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TMI BlogAmendment to Investor Grievance Redressal System and Arbitration MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... rom April 01, 2016. 2. In order to further enhance the effectiveness of grievance redressal mechanism at Market Infrastructure Institutions (MIIs), based on the internal deliberations, discussions and feedback as received from MIIs, it has been decided to add/modify certain provisions in the aforesaid circular, which are as follows: A. Investor Grievance Resolution Panel (IGRP)/ Arbitration Mechanism i. Public dissemination of profiles of arbitrators In order to enhance transparency and also to provide choice to parties, Exchanges shall disseminate information w.r.t. brief profile, qualification, areas of experience/ expertise, number of arbitration matters handled, pre-arbitration experience, etc. of the arbitrators on their website. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved by arbitration/ appellate award). v. Empanelment of arbitrators and segregation of arbitration and appellate arbitration panel There shall be separate panels for arbitration and appellate arbitration. Further, for appellate arbitration, at least one member of the panel shall be a Retired Judge. Exchanges shall obtain prior approval of SEBI before empanelment of arbitrators/ appellate arbitrators. vi. Empanelment of IGRP members Exchanges shall empanel IGRP members, however, no arbitrator/ appellate arbitrator shall be empaneled as IGRP member. vii. Revision in professional fee of arbitrators The arbitrator fee shall be upwardly revised to ₹ 18,000/- (Rs. Eighteen thousand) per case. Consequent to this upward revisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the claim is filed beyond the timeline prescribed in column 3, (only for member) ≤ 10,00,000 1.3% subject to a minimum of ₹ 10,000 3.9% subject to a minimum of ₹ 30,000 Additional fee of ₹ 3,000/- per month over and above fee prescribed in column 3 > 10,00,000 - 25,00,000 ≤ ₹ 13,000 plus 0.3% amount above ₹ 10 lakh ₹ 39,000 plus 0.9% amount above ₹ 10 lakh Additional fee of ₹ 6,000/- per month over and above fee prescribed in column 3 > 25,00,000 ₹ 17,500 plus 0.2 % amount above ₹ 25 lakh subject to maximum of ₹ 30,000 ₹ 52,500 plus 0.6 % amount above ₹ 25 lakh subject to maximum of ₹ 90,000 Additional fee of ₹ 12,000/- per month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing steps shall be undertaken by the Exchange: a) In case the IGRP award is in favour of the client then 50% of the admissible claim value or ₹ 2.00 lakhs (Rs. Two lakhs), whichever is less, shall be released to the client from IPF of the Exchange. b) In case the arbitration award is in favour of the client and the member opts for appellate arbitration then 50% of the amount mentioned in the arbitration award or ₹ 3.00 lakhs (Rs. Three lakhs), whichever is less, shall be released to the client from IPF of the Exchanges. The amount released shall exclude the amount already released to the client at clause (a) above. c) In case the appellate arbitration award is in favour of the client and the member opts for making an appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved during inspection, etc and impose appropriate regulatory action on the members of the exchange. iii. While imposing the regulatory measure, the Committee shall adopt a laid down process, based on the 'Principles of natural justice'. (i) The Committee shall have a minimum of 3 members and a maximum of 5 members; (ii) The Public Interest Directors shall form a majority of the Committee; (iii) A maximum of two key management personnel of the exchange can be on the committee and one of which shall necessarily be the Managing Director of the exchange; (iv) The Committee may also include independent external persons such as retired judge, etc. (v) SEBI may nominate members in the Committee, if felt necessary in the interest of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over long period of time, estimate the adequacy of resources dedicated to investor services, etc.; (i) Supervision of utilization of ISF; (ii) To have annual review of the arbitrators and arbitration/ awards (both quantum and quality of the awards). i. The Committee shall have a minimum of 3 members and a maximum of 5 members. ii. The Public Interest Directors shall form a majority of the Committee. iii. A maximum of two key management personnel of the exchange can be on the Committee. iv. The Committee may also include independent external persons. v. SEBI may nominate members in the Committee, if felt necessary in the interest of commodities market; 3. The arbitration committee as mandated vide SEBI circular no. CIR/CDMRD/DEA/03/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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