INDIA NON JUDICIAL

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Certificate No. : IN-KA12621606105341T :i

Certificate lssu,ed Date : 05-Jan-2021 05:43 PM i

Account Referernce : SHCIL (Fl)/ ka-shcil/ MALLESHWARAMI/ KA-BA a)
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Unique Doc. Reference : SUBIN-KAKA-SHCIL 10448071427638T '

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Description of Document : Article 11 Award other than partition Award :;i

Description
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ARBITRATION AWARD
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Consideration Price (Rs.) : O

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First Party : DEBASISH DAS ;i

: lClCl SECURITIES LTD

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Stamp Duty
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Stamp Duty Amount(Rs.) : 100 z
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ln thc matter of Arbitration before thc Arbitral Tribunal at Bengaluru'

LJnder thc Rules, Regulations and llye-l'aws of the
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National Stock F)xchange of lndia Limited t
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Before the Sole Arbitrator: Mr AV Murlidharan ;

Arbitratiorr Matter No: NSI:lll,N/00 13lo9l2o-21/lsc/IGRP/ARB ;s
:
L"ttttt" I'sl('l('l sr"cttriticsIinritcd :
I Mr l)cblsislr [)irs I l'ct\\uurr I rvr ) r\ '\ I JlLrrr '''- ' --"'
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l(Constittrcrrt) Applicant
,ll\4rrr III ltlrrtdirr'lMcrnbcr)
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Statutory Alert:
1 using e-stanlp Moblle.App o{ Stock roldrng
The authenticity of thts Stamp certificate should be verified at'rvww shcilestamP.com'or
il; ;-d;p:;Iyl; jri; ;;i;i6 oi:inii G'tii[]G na ai iualLaore on the websiie / Mobire App renders rr inval;d

2 The onus oI checking the legitimacy is on the users of the certiticate

3 ln ca6e of any discrepancy pleasa inlorrn lhe Competant Authority
 Irl-A'l' tl 203. Maplc. [-orr,cr 5. Adarsh Shrce Sarvan Knorvlcdgc Park. (lR.
I)alm. [)cvarabiscrrahal I i. I]cl landur. l:loor. Plot No. - I)507.
'l'.-1
llarrrralorc. Karnataka - .560 I 03. .('.lnclLrstrial Arca. Midc.
I)an No: Al:l.PI)4775Q 'l'Lrrbhc.Ncar
.lu inagar Rai lway Station.
Navi Murnhai . Maharaslrtra - 400705

I. Rcf'erencc ot'Arbitration and Appcaranccs at thc Pcrsonal tlearing

Mr. l)cbasish [)as. [rlat rto. tJ 20:]. Maplc [o\/cr. 5. Adarsh palm rctrcat. Ucllandur, l]cngaluru.
Karnatal<a hcrc in aficr to bc rcl'crrcd as constitucnt had opcncd an uniquc 3 in one account (lD
8503714466) u,itlr I('l(ll bank r,r,hich intcgratcs thc trading accoLlnt (maintairrcd with ICICI sccuritics
l.td.). llank accollnt rnaintained rvith ICI(ll bank arrd Lrcncliciary dcnrat accoLrnt with lClCl bank in its
capacitl,as a "l)cpository participant" to ol'fbr scarrless onlirrc trading tacility to its constitucrrts l(ll('l
sccurilies is hcrcin alicr to bc rcl'crrcd as "'l'rading Mcmbcr" .

[{cliancc lndLrstrics Ltd had ttnnounccd Right issuc tbr whiclr rccord date was l4'r'May 2020 ancl
thc Rights tvcrc givcn in thc l{atio ol'l:1.5.'l-hc clisihlc sharclroldcrs havc reccivcd thc Rights F.ntitlerncnts
(ltl:s) in thcir dcmat accor.ult. l'he'l'radinr-r and right cntitlcrncnt startcd on 20thNlay 2020 and cnded on
l9'r'Mar 2020. lhc ol'lcr'\\as on dclivcr,r,bascd cash IlLry and Scll basis.

'l'hc
constitucnt had ? sltarcs crcclitcd in his dcnrat account bascd on his prcscnt holdings and had
additionally'pLrrchascd 139 ttight l:rrtitlcnrcnt fiorr thc [:xclran-uc platlbrm by placing ordcrs through thc
I(llCl I)ircct clur trading accolurt.'l'hc constitucnt had purchascd thc sharcs u,itlr thc understandins hc
Itas to appll l'or additional sharcs irr thc right issuc. iloucvcr hc did rrot applv lbr additional Right lssLrc
sltarcs ol'[icliancc lndustrics lirnitcd- tll:S l:Q I']l'} pLrrchased 1r'om opcrr rnarkctoff-cr document has clcarlr
statcd lhilLrrc to crcrcisc or scll thc riLlhts cntitlcnrcnt rrill causc thc Rishts entitlement to lapsc sithout
anv conrpctrsaLiort and re-sult in dilLrtion ol'sharcs holdirrg. ilou,cver. the constituent onlv applicd lor 2
sltarcs as pcr his holdings and tailcd to appll tbr 139 shares. [)uc to this the constituent had suffercd the-
loss and rrade- a complaint to NSI: fbr rnakins good thc loss of Rs.32000 b1'the'l'rading Memhcr.

