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