CIRCULAR
SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/135 August 04, 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: Corrigendum cum 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.
2. Pursuant to feedback received, need for additional clarity or correction of language used,
the circular stands modified as under:
I. Clause 8 of the circular stands substituted as under:
All listed companies / specified intermediaries / regulated entities in the securities
market (collectively referred to as “Market Participant/s”) shall enrol on the ODR
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
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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.
II. Clause 11 of the circular stands substituted as under:
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.
III. Clause 13 of the circular stands substituted as under:
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).
IV. Clause 17 of the circular stands substituted as under:
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.
V. In the first sentence of Clause 20.c. of the circular, “75%” shall stand substituted with
“100%”.
VI. In Clause 21 of the circular, at the end of the first and the third sentences, the
following is added: “…and receipt of fees, costs and charges as applicable.”
VII. In Clause 24 of the circular, at the end of the first sentence, the following is added:
“..in the ODR Portal for onward notification to the party/ies in whose favour the arbitral
award has been passed and the relevant MII.”
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VIII. In the first sentence of Clause 25 of the circular, “75%” shall stand substituted with
“100%”.
IX. Clause 27 of the circular stands substituted as under:
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 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.
X. Clause 49 shall also include the following circulars:
n-i. Circular No.: CIR/MIRSD/11/2013 dated October 28, 2013
XI. Clause 50. e. of the circular is modified as under:
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.
XII. The following intermediaries / regulated entities are added in Schedule A:
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2A. Commodities Clearing Corporations
9A. Research Analyst
XIII. In para 7 of Schedule C, at the end of the first sentence, the following is added:
“…on or before October 31, 2023.”
3. This circular shall be applicable 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 www.sebi.gov.in under the link “Legal >
Circulars”.
Yours faithfully,
S. Manjesh Roy
General Manager
Tel no.: 022- 26449710
Email: manjeshsr@sebi.gov.in
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