Providing clarity on initiation of the dispute resolution process, Sebi said that an investor will have to first take up his/her grievance with the market participant by lodging a complaint directly with the concerned market participant. If the grievance is not redressed satisfactorily, the investor can escalate the same through the regulator’s SCORES portal.
After exhausting these options for resolution of the grievance, if the investor is still not satisfied with the outcome, he/she can initiate dispute resolution through the Online Dispute Resolution (ODR) portal, Sebi said in a circular.
The regulator further said that dispute resolution through the ODR portal can be initiated when the complaint is not under consideration by the market participants and SCORES platform or not pending before any court, tribunal or consumer forum or commencement of liquidation or winding up process against the market participant.
Sebi said that ODR institution that receives the reference of the complaint will appoint a sole independent and neutral conciliator from its panel of conciliators. Such a conciliator will have relevant qualifications as well as expertise and should not be linked to any disputing party.
Market Infrastructure Institutions (MIIs) — stock exchanges, clearing corporations depositories — will have to ensure that appropriate measures are put in place regarding appointment of conciliators by the ODR institutions.
On July 31, Sebi asked MIIs to set up and operate a common ODR platform, which will harness online conciliation and online arbitration for resolution of disputes arising in the Indian securities market.