Capital markets regulator Sebi on Friday got here out with a brand new framework for investor grievance redressal mechanism as a part of its effort to strengthen the method.
The new mechanism will come into impact from July 1, the Securities and Exchange Board of India (Sebi) stated in a round.
For any dispute between the member and consumer referring to the transactions in a inventory trade, which is of civil nature, the complainant or member is required to first refer the criticism to the investor grievance redressal mechanism (IGRC) and/or to the arbitration mechanism supplied by the bourse earlier than resorting to different cures accessible below every other regulation, Sebi stated.
For the elimination of doubts, the regulator has clarified that the only arbitrator or the panel of arbitrators appointed below the inventory trade arbitration mechanism could think about any declare referring to any dispute between a stockbroker and consumer, arising out of the transactions in a inventory trade, and shall at all times be deemed to have the competence to rule on its jurisdiction.
A complainant or member, who isn’t happy with the advice of the IGRC can avail of the arbitration mechanism of the inventory trade for settlement of complaints inside three months from the date of IGRC suggestion. The time interval of three months will probably be relevant just for the instances the place the IGRC suggestion is being challenged.
For any arbitration utility acquired with out going by the IGRC mechanism, the time interval of three months won’t apply, and for such instances, the limitation interval for submitting arbitration will probably be ruled by the regulation of limitation.
Source: www.financialexpress.com”