NETWORTH STOCK BROKING LTD Vs. DEVANAND SHAH

JUDGEMENT

(1.) NONE appears for the Respondent. The matter was admitted on 25 June 2009. The matter was listed for final hearing from time to time since 2009 for more than eight to ten occasions.

(2.) THE Petitioners who are a corporate share and stock broker have challenged the Award dated 25 November 2008 passed by the Arbitrator appointed under the byelaws, rules and regulations of the National Stock Exchange of India Limited, based upon the Client-Member Agreement between the parties. THE Respondent also executed individual Client Registration Form and other related documents to become constituent of the Petitioners and established privity for buying and/or selling and dealing in securities and trading in F & O segment (carry forward of positions in Future stocks, Index, Intraday trading etc.) through the Petitioners on NSE. THE Respondent has also signed mandatory Risk Disclosure Document for dealing in capital market and F & O (Futures & Options) Segments and also signed a mandatory Investors Rights and Obligations document at the relevant time. THE client code was accordingly allotted to the Respondent who also maintained his demat account with the Petitioners. THE Respondent is fully aware of the stock market operations, Futures and Options trading mechanism, clearing, settlement and risk management systems and the need to meet settlement obligations in time. THE dispute arose after falling of stock market prices from 18 January 2008 onwards. On account of market crash further on 21 January 2008, and due to nonpayment of margin obligations and debit balances, the Respondent's open positions were squared off on 22 January 2008. THE Arbitrator, in view of above, ought to have discussed, what would have been the position had the position been squared off on 17 January 2008 or 21 January 2008.

(3.) THE Arbitrator, however, rejected the claim of the Petitioners in to and awarded the cost also.