The Securities and Exchange Board of India (SEBI) has introduced ‘Common Pool’ and ‘Automatic Process’ for selection of arbitrators through stock exchanges.
This process has come into effect from April 1, 2013, SEBI said in a release on Thursday.
As all stock exchanges are having nation-wide trading terminals, the regulator advised them to pool the list of arbitrators, and create a common pool, instead of having exchange-wise pools of arbitrators.
This pooling of arbitrators is done centre-wise.
“In order to bring more transparency and fairness, the automatic process entails a randomised, computer-generated selection of arbitrator from the list of arbitrators in the common pool. “The automatic process sends a system generated SMS or e-mail to all entities involved in the particular case,” said SEBI.