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TMI BlogAmendment pursuant to comprehensive review of Investor Grievance Redressal MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... to enhance transparency and also to provide choice to parties, Stock Exchanges/ Depositories 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. B. Submission of documents in soft copies In order to assist the arbitrators in pronouncing comprehensive and speedy awards, Stock Exchanges/ Depositories 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. C. Review and Training of arbitrators Investor Service Committee of the Stock Exchanges/ Depositories shall review the performance of the arbitrators annually and submit the review report to the Board of the Stock Exchange/ Depository. Training need of the arbitrators will be catered by National Institute of Securities Markets (NISM). C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rate of interest on the award passed by arbitrators shall be in compliance with Arbitration and Conciliation (Amendment) Act, 2015. J. Speeding up grievance redressal mechanism (i) 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 filling arbitration reference shall be as follows:- Amount of Claim / Counter Claim, whichever is higher (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% a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) Promotion of investor education and investor awareness programmes through seminars, lectures, workshops, publications (print and electronic media), training programmes etc. aimed at enhancing securities market literacy and promoting retail participation in securities market; b) To utilize the fund for supporting initiatives of Depository Participants for promotion of investor education and investor awareness programmes; c) To utilize the fund in any other manner as may be prescribed/ permitted by SEBI in the interest of investors; d) To meet the legitimate claims of the beneficial owners, upto the maximum cap as to be determined by the depository, in case the same is not settled by the beneficial owner indemnity insurance; 2. Interest on IPF Stock Exchanges: a) To further strengthen the corpus, 75% of interest on IPF earned every year shall be treated as corpus of IPF; b) The balance 25% may be utilized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount immediately. In case the claim amount is more than the coverage limit under IPF or the amount sanctioned and ratified by the Defaulters Committee is less than the claim amount then the investor will be at liberty to prefer for arbitration mechanism for claim of the balance amount. F. Threshold limit for interim relief paid out of IPF in Stock Exchanges In partial modification to Circular No. CIR/MRD/ICC/30/2013 dated September 26, 2013 on Investor Grievance Redressal Mechanism the following changes are prescribed: (i) Stock Exchanges, in consultation with the IPF Trust and SEBI, shall review and progressively increase the amount of interim relief available against a single claim for an investor, atleast every three years. (ii) The Stock Exchanges shall disseminate the interim relief limit fixed by them and any change thereof, to the public through a Press Release and also through its website. (iii) In case, award is in favour of client and the member opts for arbitration wherein the claim value admissible to the client is not more than ₹ 20 lakhs (Rs. Twenty lakhs), the following steps shall be undertaken by the Stock Exchange: a) In case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y measure, the Committee shall adopt a laid down process, based on the 'Principles of natural justice'. (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 and one of which shall necessarily be the Managing Director of the stock exchange; (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 securities market; 2 Defaulters Committee i. To realize all the assets / deposits of the defaulter/ expelled member and appropriate the same amongst various dues and claims against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IPF Trust (i) The IPF shall be administered by way of a Trust created for this purpose; (ii) The IPF Trust shall disburse the amount of compensation from IPF to the investor and such a compensation shall not be more than the maximum amount fixed for a single claim of an investor; (iii) The IPF Trust shall disburse the compensation to the investors as and when claims have been crystallized against a defaulter member; (iv) The IPF Trust need not wait for realization of assets of the defaulter member for disbursements of the claims; (v) Upon receipt of advice of the Defaulters Committee, for payment, the IPF Trust shall take necessary steps for disbursement of the amount at the earliest (i) The Trust shall have maximum 5 trustees; (ii) The trustee shall comprise of : a. Three Public Interest Directors; b. One representative from investor associations recognized by SEBI; and c. The princip ..... X X X X Extracts X X X X X X X X Extracts X X X X
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