MANU/SSMD/0061/2010
Ministry : Securities and Exchange Board of India
Department / Board :
Market Regulation Department
Circular No :
CIR/MRD/DSA/24/2010
Date : 11.08.2010
Summary
: The Present Circular was issued pursuant to discussion taken to the effect
that there is a need to streamline the arbitration mechanism available at stock
exchanges for arbitration of disputes arising between a client and a member
across various market segments.
To
The Managing
Director/
Executive Director of all Stock Exchanges.
Dear Sir / Madam,
Arbitration Mechanism in Stock Exchanges
1. In consultation with the stock exchanges, it has been decided to streamline
the arbitration mechanism available at stock exchanges for arbitration of
disputes (claims, complaints, differences, etc.) arising between a client and a
member (Stock Broker, Trading Member and Clearing Member) across various market
segments.
2. A stock exchange shall provide an arbitration mechanism for settlement of
disputes between a client and a member through arbitration proceedings in
accordance with the provisions of this Circular read with Section 2(4) of the
Arbitration and Conciliation, Act, 1996.
3 Maintenance of a Panel of Arbitrators
3.1 A stock exchange shall maintain a panel of arbitrators. The number of
arbitrators in the panel shall be commensurate to the number of disputes so that
an arbitrator handles a reasonable number of references simultaneously and all
arbitration references are disposed of within the prescribed time.
3.2
The stock exchange shall have a set of fair and transparent criteria
for inclusion of names in the panel of arbitrators.
3.3