Online Resolution of Disputes in the

Indian Securities Markets

 Agenda
Session 1: Slide 3-7 Dispute Resolution – Old V/s New System

Session 2: Slide 8- 13 Introduction to ODR Mechanism and various stakeholders

Session 3: Slide 14 – 24 Session 3: Orientation to ODR Portal
Session 4: Slide 25- 37 Conciliation, Arbitration and associated Fees
Session 5: Slide 38 – 46 ODR institutions, Conciliators and Arbitrators
- Empanelment
- Roles and Responsibilities
- Code of Conduct
Session 6: Slide 47-51 Do’s and Don’ts for Investors & Market Participants
Online Resolution of Disputes in the
Indian Securities Markets
 DIFFERENCE BETWEEN EARLIER REDRESSAL
SYSTEM AND CURRENT REDRESSAL
Old Redressal Mechanism New Redressal Mechanism

SCOPE Only limited to Brokers, All securities markets

Depositories Participant, SEBI intermediaries covered, SEBI
Scores Scores.
ESCALATION 1) Market Participant / SCORES 1) Market Participant/SCORES
PROCESS 2) Exchanges/ Depositories 2) ODR Portal
- IGRC a) MII review for resolution
a) Arbitration b) Conciliation
b) Appellate Arbitration c) Arbitration
c) Court of Law d) Court of Law
[IGRC subsumes into ODR]
EARLIER REDRESSAL SYSTEM THROUGH EXCHANGES
 NEW GRIEVANCE REDRESSAL SYSTEM
Client Grievance can be initiated directly

Investor/Client may Level 3: ODR

Level 1: Market Participant
(Intermediaries)
initiate dispute
resolution through ODR
Portal
without having to go
through SCORES Portal
(i.e. From Level 1 to
Level 3) if grievance is
not resolved
satisfactorily

MII Review

If investor not Conciliation

satisfied with
If the investor/client
response of market
is still not satisfied
participant then Level 2: Escalate through with Arbitration
the outcome, then
SEBI SCORES PORTAL initiate dispute
resolution through :

Court of Law
SCORES ESCALATION MATRIX
 ONLINE DISPUTE RESOLUTION (ODR) MECHANISM
• An investor/client (including institutional/corporate client) shall first take
up grievance directly with the Market Participant by lodging a complaint.
• If the grievance is not redressed satisfactorily, the investor/client may,
escalate through the SCORES.
• If the investor/client is still not satisfied with the outcome, then initiate
ODR through the ODR Portal.
• An investor/client can initiate dispute resolution through ODR if grievance
lodged directly with Market Participant and remains unresolved; OR after
lodging grievance on SCORES and is not satisfactorily resolved.
• Market Participant may also initiate dispute resolution through the ODR
Portal by giving notice period of 15 calendar days to the investor/client for
resolution of the dispute, which is not resolved
 EXCEPTIONS FOR DISPUTE RESOLUTION MECHANISM THROUGH
ODR
• Dispute through ODR Portal can be initiated when the complaint/dispute is
NOT under consideration before:
– any arbitral process, court, tribunal or consumer forum or
– 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
– is against the Government of India / President of India or a State
Government / Governor of a State.
[The dispute resolution through the ODR Portal can be initiated 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)]
 Specified Intermediaries and Regulated Entities under ODR
Disputes between Investors/Clients and :
• Stock brokers (including Authorised Persons of Trading members, Online Bond platforms
and Online bond platform providers)
• Listed Companies
• Banker to an Issue and Self-Certified Syndicate Banks
• Registrars and Share Transfer Agents
• AIFs – Fund managers
• CIS – Collective Investment management company
• Commodities Clearing Corporations*
• Depository Participants
• Investment Advisors
• InvITs - Investment Manager
• Merchant Bankers
• Mutual Funds – AMCs (including Mutual fund distributors)
• Portfolio Managers
• REITs – Managers
• Research Analyst
 Specified Intermediaries and Regulated Entities under ODR
Disputes between institutional or corporate clients and:
Disputes between institutional or
• Stock brokers and their Authorised Persons corporate clients and specified
• Trading Members and Clearing Members intermediaries/ regulated
• Registrars and Share Transfer Agents and their clients entities in securities market can
• Designated Depository Participant and their clients/FPIs
be resolved, at the option of the
• Clearing Corporations and their constituents
institutional or corporate clients:
• Commodities Clearing Corporation
• Credit Rating Agency and rating clients
• Custodians and their clients/FPIs
• in accordance with online
dispute resolution prescribed by
• Debenture Trustees and issuers SEBI
• ESG Rating Providers and their clients or
• KYC Registration Agency and their clients/intermediaries • by harnessing any
• Merchant Banker and issuers ‘ independent institutional’
• Mutual Funds and Mutual Fund Distributors mediation, ‘independent
• Proxy Advisory and their clients institutional’ conciliation and/or
independent arbitration
• Proxy advisors and listed entities
institution in India.
• Research Analyst and their clients
• Vault Managers and beneficial owners
For existing and continuing contractual arrangements between institutional or corporate clients and specified intermediaries / regulated entities in
the securities market, such option should be exercised within a period of six months, failing which it will be deemed to be in accordance with SEBI
prescribed ODR. For all new contractual arrangements, such choice should be exercised at the time of entering into such arrangements.
 STAKEHOLDERS IN ODR SYSTEM

