ODR

Waste of an ODR process

Summary: The methods for appointment of arbitrators, as laid down by the Supreme Court, namely, mutual consent of the parties or pursuant to Section 11 of the Arbitration and Conciliation Act, 1996, were reiterated by the Bombay High Court in a Section 34 challenge. The petition relates to a financial institution unilaterally appointing arbitrator(s) through an ODR platform. The Bombay High Court sought statements from two ODR platforms, namely, Presolv360 and ADReS Now, on steps taken to ascertain whether the request for the appointment is lawful. It is imperative to have a carefully drafted arbitration clause to ensure that the outcome of arbitral proceedings involving an ODR platform aren’t nullified.Continue Reading Waste of an ODR process

Background

  • SEBI recently notified the SEBI (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023, and issued a Master Circular for Online Resolution of Disputes in the Indian Securities Market (‘ODR Master Circular’), extending the conciliation and arbitration mechanism administered by Market Infrastructure Intermediaries (‘MII’) to all specified intermediaries/ regulated entities. Prior to this, MII’s dispute resolution mechanism only covered stock-brokers, depository participants, listed companies and registrars and transfer agents. Investors embroiled in disputes with any other intermediary did not have recourse to this mechanism, but the ODR Master Circular extends it to other intermediaries to streamline the dispute resolution process. Further, the erstwhile system was largely physical, with some online adaptations brought about during the COVID-19 pandemic. As a progressive measure and in line with the recommendations of the committee constituted by the Niti Aayog under Justice Sikri, the dispute resolution process will now be online.

Continue Reading Resolving Securities Disputes in the Digital Age: A Primer on SEBI’s Master Circular for Online Resolution of Disputes in the Indian Securities Market