Among the available dispute resolution alternatives to the courts, arbitration is by far the most commonly used. Arbitration is a legal process, which takes place outside the courts, but still results in a final and legally binding decision similar to a court judgment. Parties involved in arbitration are effectively opting out of the court system and submitting their case for resolution by a neutral, third party arbitrator.
Arbitration is generally faster, less expensive and more informal than going to court. It also has the advantage of being private and confidential. As mentioned earlier, arbitration is a legal process, which results in an award being issued by the arbitrator or arbitrators. Arbitration awards are final and binding on the parties and can only be challenged in very exceptional circumstances. An award has a status very much like a court judgment and is enforceable in a very similar manner.
The nature of complaints against the trading members would include delay in payment or delivery, non-receipt of payment, non-settlement of accounts, unauthorised trades in client account, wrong execution or order, connectivity/system related problem and excess brokerage among others.
From 31 January 2009, complaints against the trading members of Bombay Stock Exchange (BSE) or applications for arbitration should be filed at the concerned regional arbitration centre. The below table provides information about the regional arbitration centres in various states and union territories of India. The hearings shall be held in the concerned regional arbitration centre in which the applicant had duly filed the application for arbitration.
Claims up to Rs. 10 lakh are decided by single arbitrator, while claim above Rs. 10 lakh are decided by three arbitrators.
Contact details of regional arbitration centres
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