Abstract

This case is an appeal matter with the Leading Stock Exchange of India Ltd (LSE) with regard to a dispute between a client and a trading member of the LSE. The Appellant contended that the award passed by the arbitrator had not taken into account the evidence, documents and rules of stock exchange properly while determining the case matter and passed the award. Appellant challenged the Award on the grounds that the award was beyond the scope of submissions to the arbitration, non-application of mind, and ignorance of established judicial principles. The Appellate Member has to determine whether there had been any lapses on the part of the arbitration 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 the sole arbitrator, modify the award or uphold it. The findings and conclusions provide inputs for the development of an appropriate regulatory framework for the Futures Market. However, the results may be generalized only in the emerging markets environment. Hence, researchers are suggested to study margin guidelines of futures market, appreciate the dynamics of futures market and apply the same in their future research in India and abroad.

Highlights

  • Concern with a complaint against Andhra Broking Ltd by Mr K Narayana Reddy with Grievances Redressal Committee (GRC)

  • The complainant's claim was admitted and passed an order directing the trading member, Andhra Broking Ltd, to pay INR.1.5 million against INR.1.6 million. Appellant realized that he earned his profit of INR 1.0 million through other trades which were not related/connected to the "Intraday Auto Square off Facility" trades. He referred the matter to Arbitration of the Leading Stock Exchange (LSE) by filing the Arbitration Application

  • The amount of INR 4.76 million indicated in the contract note for January 28, 2021, covers and adjusts all profit and losses made by the Appellant during the day. This amount of INR 4.76 million payable by the Appellant for losses during the day was considered as a base in the GRC meeting to compensate the client, on what basis the client intends to claim yet again profits of INR 1.0 million that the arbitrator be pleased to pass an order to dismiss the entire claim including mental harassment claim of the Appellant that the arbitration is pleased to direct the Appellant to pay further for the cost of the arbitration

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Summary

Introduction

Concern with a complaint against Andhra Broking Ltd by Mr K Narayana Reddy with Grievances Redressal Committee (GRC). Vol 9, No 1; 2022 claims that he had earned a profit of INR one million independent of "Intraday Auto Square off Facility trades carried by him.

Results
Conclusion

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