New Delhi, Aug 7 (PTI) Leading stock exchanges BSE and NSE on Monday said that due process has been followed in rolling out the Online Dispute Resolution (ODR) platform.

A joint statement came after certain reports in the media raised issues relating to the Online Dispute Resolution mechanism rolled out recently in the securities market.

Also Read | Fashion Faceoff: Tara Sutaria or Malaika Arora, Whose Rimzim Dadu Outfit Will You Like to Wear?.

Clarifying the process adopted in the implementation of the ODR mechanism, the exchanges said that MIIs (market infrastructure institutions) followed the due process for the selection of vendors, which included formulating the scope for development of the ODR Portal, seeking proposals from multiple entities and final selection based on technical and commercial dimensions.

The exchanges, further, said that capital markets regulator Sebi did not play any role in this process of vendor selection.

Also Read | Jaipur-Mumbai Express Firing: RPF Constable Chetan Singh Who Killed Four People Inside Train, Gets Police Remand Till August 11.

A working group was formed comprising exchanges, depositories, ODR institutions, and Agami, a non-profit company, to formulate and operationalise the ODR mechanism following the issuance of a consultation paper by Sebi in December 2022, the exchanges said.

Based on the ODR mechanism defined by Sebi, MIIs-- exchanges, clearing corporations and depositories -- independently envisaged a common ODR portal for receiving and allocating complaints to each of the MIIs.

Additionally, by the Sebi directive, each of the MIIs (BSE, NSE, CDSL, NSDL, MSEI, MCX, and NCDEX) have tied up with at least one ODR institution to facilitate the conciliation and arbitration assigned to them and currently seven ODR institutions have been onboard for implementation of ODR Mechanism.

The ODR portal was rolled out after following due process effective from August 1, 2023, they added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)