market i.e. Banks, NBFCs, MIIs, other
intermediaries of securities market;
b. Legal services – Certified professionals handling conciliation, and /or arbitration
independently; and/or
c. Ex-officials from the Indian financial sector regulators viz., the Insurance
Regulatory and Development Authority, the Pension Funds Regulatory and
Development Authority, the Reserve Bank of India and the Securities and
Exchange Board of India.

5. Knowledge and Skills such as:

a. Knowledge on the functioning of the securities market;
b. Securities Laws and Arbitration & Conciliation laws in India;
c. Proficiency in English language (reading, writing and speaking);
d. Proficiency in one or two regional languages and ability to read/write/speak/all
- required for communication and for effective dispute resolution;
e. Legal drafting and communications skills;
f. Decision making skills required for imparting fair judgement;
g. Understand party psychology and common online behaviours: Diversity and
cross- cultural communication and possessing professional behaviour

7. The Conciliators and Arbitrators should satisfy the following criteria for empanelment:
a. The person has a general reputation and record of fairness and integrity,
including but not limited to (i) financial integrity; (ii) good reputation and
character; and (iii) honesty;
b. The person has not been convicted by a court for any offence involving moral
turpitude or any economic offence or any offence against the securities laws;
c. The person has not been declared insolvent and if yes, has not been
discharged;
d. No order, restraining, prohibiting or debarring the person, from dealing in
securities or from accessing the securities market, has been passed by the
Board or any other regulatory authority;
e. No other order is passed against the person, which has a bearing on the
securities market;

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 f. The person has not been found to be of unsound mind by a court of competent
jurisdiction; and
g. The person is financially sound and has not been categorised as a willful
defaulter.
Schedule E
Code of Conduct for Conciliators and Arbitrators

The Conciliators and Arbitrators shall:

i. Act in a fair, unbiased, independent and objective manner;

ii. Maintain the highest standards of personal integrity, truthfulness, honesty
and fortitude in discharge of his duties;
iii. Disclose his/her/their interest or conflict in a particular case, i.e., whether
any party to the proceeding had any dealings with or is related to the
Conciliator and Arbitrator;
iv. Not engage in acts discreditable to his/her/their responsibilities;
v. Avoid any interest or activity which is in conflict with the conduct of
his/her/their duties as a conciliatory or arbitrator;
vi. Avoid any activity that may impair, or may appear to impair, his/her/their
independence or objectivity;
vii. Conduct proceedings in compliance with the principles of natural justice and
the relevant provisions of the Arbitration and Conciliation Act, 1996, the
SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, the
Depositories Act, 1996 and the Rules, Regulations and Bye-laws framed
thereunder and the circulars, directions issued thereunder, and the
contractual arrangements;
viii. Undertake training courses as may be specified time to time by the Board,
including from NISM;
ix. Endeavour to pass arbitral award expeditiously and within prescribed time;
x. Pass reasoned and detailed arbitral awards; and
xi. Maintain confidentiality with respect to the proceeding and its associated
recordings and only disclose confidential information as required by law or
Courts of competent jurisdiction or legal authority.

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 Annexure I

List of circulars consolidated by the Master Circular

Sl Reference Number of Date Subject of the Circular

No. Circular
1 SEBI/HO/OIAE/OIAE_IAD- Jul 31, Online Resolution of Disputes in
1/P/CIR/2023/131 2023 the Indian Securities Market
2 SEBI/HO/OIAE/OIAE_IAD- Aug 04, Corrigendum cum Amendment to
1/P/CIR/2023/135 2023 Circular dated July 31, 2023 on
Online Resolution of Disputes in
the Indian Securities Market

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