SEBI had issued a circular no. SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/195 dated July 31, 2023 (Updated as on December 28, 2023) on Online Dispute Resolution in the Indian Securities Market (ODR Mechanism).

In accordance with aforesaid circular, the Market Infrastructure Institutions (“MIIs”) have established and developed a common Online Dispute Resolution Portal (“SMART ODR Portal”) for resolving disputes between the parties in Indian Securities Market.

The link for the Online Dispute Resolution Portal - https://smartodr.in/.

Initiation of the dispute resolution process:

The investor/client shall first take up the matter with the Market Participant. If the investor/client is not satisfied with the resolution provided by the Market Participant or no action is initiated by the Market Participant, then the investor/client may register the complaint/dispute in SCORES/ SMART ODR Portal.

It may be noted that in case the investor/client has filed the dispute on SMART ODR Portal, while the complaint is pending on SCORES, then the complaint on SCORES shall be treated as disposed. If the investor/client has filed the dispute on SMART ODR Portal, then it cannot file the same complaint on SCORES subsequently.

Registration of complaints/disputes against Trading Members and against all other Market Participants and their resolution on SMART ODR Portal commenced on August 16, 2023, and September 16, 2023, respectively.

Upon registration of complaint/dispute by the investor/client on SMART ODR Portal, the complaint/dispute shall be assigned to the MII through the SMART ODR Portal. The MII will aim for amicable resolution of complaint/dispute between the investor/client and the Market Participant within 21 calendar days from the date of filing of complaint/ dispute ("Pre-Conciliation Period”).

Market Participant may also initiate online dispute resolution through the SMART ODR Portal after having given due notice of at least 15 calendar days to the investor/client for resolution of the dispute which has not been satisfactorily resolved between them.

In case the investor/client is not satisfied with the resolution/complaint not resolved during Pre-Conciliation Period, it may initiate conciliation through the SMART ODR Portal.

ODR Institution:

BSE Limited has empaneled Erdac Solutions Pvt. Ltd. (CADRE) in accordance with the SEBI Circular No. SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/195 dated July 31, 2023, for undertaking time-bound online Conciliation and online Arbitration.

Erdac Solutions Pvt. Ltd. is an independent institution facilitating and administering electronic Alternative Dispute Resolution via its online platform, CADRE, also referred to as Online Dispute Resolution ("ODR”) Institution, having its registered office at 42, 12th Main Rd, 4th T Block East, KV Layout, Jayanagar, Bengaluru, Karnataka – 560011.

The link for the Online Dispute Resolution Portal - https://cadreodr.com/

Online Dispute Resolution Mechanism:

The dispute resolution process under the ODR Mechanism has two levels of resolution i.e., Conciliation and Arbitration.

The said mechanism is applicable to all the investors/clients/Market Participants who register and lodge their complaint/dispute through SMART ODR Portal.

The Complaint/Dispute lodged through SMART ODR Portal shall mandatorily follow the process of Online Conciliation first. If the party to dispute is not satisfied with the outcome of the Conciliation process, then the dissatisfied party may initiate online Arbitration.

In case the investor/client/Market Participant is aggrieved with the Arbitration Award, it may file an appeal before a competent Court of law under section 34 of the Arbitration and Conciliation Act, 1996.