Some of the bye-laws of the Delhi Stock Exchange are not consistent with the provisions of the `Arbitration and Conciliation Act, 1996'. In fact, some officials in the bourse have changed some equitable and good bye-laws which will be anti-investors and pro-brokers.

For instance, I had obtained an arbitration award in 1990 after three years of struggle against a DSE broker, M R Soni and Company. However, the broker had obtained an exparte stay order against the implementation of the award by mis-representation. And DSE played the role of a mute spectator. Although I got it vacated after a year's struggle, the exchange never took any action against the broker. I had filed a case with DSE for a further award.

Although DSE admitted the case, the hearing is yet to take place.

DSE now wants to throw away all such cases in dustbin as they have made a provision in the new bye-laws that these will apply to the old cases filed with them as well. DSE is, thus, makingitself liable for pecuniary losses to the investors due to the arbitrary change of bye-laws.

The earlier laws were framed with the main object of protecting the investor interests and had always ensured that complaints of the investors against brokers were resolved early and in case the brokers did not resolve the complaint, a nominal fee of Rs 600 was kept for initiating the arbitration proceedings. However, DSE has now proposed a fee of 1-1/2 per cent to 3-1/2 per cent of the amount claimed to be paid by the investor as well as by the broker. In case a broker does not pay his share, the investor will have to pay a fee of 3 per cent to 7 per cent of the amount claimed to file an arbitration award. On a claim of Rs 1 crore, an investor will have to pay a ridiculous fee of Rs 7 lakh without knowing the fate of his claim!.

Let me appeal to all concerned organisations and investors through this forum to act before the amended bye-laws being approved by Sebi.

-- P L Gupta
Uttam Nagar, New Delhi