Latest news with #ODR
Mint
13 hours ago
- Business
- Mint
Centre to launch online MSME dispute resolution portal on 27 June
NEW DELHI : The government is set to launch an online dispute resolution (ODR platform for small businesses to improve their ease of doing business on 27 June, according to two officials directly aware of the development. 'The MSME ODR portal has been tested, and dispute resolution using the portal has also begun during the testing phase," said one of the officials on the condition of anonymity. The portal, a part of the government's World Bank-supported Raising and Accelerating MSME Performance (RAMP) scheme, is aimed at resolving delayed payment disputes by facilitating communication between debtors and micro and small enterprises (MSEs), said the second official. Also Read: Bank loan sanctions to MSMEs for job creation down nearly a third in FY25 Mint first reported on 12 March that the government was going to digitize to dispute resolution for small businesses. So far, micro and small enterprises facilitation councils (MSEFCs) have resolved disputes, especially those related to delayed payments. As of the date, 161 councils have disposed of over 52,000 cases involving transactions worth ₹9,241 crore, out of nearly 100,000 such complaints by MSEs. Data on the micro, small, and medium enterprises (MSME) ministry's delayed payment monitoring system, Samadhaan portal, showed that more than 20 MSEFCs had not resolved a single case since their launch in 2017. The data also showed a wide variance in MSEFCs' actions. While 27 MSEFCs saw not even a single case, a few councils, such as MSEFC Mumbai, MSEFC Pune, and MSEFC Gandhinagar, resolved a considerable number of cases. MSEFC Mumbai resolved 4,625 matters involving about ₹750 crore out of the 7,756 cases it received. MSEFC Pune saw 6,956 complaints and resolved 5,271 of them, involving ₹223 crore. MSEFC Gandhinagar received 6,297 grievances and resolved 5,777 cases involving ₹809 crore, showed the data. 'As of the date, approximately 42% of the applications filed by MSEs are either yet to be viewed by MSEFCs or are at the consideration stage," said Krunal Modi, founding member and chief of staff, ODR platform Presolv360. 'One of the local MSEs recently shared with us that their first meeting was called by the concerned council after four months of filing the case. Additionally, our interactions with various MSEFCs have revealed that there is not only a manpower constraint but also a lack of physical infrastructure," he added. Also Read: MSMEs call for relaxations in the new FEMA regulations for exports and imports Under the procedure laid down in the MSME Development Act, 2006, micro and small businesses can approach these councils to seek payments from buyers that have been delayed longer than 45 days. Private mediators Interestingly, the new portal will allow private ODR service providers to be empanelled, putting into motion a key provision in the Act allowing MSEFCs to delegate cases to private institutions. As per the powers given to an MSEFC under Section 18 of the Act, an MSEFC can either conduct arbitration and conciliation proceedings in cases filed or provide assistance to any institution that provides alternative dispute resolution services. Alternative dispute resolution refers to any dispute resolution that takes place beyond courts. It includes procedures such as arbitration, mediation, and conciliation, where parties can resolve their issues speedily. Independent or private institutions providing ODR services shall only provide services through the new portal, as stated in the 2 April guidelines for appointment of such firms. The guidelines said these institutions should maintain a panel of arbitrators, mediators, and conciliators to resolve disputes on the portal. MSEFCs are created and operated by state or Union territory governments, as per the MSME Development Act. These states will have to enter into agreements with private ODR service providers after seeking information related to their operations. State governments will gather information related to the private ODR firms' incorporation, as well as about fees charged, the number of disputes resolved through arbitration, mediation, or conciliation, the guidelines said. More needs to be done However, the model followed by MSEFCs may not follow a key principle of arbitration—party autonomy, according to experts. 'The ADR procedure laid down in the Act has an element of conflict of interest, where the MSEFC can itself refer the matter for arbitration without mutual consent of the parties. Also, there is no bar for the conciliator or mediator sitting as an arbitrator," said P. Madhava Rao, registrar at Hyderabad's Amika Arbitration and Mediation Council, which provides ODR services. Also Read: MSME makeover: New definitions unlock bigger benefits, faster resolutions 'The main obstacle in the MSEFC ecosystem is the delay in resolving grievances and the presence of conflicts of interest," Rao added. States will also have to ensure that the dispute resolution personnel from private ODR firms abide by the MSME Development Act and the Arbitration & Conciliation Act, 1996. The Arbitration & Conciliation Act is currently undergoing reform, with the Union ministry of law and justice pushing for more institutional arbitration, Mint reported on 18 October 2024.
Time of India
a day ago
- Business
- Time of India
Online resolution for late MSE payments likely from next week
The government is likely to next week roll out Online Dispute Resolution (ODR) for speedier resolution of delayed payment disputes for micro and small enterprises , officials said. Presently, the Samadhaan portal provides limited digital services to MSEs such as registration for dispute resolution. Under the proposed mechanism, parties can not only register their delayed payment cases but also submit documents on the portal as evidence to strengthen their case. "Right from the filing stage, sending notice, and hearing every bit will be digitised. Samadhaan portal will be subsumed under ODR. The scheme promotes document-only dispute resolution, as in commercial disputes, documents override verbal submission, " a government official told ET. MSEs will also be provided concessions in application, documentation and other processing fees. The ODR mechanism under the MSME Development Act seeks to strengthen institutional support by building human resource and technological capacity of the Micro and Small Enterprises Facilitation Council (MSEFC), set up under the MSMED Act, the official added. These MSEFCs will be financially assisted under the scheme to create legal capacity. Live Events The MSMED Act prescribes a 45-day window for buyers to pay their MSME suppliers, failing which they become liable to payment of interest. As part of the ODR, the government is also giving a push to AI, allowing parties to opt for an AI-facilitated dispute settlement process before approaching MSEFC.
