Registering complaints with NSE

In case of complaint against a trading member/registered sub-broker, whom do I address the complaint to?

You should address the complaint to the Mumbai Office or the Regional Offices of NSE based on the dealing office where the deals were executed as given below:
 

In case of a complaint against company traded on NSE, whom should I address the complaint to ?

All complaints in respect of companies should be addressed to:

Investor Grievance Cell
National Stock Exchange of India Ltd.
Exchange Plaza, 5th Floor
Plot no. C/1, G Block
Bandra-Kurla Complex
Bandra (E)
Mumbai - 400 051.

Tel No: 6598190 (IGC) / 6598192 (Arbitration)
Fax No: 6598191
e-mail address: ignse@nse.co.in



Complaints redressal by NSE

What complaints are taken up for redressal by the IGC?

The IGC takes up complaints for redressal in respect of:

1. Trades executed on the NSE through its NEAT terminal and routed through the NSE trading member or SEBI registered sub-broker of NSE trading member.
2. Trades pertaining to companies traded on the NSE. The investors are therefore required to furnish relevant contract or purchase/sale notes for referring their case to the Investor Grievance Cell.

Is there any specified form for lodging the complaint? What documents do I need to enclose for the same?
 

Investors are requested to use the following forms:
	Investor Complaint Form - I (ICF - I) for lodging complaints against trading members/registered sub-brokers and
	Investor Complaint Form - II (ICF - II) for complaints in respect of companies traded on NSE.

What steps are taken by the Investor Grievance Cell to ensure speedy redressal of the complaints by the trading members/sub-brokers and companies?

Complaints against Trading Members/sub-brokers

Complaints received from the investor if accompanied by all the relevant documents as mentioned above are forwarded to the respective TM/sub-broker asking them to provide their comments or for resolving the case. The TMs are expected to file their replies within 21 days.

In case the TM/registered sub-broker disputes the claim of the investor, the response of the TM is forwarded to the investor. If required, both the parties are called for a joint meeting. Most of the complaints are resolved in this manner. In cases where the disputes remain resolved in Investor Grievance Cell, the parties may refer the matter to Arbitration if they so desire.


Complaints against Companies/Shares Transfer Agents & Registrars (STAs).

Complaints received from the investors are forwarded to the respective Companies/STAs for necessary action at their end. In case no response is received from the company/STAs within 21 days, a follow-up by way of letters, telephone calls and personal meetings is undertaken to expedite their replies.


What steps do I take if my shares are lost/misplaced/stolen?

You should immediately write to the company reporting the loss of shares and instruct the company to Stop Transfer the shares. You should comply with the formalities intimated by the company for stop transfer or issue of duplicate share certificates. Simultaneously you should lodge a police complaint/FIR reporting the loss or misplacement.


Investor Protection Fund

What is the Investor Protection Fund (IPF) and when is it used?

The IPF is maintained by the Exchange to take care of investor claims, which may arise out of non-settlement of obligations by the TM for trades executed on the Exchange. The IPF is used to settle claims of such investors whose trading member has been declared a defaulter or expelled.

The maximum amount of claim payable from the IPF to the investor (where the TM through whom the investor has dealt is declared a defaulter) is Rs.10 lakhs.

ARBITRATION

What is Arbitration?

Arbitration is an alternative dispute resolution mechanism provided by the Exchange for resolving disputes between the trading members and between trading members & constituents (i.e. clients of trading members), in respect of trades done on the Exchange. This process of resolving a dispute is comparatively faster than other means of redressal.


Who are the persons who can act as Arbitrators?

The Exchange provides a list of eligible persons approved by SEBI for each of the Regional Arbitration centres. Persons who form part of the list of Arbitrators are the ones who possess an expertise in their respective fields including banking, finance, legal (judges) and capital market areas (brokers).

Who can avail the facility of arbitration on the Exchange?
 
The facility of arbitration on the Exchange can be availed by:

What is the period for filing an application for arbitration in the event of there being a claim, difference or dispute?

An application for arbitration has to be filed within 6 months from the date of dispute.

What is the format for filing an application for arbitration by a constituent/trading member against the trading member/constituent?

