Suvojit Bhattacharjee & Proshakha Bose, Amity Law School, Amity University Kolkata.
ABSTRACT
Financial market disputes in India often stem from intricate transactions and regulatory challenges, making efficient dispute resolution essential. In this context, arbitration has gained traction as a valuable alternative to traditional litigation, providing a faster, more private, and adaptable method that aligns with the dynamic needs of the financial sector. This article explores the unique landscape of financial market disputes in India, spotlighting common conflict areas like securities fraud, investor rights, and contract issues. India’s regulatory framework, comprising the Arbitration and Conciliation Act, 1996, SEBI regulations, and other industry-specific guidelines, shapes the arbitration process, promoting fairness and protecting investors. By comparing arbitration with litigation, the art emphasizes the benefits of arbitration in reducing court congestion, allowing specialized expertise, and offering greater procedural flexibility.
Technology is increasingly transforming financial arbitration, with innovations like online dispute resolution (ODR), digital evidence submissions, and blockchain applications enhancing accessibility and efficiency. Still, significant challenges remain, from enforceability issues to limitations in arbitrator expertise and interim relief options. This article discusses these hurdles and suggests potential reforms to bolster the arbitration process. Through this analysis, the article presents arbitration as a promising avenue for resolving financial market disputes, offering insights into its potential to create a more resilient and responsive framework within India’s financial ecosystem. This study aims to add to the dialogue on arbitration reforms within financial regulations and encourage further progress in this crucial sector.
Keywords: Arbitration, Financial Market Disputes, Online Dispute Resolution (ODR), Procedure flexibility, SEBI Regulations.
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