 "sebi")
Sebi on Wednesday tweaked the framework with respect to online resolution of disputes in the securities market to provide clarity on certain aspects.
In its circular, the regulator has provided clarity on the online arbitration process, and arbitrator's fee, among others.
The Securities and Exchange Board of India (Sebi) said that the market participant against whom the investor pursues the online arbitration will participate in the arbitration process.
Accordingly, within 10 days of the initiation of the online arbitration by the investor, the market participant will make the deposit of 100 per cent of the admissible claim value with the relevant MII (market infrastructure institutions) and make the payment of the fees for online arbitration.
Non-adherence to rule by market participants may result in action against them by MIIs or Sebi.
In case the market participants plan to pursue online arbitration then they will have to inform the ODR (Online Dispute Resolution) institution within 10 days of the conclusion of the conciliation process of its intent to do so, Sebi said.
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Further, within 5 days of this intimation, market participants will have to deposit 100 per cent of the admissible claim value with the relevant MII and make the payment of fees for online arbitration for initiating the online arbitration.
Sebi has modified the slab of above Rs 50 lakh for the fee of arbitration process as 'Above Rs 50 lakh-Rs 1 crore'.
On July 31, Sebi asked MIIs to set up and operate a common ODR platform, which will harness online conciliation and online arbitration for the resolution of disputes arising in the Indian securities market.
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