Arbitration Mechanism in Stock Exchanges
Summary
This circular modifies the arbitration fee structure for stock exchanges to reduce costs for investors with smaller claims. It introduces a reduced fee cap of Rs. 10,000 for clients with claims up to Rs. 10 lakh, with the remaining cost borne by Stock Exchanges and Investor Protection Funds. Stock exchanges are mandated to amend their bye-laws and inform members and investors about this change immediately.
Text
In case the party filing the appeal is a client having claim/counterclaim of upto Rs. 10 lakh, then the party shall pay a fee not exceeding Rs. 10,000/- . Further expenses thus arising shall be borne by the Stock Exchanges and the Investor Protection Fund of Stock Exchanges equally.
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately
bring the provisions of this circular to the notice of the members of the stock exchange and also to disseminate the same through their website
take steps to make the investors aware of the scheme
communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Reports 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... and shall come into effect immediately
Source: SecMarx — Arbitration Mechanism in Stock Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.