The Securities Exchange Board of India (“SEBI”) vide its circular dated July 31,2023 has introduced a common Online Dispute Resolution Portal (“ODRP”) to facilitate online resolution of all kinds of disputes arising in the Indian Securities Market. The ODRP provides members with an additional mechanism to resolve their grievances. Any unresolved issues pertaining to any service related complaints between members and listed entity including its Registrar & Share Transfer Agents in the securities market, will be resolved in accordance with the abovementioned SEBI Circular.
Extension of timeline for implementation of provisions of circular SEBI/HO/OIAE/IGRD/CIR/P/ 2023/156 dated September 20, 2023 on Redressal of investor grievances through the SEBI Complaint Redressal (SCORES) Platform and linking it to Online Dispute Resolution platform.
The designated bodies (Stock Exchanges, Depositories) were required to apply for SCORES Authentication and/or for Application Programming Interface (API) integration with SCORES within such period so as to ensure that Designated Bodies can comply with provisions of the said circular by December 04, 2023 and onwards.
It has been decided to extend the effective date of implementation of above said provisions to April 01, 2024.
Key points for Listed companies :
All listed companies / specified intermediaries / regulated entities in the securities market (collectively referred to as “Market Participant/s”) shall enroll on the ODR Portal within the timelines as specified at paragraphs 46 and 47 of this circular. The enrollment process shall also include executing electronic terms/agreements with MIIs and the ODR Institutions. Facility to register Market Participants into the ODR Portal by utilising the credentials used for SEBI SCORES portal / SEBI Intermediary portal may be also provided.
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. The modalities of the ODR Portal along with the relevant operational guidelines and instructions may be specified by the Board from time to time.
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.
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.
Responsibilities of the Market Participants (Listed companies):
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.
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.
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.
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 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.
| Date | SEBI Master Circular |
| Aug 11, 2023 | Online Resolution of Disputes in the Indian Securities Market |
Timelines for handling of complaints and actions in case of non-compliances
| Sr. No. | Activity | No of calendar days |
| 1. | Complaint handling: | |
| a. | Complaint received in SCORES by the listed company | T |
| 2. | Action in case of non-compliances: | |
| a. | Notice to Listed company intimating the fine @ ₹ 1000/- per day, per complaint to be levied for not resolving the complaints within 60 days | T+61 |
| b. | Notice to Promoters for non-resolution of complaints and non- payment of fine to the stock exchange. | T+76 |
| c. | Freezing of promoter’s shareholdings (i.e. entire shareholding of the promoter(s) in listed company as well as all other securities held in the demat account of the promoter(s)) in demat account. | T+86 |
| d. | Stock exchanges may take any other actions, as deemed appropriate. | |
| e. | Once Stock exchange has exhausted all options and yet the number of pending complaints exceed 20 or the value involved is more than ₹ 10 lakhs, the Exchange to forward the details of such Listed companies to SEBI for further action, if any |
Framework for handling of complaints received through SCORES platform for Entities and for monitoring the complaints by designated bodies
Some example of display ODR links and information on Website of the Company
CS Avik Gupta