CONCILIATION

Upon initiation of online conciliation through SMARTODR Portal, the matter shall be allotted to the ODR Institution, empaneled by the respective MII. The ODR Institution shall then appoint a conciliator from its panel of conciliators. Conciliator may conduct one or more online meeting to reach an amicable resolution within 21 calendar days from the date of appointment. Such period may be extended up to maximum 10 calendar days by recording consent of the disputing parties in writing/electronically.

Successful Conciliation - In case, if disputing parties settle the dispute amicably through the conciliation process, then the same shall be concluded by a duly executed settlement agreement between the disputing parties. Such an agreement shall be executed and stamped through an online mode, as permissible in law.

Unsuccessful Conciliation - In case, if disputing parties fail to settle the dispute amicably through conciliation, then Conciliator shall ascertain admissible claim value of the complaint/dispute. Nature of determination made by the conciliator is only to provide an admissible claim value of the complaint / dispute for purposes of appropriate slab for computation of fees being applied for online arbitration. The investor/client, the market participant and the arbitrator/s would not be bound by such determination for the making or defending or deciding the claim/complaint/dispute in arbitration, as the case may be.

Upon conclusion of a conciliation process when the matter has not been resolved, the Investor/Client/Market Participant may file online arbitration (which will be administered by the ODR Institution which had facilitated the conduct of conciliation) subject to payment of applicable fees. The Market Participant shall deposit 100% of the admissible claim value with the relevant MII out of which upon receipt of request from the Investor/Client, the Exchange may release an amount not exceeding Rs. 5 Lakhs subject to submission of an undertaking by the investor. 

In case the Market Participant fails to deposit 100% of the admissible claim value with the respective MII, it may face consequences as determined necessary or appropriate by the Stock Exchange and/or Depository, as the case may be They may also be liable to be declared as not ‘Fit and Proper’ in terms of the SEBI (Intermediaries) Regulations, 2008 and would be, inter-alia, liable to cancellation of registration or suspension or their business activities.

A listed company that fails to deposit the amount may also face consequences as determined necessary or appropriate by the MII from time to time.