Arbitration on Unauthorized Trades by the Trading Member of the Stock Exchange: An Empirical Study

Abstract

This case is an appeal matter with the Stock Exchange on the award passed by the sole arbitrator with regard to a dispute between a client and trading member of the Stock Exchange. Mumbai Capitals Ltd. contended that the award passed by the arbitrator did not take into account of the evidences, supported documents and rules of stock exchange appropriately while determining the case matter and passing the award. Appellant challenged the Award on grounds that the award was beyond the scope of submissions to the arbitration, pre-mediated conclusion, non-application of mind, ignorance of established judicial principles, and misreading of the provisions of stock exchange. The Appellate Tribunal had to determine whether there had been any lapses on the part of the arbitrator in applying the trading rules and procedures of the exchange while analyzing the matter, determining the case and passing the award. Based on that, the Appellant Arbitral Tribunal had to decide whether to set aside the award passed by sole arbitrator, modify the award or uphold it.

Dispute Resolution on Unauthorized Trading in Indian Securities Market: A Case Study Approach

“…These trades were unauthorised because these were not originated from the Respondent i.e., Respondent did not place these orders. It is concluded that the Appli- from the legal discipline but also experts from the securities market with strong domain knowledge of stock market operations [4]. The arbitrators have to consider and review not only the legal provisions and issues but also trading regulations, trading practices, and marketing techniques of the trading members to attract investors to the securities market.…”

Alternative Dispute Resolution on Margin Trading Close out at Stock Exchange in India: A Case Study Approach

“…Investor protection is an important ingredient for the growth and development of the securities markets in any country. The regulatory authorities of the securities markets have to identify and appoint arbitrators in the panel not only from the legal discipline but also experts from the securities market with strong domain knowledge of stock market operations [5]. The arbitrators have to consider and review not only the legal provisions and issues but also trading regulations, trading practices, and marketing techniques of the trading members to attract investors to the securities market.…”