Arbitration Mechanism in Stock Exchanges

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....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 While deciding to include a particular person in the panel of arbitrators, the stock exchange shall take into account the following factors: i. age, ii. qualification in the area of law, finance, accounts, economics, management, or administration, and iii. experience in financial services, including securities market. 3.4 The name of a person shall be included in the panel after obtaining: i. a declaration that he has not been involved in any act of fraud, dishonesty or moral turpitude, or found guilty of any economic offence, ii. disclosure of the nature of his association with securities market, iii. disclosure of the names of his dependents associated with the securities market as member, sub-broker or authorized person, and iv. an undertaking that he shall abide by the code of conduct prescribed in this circular. 3.5 The stock exchange shall provide at least seven days of continuing education to every arbitrator each year. 3.6 The stock exchange shall have a mechanism to appraise the performance of arbitr....

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....anel of arbitrators may be filed within one month from the date of receipt of arbitral award. 6.3 The appellate panel shall consist of three arbitrators who shall be different from the ones who passed the arbitral award appealed against. 6.4 The stock exchange shall ensure that the process of appointment of appellate panel of arbitrators is completed within 30 days from the date of receipt of application for appellate arbitration. 6.5 The appeal shall be disposed of within three months from the date of appointment of appellate panel of such appeal by way of issue of an appellate arbitral award. 6.6 The Managing Director/ Executive Director of the stock exchange may for sufficient cause extend the time for issue of appellate arbitral award by not more than two months on a case to case basis after recording the reasons for the same. 6.7 A party aggrieved by the appellate arbitral award may file an application to the Court of competent jurisdiction in accordance with Section 34 of the Arbitration and Conciliation Act, 1996. 7. Arbitration Fees 7.1 Each of the parties to arbitration [as mentioned under item (5) above], shall deposit an amount, as may be prescribed by the stock e....

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.... shall provide the arbitration facility, including appellate arbitration, at the place where it is located. 9. Implementation of Arbitral Award in favour of Clients 9.1 In case the arbitral / appellate arbitral award is in favour of the client, the stock exchange shall, on receipt of the same, debit the amount of the award from the security deposit or any other monies of the member (against whom an award has been passed) and keep it in a separate escrow account. 9.2 The stock exchange shall implement the arbitral award, by making payment to the client, along with interest earned on the amount that has been set aside, as soon as the time for preferring an appeal before the appellate panel of arbitrators has expired and no appeal has been preferred. 9.3 The stock exchange shall implement the appellate arbitral award, by making payment to the client, along with interest earned on the amount that has been set aside, as soon as a. the time for making an application to a Court to set aside such appellate arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 has expired, and no application has been made, or b. when an application to a Court to set aside suc....

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.... /CIR - 22 /99 dated July 09, 1999 ii. SMD/Policy/Cir-06/2002 dated March 27, 2002 iii. MRD/ Policy/Cir-18/2002 dated August 28, 2002 iv. MRD/ Policy/Cir-26/2002 dated October 30, 2002 v. SEBI/SMD/SE/13 /2003/10/04 dated April 10, 2003 vi. MRD/DSA/Arb/4623/2004 dated March 05, 2004 vii. MRD/DSA/SE/CIR-18/2009 dated December 2, 2009 15. This circular modifies provisions relevant to arbitration, contained in the following SEBI Circulars:- i. SMD/POLICY/CIRCULAR/3-97, dated March 31, 1997 ii. MRD/DoP/SE/Cir-10/2009 dated September 3, 2009 iii. SEBI/MRD/DSA-OIAE/Cir-09/2010 dated April 1, 2010 iv. CIR/MRD/DSA/10/2010 dated April 6, 2010 16. This Circular is available on SEBI website at www.sebi.gov.in. Yours faithfully, Rajesh Kumar D Deputy General Manager +91-22-26449242 [email protected] CC: All SEBI recognized Investor Associations   ============= Document 1 GB भारतीय प्रतिभूति और विनिमय बोर्ड Securities and Exchange Board of India Format A: Disposal of Arbitration Proceedings (where client is a part....