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Case Code: LAW013
Case Length: 9 Pages 
Period: 2014 - 2016    
Pub Date: 2017
Teaching Note: Available
Price: Rs.400
Organization : National Stock Exchange (NSE)
Industry : Securities market and capital market
Countries : India
Themes: Arbitration Mechanism at NSE for resolution of Disputes
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Application of Margin Trading Rules: A Dispute at National Stock Exchange

 

ABSTRACT

 
This case discusses a dispute relating to a transaction between a client and a trading member of the National Stock Exchange, India (NSE). The client had filed an appeal on the quantum of award passed by the arbitration panel for consideration by the appellate tribunal of the NSE. The Appellate Tribunal had to determine whether there had been any lapses on the part of the arbitrators in applying the margin trading rules of the exchange while analyzing the matter, determining the case and passing the award. Based on that, it had to decide whether to set aside the award passed by the arbitration panel or uphold it.

The issue before the panel of arbitrators was whether to entertain the claim of the client about application of margin trading rules of NSE appropriately by the arbitration panel while determining the quantum of award or not.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • Apply the margin trading rules of the exchange to resolve the dispute between a client and a trading member
  • To understand the adjudication process and arbitration under the Arbitration and Conciliation Act, 1996.
Contents
INTRODUCTION
BACKGROUND
PERSONAL HEARINGS BY THE PANEL OF ARBITRATORS
STATEMENT OF THE CLAIM BY NATURE
STATEMENT OF DEFENSE BY PERFECT
CLARIFICATIONS SOUGHT BY THE ARBITRATION PANEL AND ARGUMENTS AND COUNTER ARGUMENTS
OBSERVATIONS, FINDINGS AND CONCLUSIONS OF THE PANEL OF ARBITRATORS
MATTER BEFORE THE APPELLATE ARBITRAL TRIBUNAL
ADDITIONAL SUBMISSIONS BY THE APPELLANT
THE WAY AHEAD
EXHIBITS

Keywords

Trading at the Exchange,Margin Trading,Relationship between client and broker of the stock exchange,Dispute resolution,Arbitration,Appellate Tribunal,Close out position,Var Margin,Statement of claim,Statement of defence, Doctrine of Estopell

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