Grievance Redress Regulations

 

 *Kindly note that this is not the complete compendium ,only relevant extracts are included.

Complaints by  Client or an Investor

  •      Every client or investor shall be required to exercise due diligence and comply with the stipulated requirements as may be in force from time to time, before placing any order for buy or sell of a security or before applying for subscription of any security being issued by any company proposed to be listed on the Exchange as provided in the prospectus, as may be specifically provided in the relevant Bye-laws and Regulations from time to time.

 Complaint or Grievance Against a Trading Member, Not Contested or Disputed

  •     On receipt of any complaint/grievance from a client, the Exchange may take up the complaint/grievance with the concerned trading member. In case any complaint or grievance is found to be  prima-facie  genuine, and not contested or disputed by the concerned trading member, or the trading member has admitted such claim/s of the client, such complaint or grievance shall be upheld by the Exchange, if the claim for non-receipt of payment of money is supported with  sufficient proof of delivery as provided by the client and/or the claim for non-receipt of delivery of securities is supported with  sufficient proof of payment as provided by the client. In such an event, the trading member shall be required to redress such complaint or grievance within such time, as may be specified by SEBI or the Exchange.

Complaint or Grievance Against a Trading Member, Contested or Disputed

  •     Where the statement of account provided by a client is not accepted by the trading member or vice versa and thereby the complaint remains contested or disputed, or such complaint does not get resolved through the intervention of, or administrative conciliation by, an official of the Exchange, the concerned complainant may then be advised by the Exchange to refer such complaint contested or disputed or not resolved by the concerned trading member to the arbitration, as may be provided in the relevant Bye-laws and Regulations of the Exchange from time to time. The Exchange may also, suo motto, file a reference to arbitration for such complaint, as may be provided in the relevant Bye-laws and Regulations from time to time.

 Claim against Defaulter

  • Within such time of the declaration of default as the Council of Management or the President may direct every member carrying on business on the Exchange shall according as he may be required to do either compare with the Defaultsí Committee his accounts with the defaulter duly adjusted and made up as provided in these Bye-laws and Regulations or furnish a statement of such accounts with the defaulter in such form or forms as the Council of Management may prescribe or render a certificate that he has no such account

  • The Defaultsí Committee shall apply the net assets remaining in its hands after defraying all such costs, charges and expenses as are allowed under these Bye-laws and regulations in satisfying first the claim of the Exchange and the Clearing House and then able such admitted claims of members against the defaulter arising out of contracts entered into in the market in accordance with the provisions of the Rules, Bye-laws and Regulations of the Exchange

Certain Claims not to be entertained

 The Defaultsí Committee shall not entertain any claim against a defaulter- 

i.                     Which arises  out of a contract in securities dealing in which are not permitted or which are not made subject to the Rules, Bye-laws and Regulations of the Exchange; 

ii.                    Which arises out of a contract in respect of which comparison has not been made in the manner prescribed in these Bye-laws and Regulations or when there has been no comparison if a contract note in respect of such contract has not been rendered as provided in these Bye-laws and Regulations and receipt thereof obtained either on the duplicate or on the counterpart of such contract note or in a peon-book stating the date and the number of the contract note rendered or by comparison of memos in members offices; 

iii.                  Which arises from bargains not settled by delivery and payment within the time prescribed by these Bye-laws and Regulations; 

iv.                  Which arises from any arrangement for settlement of claims in lieu of bonafide money payment in full on the day when such claims become due; 

v.                   Which arises from any outstanding balance or any outstanding difference upon previous transactions which has not been claimed at the proper time and in the manner prescribed in these Bye-laws and Regulations; 

vi.                  Which is in respect of a loan with or without security; 

vii.                Which is not filed with the Defaultsí Committee within such time of the date of declaration of default as may be prescribed by the Council of Management. 

ARBITRATION 

Reference to Arbitration                          

  •  All claims (whether admitted or not) difference and disputes  between members or between  members and  a non-member/s (the terms `non-member' and `non-members' shall        include a remisier, Authorised Assistant, sub broker or        employee or client  or any other person with whom the member shares        brokerage) arising out of or in relation to dealing,        transactions and contracts made subject to the Rules, Bye-        laws and Regulations of the Exchange or with reference to        anything  incidental thereto or in pursuance thereof or        relating to their construction, fulfilment or validity or        relating to the rights, obligations and liabilities of        remisiers authorised assistant, sub-brokers, employees or        any other persons with whom the member shares brokerage in        relation to such dealings, transactions and contracts shall        be referred to and decided by arbitration as provided in        the Rules, Bye-laws and Regulations of the Exchange.  In case  any dispute arises  between sub-broker and client the same shall be brought to the notice of main broker within 6 months from the date of dispute and same shall as far as possible be settled with the help of the Member broker failing which it shall be brought to the notice of the Exchange.  If the dispute still persists the same shall be referred to the Arbitration as mentioned above.

  • All claims, complaints, differences and disputes between Members arising out of or in relation to any bargains, dealings, transactions or contracts made subject to the Rules, Bye-laws and Regulations of the Exchange or with reference to anything incidental thereto (including claims, complaints, differences and disputes relating to errors or alleged errors in inputting/feeding any data or command in the Exchanges' computerised  trading system or in execution of any trades on or by such trading system) or anything to be done in pursuance thereof and any question or dispute whether such bargains, dealings, transactions or contracts have been entered into or not shall be subject to Arbitration and referred to the Arbitration Committee as provided in these Bye-laws and Regulations.                     

Limitation for reference and extension of time 

  •      An arbitrator shall not take cognizance of any claim,     difference or dispute unless the same has been referred to         it within six months of the same having arisen. Any dispute as to whether a claim, complaint, difference or dispute falls within the ambit of this clause shall be decided by the arbitrator.

Limitation Act                                    

  •      All  the provisions  of the Indian Limitation Act, 1963 or        other laws  relating to limitation as may be in force in        India from time to time shall apply to arbitrations under        this Chapter as they apply to proceedings in court.              

 Appointment of Arbitrators   

  •      All claims, differences and disputes required to be        referred to arbitration under these Bye-laws and        Regulations shall be referred to arbitration, of one        arbitrator who shall be appointed in the manner provided        in these Bye-laws and regulations

  •     The Arbitrator/s shall be Member/s of the  arbitration committee of the Exchange and should be eligible to act  as arbitrators in the reference.

 Arbitrator's Award                                 

  •    Every award shall be made in writing and shall be signed  by the arbitrator.                                                                             

  • The award shall state the reasons upon which it is based, unless -

(a) the parties  have  agreed that no reasons are to be given ; or

 

(b) the award is on terms agreed between the parties. 

  •   The award shall state its date and the place of   arbitration and the award shall be deemed to have been   made at that place. 

Award Binding on Parties and persons claiming under them  

  •      The parties to the reference shall abide by  and forthwith carry into effect the award of the arbitrator which shall be final and binding on the parties        and persons claiming under them respectively notwithstanding the        death of or legal disability occurring to any party before or after the making of the award and such death or legal  disability shall not operate as a revocation of the  reference or award.          

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Cochin Stock Exchange, Kochi, India