Maintenance of arbitration records - SEBI - SEBI/SMD/SE/13/2003/10/04

Circulars General Manager Secondary Market Department Email : [email protected] SEBI/SMD/SE/13/2003/10/04 April 10, 2003 The Executive Director / Managing Director All Stock Exchanges Dear Sir / Madam, Sub: Maintenance of arbitration records. This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. The Bye-Laws of the Stock Exchanges provide for Arbitration Mechanism for redressal of disputes between members as well as between a member and a non-member. The documents vis- -vis the process of arbitration are preserved with the stock exchanges for the purpose of record. In this connection, SEBI has decided to frame a uniform policy applicable to all stock exchanges regarding the maintenance / disposal of arbitration records. Accordingly, it has been decided that : 1. The original arbitration award with acknowledgements shall be preserved permanently. 2. Other records pertaining to arbitration shall be preserved for 5 years from the date of award, in case the appeal for setting aside the award is not filed till such time. 3. In case, an appeal is filed, the records, shall be preserved for five years from the date of final disposal by the Court. 4. The destruction of records shall be subject to the previous order, in writing of the Executive Director of the Exchange. 5. The Exchange shall maintain a register wherein the brief particulars of the records destroyed alongwith the certification regarding the date and mode of destruction. The exchanges are directed to make necessary amendments to the bye-laws, rules and regulations in order to incorporate specific provisions regarding the maintenance / disposal of arbitration records in this regard. The exchanges are directed to bring the provisions of this circular to the notice of the member brokers/clearing members of the exchange and also to disseminate the same on the website for easy access to the investors. The exchanges are also directed to communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of April 2003. Yours faithfully, P.K. BINDLISH