• MIIs (Stock Exchanges and Depositories)

• ODR Institutions
(Each MII will empanel 1 or more independent ODR Institutions
which are capable of undertaking time bound online conciliation
or online arbitration that harness online audio/video technologies
and have duly qualified conciliators and arbitrators.)
• Market Participants/ Intermediaries/Regulated Entities
[Entities that obtain registration from SEBI as an intermediary or issuers that are getting their securities listed shall enroll
in the ODR Portal immediately upon grant of registration or listing]

• Investors
 Securities Markets Approach for Resolution
through ODR Portal (SMART ODR)
• MIIs and ODR Institutions jointly develop and operationalize the ODR platform.
• MIIs with ODR Institutions have established a Common ODR Portal -- Securities
Markets Approach for Resolution through ODR Portal (SMART ODR)
• MIIs to provide access to all investors/clients/listed companies (RTAs) and specified
intermediaries/regulated entities in securities market access to ODR portal for
resolution of disputes in time-bound online conciliation and online arbitration.
• All listed companies/specified intermediaries/regulated entities to enrol in SMART
ODR
• All market participants/MIIs have to display link of ODR portal on their home page.
• MIIs to monitor and upgrade ODR portal periodically.
• ODR portal is subject to inspection and audit to verify adherence to various SEBI
regulations, advisories and circulars.
 Logins in SMART ODR
Login for 4 entities

• MII Login
• Market Participant Login
• ODR Institution Login
• Investor Login
SMART ODR
Investor Registration
Investor Log-in Screen
Investor Login Screen
Investor Login Screen
Investor Login Screen
 SMART ODR Portal
SMART ODR Portal, enables to:
• Enroll the investor/client and the market participant
• File the complaint/dispute
• Upload documents/papers for complaints/dispute
• Obtain Status updates on complaints/disputes
• Connect with SEBI SCORES portal/Intermediary portal
[To enrol market participants into ODR portal by using
credentials used for SEBI SCORES portal/SEBI Intermediary
portal.]
 Functioning of ODR Portal
• Complaints through ODR Portal: Will be referred to an ODR institution
empanelled by respective MIIs.
• Allocation System:
• Dispute against Stock broker or listed company – Stock exchange
• Dispute against Depository Participant – Depository
• Disputes against other Market Participant - Round-robin system amongst
MII (Exception: Stock exchanges operating only commodities segment)
• Each MII have empaneled atleast one ODR Institution to cater to the
disputes allocated to MII. For example:
– Trading member and other disputes to be referred to ODR Institution
empaneled by Stock Exchange.
– Depository Participant and other disputes to be referred to ODR
Institution empanelled by Depository.
 HOW ODR WORKS?

