Arbitration


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

Arbitration is a quasi-judicial process of settlement of disputes between trading members, investors, clearing members, sub-brokers, authorized persons etc. Arbitration aims at quicker resolution of the disputes. When either of the parties is not satisfied with the complaint resolution process or the complaint is not resolved amicably between parties, the parties may choose the route of arbitration. All disputes arising out of transactions done on the Exchange by the parties or anything incidental thereto are eligible for arbitration mechanism provided by the Exchange. Arbitration framework at the Exchange is governed by Rules, Byelaws, Regulations & Circulars issued by the Exchange and SEBI, from time to time.  Stock Exchange on a continuous basis maintains panel of arbitrators at each of its Regional Arbitration Centre. The arbitrator panel of the Exchange consists of eminent persons from the fields of judiciary, banking and financial services and the appointment is based on the criteria like qualification, age, experience etc.
Award is judgment passed by the arbitration panel which gives a direction to either of the disputing parties as regard to their claim raised in the arbitration matter.
Party against whom the arbitral award has been passed will bear the costs of arbitration. The Exchange gives a full refund of deposit to the party in whose favour the award has been passed.
When the arbitral award given by the arbitrator panel is in favour of the investor then the exchange will set aside the award amount from the deposits of the trading member and the same will be kept in a separate escrow account with the exchange. If the trading member fails to prefer an appeal against the award within the specified time, then the award amount is released to the investor.


Friday, 02nd Oct 2015, 09:09:57 AM

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