Securities and Exchange Board of India (SEBI) has recently suggested use of alternative dispute resolution (ADR) mechanisms like arbitration for resolving security related disputes. These disputes include claims, complaints, differences arising between a client and a member (stock broker, trading member and clearing member) across various market segments, etc.To streamline the arbitration procedure, SEBI has issued some good arbitration guidelines for stock exchanges. This primarily aims at streamlining the disputes arising out of security related matters and matters incidental thereto.
According to these guidelines, the stock exchanges with nationwide terminals have been mandated to provide arbitration facility (arbitration as well as appellate arbitration) at all four regional centres (Delhi, Mumbai, Kolkata and Chennai). SEBI also stipulated that the arbitration and appellate arbitration were required to be conducted at the regional centre nearest to the client.
However, to meet these objectives, there must be a good arbitration infrastructure in India. Presently, both the arbitration law as well as arbitration infrastructure in India is in poor state of affairs.
Another area where India has miserably failed pertains to online dispute resolution (ODR). A special emphasis must also be given to construction industry arbitration in India as well as defence related arbitration issues. India urgently needs ADR and ODR related reforms.
Even security related disputes can be effectively solved by using the techno legal ODR services of world renowned firms like Perry4Law. India stands nowhere when it comes to technology driven arbitration. The concept of ODR does not exist in India. There is just a single techno legal ADR and ODR institution in India.
Even the national litigation policy of India (NLPI) failed to consider ODR and e-courts as effective methods of judicial reforms. Till the month of September 2010 India is still waiting for the establishment of first e-court of India.
SEBI seems to be proactive and it would be a good idea if it considers using ODR for resolving security related disputes of aggrieved parties. Expert services of Perry4Law and Perry4Law Techno Legal Base (PTLB) can be taken for establishing a good techno legal ODR model by SEBI.
