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  Investors' Complaints

Disputes to be referred for Arbitration

As per General Rules & Regulations of the Pakistan Stock Exchange Limited (formerly: Karachi Stock Exchange Limited), all claims, complaints, differences and disputes arising out of dealings and transactions in respect of securities made subject to Rules & Regulations of the Exchange and not amicably settled with the concerned member of the Exchange may be referred for arbitration addressed to Arbitration Committee of the Exchange.

Appointment of Arbitrator(s)

As per above-referred Regulations, all claims/disputes up to Rs. 0.5 million are referred for arbitration to the Managing Director of the Exchange, who either himself enters upon the reference or appoints his nominee for this purpose. The claims/disputes valuing more than Rs. 0.5 million are referred to the Arbitration Committee of the Exchange, which forms a panel of 3 arbitrators to conduct arbitration proceedings, out of which 2 are appointed by drawing lots from the Arbitration Committee (one member of the Exchange and the other a non-member director) and the third being the Managing Director of the Exchange or his appointed nominee. However, in the case of non-availability of any member of the Committee to act as arbitrator, the Committee may instead appoint any person having expertise in legal or securities market matters, preferably a former non-member director of the Exchange to be an arbitrator of the said panel.

Application for Arbitration

In every case where a claim, difference or dispute arises, the concerned investor may submit to the Exchange an application for arbitration along with following documents and payment of a nominal fee as specified in the Regulations

  1. Complaint Form, if not provided previously with the original complaint.
  2. An undertaking as per specimen to abide by all the Rules & Regulations of the Exchange in force for the arbitration.
Arbitration Process and Announcement of Award

The arbitrator(s) fix a date, time and place for each hearing, notice of which is given to the parties 7 days in advance. The parties to the reference may attend the hearing in person or through any person duly authorized by them in writing who must be acquainted with the matter in dispute. An award made by an arbitrator, or in case of panel of three arbitrators by majority of them, shall be final and binding upon the parties, subject to appeal as mentioned below.

Appeal against the Award

  1. A party to a dispute who is dis-satisfied with any award of the Managing Director/his appointed nominee may appeal to the Arbitration Committee against such award within 7 days of the receipt of such award. The award of the Arbitration Committee in an appeal shall be final and deemed binding on the parties to the dispute.

  2. A party dis-satisfied with the award of the panel of arbitrators may appeal against such award to the Board within 7days of the receipt of such award. However, for the purpose of hearing the appeal, the Board may constitute a Committee of the directors every year comprising three of its members, two being non-member directors and one member director.
An appeal has to be filed specifying therein the grounds of objection to the award of arbitrator(s) appealed against. The appeal need to be preferred within 7 days from the date of receipt of the award by the party appealing. The following documents are to be appended to an appeal along with a nominal fee as prescribed.
  1. Copy of arbitration award appealed against.
  2. Statement of case mentioning the grounds of objection.
In case a party appealing against the award is a member of the Exchange, then he/it is required to deposit with the Exchange as security the amount ordered to be paid in the award and/or equivalent market value of shares at the time of filing of appeal, as the case may be, along with memo of appeal.