Online Dispute Resolution (ODR) lets you resolve a dispute with Rupeezy, a listed company, or another market intermediary through online conciliation and arbitration on SEBI's SMART ODR platform. Raise the complaint with the intermediary first. If that doesn't resolve it, you can go to SMART ODR straight away, or after escalating on SEBI SCORES.
What is SMART ODR?
SMART ODR (Securities Market Approach for Resolution Through Online Dispute Resolution) is a platform built by the seven Market Infrastructure Institutions — the stock exchanges NSE, BSE and MSE, the depositories CDSL and NSDL, and the commodity exchanges MCX and NCDEX — together with independent ODR institutions. It makes it easier to resolve securities-market disputes online, without going to court, at smartodr.in.
When can I use it?
ODR comes after you've given the intermediary a chance to fix the problem:
1. Raise it with Rupeezy — raise a ticket and, if it isn't resolved, escalate it to Rupeezy's grievance desk. Complaining to Rupeezy first is the one required step.
2. Escalate on SEBI SCORES (optional) — you can take the complaint to SEBI SCORES (see How do I escalate a complaint?). You don't have to. SMART ODR is open to you once Rupeezy's response hasn't resolved it, at any stage of a SCORES escalation, or after it.
3. File on SMART ODR — file the dispute on SMART ODR and track it on the portal as it moves through each stage.
File within the legal limitation period. It counts from the date the issue arose, or from the date of the last or disputed transaction, whichever is later.
What disputes does it cover?
- Trading issues with Rupeezy
- Problems with a listed company
- Issues with a share transfer agent (RTA)
- Demat account problems
How does the resolution work?
- Registration — create an account on smartodr.in and file your dispute against the intermediary, with your supporting documents. Registering is free.
- Review by the exchange or depository — before appointing anyone, the exchange or depository concerned reviews the dispute and tries to settle it amicably, within 21 calendar days.
- Conciliation — if that doesn't settle it, a neutral conciliator is appointed and works with both sides to reach an agreement within 21 calendar days (extendable by up to 10 days if both sides agree). A successful conciliation ends in a signed settlement agreement.
- Arbitration — if conciliation fails, you can take the case to online arbitration. The intermediary must deposit the full admissible claim amount with the exchange or depository within 10 days. An independent arbitrator passes an award within 30 calendar days of being appointed. Claims of ₹1 lakh or less are normally decided on documents alone; for larger claims the arbitrator can extend the time by up to 30 days. The award is binding on both parties. If it goes your way, the intermediary has to pay within 15 days.
What does it cost?
- Registration and conciliation cost you nothing. The conciliation fees are paid by the intermediary, which isn't allowed to pass them on to you. The one exception is a ₹1,000 late fee if you start conciliation more than six months after the transaction or dispute arose.
- Arbitration has a fee, set by the size of the claim. Both you and the intermediary pay it when arbitration starts. For a claim of up to ₹1 lakh it is ₹5,400 (₹4,800 for the arbitrator plus ₹600 for the ODR institution), plus GST and stamp duty. Subject to the award, the side that wins gets its fee back.
- Don't wait to start arbitration. If you start it more than a month after conciliation fails, the fee doubles.
Things to keep in mind
- You can't use ODR if the same matter is already before a court or another forum.
- The arbitrator's decision is legally binding and enforceable.
- The whole process runs online — you don't need to travel.