Investor Grievance Redressal System and Arbitration Mechanism
Summary
This circular mandates National Commodity Derivatives Exchanges to establish Investor Service Centers and Grievance Redressal Committees in line with securities market standards. It requires exchanges to maintain arbitrator panels, implement common pools for automatic selection, and adhere to specific arbitration fee structures. All provisions must be implemented by April 1, 2016, with monthly reporting of implementation status to SEBI.
Text
This circular applies to National Commodity Derivatives Exchanges as defined in the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2015.
The national commodity derivative exchanges shall set up investor service centers (ISC) for the benefit of the public/ investors in accordance with the circular CIR/MRD/DSA/03/2012 dated January 20, 2012.
The national commodity derivatives exchanges shall constitute IGRC in accordance with the SEBI circular no CIR/MRD/DSA/03/2012 dated January 20, 2012 and shall perform all such functions and responsibilities as stated in the SEBI circular no CIR/MRD/ICC/30/2013 dated September 26, 2013.
The national commodity derivatives exchanges shall maintain panel of arbitrators, code of conduct for arbitrators, arbitration process, appellate arbitration, place of arbitration, implementation of arbitration award in favour of clients, records and disclosures as per the provisions of SEBI Circulars...
The national commodity derivatives exchanges shall make applicable the arbitration fees to each parties to the arbitration in accordance with the SEBI Circular No CIR/MRD/DSA/29/2010... read with CIR/MRD/ICC/29/2012... and CIR/MRD/ICC/29/2013...
The national commodity derivatives exchanges shall pool all arbitrators of their exchange in the common pool across all national commodity derivatives exchanges, facilitate automatic selection of arbitrators from the common pool and shall also follow all other provisions mentioned in the SEBI Circular CIR/MRD/ICC/8/2013...
All the provisions of this circular shall be implemented by national commodity derivatives exchanges latest by April 1, 2016, unless otherwise approved by SEBI.
The norms specified by Forward Markets Commission shall continue to be in force to the extent not modified or repealed by this circular.
The implementation of this circular should be reported by the national commodity derivatives exchange to SEBI on monthly basis.
The national commodity derivatives exchanges are advised to: make necessary amendments to relevant bye-laws; bring provisions to notice of members and disseminate through website; take steps to make investors aware of grievances redressal mechanism; communicate SEBI the status of implementation.
The circular is issued in exercise of the powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Investor Grievance Redressal System and Arbitration Mechanism. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.