Media Release
Joint Press Release by NSE and BSE Mumbai, August 07, 2023: Certain report in public media has raised issues relating to Online Dispute Resolution Mechanism (ODR Mechanism) rolled out recently in the Securities Market. NSE and BSE find it necessary to issue this clarification on the process adopted in implementation of the ODR mechanism.
Pursuant to 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 atleast 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.
About BSE:
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE Media Contact:
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About NSE:
National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2022. NSE is ranked 3rd in the world in the cash equities by number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for calendar year 2022. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading, clearing members and listed companies with the rules and regulations of SEBI and the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology.
NSE Media Contact:
Arijit Sengupta/ Kumar Kartikey/ Priyanka Roy
Email ID: cc@nse.co.in