All Recognized Stock Exchanges (including Commodity Derivatives)

master_circulars · 1992 · State unknown

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Parent: THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (7c4c1f5343adab106c3a94cafc08a5ecf5957ae7)

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

Rule TOC

1 · presently excluding Clearing Corporations and its constituents

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.

4 · For 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

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).

50 · Notwithstanding such supersession,

2A · Commodities Clearing Corporations

9A · Research Analyst

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