SEBI Mandates Stock Exchanges to Form Independent Arbitration Committees with 60% Non-Exchange Members by June 2003.

The Securities and Exchange Board of India (SEBI) issued a circular mandating stock exchanges to amend their rules to establish independent arbitration committees and panels. These committees, resolving disputes between investors and market intermediaries, must comprise 60% non-exchange members approved by SEBI. This aligns with a Joint Parliamentary Committee recommendation for independent arbitration councils. Exchanges must amend their rules within two months and reconstitute committees within three months. Current member arbitrators will continue ongoing proceedings, with awards due within three months. Exchanges must inform members and update SEBI on implementation by June 2003.

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