Description

BSE amendments replacing arbitration references with dispute resolution mechanism and modifying trade annulment authorization provisions.

Summary

BSE has amended its Rules and Bye-laws to replace references to “arbitration” with “dispute resolution mechanism” and updated provisions related to trade annulment authorization. The amendments modify misconduct definitions in Chapter IV Rules and trade inviolability provisions in Chapter VII Bye-laws.

Key Points

  • Rule 3(f) of Chapter IV amended to replace “arbitration” with “dispute resolution mechanism” and “Arbitration Committee” with “arbitral tribunal”
  • Rule 3(m) of Chapter IV amended to replace “arbitration charges” with “charges towards dispute resolution mechanism”
  • Bye-law 5(b) of Chapter VII modified to remove specific reference to “Board or Managing Director” and authorize “person(s)/committee(s)” for trade annulment decisions
  • Bye-law 5(e) of Chapter VII updated regarding review process for trade annulment decisions by Independent Oversight Committee
  • All changes align with SEBI regulations and exchange circulars

Regulatory Changes

Chapter IV - Disciplinary Proceedings

Rule 3(f) - Failure to Submit to Dispute Resolution:

  • Old: Members deemed guilty of misconduct for failure to submit to or abide by “arbitration” or awards of “Arbitration Committee”
  • New: Members deemed guilty of misconduct for failure to submit to or abide by “dispute resolution mechanism” or awards of “arbitral tribunal”

Rule 3(m) - Failure to Pay Dues:

  • Old: Misconduct includes failure to pay “arbitration charges”
  • New: Misconduct includes failure to pay “charges towards dispute resolution mechanism”

Chapter VII - Trade Inviolability

Bye-law 5(b) - Trade Annulment Authorization:

  • Old: “Board or Managing Director or any other person(s)/committee(s) authorized by the Board”
  • New: “Person(s)/committee(s) authorized by the Board of the Exchange”
  • Authority to annul trades or reset prices maintained with modified governance structure

Bye-law 5(e) - Review Process:

  • Decisions subject to review by Independent Oversight Committee on Trading and Surveillance function
  • Review available on request of aggrieved party

Compliance Requirements

  • Members must comply with dispute resolution mechanism procedures (replacing arbitration references)
  • Members must pay charges towards dispute resolution mechanism as part of dues and fees obligations
  • Members subject to misconduct provisions for non-compliance with arbitral tribunal awards and decisions
  • Members may request annulment or price reset of trades through authorized persons/committees
  • Aggrieved parties may seek review from Independent Oversight Committee

Important Dates

  • Circular Date: November 20, 2025
  • Effective Date: Not specified in the provided content

Impact Assessment

Market Impact: Low - Changes are primarily procedural and terminological

Member Impact: Medium - Members need to understand updated dispute resolution terminology and modified authorization structure for trade annulment requests

Operational Impact: Low - Existing dispute resolution processes continue with updated nomenclature; trade annulment authorization streamlined to authorized persons/committees

Compliance Impact: Medium - Members must ensure compliance with updated misconduct definitions and fee payment obligations using new terminology

Impact Justification

Procedural changes to dispute resolution terminology and trade annulment authorization process affecting member compliance obligations and exchange governance.