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From : Home > Law and Regulations > Arbitration
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Arbitration
Arbitration
Introduction
Appointment and challenge of arbitrator
Duration
Arbitral award
The Arbitration Procedure
Arbitral expenses
Arbitral logo

Introduction

 

Arbitration is a dispute settlement procedure whereby the disputants agree to be bound by the arbitrator’s decision.

 

The SEC Office facilitates dispute settlement by means of arbitration between investors and intermediaries (e.g., securities firms, selling agents of foreign shares, mutual fund supervisors, private fund custodians and derivatives business operators).
 
A dispute may be settled through arbitration when the following criteria are met:
 
(1) The dispute is a result of the respondent’s breach of contract or contravention of the Securities and Exchange Act, the Provident Fund Act, the Derivatives Act, or any regulations prescribed thereunder;
 
(2) The amount of damages claimed by each claimant does not exceed five million baht;
 
(3) Where the dispute is related to any offering of securities services or contravention of
the Securities and Exchange Act, the Provident Fund Act, or any regulations prescribed thereunder, the dispute shall:
            i. arise out of matter relevant to the claimant who is a natural person being or having been
a customer or a member of the provident fund of the respondent who is a securities business.
In either case, the claimant shall produce evidence of the respondent’s consent to enter the SEC arbitration.
            ii. have undergone the respondent’s complaint handling procedure in accordance with the Notification of the Capital Market Supervisory Board or the Notification of the Office of the Securities and Exchange Commission, as the case maybe, and it appears one of the followings:
                        a)  The claimant has not received a response within 15 days after filing.
                        b)  The respondent has failed to resolve the dispute to the satisfaction of the claimant within 45 days after filing.
                        c)  The claimant views the resolution or the remedy inappropriate, and produces
the reservation of right to enter arbitration.
            iii.  be within 6 months old after one of these followings:
                        a)   15 days after filing, in case that the claimant has not received a response.
                        b)  45 days after filing, in case that the respondent has failed to resolve the dispute.
                        c)  45 days after filing, in case that the claimant views the resolution or the remedy inappropriate.
            iv.  not be older than 2 years as of the date of the cause of such dispute unless the SEC office deems necessary and appropriate, but under the prescription.
  
 

Appointment and challenge of arbitrator

 

There shall be one sole arbitrator mutually selected by the disputants from the SEC Arbitrator List. In case where there are several claimants sharing common ground of laws and facts and the compensation of each claimant does not exceed five million baht, the disputants may agree to appoint three arbitrators provided that they have stated such intention in the request for arbitration.

 

Either party may object to the appointment of such arbitrator should there be a reasonable ground to doubt the independence or impartiality of the arbitrator.  

 

Duration

 
The arbitrator shall make a decision within 90 days from the date of his appointment; however, an extension of up to 180 days is permissible or longer upon consent of both parties.    

 

​​Arbitral award

 

The arbitrator’s decision is final and legally binding. Should the losing party refuse to comply, the wining party may file a motion to compel in a court.

The Arbitration Procedure

 
 
arbitrate_chart_en.jpg

 

 

Arbitral expenses   

 

​1. The arbitrator’s fee is 2 percent of the compensation claimed by the claimant but no less than 10,000 baht. In case where there are several claimants, the fee is the total amount of the compensations claimed by all claimants but shall not exceed 500,000 baht per dispute. In case of three arbitrators, each shall receive the aforesaid fee. At the end of the arbitral procedure, the arbitrator will specify which party to bear the arbitrator’s fee;
​2. A compensation of 10,000 baht per dispute for the arbitrator paid in half by each party;
3.​ Other expenses such as expert fee (if any), witness fee, meeting and miscellaneous expenses paid in equal amount by the claimant and the respondent. The claimant’s expenses may be payable by the SEC Office as deemed appropriate. 
 

 

 Arbitral logo

 

The SEC Office has initiated the Arbitral Logo Program to encourage intermediaries to voluntarily enter arbitration over dispute with their clients. By using the logo, the intermediaries express their willingness to provide their clients with a fair, convenient, fast and affordable means to resolve dispute via arbitration.

Benefit for intermediaries   
Participating intermediaries may use the Arbitral Logo in public relations campaigns to gain credibility and investors’ confidence in their operation, customer care and complaint handling services.     
 
Benefit for investors
Since the Arbitral Logo symbolizes reliable operational system of participating intermediaries, investors may consider the logo as a factor for choosing a company. 

 

 

 

Last updated on 17 November 2016
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