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TMI BlogAmendment to Investor Grievance Redressal System and Arbitration MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... esolution Panel (IGRP)/ Arbitration Mechanism i. Public dissemination of profiles of arbitrators In order to enhance transparency and also to provide choice to parties, Exchanges shall disseminate information w.r.t. brief profile, qualification, areas of experience/ expertise, number of arbitration matters handled, pre-arbitration experience, etc. of the arbitrators on their website. ii. Submission of documents in soft copies In order to assist the arbitrators in pronouncing comprehensive and speedy awards, Exchanges shall make necessary arrangements in terms of hardware viz., computer, scanner, printer, etc. and required software s at exchange offices/ Investor Service Centers (ISCs) to facilitate the clients to type/ convert their documents into electronic format/ soft copy. Such electronic format/ soft copies shall be provided to the arbitrators along with original submissions in physical copies. iii. Review and Training of arbitrators Investor Service Committee of the Exchanges shall review the performance of the arbitrators annually and submit the review report to the Board of the Exchange. Training need of the arbitrators will be catered by National I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Amendment) Act, 2015. x. Speeding up grievance redressal mechanism a. In order to have faster implementation of award and to discourage delayed filling of arbitrations by members, the fee structure (exclusive of statutory dues - stamp duty, service tax, etc.) for filing arbitration reference shall be as follows:- b. Amount of Claim / Counter Claim, whichever is higher (in Rs.) If claim is filed within six months from the date of dispute If claim is filed after six months from the date of dispute or after one month from the date of IGRP order, whichever is later If the claim is filed beyond the timeline prescribed in column 3, (only for member) 10,00,000 1.3% subject to a minimum of ₹ 10,000 3.9% subject to a minimum of ₹ 30,000 Additional fee of ₹ 3,000/- per month over and above fee prescribed in column 3 10,00,000 - 25,00,000 ₹ 13,000 plus 0.3% amount above ₹ 10 lakh ₹ 39,000 plus 0.9% am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 3.00 lakhs (Rs. Three lakhs), whichever is less, shall be released to the client from IPF of the Exchanges. The amount released shall exclude the amount already released to the client at clause (a) above. c) In case the appellate arbitration award is in favour of the client and the member opts for making an application under Section 34 of the Arbitration and Conciliation Act, 1996 to set aside the appellate arbitration award, then 75% of the amount determined in the appellate arbitration award or ₹ 5.00 lakhs (Rs. Five Lakhs), whichever is less, shall be released to the client from IPF of the Exchanges. The amount released shall exclude the amount already released to the client at clause (a) and (b) above. d) Total amount released to the client through the facility of interim relief from IPF in terms of this Circular shall not exceed ₹ 10.00 lakhs (Ten lakhs) in a financial year. B. Disciplinary Action Committee, Defaulters Committee, Investors Service Committee, Arbitration Committee SEBI vide its circular no CIR/CDMRD/DEA/03/2015 dated November 26, 2015 has made applicable circular No. CIR/MRD/DSA/33/2012 dated December 13,2012 to Exchanges. In parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learing member and his constituent trading member are declared defaulter, then the Defaulter s Committee of the exchange and the Defaulter's Committee of the clearing corporation shall work together to realise the assets of both the clearing member and the trading member. iii. Admission or rejection of claims of client/ trading members/ clearing members over the assets of the defaulter/ expelled member. iv. Advise in respect of the claims to the Trustees of the IPF on whether the claim is to be paid out of IPF or otherwise. i. The Committee shall have a minimum of 3 members and a maximum of 5 members; ii. The Public Interest Directors shall form a majority of the Committee. iii. A maximum of two key management personnel of the exchange can be on the Committee. iv. The Committee may also include independent external persons such as retired judge, etc. v. SEBI may nominate members in the Committee, if felt necessary in the interest of commodities market; 3 In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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