Arbitration Mechanism in Stock Exchanges
Summary
This circular mandates stock exchanges with nation-wide terminals to establish additional investor service centres providing arbitration and appellate arbitration facilities. Specific deadlines are set for establishing these centres in Bangalore, Pune, Jaipur, Gaziabad by December 31, 2013, and in Lucknow, Gurgaon, Patna, and Vadodara by June 30, 2014. Stock exchanges are required to amend their bye-laws, notify members, report implementation status, and submit to SEBI inspection.
Text
Stock Exchanges with nation-wide terminals shall set up investor service centres at Bangalore, Pune, Jaipur, Gaziabad, Lucknow, Gurgaon, Patna and Vadodara. These centres shall provide investor grievances redressal mechanism and arbitration facility (arbitration as well as appellate arbitration).
The investor service centres at Bangalore, Pune, Jaipur and Gaziabad shall be established before December 31, 2013.
The investor service centres at Lucknow, Gurgaon, Patna and Vadodara shall be made functional by June 30, 2014.
Accordingly, all Stock Exchanges with nation-wide terminals would have to set-up these facilities at all 16 places mentioned above by June 30, 2014.
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;
communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Reports to SEBI.
SEBI inspection of stock exchange shall cover implementation of this circular.
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 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market 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.