Clarification to Circular pertaining to Investor Grievance Redressal System and Arbitration Mechanism
Summary
This circular provides clarifications to the SEBI guidelines on Investor Grievance Redressal System and Arbitration Mechanism issued in 2017. It mandates annual training for arbitrators and establishes that additional fees for late-filed claims are non-refundable regardless of the award outcome. The provisions come into effect immediately, requiring exchanges to amend bye-laws and report implementation status.
Text
The NCDEs shall provide training of at least one day to every arbitrator each year.
Additional fees payable by members who file their claim beyond the prescribed time-lines shall be non-refundable even if the arbitration award goes in favor of the member.
The provisions of this circular shall come into effect immediately.
The exchanges are advised to make necessary amendments to relevant bye-laws, rules and regulations; bring provisions to notice of members and disseminate on website; communicate implementation status to SEBI.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956.
Source: SecMarx — Clarification to Circular pertaining to Investor Grievance Redressal System and Arbitration Mechanism. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.