Pakistan Stock Exchange (PSX) has informed investors that they can resolve their trade-related disputes with securities brokers through the bourse’s arbitration platform.
According to an official notice, the platform would service an independent panel of arbitrators such as industry experts, senior PSX management staff, and a TRE Certificate Holder who will hear, decide and issue their decision on the dispute in the form of an Arbitration Award within 90 days from the date of filing.
Investors can take any trade, transaction, or subscription-related dispute with their brokers to the arbitration panel by filing an application to the Regulatory Affairs Division of the PSX. According to the notice, any party to the dispute; customers alleging mismanagement in their accounts or securities brokers for recovery of debit amounts may file an application for arbitration.
Following the filing of an application for a dispute of more than Rs. 500,000 by an investor, a broker (Advisor), and two industry experts will be chosen through a ballot conducted in the presence of the parties in dispute. The PSX will nominate members of the exchange’s senior management to the case.
The number of arbitrators assigned to hear and decide the dispute is determined by the disputed amount: a disputed amount of more than Rs. 500,000 will be assigned to a panel of arbitrators, while another below that amount then the case will be assigned to a sole arbitrator.
Any party who is dissatisfied with the arbitration panel’s decision may file an appeal with the PSX Chief Regulatory Officer within 15 days from the receipt of the arbitration award. Within 45 days, an appellate panel of five arbitrators will hear and rule on the appeal.
Pertinently, the appellate bench comprises 5 arbitrators including industry experts and senior management staff of PSX. It will not include arbitrators who heard and decided the arbitration award against which the appeal is being made, the notice concluded.
