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SEBI issues norms for Dispute Resolution

Published on June 01, 2022
Current Context: Markets regulator SEBI has issued new Standard Operating Procedures (SOP) for dispute resolution under the stock exchange arbitration mechanism.
SEBI issues norms for Dispute Resolution
  • This mechanism will help to resolve the between a listed firm or Registrars to an Issue and Share Transfer Agents (RTAs) and its shareholders.
  • The arbitration mechanism will also look out for the resolution of complaints received through the SCORES portal.
  • As per the SEBI circular, the new framework will come into force with effect from June 1.
  • A sole arbitrator will be appointed in case of arbitration matters involving a claim of up to Rs 25 lakh, and, if it is more than Rs 25 lakh, a panel of three arbitrators will be appointed.
  • The process of appointment of an arbitrator is required to be completed by the stock exchange within 30 days from the date of receipt of the complete application from the applicant.
  • Arbitrator fees will be Rs 18,000 plus stamp duty and service charge and this amount will be collected from RTAs or listed companies and shareholders or investors.
  • Besides Arbitral award will be issued within four months from the date of appointment of the arbitrator.

Question:

Q.1 As per new SEBI rules, for dispute resolution under the stock exchange arbitration mechanism, a sole arbitrator is appointed if the arbitration matter involved up to ___lakh?
a. 30 Lakh
b. 25 Lakh
c. 35 Lakh
d. 40 Lakh
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