SEBI has received inputs from investors regarding functioning of arbitration mechanism at the Stock Exchanges. In light of which, all Stock Exchanges having nation-wide trading terminals have been advised to pool the list of arbitrators and create a 'Common Pool', instead of having exchange-wise pools of arbitrators. This pooling of arbitrators is done centre-wise.
The selection of Arbitrators by Stock Exchanges as done currently, is now replaced by an 'Automatic Process'. In order to bring more transparency and fairness the 'Automatic Process' entails a randomized, computer generated selection of Arbitrator, from the list of Arbitrators in the 'Common Pool'. The 'Automatic Process' sends a system generated sms or email to all entities involved in the particular case. The said process has come into effect from April 01, 2013.
Currently, arbitration facilities at Stock Exchanges with nation-wide trading terminals is available at 8 centres viz Ahmedabad, Chennai, Delhi, Hyderabad, Indore, Kanpur, Kolkata and Mumbai. It is intended to extend the arbitration facility to more cities during the course of the current financial year.
The full text of the Circular is available on the website: www.sebi.gov.in