KARACHI: The Pakistan Stock Exchange (PSX) told investors on Thursday they can resolve their trade-related disputes with stockbrokers through the PSX’s arbitration platform, which is an independent panel of arbitrators.

It advised investors to opt for the out-of-court settlement of disagreements with brokers through the platform, which will consist of one PSX staff member, one broker (in advisory capacity) and two industry experts. The panel will listen to both sides and issue its decision or arbitration award within 90 days of the filing of the application.

Industry experts can be advocates, professional accountants or others with knowledge and experience in the fields of law, trade, commerce, industry, arbitration or the securities market.

According to PSX Chief Regulatory Officer Ajeet Kumar, investors can take any trade-, transaction- or subscription-related dispute with their brokers to the arbitration panel by filing an application to the Regulatory Affairs Division of the PSX.

After an investor (or broker) files an application for the dispute of over Rs500,000, a broker (in advisory capacity) and two industry experts will be selected through a ballot carried out in the presence of the parties concerned. A member from the senior management of the exchange will be nominated by the PSX.

The number of arbitrators to hear and decide the dispute depends on the disputed amount: a disputed amount of less than half a million will be referred to a sole arbitrator.

Any party dissatisfied with the decision of the arbitration panel may file an appeal to the chief regulatory officer of the exchange within 15 days. An appellate panel consisting of five arbitrators will hear and rule on the appeal within 45 days.

Published in Dawn, December 23rd, 2022