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Legal Department

         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-

(a)    Investor Grievance Service

(b)    Arbitration

(c)   Default

 

Reference of complaints/claims to the Grievance Committee

 

Reference to Arbitration

 

COMPLIANCE CHECKLIST FOR SUB-BROKERS

Investors Grievance Service

         CSE, 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.

 

Complaints are resolved in two ways:

 

1.      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.

2.      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.

 

Arbitration

 

               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.

 

Defaults Committee

 

Pending 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.

 

General basic facts taking into consideration are:-

 

Bi-weekly pay-in due to CSE

Weekly pay-in due to CSE

Bad-delivery pay-in due to CSE

Office Dues

Date of Declaration as Defaulter

Date of Auction

Auction Amount

Amount in the credit of Members Fund

Amount in the credit of Building Fund

Deposits with the Finance Dept

Number of claims against the Defaulted Member

 

 

In addition to the above dues as shown by the records of CSE the following further amounts may be provided for other dues to CSE.

 

Infrastructure contribution (Limited to the unrecovered portion of the Building Fund)

 

Provision for legal, advertisement and other Allied costs

 

Collection charges as per the Bye-law “337” of CSE

 

Interest calculated @2% p.m. on daily product method from dates since pay-in due to date of Auction

 

Fine ( as per the Bye-Law 350 & 351 of CSE)

 

The claims of the defaulted member is settled as per Bye-law No.338 of CSE

 

The 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