I have a dispute with my stock broker in Jamshedpur regarding unauthorised trades; how do I approach the stock exchange arbitration mechanism?

Detailed Legal Analysis

To resolve a dispute with your stock broker regarding unauthorized trades in Jamshedpur, you can approach the stock exchange arbitration mechanism by following a structured process set out by the Securities and Exchange Board of India (SEBI) and the respective stock exchanges.

Here are the steps you should follow:

• Review the Agreement: Examine the client-broker agreement to understand the terms related to arbitration. This document often contains details on dispute resolution mechanisms.
• File a Complaint: Before approaching arbitration, file a formal complaint with your stock broker. You can do this by sending a written communication that details your dispute, including the transactions in question and the grounds for claiming they were unauthorized.
• Contact the Stock Exchange: If your broker does not resolve the issue satisfactorily, you can escalate the matter to the stock exchange where your broker is registered (e.g., National Stock Exchange (NSE) or Bombay Stock Exchange (BSE)). Access their complaint resolution mechanism.
• Request for Arbitration: If the complaint is still unresolved, you can formally request for arbitration. This request can typically be made through the stock exchange’s website or by submitting a hard copy to their arbitration department. Ensure that you include:
• Your details and contact information.
• Your broker's details.
• A clear description of the dispute and the relief sought.
• Any relevant evidence (such as transaction statements, emails, etc.).
• Arbitration Panel: Upon accepting your request, the stock exchange will appoint an arbitration panel. This panel usually consists of one or more arbitrators who are knowledgeable in securities law.
• Attend the Hearing: You will be notified of the date for the arbitration hearing. Present your case clearly, providing all relevant documentation and evidence to support your claim.
• Receive the Award: After the hearing, the arbitration panel will issue an award, which may be binding. If you are dissatisfied with the award, you may have limited options for appeal as per the Arbitration and Conciliation Act, 1996.

It is important to note that the arbitration process is governed under Section 89 of the Code of Civil Procedure, 1908, and the Arbitration and Conciliation Act, 1996, which lays down the framework for arbitration in India.

In conclusion, approaching the stock exchange arbitration mechanism involves a clear understanding of your rights, the dispute resolution process, and the necessary documentation to support your claims.