TITLE:
Arbitration on Unauthorized Trades by the Trading Member of the Stock Exchange: An Empirical Study
AUTHORS:
Dr. B. Brahmaiah
KEYWORDS:
Arbitration, Trading Member, Appellant, Respondent, Stock Exchange
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.6,
September
8,
2017
ABSTRACT: This case is
an appeal matter with the Stock Exchange on the award passed by the sole
arbitrator with regard to a dispute between a client and trading member of the
Stock Exchange. Mumbai Capitals Ltd. contended
that the award passed by the arbitrator did not take into account of the
evidences, supported documents and rules of stock exchange appropriately while
determining the case matter and passing the award. Appellant challenged the
Award on grounds that the award was beyond the scope of submissions to the
arbitration, pre-mediated
conclusion, non-application of mind, ignorance of established judicial principles, and misreading of the provisions of
stock exchange. The Appellate Tribunal had to determine whether there had been any lapses
on the part of the arbitrator 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 sole arbitrator, modify the award or uphold it.