CSE has a full-fledged Legal Department, headed by Manager-Legal and is
primarily engaged in advising the management in the merits and demerits
of legal issues involving the exchange. A major function carried by the
department is that the various rules, regulations and directives of SEBI
with regard to trading in the Capital Market by the brokers and
sub-brokers are brought to the notice to members and the investing
public. Manager-Legal is the compliance officer as per the provisions of
SEBI regulations besides acting as secretary to the board of directors.
The three main areas of special importance being looked after by the
legal department are-
Investor Grievance Service
Reference of complaints/claims to the Grievance Committee
COMPLIANCE CHECKLIST FOR SUB-BROKERS
on its part, remains committed to the protection of investor interests.
The complaints received from the investors are taken up with the
companies/brokers concerned and wherever necessary with the enforcement
authorities for redressal.
are resolved in two ways:
At the preliminary stage when the Exchange receives a complaint,
the concerned broker/company is requested to settle the same. A copy of
the complaint is sent to the concerned broker/company also.
If the same is not resolved in the said manner, it is referred to
the grievance committee and the committee after sending notice to both
parties, after adducing evidence and hearing the parties, an order is
passed. If the concerned broker/company is not complying with the order,
the matter is referred to the Council of Management. The Council of
Management resolves the case according to the Grievance Committee order.
Any dispute between a member and a remisier, authorised assistant, employee or other person sharing brokerage with him in respect of any matter shall be referred to arbitration and decided in accordance with the Byelaws and Regulations relating to arbitration of disputes other than between Members. All other disputes between them shall also be referred to arbitration in the same manner but if the remisier, authorised assistant, employee or other person sharing brokerage so desire such disputes may be with the permission of the Council of Management or the president referred to arbitration and decided in accordance with the Bye-laws, Regulations relating to arbitration of disputes between members.
investors� complaints of a member is referred to Defaults Committee
when a Member is declared as defaulter. When the card is auctioned, the
defaults committee examines the claims and usually a report is submitted
to the Council of Management for taking the final decision.
basic facts taking into consideration are:-
pay-in due to CSE
pay-in due to CSE
pay-in due to CSE
of Declaration as Defaulter
in the credit of Members Fund
in the credit of Building Fund
with the Finance Dept
of claims against the Defaulted Member
addition to the above dues as shown by the records of CSE the following
further amounts may be provided for other dues to CSE.
contribution (Limited to the unrecovered portion of the Building Fund)
for legal, advertisement and other Allied costs
charges as per the Bye-law �337� of CSE
calculated @2% p.m. on daily product method from dates since pay-in due
to date of Auction
( as per the Bye-Law 350 & 351 of CSE)
claims of the defaulted member is settled as per Bye-law No.338 of CSE
member was asked to produce the statement of accounts in respect of his
debtors and creditors on account of share transaction carried out by him
through Cochin Stock Exchange.
Cochin Stock Exchange, Kochi, India