Pursuant to the update in the trail mail, the Securities Exchange Board of India (“SEBI”) has, vide a Circular (CIR / CDMRD / DCE / CIR / P / 2018 / 48) dated 14th March, 2018, issued the following clarifications:
- The NCDEs shall provide training of at least one day to every arbitrator each year.
- With regard to para 2A(x) of the aforesaid circular pertaining to speeding up grievance redressal mechanism, it is clarified that in order to discourage delayed filing by members, the additional fees payable by members who file their claim beyond the prescribed time – lines shall be non-refundable even if the arbitration award goes in favor of the member
Background:
SEBI had, vide circular no. CIR/CDMRD/DEICE/CIR/P/2017/77 dated 11th July, 2017 (please refer to the trail mail), issued guidelines covering broad areas of Investor Grievance Redressal System and Arbitration Mechanism. Subsequently, SEBI has received representations from the national commodity derivatives exchanges (NCDEs) with respect to some of the clauses of the said circular which have been considered.
Accordingly, SEBI issued the present clarification to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
The Provisions of this Circular shall come into effect immediately.
Please refer to the hyperlinked source below for further details.
Source: Securities and Exchange Board of India
