ADR on Unauthorized Liquidation of Futures Positions at the Stock Exchange in India: An Empirical Study

B Brahmaiah

doi:10.4236/tel.2018.811156

Abstract

The paper investigates margin rules, and regulations of Futures segment of Stock Exchanges in India and practices followed by stock brokers of the Stock Exchanges. Trading practices, misuses and abuses of securities market by trading members have been identified and analyzed. It finds how trading members violate of trading rules, misinterpret regulatory compliances and indulge unauthorized trading. The findings and conclusions provide inputs for the development of appropriate regulatory framework for the futures segment of securities 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

Arbitration, Futures, Applicant, Respondent, Stock Exchange. This is a dispute matter between a client of futures market and a trading member of the Stock Exchange which was referred to Investors Grievances Redressal Cell (IGRC) of the Stock Exchange for resolution of the dispute through mediation and negotiation under alternative dispute resolution (ADR), the first tier of the dispute resolution framework of the stock exchange
IGRC could not resolve the matter amicably between the parties and they were directed to refer the matter to the Arbitration under the Rules, Bye-laws and Regulations of the Stock Exchange of India Ltd, which were framed under the Arbitration and Conciliation Act of India 1996 [1]
It is found that the client (Applicant) has been trading for more than two years with the Respondent

Summary

Introduction

This is a dispute matter between a client of futures market and a trading member of the Stock Exchange which was referred to Investors Grievances Redressal Cell (IGRC) of the Stock Exchange for resolution of the dispute through mediation and negotiation under alternative dispute resolution (ADR), the first tier of the dispute resolution framework of the stock exchange. IGRC could not resolve the matter amicably between the parties and they were directed to refer the matter to the Arbitration under the Rules, Bye-laws and Regulations of the Stock Exchange of India Ltd, which were framed under the Arbitration and Conciliation Act of India 1996 [1]. Personal hearing for the matter was held at the Regional Arbitra-

Brahmaiah DOI

Proceedings at the IGRC

Analysis, Results and Conclusions

Recommendations