Arbitration Mechanism

Who can avail Arbitration mechanism of the Exchange?

• Arbitration is a quasi-judicial process of settlement of disputes between trading members, investors, clearing members, authorized person etc. Arbitration aims of quicker resolution of the disputes. When either of the parties are not satisfied with the complaint resolution process or the complaint is not resolved amicably between parties, the parties may choose the route of arbitration. (Click here for Arbitration Process Flow)

• Arbitration framework at the Exchange is governed by Rules, Byelaws, Regulations & Circulars issued by the Exchange and SEBI, from time to time.
• Claim under Arbitration can be filed within 3 years from the date of dispute (Limitation Act, 1963).
• When the investor/client and/or the Member pursue online arbitration, the ODR Institution shall appoint a sole independent and neutral arbitrator from its panel of arbitrators within 5 calendar days of reference and receipt of fees, costs and charges as applicable.
• For claims upto Rs.30 lakhs, sole arbitrator is appointed and a panel of three arbitrators is appointed if value of claim is more than Rs.30 lakhs.
• The arbitrator conducts hearings with the parties and passes his judgment in the form of an award.
• For cases having a claim amount of Rs.1,00,000/- or below, hearing is not compulsory. In such a case, the arbitrator shall proceed to decide the matter on the basis of documents submitted by both the parties and pass the arbitral award within 30 calendar days (or such other period as the Board may specify) of the appointment in the matter. The arbitrator however may, for reasons to be recorded in writing, may grant a hearing to the parties to the dispute.