Invoices and Billing information
This section provides detailed information about the invoicing and billing processes related to SMART ODR.
Overview of associated Charges:
On SMART ODR, no cost is liable to be incurred by any party during the Pre-Conciliation Stage.
- Online Conciliation Charges: If a dispute is referred to Online Conciliation, the same is chargeable as per the SEBI Circular on Online Resolution of Disputes in the Securities Market.
| Fees Header | Amount in Rupees |
|---|---|
| Conciliator's Fee for Successful Conciliation | Rs. 4800 |
| Conciliator's Fee for Unsuccessful Conciliation | Rs. 3200 |
| ODR Institution's Fees | Rs. 600 |
| Total for Successful Conciliation | Rs. 5400 + GST* |
| Total for Unsuccessful Conciliation | Rs. 3800 + GST* |
*Applicable GST, Stamp Duty etc. on actual outgoings shall be borne by the Market Participant.
The entire fees is to be paid to the ODR Institution directly. Every ODR Institution has a payment gateway via which automated invoices may be generated and accordingly cleared by the concerned Market Participant.
Note: Non-adherence of this requirement may result in action against the Market Participant by the MIIs and/or SEBI.
- Online Arbitration Charges: If Online Arbitration is initiated by either Investor or Market Participant, the following charges are applicable.
| Fees Header | Amount in Rupees (Rs 0 - 1 Lakh)# | Amount in Rupees (> Rs 1 Lakh - 10 Lakh) | Amount in Rupees (> Rs 10 Lakh - 20 Lakh) | Amount in Rupees (> Rs 20 Lakh - 30 Lakh) | Amount in Rupees (> Rs 30 Lakh - 50 Lakh) | Amount in Rupees (> Rs 50 Lakh - Rs 1 crore) | Amount in Rupees (> Rs 1 crore) |
|---|---|---|---|---|---|---|---|
| Arbitrator's Fee | Rs. 4800 | Rs. 8000 | Rs. 12,000 | Rs. 16,000 | Rs. 60,000 | Rs. 1,20,000 | Rs. 1,20,000 or 1% of the claim value*** |
| ODR Institution's Fees | Rs. 600 | Rs. 1000 | Rs. 1500 | Rs. 2000 | Rs. 7500 | Rs. 15,000 | Rs. 35,000 |
| Total for Online Arbitration | Rs. 5400 + GST* | Rs. 9000 + GST* | Rs. 13,500 + GST* | Rs. 18,000 + GST* | Rs. 67,500 + GST* | Rs. 1,35,000 + GST* | (Rs. 1,55,000 + GST) or (1% of the claim value + Rs. 35,000 + GST) |
*Applicable GST, Stamp Duty etc. on actual outgoings shall be borne by the Market Participant.
**This slab is applicable for service related disputes as well.
***Whichever is greater.
The entire fees is to be paid to the ODR Institution directly. Every ODR Institution has a payment gateway via which automated invoices may be generated and accordingly cleared by the concerned Market Participant.
Note A: Non-adherence of this requirement may result in action against the Market Participant by the MIIs and/or SEBI.
Note B: Subject to the terms of the arbitral award, the person or entity successful in online arbitration shall receive a refund of amounts deposited.
In case of Online Arbitration, there is a 100% deposit of the admissible claim value that needs to be made to the MII in a time-bound manner. This is explained in detail further below.
When is such fees payable to the ODR Institution?
Online Conciliation Payment Timeline: All Market Participants are advised to complete due payments within 30 days of the closure of conciliation proceedings.
Online Arbitration Payment Timeline: This payment is to be made at the time of initiation of Arbitration Proceedings. Such fees is to be paid to the ODR Institution within 7 days of requesting Arbitration on SMART ODR.
Please note that both parties (initiator of Arbitration and the respondent) are each required to pay the Arbitration Fees in full to the ODR Institution within the 7-day window.
In case the person or entity against whom arbitration has been initiated fails to deposit the fee within 7 days, then the person initiating the arbitration can deposit such fees on behalf of the other party and shall be recoverable from the other party during the arbitration process.
What is the 100% Deposit Requirement for Online Arbitration?
Any Market Participant against whom Online Arbitration is initiated, is required to pay 100% of the admissible claim value within 10 days of the initiation of arbitration. Such payment is to be made to the concerned MII. Non-adherence of this requirement may result in action against the Market Participant by the MIIs and/or SEBI.
In case the Market Participant wishes to initiate Online Arbitration, it is required to request arbitration / intimate the ODR Institution within 10 days of the completion of conciliation proceedings. Within 5 days of such intimation, the Market Participant must deposit 100% of the admissible claim value with the relevant MII.
What is the admissible claim value?
The conciliator must ascertain the admissible claim value of the dispute during the conciliation proceedings. Such determination is merely a reference for computation of the appropriate slab for arbitration fees. However, neither the Investor / Client nor the Market Participant is bound to follow such determination and may choose to initiate arbitration for a higher claim value subject to payment of applicable fees and charges.
Are there any Late Fees Charges?
Yes, Late Fees is applicable for both Online Conciliation and Online Arbitration as mentioned below.
Late Fees in Online Conciliation: If Conciliation is initiated 6 months after the dispute arises, the initiator of the dispute must pay Rs. 1000 to the ODR Institution.
Late Fees in Online Arbitration: If Arbitration is initiated after 1 month of failure of Conciliation, and up to 6 months, the Total Online Arbitration Fee would be double the aforementioned amount. If Arbitration is initiated after 6 months, an additional fee of 50% of the Total Online Arbitration Fee will be applicable per month of delay. The same is payable to the ODR Institution along with the payment of arbitration fees.
Note: The ODR Institution is collecting late fees on behalf of the MII for operational convenience.