SEBI To Expand Reach Of Stock Exchanges
Market regulator SEBI (Securities and Exchange Board of India) has decided to expand the reach of the arbitration centers in the country. The regulator has asked stock exchanges to double their number within a year.
The stock exchanges having nationwide terminals should provide arbitration facility (i.e arbitration as well as appellate arbitration) at least at all centres specified by SEBI from time to time, SEBI said in a circular on Friday.
However, the exchanges having nationwide terminals may provide arbitration facility at additional centres, if they so desire. The arbitration and appellate arbitration shall be conducted at the centre nearest to the address provided by client in the KYC (know your customer) form.
Other stock exchanges should provide the arbitration facility, including appellate arbitration, at the place where it is located.
The application under section 34 of the Arbitration and Conciliation Act, 1996, if any, against the decision of the appellate panel should be filed in the competent court nearest to the address provided by client in the KYC form, the circular further said.
The stock exchanges are advised to make necessary amendments for the implementation of the above decision immediately.
SEBI has also directed stock exchanges to communicate to SEBI, the status of implementation of the provisions of this circular in the monthly development reports to SEBI.
At present, arbitration is currently available at eight centers. These include Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Kanpur and Indore. Stock exchanges have now been asked to provide arbitration facilities at Bangalore, Pune, Jaipur, Gaziabad, Lucknow, Gurgaon, Patna and Vadodara.
An arbitration centre is a place where disputes between brokers and their clients are resolved. Disputes could be on issues such as a client alleging that the broker has traded in his account without his permission.