ODR Portal

Stage 1: MII Review and resolution

If dispute remains Time limit is 21 days for review process

unresolved

Stage 2: Conciliation
If conciliation is
Time limit is 21 days for conciliation process
unsuccessful
extendable by 10 days
Stage 3: Arbitration

If arbitration award is Time limit is 30 days for arbitration process

to be challenged extendable by 10 days
Courts
 Conciliation
• In legal parlance, Conciliation is an alternative out-of-court
dispute resolution mechanism.
• Like mediation, conciliation is a voluntary, flexible, confidential,
and interest-based process.
The parties seek to reach an amicable dispute settlement with
the assistance of the conciliator, who acts as a neutral third party.
 Conciliation Process
ODR Institute appoints a sole independent/neutral conciliator from its panel of
conciliators with requisite qualification and defined norms (discussed later).
• Role of Conciliator
– To conduct one or more meetings for disputing parties to reach
amicable and consensual resolution within 21 days (extension upto 10
days by consent of disputing parties to be recorded in
writing/electronically)
– To advise market participant to render required service in case of
service related complaints/disputes
– To consider issuance of findings on admissibility of complaints/disputes
in case of trade related complaints/dispute
– To ensure that a duly executed settlement agreement is signed between
the disputing parties post the conciliation process.
 Conciliation Process……contd
If thematter is NOT resolved through the conciliation process within the stipulated
time, then:
a. 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. Such determination should also be made in all
claims/complaints/disputes where the monetary value has not been
ascribed 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;
 Arbitration
Arbitration is a procedure in which a dispute is submitted, by agreement of the
parties, to one or more arbitrators who make a binding decision on the dispute.

In choosing arbitration, the parties opt for a private dispute resolution

procedure instead of going to court.
Investor/Client/ •ODR Institute appoints
Arbitration
Market an independent The Sole Arbitrator or Arbitral Tribunal shall be at
Participant neutral arbitrator from liberty to extend such time for disputes exceeding
pursues its panel of arbitrators
within 5 calendar days
claims and/or counterclaims of Rs 1,00,000/- (Rupees
arbitration One Lakh) (or such other sum as the Board may specify
•Sole Arbitrator shall from time to time), upto a further periodof 30
Value of claim: conduct a document- calendar days.
less than or only arbitration process
equal to Rs. 1 and pass the arbitral When parties wish to withdraw from
lakh award within 30
calendar days arbitration before the arbitrator has been
appointed then the fees shall be
•Sole Arbitrator or Arbitral refunded after deducting the applicable
Tribunal shall conduct one or
Value of the more hearing/s and pass the expenses not exceeding Rs 100/.
claim: More arbitral award within 30 Withdrawal shall not be permitted after
than Rs.1 lakh calendar days. appointment of an arbitrator.
•ODR institute refers
such matters to an
Arbitral Tribunal
Value of claim: (consisting of 3
arbitrators) within
More than Rs. 5 calendar days of
30 lakh reference and
receipt of fees,
costs and charges
as applicable
 Conclusion of Arbitral proceedings
•To be paid by market participant within 15 calendar days from the date of arbitral
award (unless such award requires payment sooner)
Arbitral award •MIIs to monitor payment adherence by the market participant

•Party challenging the award to submit intention to challenge the award within 7 calendar
days in ODR portal (through which the other party and MIIs will be informed)
•In such course of 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
Challenge to •The market participant to deposit 100 percent of the amount of arbitral award with MII
Arbitral award prior to initiation of the challenge

•To challenge an arbitral award, market participant must deposit 100% of amount arbitral
award with MIIs failing which Market Participants are liable to be:
•a) declared as not ‘Fit and Proper’,
•b) cancellation of registration
Requirements to
•c) suspension of business activities.
challenge arbitral
award • Listed companies that fail to deposit arbitral award may also face consequences as
determined by Stock Exchanges.
 Disbursal of arbitral award
1. From the deposit received, MIIs may release not exceeding Rs 5 lakh to the investor/client
subject to 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. 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.
2. If the challenge is decided against the investor/client, subject to 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 shall not be
allowed to trade in securities market.
3. 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.
4. The MII shall also monitor the due compliance by the Market Participant with the terms
of the arbitral award/judgement of the appellate forum
 Forms of Proceedings for Conciliation and
Arbitration
ODR institution to conduct conciliation/arbitration in:
• Online Mode (enabling audio/video participation by investor/client, market
participant (MP))
• Online Facilities at ISCs can be availed by investor/client to participate in
conciliation/arbitration proceedings
• Venue & Seat of online proceedings shall be deemed to be the place :
→In case of dispute between investor/client & MP where investor resides /
where investor not an individual, its registered place of business in India
provided in the relevant KYC documents or
→In case of dispute between institutional or corporate clients and specified
intermediaries / regulated entities in securities market then where the
relevant MP has its registered office of business in India / has a principal place
of business in India provided in the relevant KYC documents.
 Fees & Charges—Conciliation Process
• No fees for registration of a complaint/dispute on ODR Portal.
• Fee for conciliation process
Amount in Rupees*
Conciliator’s fee (to be collected by ODR Institution andpaid 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

