Market regulator Securities and Exchange Board of India (Sebi) has decided to revamp the grievance redressal mechanism at stock exchanges and depositories after reviewing the existing framework with the concerned stakeholders.
As per the modified mechanism, stock exchanges/depositories will have to disseminate information with regards to brief profile, qualification, areas of experience/expertise, number of arbitration matters handled, pre-arbitration experience, etc. of the arbitrators on their website.
“Stock exchanges/depositories will also have to make necessary arrangements in terms of hardware and software to facilitate the clients to type/ convert their documents into electronic format/ soft copy,” Sebi said.
The regulator has also decided to increase the professional fee of arbitrators to Rs 18,000 and also decided on a new fee structure for filling arbitration reference in order to have faster implementation of award and to discourage delayed filing of arbitrations by members.
“Stock exchanges/depositories shall create a common database of defaulting clients accessible to members/depository participants across the stock exchanges/depositories,” Sebi said.
“There shall be seperate panels for arbitration and appellate arbitration. Further, for appellate arbitration, atleast one member of the panel should be a retired judge and stock exchanges/depositories will have to obtain prior approval of the Sebi before empanelment of arbitrators/appellate arbitrators,” it added.
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