The trading member/constituent should submit an application to the Exchange for arbitration in Form No. I (three copies in case of sole arbitrator and five copies in case of panel of arbitrators) along with the following documents: (i) Statement of Case (containing all the relevant details about the dispute and the relief sought) (ii) Statement of Accounts (iii) Copies of Member - Constituent Agreement (iv) Copies of the relevant Contract Notes, Sale/Purchase Notes (in case of registered sub-broker) and Bills (v) A cheque/pay order/demand draft for the deposit payable at the Regional Arbitration Centre in favour of National Stock Exchange of India Limited. (vi) Form No.II enlisting the names of arbitrators selected by the applicant from the list of eligible persons provided by the Exchange.

Where are the arbitration cases conducted by the Exchange?

At present, arbitration is conducted by the Exchange at Mumbai, Delhi, Calcutta and Chennai. They are referred to as Regional Arbitration Centers (RAC)s. The states covered by each RAC are as follows:

A person has to approach the concerned RAC as mentioned above.


Are there any criteria for filing the application at any particular Regional Arbitration Centre(RAC) ?

The criteria for filing an application at a RAC are
 

* "TM" stands for "Trading Member" and "C" stands for "Constituent".



What is the amount of deposits to be given to the Exchange by a trading member for filing an application for arbitration?

Based on the claim amount, the trading member is required to furnish deposit to the Exchange whether they are an applicant or a respondent.

Besides the above-mentioned deposits, the Exchange may call for additional deposits if in its opinion the deposits made are insufficient to cover the expenses of arbitration. The additional deposits will form a part of the deposits and shall be dealt with accordingly.

Should an investor (who has dealt on the Exchange through its trading member) give a deposit to the Exchange for filing an application for arbitration?

In case an investor (constituent of the trading member) is an applicant or respondent then he/she is required to furnish deposit to the Exchange based on the claim amount as under:

Besides the above-mentioned deposits, the Exchange may call for additional deposits if the deposits made are insufficient to cover the expenses of arbitration. The additional deposits will form a part of the deposits and shall be dealt with accordingly.

What are the other fees, charges, costs to be borne by the parties to the dispute?

All fees and charges relating to the appointment of the arbitrator and conduct of arbitration proceedings shall be borne by the parties to the reference equally or in such proportions as may be decided by the Arbitrator. Such fees/charges are recovered from the deposits made while filing the arbitration application & balance amount, if any, is refunded to the parties. The costs, if any, to be awarded to either of the parties in addition to the fees and charges that have to be borne by the parties for conducting the arbitration, shall be decided by the Arbitrator. Unless the arbitrator directs otherwise, each party shall bear their own expenses of travelling and other incidental expenses incurred.

How is an Arbitrator appointed?

Can one request for a hearing in case the claim difference or dispute is a small amount?

No hearing is afforded to the parties to the dispute if the value of the claim difference or dispute is Rs.25,000 or less. However, if the value of claim, difference or dispute is more than Rs.25,000, the arbitrator shall offer to hear the parties to the dispute unless both parties waive their rights for such hearing in writing.

Can the Sole Arbitrator or Panel of Arbitrators grant an adjournment of hearing?

Yes, if either of the parties want an adjournment of hearing, they should make an application in writing to the Exchange giving reasons for seeking adjournment to the Exchange in advance to enable the Exchange to forward such request to the arbitrator. The arbitrator at his/her discretion may grant the adjournment subject to such conditions as deemed fit by him/her.

Can the Award be given on agreed terms?

Yes, if after the appointment of an arbitrator, the parties settle the dispute amicably then the arbitrator will record the settlement of the dispute in the form of an arbitration award on agreed terms.

How is an award made by the Sole Arbitrator/Panel of Arbitrators?

An Award shall be given in writing and made in three originals duly dated and signed by the Sole Arbitrator or in case of a Panel of Arbitrators by all the three arbitrators.

Can the parties to the dispute request for interest on the claim amount?

The arbitrator may include interest on the claim amount for which the award is made at a particular rate of interest and period as the arbitrator deems reasonable.

Is there any appeal provision for arbitration at the Exchange?

No, there is no appeal provision for arbitration at the Exchange. However, the aggrieved party can make an application to the appropriate court to set aside the award given by a Sole Arbitrator or Panel of Arbitrators, under the provisions of the Arbitration and Conciliation Act, 1996.

When does the Award become a decree?

The award becomes a decree when the time for making an application to set aside the award has expired i.e. after expiry of 3 months from the date of receipt of award or the application for setting aside the Award having been made, has been refused by the appropriate court. In such a case the award shall be enforced as if it were a decree of the Court under the provisions of the Arbitration and Conciliation Act 1996. Disclaimer: The information contained herein is