|
|
Constitution of Arbitration Committee and Arbitration Panels
Members are hereby informed that SEBI vide its circulars no. SEBI/SMD/Cir- 19/2003/02/06 dated 2/6/2003 advised that pursuant to joint parliamentary committee (JPC) recommendation it has been decided that the provision of the Rules or articles of association, as the case may be and bye laws of the stock exchanges shall provide that in respect of dispute between members and non members the arbitration committees/ arbitration councils/ arbitration panels shall consist of persons other than members of the stock exchange who shall be nominated with prior approval of the board.
Accordingly SEBI has directed the exchanges to make necessary amendments to the rules or Articles of Association Bye Laws for the implementation of the above decision within two month from the date of the circular. Further the exchanges are directed to reconstitute the arbitration committees /arbitration councils / arbitration panels / for resolution of disputes between members and non members in the manner specified above, within a period of three months from the date of the aforesaid circular with the approval of SEBI.
The aforesaid circular has been in exercise of powers conferred by section 11(1) of the Securities and exchange board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
It has been further clarified by SEBI that in order to ensure that there is no delay in the disposal of arbitration proceedings, which have already commenced, the member arbitrators shall continue till the disposal of such proceedings. The award in such cases shall be given within a period of three months from the date of the said circular.
Secretary
 |
|||||||||||
|
