New Delhi, April 21 (PTI) Market regulator SEBI on Monday proposed in some cases to provide a direct arbitration mechanism to resolve at least claims ₹100 million is inherently chronic and repetitive.
These are part of SEBI’s proposal to adjust the Online Dispute Resolution (ODR) in the Indian securities market to provide clarity and better implementation.
In its consultative filing, the Securities and Exchange Commission of India (SEBI) proposed formally incorporating deposits in the ODR system and recommended that the Market Infrastructure Institution (MII) (MIIS) jointly develop standard operating procedures (SOPs) and operations of ODR agencies in terms of the operation of the ODR portal.
It proposes that certain circumstances should be skipped and arbitration should be conducted directly. These include more than claim ₹1 million, long-term/repeated complaints, cases filed by certain institutions, resumption claims of transaction members, consent to arbitration, time harassment/legal issues cases marked early.
If arbitration is not selected, the case will be closed in the ODR portal, but can still be legally carried out outside the system.
“If a complaint/dispute: (i) a financial claim equal to or exceeds ₹Sebi proposes that 100 million (ii) complaints are essentially and repetitive…and then all such cases should be directly referred to in arbitration. ”
Regulators recommend that mediation settlements should be accepted electronically and have a legal combination. In addition, the ODR agency should provide separate panels for settlement and arbitrators. One person cannot play two roles.
Sebi recommends: “The reconciliators and arbitrators of the ODR institutional panel should be evaluated annually.”
As far as SOP concerned, Sebi suggested it should cover step-by-step instructions, stages, procedures to be followed by MIIs and ODR institutions in dealing with various operational aspects such as how to lodge complaints and required documents, how to handle relative or invalid complaints, roles in each stage (pre-conciliation, conciliation, arbitration) how to record proceedings, fee payments and enforcement of awards and actions to be Taken against breaking rules market participants.
SOPs should be published online and reviewed annually.
The regulator has been seeking public comment on the proposal.
