Sebi’s SOP to resolve dispute under stock exchange arbitration ambit

NEW DELHI: Capital markets regulator Sebi has come out with a new Standard Operating Procedures (SOP) for dispute resolution under the stock exchange arbitration mechanism for disputes between a listed firm or Registrars to an Issue and Share Transfer Agents (RTAs) and its shareholders.

The arbitration mechanism will be initiated post exhausting all actions for resolution of complaints including those received through the SCORES portal.

The arbitration reference will be filed with the stock exchange where the initial complaint has been addressed. The new framework will come into force with effect from June 1, the Securities and Exchange Board of India (Sebi) said in a circular on Monday. The new SOP will be applicable to listed companies or RTAs offering services on behalf of listed companies. In case of claims or disputes arising between the shareholder or investor of listed firms and the RTAs, the RTAs will be subjected to the stock exchange arbitration mechanism.

In all such instances, the listed company will necessarily be added as a party.

In case of arbitration matters involving a claim of up to Rs 25 lakh, a sole arbitrator will be appointed and, if the value of the claim is more than Rs 25 lakh, a panel of three arbitrators will be appointed.

The process of appointment of arbitrator is required to be completed by the stock exchange within 30 days from the date of receipt of complete application from the applicant.

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