INDIA: NSE and BSE Publish Joint Press Release on ODR Mechanism

Tuesday August 8 2023

On 7^th August 2023, National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) clarify the process adopted in implementation of the Online Dispute Resolution (ODR) mechanism.

Pursuant to Securities and Exchange Board of India (SEBI) issuing consultation paper in December 2022, a working group was formed comprising of Exchanges, Depositories, ODR institutions and Agami a section 8 non-profit company (advancing the ideas that serve justice) to formulate and operationalize the ODR mechanism.

Basis SEBI defined framework for ODR Mechanism, MIIs independently envisaged a common portal (ODR portal) for receiving and allocating complaints to each of MIIs part of the ODR Mechanism on predefined methodology.  MIIs followed   due process for selection of vendor which included formulating the scope for development of ODR Portal, seeking proposals from multiple entities and final selection based on technical and commercial dimensions. SEBI did not play any role in this process of vendor selection.

Additionally, in accordance with SEBI directive, each of MIIs (BSE, NSE, CDSL, NSDL, MSEI, MCX and NCDEX) have tied up with at least one ODR institution to facilitate the conciliation and arbitration assigned to them, thus as on date 7 ODR institutions have been onboarded for implementation of ODR Mechanism.

The ODR portal has been rolled out after following due process effective from August 01, 2023.

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