• Fee to be borne by MIIs and will be recoverable from market participant against
whom complaint/dispute was raised.
• Fee to be borne by Market Participant if it is initiating the dispute process.
• Market Participant CANNOT shift INCIDENCE of such fee to investor/Client
 Fees & Charges—Conciliation Process

Unsuccessful Conciliation: If dispute not resolved within stipulated time

(or extended period agreed) then considered as unsuccessful.

Late Fee: Rs. 1000/- (if conciliation process is initiated after 6 months from
date of dispute/transaction)
The initiator bears the late fee.
Initiator could be Investor/Client/Market Participant.
Late fee collected by MIIs.
 Fee & Charges (in Rs.) – Arbitration Process Further, for claims of
Rs 0 –1 lakh Above Rs 1 Above Rs 10 AboveRs 20 AboveRs 30 Above Rs50 lakh Rs. 1 crore and above,
* lakh – 10 lakh - 20 lakh lakh - 30 lakh lakh - 50 lakh – 1 crore an ad valorem fees @
lakh 1% of the claim value
Arbitrator’s fee 4,800 8,000 12,000 16,000 60,000** 1,20,000** or Rs.1,20,000/-,
(to be collected whichever is more,
by ODR towards Arbitrator’s
Institutionand Fees** (to be collected
paid to by the ODR institution
Arbitrator) and paid to the
ODR 600 1,000 1,500 2,000 7,500 15,000 arbitrator) and fees @
Institution’s fees, Rs 35,000/- towards
in addition to the ODR Institution’s Fees,
arbitrator’ s fees in addition to the
(to be collected arbitrator’s fees (to be
by ODR collected by the ODR
Institution institution), together
) with Applicable GST,
Stamp Duty, etc. on
* This slab will be applicable for service request related disputes also actual outgoings, shall
** Fee for panel of arbitrators shall be split into a ratio of 40:30:30 with the higher proportion being be applicable.
payable to the arbitrator writing the arbitral award
Applicable GST, stamp duty etc. on actual outgoings.
 Fee & Charges (in Rs.) – Arbitration Process
• Fee to be payable at the time of initiation- By Initiator (Investor/client or Market Participant) and
against whom 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.
• The investor may choose to initiate arbitration for a higher claim value subject to payment of
applicable fees and charges.
• Fee have to be deposited at the time of initiating arbitration through the ODR Portal within 7
days or stipulated time period.
• Further, in the instance where the parties wish to withdraw its arbitration application before the
arbitrator has been appointed then the fees shall be refunded after deducting the applicable amount
not exceeding Rs 100/- (Rupees One Hundred). The arbitration application cannot be withdrawn
after appointment of the arbitrator and shall be concluded by an award.
• If the person against whom the arbitration has been initiated fails to deposit the fee, then
person choosing to initiate arbitration can deposit the fees payable on such person’s behalf
and shall be recoverable from such person through the arbitration process.
 Fee & Charges (in Rs.) – Arbitration Process
• Person successful in arbitration proceedings shall receive a refund of
amounts deposited by such person.
• Late Fees:

Arbitration initiated after 1 month of failure of E.g. Arbitrator fee of Rs. 4800 for arbitral claim
conciliation and upto six months upto Rs. 1 lakh. In case of delay, this fee would be
Rs. 9600.

