OTC EXCHANGE OF INDIA

CIRCULAR

 

Ref No :0874/2003/CP/MDD/0414

 April 30, 2003

 Dear Member/ Dealers,

 Sub : Maintenance of Arbitration records

_______________________________________________________________________

SEBI vide their circular SEBI/SMD/SE/13/2003/10/04 dated April 10, 2003 has issued the following circular. The SEBI circular reads as follows :

 Quote

 This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992, read with Section 10 of the Securities Contracts (Regulation ) Act, 1956, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

 The Bye-laws of the Stock Exchanges provide for Arbitration Mechanism for redressal of disputes between members as well as between a member and a non-member. The documents vis-à-vis the process of arbitration are preserved with the stock Exchanges for the purpose of record.

 In this connection, SEBI has decided to frame a uniform policy applicable to all the stock Exchanges regarding the maintenance /disposal of arbitration records. Accordingly , it has been decided that :

1.     The original arbitration award with acknowledgements shall be preserved permanently.

2.     Other records pertaining to arbitration shall be preserved for 5 years from the date of award, incase the appeal for setting aside the award is not filled till such time

3.     Incase, an appeal is filed, the records, shall be preserved for five years from the date of final disposal by the court.

4.     The destruction of records shall be subject to the previous order, in writing of the Executive Director of the Exchange.

5.     The Exchange shall maintain a register wherein the brief particulars of the records destroyed along with the certification regarding the date and mode of destruction.

Unquote

All the member/Dealers are requested to take note of the same.

Thanking you,

Ajay C Singhvi

Asst. Vice President