Friday, August 13, 2010

SEBI Is Encouraging Arbitration In India

Alternative dispute resolution (ADR) system of India is not up to the mark and there is an emergent need to rejuvenate the same. Further, the arbitration law of India incorporated in the arbitration and conciliation act 1996 also needs many suitable reformative actions.

One such innovative concept that can solve many dispute resolution problems in India is the use of information technology. For instance e-courts and online dispute resolution (ODR) mechanisms can be used to settle disputes amicable, efficiently and in a timely manner.

While the legal and judicial systems of India are not contributing much in this direction, a good initiative has been taken by the Securities and Exchange Board of India (SEBI). In order to streamline the disputes arising out of security related matters and matters incidental thereto, SEBI has issued some good arbitration guidelines for stock exchanges.

These include maintain a panel of arbitrators for settling disputes, the arbitration reference will have to be concluded by way of issue of an arbitration award within four months from the date of arbitrator appointment, if the aggrieved party is unhappy with the arbitration award, he can appeal against it to the appellate panel of arbitrators of the stock exchange, etc.

Let us hope the Law Minister Veerappa Moily and Supreme Court of India would also come up with good legal and judicial measures to promote and encourage ADR and ODR in India.