TITLE:
Alternative Dispute Resolution on Margin Trading Close out at Stock Exchange in India: A Case Study Approach
AUTHORS:
B. Brahmaiah
KEYWORDS:
Alternative Dispute Resolution, Arbitration, Margin Trading, Stock Exchanges, Trading
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.5,
March
21,
2018
ABSTRACT: The
paper examines compliances of the margin trading rules and regulations of the
Stock Exchange by trading members while serving their clients in the securities
market in India. The paper applies case study approach to study the trading
practices of trading members on Indian Stock Exchange systems and identifies
the nature of securities market’s misuses and abuses. The paper identifies how
trading members are violating and avoiding the regulatory compliances. The
paper provides inputs for the development of appropriate regulatory framework
for prevention of violations of rules and regulations in Indian securities
market, prevention of capital market abuses and enables the investor
protection. The limitation in a case study approach, the research findings and
results may lack generalizability. The results may be generalized in the
emerging markets. Hence, researchers are encouraged to study results further in
other developed countries. The results provide critical perspectives on
regulatory challenges and encourage the regulatory authorities to issue
relevant guidelines to stock brokers to prevent from non-compliances of margin
trading rules.