SECURITIES AND EXCHANGE BOARD OF INDIA
General Manager
Secondary Market Department
e-mail:pkb@sebi.gov.in
SMD/POLICY/Cir-26/2002
30 October, 2002
Executive director/Managing Director
All the Stock Exchanges
Dear Sir/Madam,
Sub: Time bound arbitration proceedings.
Please refer to our circular SMD/Policy/Cir-18/2002 dated August 28,2002 regarding time bound arbitration proceedings at the exchanges.
In the circular, it was stipulated that the arbitral tribunal shall make the arbitral award within 3 months from the date of entering upon the reference. It was also stipulated that the time taken to make the award may not be extended beyond three times, by the Managing director or the relevant authority on an application by either of the parties or the arbitral tribunal. In this regard, it is clarified that notwithstanding the extensions granted, the arbitration award should be passed within a period of six months from the date of entering into reference i.e. extension of time of award can be for a maximum period of three months.
The bye-law as advised vide circular No. SMD/Policy/Cir-18/2002 dated August 28, 2002, may now be read as follows :
Adjournment, if any, shall be granted by the arbitral tribunal only in exceptional cases, for bonafide reasons to be recorded in writing.Time for completion of Arbitration The arbitral tribunal shall make the arbitral award normally within 3 months from the date of entering upon the reference.
Request for extension The time taken to make the award may not be extended beyond 3 times, by the Managing Director or Relevant Authority on an application by either of the parties or the arbitral tribunal, as the case may be.
Notwithstanding the extensions granted in the above manner, the arbitral tribunal shall make the arbitral award within a period of six months from the date of entering into reference i.e. extension of time of award can be for a maximum period of three months.
Date of entering reference For the purposes of these bye-laws, the arbitral tribunal shall be deemed to have entered upon a reference on the date on which the arbitral tribunal has held the first hearing.”
You are advised to take steps to incorporate the above clauses in a suitable place in the bye laws of the stock exchange relating to arbitration, under advice to us.
Yours faithfully,
P.K.Bindlis
