Do I have to be on the SMARTODR platform, and what does a dispute cost me?
In force
Yes. Research Analysts are named in the Online Dispute Resolution framework and had to be enrolled on the portal by 15 September 2023. If you registered later, you enrol as soon as registration is granted.
The portal is at smartodr.in.
A client normally comes to you first, then SCORES, then ODR. But they may go straight to ODR at any stage. You can start ODR yourself after giving the client at least fifteen days notice.
You bear the cost, and you may never pass it to the client. Conciliation runs to about ₹5,400 plus taxes whatever the claim is worth. Arbitration fees rise with the claim size.
The rule that catches people out is the deposit. Within ten days of a client starting arbitration you must deposit 100% of the admissible claim value with the exchange, on top of the fees. The exchange may release up to ₹5,00,000 to the investor before the award.
Failing to make that deposit can see you declared not fit and proper, which reaches your registration.
Displaying a link to the portal on your home page is advised rather than required. What is required is giving clients the MITC and the Investor Charter, both of which carry the address.
What SEBI says, word for word
ODR Master Circular, ¶47(a)“registration of all other Market Participants on the ODR Portal by September 15, 2023”Source: SEBI Master Circular SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/195, dated July 31, 2023 (updated December 28, 2023) Open document ↗
ODR Master Circular, ¶20(b)“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.”Source: SEBI Master Circular SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/195, dated July 31, 2023 (updated December 28, 2023) Open document ↗
ODR Master Circular, ¶28(b)“The Market Participant shall not shift the incidence of such fees to the investor/client at any time.”Source: SEBI Master Circular SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/195, dated July 31, 2023 (updated December 28, 2023) Open document ↗