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.

Learning Objectives

The case is structured to achieve the following Learning 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

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