Investor Grievance Redressal Mechanism
Summary
This circular amends the Investor Grievance Redressal Mechanism by substituting Clause 4 of a previous SEBI circular to clarify arbitration procedures. It mandates that disputes between members and clients must first be referred to the IGRC or Stock Exchange arbitration before other legal remedies are pursued. The amendments introduce specific time limits for filing arbitration applications depending on whether the IGRC mechanism was utilized.
Text
For any dispute between the member and the client relating to or arising out of the transactions in Stock Exchange, which is of civil nature, the complainant/ member shall first refer the complaint to the IGRC and/ or to arbitration mechanism provided by the Stock Exchange before resorting to other remedies available under any other law.
The sole arbitrator or the panel of arbitrators... shall always be deemed to have the competence to rule on its jurisdiction.
A complainant/member, who is not satisfied with the recommendation of the IGRC shall avail the arbitration mechanism of the Stock Exchange for settlement of complaints within three months from the date of IGRC recommendation
For any arbitration application received without going through IGRC mechanism, the above time period of three months shall not apply, and for such cases the limitation period for filing arbitration shall be governed by the law of limitation, i.e., The Limitation Act, 1963.
Make necessary amendments to the relevant bye-laws, rules and regulations, operational instructions, as the case may be, for the implementation of the above circular;
bring the provisions of this circular to the notice of their constituents and also disseminate the same on the website.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with Section 10 of the Securities Contract (Regulation) Act, 1956... and shall come into effect from July 1, 2022.
Source: SecMarx — Investor Grievance Redressal Mechanism. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.