SEBI revamps grievance redressal norms at bourses

Markets regulator SEBI on Tuesday put in place a new set of norms to enhance the effectiveness of grievance redressal mechanism at commodity exchanges.

The new norms include public dissemination of profiles of arbitrators, performance review of such arbitrators, three - stage fee structure for faster implementation of award and to discourage delayed filling of arbitrations by trading members. The decision to revamp the grievance redressal mechanism at all national commodity derivatives exchanges has been taken after taking into considerations views of all stakeholders.

To enhance transparency and provide choice to parties, Sebi said exchanges will have to disseminate information like brief profile, qualification, areas of experience, number of arbitration matters handled and pre-arbitration experience of the arbitrators on their website.

Besides, market infrastructure institutions (MIIs) — exchanges — will have to create a common database of defaulting clients accessible to trading members and depository participants across bourses, Sebi said in a circular.