Arbitration on Margin Positions Liquidation at Stock Exchange in India

Abstract

The paper investigates compliances of margin trading rules and regulations of the Stock Exchange by stock brokers in India. Trading practices, misuses and abuses of securities market by trading members have been discussed in detail in this paper. It highlights how some trading members violate the margin trading rules and misinterpret the regulatory compliances. The award provides inputs for the development of appropriate regulatory framework for the securities market. A discussion on capital market abuses would promote customer education and their curtailment by the competent authority. The limitation of the findings may lack generalizability. However, the results may be generalized in the emerging markets environment. Hence, researchers are advised to understand the facts of the case, analyze it in terms of stock exchange regulations, appreciate the appropriateness of the award, and apply the same in their future research activities in some other similar contexts in India and abroad.