SECURITIES AND EXCHANGE BOARD OF INDIA
Secondary Market Department
e-mail : [email protected]
August 28, 2002
The President/Executive Director/Managing Director
All the Stock Exchanges
Sub:- Time bound arbitration proceedings.
It has been brought to our notice that arbitration proceedings take an unduly long period of time to reach the stage of making the award. We have also observed that the time period provided for in the bye-laws of the stock exchanges is too long which has led to the arbitration cases pending for a long time and consequently the undue delay in the resolution of these cases.
It has therefore been decided that the following clause be incorporated in a suitable place in the bye-laws of the stock exchanges relating to arbitration:-
“The arbitral tribunal shall make the arbitral award within 3 months from the date of entering upon the reference. The time taken to make the award may not be extended beyond 3 times, by the Managing Director or Relevant Authority or an application by either of the parties or the arbitral tribunal, as the case may be. Any further adjournments, shall however be granted only in exceptional cases, for bonafide reasons, that are to be recorded in writing. For the purpose of this byelaw, 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 immediate steps to implement the above decision, under advice to us.
P K Bindlish