Arbitration initiated after six months by a
Market Participant
Extending the above example, fee applicable
for 7th month would be s. 9600 + plus 50 % of
the applicable fee (i.e. Rs. 2400) for the arbitral
claim upto Rs. 1 lakh.
(non-refundable basis)

• Late fees to be collected by MIIs . The concerned ODR Institution may collect
this fee on behalf of the MII as per mutually agreed terms between them.
• Uniform fee across MIIs, ODR Institutions, conciliators and arbitrators.
Usage/administrative fees/out-of-pocket expenses borne bythe MIIs/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.
 Framework for empanelment of
Conciliators/Arbitrators by MIIs
• Adequate number of conciliators and arbitrators commensurate with
number of complaints/disputes received.
• Training and Certification Requirement stipulated by regulator.
[Initially, all the members of GRCs or arbitrators who have been at
present approved by SEBI are eligible to be empaneled by the ODR
Institutions.]
• Annual evaluation of arbitrators and Conciliators and report
submission to MIIs.
• Dissemination of details regarding Arbitrators/Conciliators (profile,
qualification, relevant experience, no. of cases handled etc.) on ODR
website
 Framework for empanelment of
Conciliators/Arbitration by MIIs
• Agreement of MIIs with ODR Institutions outlining
the role and responsibilities of each party and specify
resolution mechanisms for inter-se disputes.
• Agreement of MIIs & ODR Institutions with financial
institutions/Banks for opening accounts for payment
and disbursal of any amount (fees, payment) to
facilitate settlement agreement / arbitral awards.
 Roles and Responsibilities of MIIs and ODRs

• Prepare and maintain MIS Reports and share with market

participants to enable them to keep track of the timeline
of any dispute.

• 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 produce to relevant
authorities as and when required.
 Norms for empanelment of ODR Institutions by MIIs
and continuing obligations of ODR Institutions
MIIs role and responsibility:
• Empanel one or more ODR Institutions as service
provider in accordance with the stipulated guidelines by
the regulator.
• To check that ODR institutions have the ability to
integrate their own platforms/system with ODR portal.
• Ensure that ODR Institutions and its Conciliators and
Arbitrators abide by the stipulated Code of Conduct.
 ODR Institutions role and responsibility
• To become a member of association/trade body having as its members
MII empaneled ODR Institutions for the Indian Securities Market.
• To examine complaints received against conciliator or arbitrator and
then report the findings/conclusions/actions to the MIIs.
• To abide by norms of transparency laid down by MIIs and regulator.
They should update their portal with results of ongoing proceedings of
conciliations and arbitration.
• To fulfill specified audit requirements.
• To have adequate infrastructure, manpower & resources.
 Suggested Norms for empanelment of
Conciliators and Arbitrators
1. Age: between 35 years to 75 years.

2. Qualification: Law/ finance including securities market/ accounts/

economics, /technology, management, or administration.

3. Experience: Minimum 7 years of experience

• Financial: Banks, NBFCs, MIIs and other intermediaries of securities
markets
• Legal Services: Certified professionals handling conciliation, and /or
arbitrationindependently
• Ex-officials from Indian financial regulators viz IRDAI, PFRDA, RBI and SEBI.
 Norms for empanelment of Conciliators and
Arbitrators
4. Knowledge and Skills :
a. Knowledge: Functioning of securities markets, Securities Laws and Arbitration & Conciliation laws in
India;
b. Proficiency in English language And One or Two Regional language (reading, writing and speaking) for
effective dispute resolution;
c. Legal drafting and communications skills;
d. Good Decision making skills

