The Securities and Exchange Board of India on 3rd June 2022, has further strengthened the Investor Grievance Redressal Mechanism (IGRC), based on feedback received from market participants. The new mechanism will come into effect from July 1.
For any dispute between the member and the client relating to or arising out of the transactions in Stock Exchange, which is of civil nature, the complainant/ member shall first refer the complaint to the IGRC and/ or to arbitration mechanism provided by the Stock Exchange before resorting to other remedies available under any other law.
A complainant/member, who is not satisfied with the recommendation of the IGRC shall avail the arbitration mechanism of the Stock Exchange for settlement of complaints within three months from the date of IGRC recommendation.
The arbitration application received without going through the IGRC mechanism, the time period of three months will not apply, and for such cases, the limitation period for filing arbitration will be governed by the law of limitation i.e., The Limitation Act, 1963.