Time of India
02-06-2025
- Business
- Time of India
Sebi Enhances Investor Charter to Boost Financial Literacy and Inclusion, ET LegalWorld
Markets regulator Sebi on Monday tweaked the investor charter for investment advisers and research analysts to enhance financial inclusion and financial literacy. This came in view of the recent developments in the securities market, including the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0 -- a web-based centralised grievance redressal system of Sebi. Advt Advt Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETLegalWorld App Get Realtime updates Save your favourite articles The modified charter includes vision, mission, services provided to investors and details of business transacted by investment advisers (IAs) /research analysts with respect to their investors, according to separate it includes rights and responsibilities of investors; details of redressal mechanism available to investors and how to access it, along with formats for investors complaints data to be disclosed monthly by IAs and RAs on their website and mobile applications and trend of annual disposal of markets regulator has investment advisers and research analysts to bring the investor charter to the notice of their clients (existing as well as new clients) by disclosing the charter on their respective websites and mobile they have been asked to make the charter available at prominent places in the office and provide a copy of the charter as a part of the client onboarding process, through e-mails or letters ensure transparency in the Investor Grievance Redressal Mechanism, all IAs and RAs will continue to disclose on their respective websites and mobile applications the data on complaints received against them or against issues dealt by them and redressal thereof, latest by the 7th of the succeeding month in a prescribed format, Sebi in December 2021, issued an investor charter for IAs and RAs detailing the services provided to investors and, the rights of investors, among was aimed at facilitating investor awareness about various activities which an investor deals with, such as the opening of an account, KYC and in-person verification, complaint resolution, issuance of contract notes and various statements.
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Business Standard
02-06-2025
- Business
- Business Standard
Sebi updates investor charter for advisers, analysts to aid literacy
Markets regulator Sebi on Monday tweaked the investor charter for investment advisers and research analysts to enhance financial inclusion and financial literacy. This came in view of the recent developments in the securities market, including the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0 -- a web-based centralised grievance redressal system of Sebi. The modified charter includes vision, mission, services provided to investors and details of business transacted by investment advisers (IAs) /research analysts with respect to their investors, according to separate circulars. Additionally, it includes rights and responsibilities of investors; details of redressal mechanism available to investors and how to access it, along with formats for investors complaints data to be disclosed monthly by IAs and RAs on their website and mobile applications and trend of annual disposal of complaints. The markets regulator has investment advisers and research analysts to bring the investor charter to the notice of their clients (existing as well as new clients) by disclosing the charter on their respective websites and mobile applications. Also, they have been asked to make the charter available at prominent places in the office and provide a copy of the charter as a part of the client onboarding process, through e-mails or letters etc. To ensure transparency in the Investor Grievance Redressal Mechanism, all IAs and RAs will continue to disclose on their respective websites and mobile applications the data on complaints received against them or against issues dealt by them and redressal thereof, latest by the 7th of the succeeding month in a prescribed format, Sebi said. Sebi, in December 2021, issued an investor charter for IAs and RAs detailing the services provided to investors and, the rights of investors, among others. This was aimed at facilitating investor awareness about various activities which an investor deals with, such as the opening of an account, KYC and in-person verification, complaint resolution, issuance of contract notes and various statements. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Economic Times
02-06-2025
- Business
- Economic Times
Sebi tweaks investor charter for investment advisers, research analysts to boost financial literacy
Markets regulator Sebi on Monday tweaked the investor charter for investment advisers and research analysts to enhance financial inclusion and financial literacy. ADVERTISEMENT This came in view of the recent developments in the securities market, including the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0 -- a web-based centralised grievance redressal system of Sebi. The modified charter includes vision, mission, services provided to investors and details of business transacted by investment advisers (IAs) /research analysts with respect to their investors, according to separate circulars. Additionally, it includes rights and responsibilities of investors; details of redressal mechanism available to investors and how to access it, along with formats for investors complaints data to be disclosed monthly by IAs and RAs on their website and mobile applications and trend of annual disposal of markets regulator has investment advisers and research analysts to bring the investor charter to the notice of their clients (existing as well as new clients) by disclosing the charter on their respective websites and mobile they have been asked to make the charter available at prominent places in the office and provide a copy of the charter as a part of the client onboarding process, through e-mails or letters etc. ADVERTISEMENT To ensure transparency in the Investor Grievance Redressal Mechanism, all IAs and RAs will continue to disclose on their respective websites and mobile applications the data on complaints received against them or against issues dealt by them and redressal thereof, latest by the 7th of the succeeding month in a prescribed format, Sebi in December 2021, issued an investor charter for IAs and RAs detailing the services provided to investors and, the rights of investors, among others. This was aimed at facilitating investor awareness about various activities which an investor deals with, such as the opening of an account, KYC and in-person verification, complaint resolution, issuance of contract notes and various statements. (You can now subscribe to our ETMarkets WhatsApp channel)
