8.11.2012
Members are hereby informed that the SEBI vide its circular no. CIR/MRD/ICC/29/2012 dated November 7,2012 has advised the Exchange to incorporate the contents of the aforesaid circular in its relevant bye-laws, rules & regulations and also bring the contents of this circular to the notice of the members of the Exchange. Accordingly, the contents of the said circular are appended below for information and compliance :-
“The Managing Director/Executive
Director, CIR/MRD/ICC/ 29 /2012 November 7, 2012
All Stock
Exchanges.
Dear Madam/Sir,
Subject: Arbitration Mechanism in Stock Exchanges
1.
Reference may be made to circular no. CIR/MRD/DSA/29/2010 dated August
31,2010. In this regard, SEBI has received inputs regarding amount to be
deposited by the investors at the time of making arbitration reference.
Accordingly, para 7.2 of the circular no. CIR/MRD/DSA/29/2010 dated August
31,2010 is being modified. The para 7.2 of aforementioned circular dated August
31, 2010 shall now read as under:
"7.2
A client, who has claim / counter claim upto Rs. 10 lakh and files arbitration
reference, shall be exempt from the deposit. Expenses thus arising with regard
to such applications shall be borne by the Stock Exchanges."
2.
The stock exchanges are advised to:-
a.
make necessary amendments to the relevant bye-laws, rules and
regulations for the implementation of the above decision immediately;
b.
bring the provisions of this circular to the notice of the members of
the stock exchange and also to disseminate the same through their website; and
c.
communicate to SEBI, the status of implementation of the provisions of
this circular in the Monthly Development Reports to SEBI.
3.
SEBI inspection of stock exchange shall cover implementation of this
circular.
4.
This Circular is issued in exercise of the powers conferred under
Section 11
(1) of the Securities
and Exchange Board
of India Act
1992, read with Section
10 of the Securities Contracts
(Regulation) Act, 1956 to protect the interests of investors in securities and
to promote the development of, and to regulate the securities market and shall
come into effect immediately.
5. This Circular is available on SEBI website
at www.sebi.gov.in.
Yours faithfully,
B K Gupta ”
Dy. General Manager (SEO)