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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Amendment to Circular dated July 31, 2023 on Online Resolution of Disputes in the Indian Securities Market

20-Dec-2023 | SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/191

SEBI has issued amendment to Circular dated July 31, 2023 on Online Resolution of Disputes in the Indian Securities Market from immediate effect. Key highlights of amendments are:- 1. In clause 2 of the circular, the words and brackets (including institutional/corporate clients) are added after the words Investors/Clients. 2. In Clause 3(b) of the circular, the words independent institutional are added before the word conciliation and the word online as appears before the words arbitration institution in India is substituted with the word independent. 3. Clause 8 of the circular shall include the following after the end of the last line: Entities that obtain registration from the Board as an intermediary or issuers that are getting their securities listed on or after the date of implementation of this circular, shall enroll in the ODR Portal immediately upon grant of registration or listing, as the case may be. 4. In Clause 28(c) of the circular, the slab Above Rs. 50 lakh, stands modified to ' Above Rs. 50 lakh Rs. 1 crore' 5. In clause 20 (b) of the circular it has been added that within 10 days of the initiation of the online arbitration by the investor/client, the Market Participant shall make the deposit of 100% of the admissible claim value with the relevant MII and make the payment of the fees as applicable for online arbitration. 6. In Clause 20(c) of the circular, the first sentence is substituted as follows: In case the Market Participant wishes to pursue online arbitration (which will be administered by the ODR Institution which facilitated the conduct of conciliation), it shall intimate the ODR Institution within 10 days of the conclusion of the conciliation process of its intent to do so and within further 5 days of this intimation, shall deposit 100% of the admissible claim value with the relevant MII and make the payment of fees as applicable for online arbitration for initiating the online arbitration.

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