Arbitration

In case the matter is not resolved through the conciliation process, the Investor/Client/Market Participant may pursue online arbitration by paying the applicable fees.

In matters wherein the aggregate value of claim and/or counterclaim is up to Rs 1 Lakh or below, the Sole Arbitrator shall conduct a document-only arbitration process. However, the arbitrator, for reasons to be recorded in writing/electronically, may grant a hearing to the parties to the dispute. Where the aggregate value of claim and/or counter claim is up to Rs 30 Lakhs, a sole arbitrator shall be appointed by the ODR Institution. In case aggregate value of the claim and/or counter-claim amount exceeds Rs. 30 Lakhs the matter shall be referred to an Arbitral Tribunal consisting of three Arbitrators by the ODR Institution.

The arbitrator(s) shall be appointed upon receipt of fees and the necessary documents as applicable from both the parties. The party in whose favor the arbitration award is passed shall receive a refund of fees deposited by such party upon conclusion of arbitration proceedings.

Upon conclusion of the arbitration proceedings, arbitral award shall be passed by the Sole Arbitrator within 30 calendar days from the date of appointment of arbitrator(s) when the aggregate value of claim and/or counterclaims is up to Rs. 1 Lakh.

If the aggregate value of claim and/or counterclaim is more than Rs 1 Lakh, the Sole Arbitrator/Arbitral Tribunal shall conduct one or more hearing/s for adjudication of the matter. The Sole Arbitrator/Arbitral Tribunal may extend such time for disputes exceeding aggregate value of claims and/or counterclaims of more than Rs 1 Lakh, up to a further period of 30 calendar days. 

A party aggrieved by an arbitral award may file an appeal under section 34 of the Arbitration and Conciliation Act, 1996 upon providing its intention to challenge the award within 7 calendar days in the SMART ODR Portal. In case the arbitral award requires payment of any amount by the Market Participant or performance by it of a certain nature and the Market Participant does not wish to pursue the matter further, then the Market Participant shall comply with the terms of such arbitral award within a period of 15 calendar days from the date of the arbitral award or within such period as specified by the arbitral award.

If the Market Participant wishes to challenge such an arbitral award, they shall indicate their intention within 7 calendar days and deposit 100% of the amount payable in terms of the arbitral award with the relevant MII prior to initiation of the challenge. Upon receipt of request from the Investor/Client, the Exchange may release not exceeding Rs. 5 Lakhs out of the amount deposited by the Market Participant subject to submission of an undertaking by the Investor. In the course of such a challenge, if a stay is not granted within 3 months of the date of the receipt of the award, complete adherence to the terms of the arbitral award must be done by the Market Participant.