Alternative dispute settlement process in bourses soon
Wednesday, 25 November 2009
FE Report
A procedure is underway to create an alternative dispute settlement process for disposal of stock market related cases.
The move has been made following a meeting of law minister Barrister Shafique Ahmed with a delegation headed by Securities and Exchange Commission chairman Zia-ul Haq Khandakar on August 19.
The law minister proposed to have alternative dispute settlement in response to the delegation's plea for resolving pending cases lying with the courts.
However, the SEC is reluctant to involve itself with such a process. "If a company fails to succeed in resolving dispute initially through filing review petition it will never come to the SEC for further disposal," said Mohammad Hannan Zoarder, a SEC executive director.
"If the SEC reduces the amount of penalty charged against any company for disposal of a case, one might label us of complicity. So, it will be difficult for us to join the proposed alternative dispute settlement," he added.
He said the higher court can fix a third party for disposal of the company cases where the two parties must abide by the decision.
Meanwhile, the law commission sent letters to district judges and other relevant persons across the country seeking their opinion about alternative dispute settlement, the commission source said.
A procedure is underway to create an alternative dispute settlement process for disposal of stock market related cases.
The move has been made following a meeting of law minister Barrister Shafique Ahmed with a delegation headed by Securities and Exchange Commission chairman Zia-ul Haq Khandakar on August 19.
The law minister proposed to have alternative dispute settlement in response to the delegation's plea for resolving pending cases lying with the courts.
However, the SEC is reluctant to involve itself with such a process. "If a company fails to succeed in resolving dispute initially through filing review petition it will never come to the SEC for further disposal," said Mohammad Hannan Zoarder, a SEC executive director.
"If the SEC reduces the amount of penalty charged against any company for disposal of a case, one might label us of complicity. So, it will be difficult for us to join the proposed alternative dispute settlement," he added.
He said the higher court can fix a third party for disposal of the company cases where the two parties must abide by the decision.
Meanwhile, the law commission sent letters to district judges and other relevant persons across the country seeking their opinion about alternative dispute settlement, the commission source said.