5. Criteria for Empanelment of Conciliators and Arbitrators :

a. Financial Integrity, Good Reputation and Honesty
b. Should not be convicted by a Court for any offence involving moral turpitude, economic offence or
offence against the securities laws.
c. Person should not be an insolvent
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. Person should be of a sound mind
f. Financially sound and not a willful defaulter
 CODE & CONDUCT FOR CONCILIATORS &
ARBITRATORS
• Act in a fair, unbiased, independent and objective manner;
• Maintain the highest standards of personal integrity, truthfulness, honesty and
fortitude in discharge of his duties;
• 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;
• Not engage in acts discreditable to his/her/their responsibilities;
• Avoid any interest or activity which is in conflict with the conduct of his/her/their
duties as a conciliator or arbitrator;
• Avoid any activity that may impair, or may appear to impair, his/her/their
independence or objectivity;
 CODE & CONDUCT FOR CONCILIATORS &
ARBITRATORS [Contd.]
• Conduct proceedings in compliance with the principles of natural justice and
the relevant provisions of The Arbitration and Conciliation Act, 1996, SEBI Act,
1992, 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;
• Undertake training courses as may be specified time to time by the Board,
including from NISM;
• Endeavour to pass arbitral award expeditiously and within prescribed time;
• Pass reasoned and detailed arbitral awards; and
• Maintain confidentiality with respect to the proceeding(s) and its associated
recordings and only disclose confidential information as required by law or
Courts of competent jurisdiction or legal authority.
 Dos and Don’ts – Investor
Dos
• Investor should first take up his dispute with his Market Participant (MP) by lodging
complaint with the MP, directly.
• Investor may escalate the dispute through the SCORES Portal.
• Only after exhausting the option of filing of complaints with the market participant, the
dispute shall be referred to ODR mechanism if not resolved to the satisfaction of the
investor / client.
• Investor should first get enrolled on the SMART ODR Portal to gain access to register his /
her complaints.
• Investor can file compliant on SMARTODR only relating to services availed from Market
Participant.
• Investor can initiate the dispute resolution through SMART ODR Portal only 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).
 Dos and Don’ts – Investor
Dos [Contd.]
• Timeline to pursue conciliation and thereafter Arbitration, Application to be made
within applicable law of Limitation as mentioned above.
• Investor to provide clear, correct and complete details of his grievance under reference
in the comments section allocated on the portal.
• Investor should upload all necessary documents on the portal related to and referred in
his complaint.
• Investor should stay calm, be patient and await response from the Market Participant
and MII to whom the case has been allocated to respond.
• For any technical issues encountered while accessing the SMARTODR Portal, investor
should email to SMARTODR at its dedicated email Id. : help@smartodr.co.in and
contact on the number provided in ‘contact us’ provided in the ‘Help Center’ section.
• Investor should pay the specified arbitration fees in order to enable the ODR Institution
to commence arbitration proceedings.
 Dos and Don’ts – Investor
Don’ts
• Investor should refrain from filing multiple complaints of similar nature with the
same intermediary/market participant. Such multiple complaints are liable to
returned or cancelled by the MII.
• Investor should refrain from filing duplicate complaints just because his earlier
registered complaint is not addressed immediately. Such duplicate complaints are
liable to returned or cancelled by the MII.
• Investor should not file complaints on issues other than relating to services of
Market Participant. For e.g. dispute on transmission of shares amongst legal heir
cannot be filed through SMARTODR.
• Investor should refrain from being impulsive in adding comments one after the
other and clog the system.
 Dos and Don’ts – Market Participant
Dos
• Market Participant (MP) must give due notice of atleast 15 days to investor for resolution of the
dispute which has not been satisfactorily resolved between them.
• MP can also initiate dispute resolution through SMARTODR Portal.
• MP shall pay fees as applicable for online conciliation, irrespective of whether the investor or the
MP wishes to pursue online conciliation.
• On failure of conciliation process, if the MP wishes to pursue online arbitration, then the MP has to
deposit 100% of the admissible claim value (as ascertained by the Conciliator) with the relevant
MII prior to initiation of the online arbitration and make the payment of fees as applicable for
online arbitration.
• MP should stay calm, be patient and await response from the investor and MII to whom the case
has been allocated to respond rather than communicating / calling up the respective MII.
• For any technical issues encountered while accessing the SMARTODR Portal, MP should email to
SMARTODR at its dedicated email Id. : help@smartodr.co.in and contact on the number provided
in ‘contact us’ provided in the ‘Help Center’ section.
• MP to train its staff on handling the complaints filed on SMARTODR Portal.
 Dos and Don’ts - Intermediary
Don’ts
• MP won’t be able to pursue online arbitration, if it fails to deposit the
amount and might also have to face consequences as felt necessary by the
Stock Exchange.
• Further, MP could also be liable to be declared as not ‘Fit and Proper’ in
terms of the SEBI (Intermediaries) Regulations, 2008 and it will lead to
cancellation of their registration or suspension of their business.
Thank you