'l'hc
saicl clisputc u as lookcd ilrto hr I(iRl) orr 2 l 'r Aug 2020 and the IGRP had dismissed the claim
ol'thc corrstitucnt us "l)r'obablc loss" u ith thc clircctiorr to thc '['radirrg Mcrnber tbr providing the desired
scrvicc as pcr thc rcclucst ol'thc consLitucnt.

,\qgricr ccl hr tlrc orclcr'. thc corrstitucnt hacl llllccl thc Arbitration application as per rcgulation 5.9
(h)clatcd f-:'r',Auu l0l0 rcitcratrng. his clairr lirr 1{s. il(XX).

NSt: lras appointcd Mr. A.V. Muralidharan as "Solc Arbitrator" and due notice rvere scrved to both
thc partics lbr a virtual corrl.:rencc lrcaring. Altc-r obtaining thcir conscnt. the meeting rvas schedLrlcd on
l7'r' [)cc 2020 ar I l.00hrs.

Page 2l5
 'l'hc
corlstitLtctrt Mt'. I)cbasislr [)as;rcrsorrally rcprcscntcd arrcl Mr. tlakcsh Scth rvas reprcscntirrg
thc
I(llCl sccuritics.

ll. Submission of the constituent:

l'he constitucnt was opcrating 3 irr I accoLrrrt with ICICI bank sincc 2016 ancl had 40
sharcs of'
Reliancc ittdLrstrics lirnitcd irr his dcnrat accoLiltt on l4'l' May 2O2O and hc had 2 Right
Sharcs orr his
ctrtitlcmcnt creditcd to ISIN : INI:002A20018. in thc dcmat account rnaintained with ICICI
direct.corn.
lradirrg Mctrlbcr. llc has also purchascd additiorrally 139 sharcs (RI:s) ll'orr thc open markct
throLrg6 thc
ottlitlc traclirrg Platlorrll ol'thc I'rading Mcnrbcr ancl thc same- is clLrly rcllcctcd in thc dcmat accourlt as
crcdits on 26'l' turcl ?7'r' Mal 2020.

Ilaving purchasccl. thc additional I39 sharcs. thc cc'rnstitucnt was constantly lollowing rvith Mr..
[)trkc Anclrcr'r. Rclatiorrship Managcr of thc 'lraclirrg Mcrnhcr. Ilc has flrthcr allcgcd that thcrc was a
tcchrlical slitch irr his'[radirrg Mctrhcr's Platlirlrr arrd thcsc sharcs coLrld not bccn secn in thc dcnrat
accoLlllt atlcj it trtts appcaritts onlr irr portlirlio scction. Ilc hacl to fbllorv Lrp rvith thc Relationship Ma,agcr
Itlr his qLtidatlcc arld aclvicc litr thc lLrthcr proccss t() covcrt Ihcnr as rcgular right sharcs. llc could ,ot qct
propcr advicc. irrspitc ol'his bcst cfJorts and lbrccd to approach thc otflcials of the Trading Mcmbcr. ilc
could not lrakc thc pavlllcttt lbr his right issuc irr thc abscncc o1'thc guidance tl'om l'rading Menrbcr rrhich
rcsulted in thc lapsc/fortbiture of the Rlrs.
llc has also lodged the rcqucst tbr the refirnd of RS. 32000 rvhich is stuck in the Trading Membcr's
Sl'stcttr ancl to dircct thc'l'rading Mcmbcr lor providirr-e lil'ctirnc fi'ce serviccs to tlre constituent ivithout
I

artv commission and otlrcr charscs.

1il.

J'lrc lcsportdctrl. is a t'cptrtcd S[:l]l rcsistcrccl stock brokcr. providirrg orrlinc tradin{r plattbrrn to its
cotlstitucrlLs/clients tltrouglr its urriquc i in I account.lointl_r oftcrcd lCl(ll bank limited.

'l'hc constitt-tcnt
has lullcontrol o','cr his/hcr stock account and demat account and can operate t6csc.
accoLmts in tlrc norntal coursc ol'opc-rations.

l'hc llcspolldcnI as an intcrnrcdiary has alvvavs actcd upon to protect thc intcrests of the inycstors
and to act as compliance oriented organizatiorr to hclp arrd regulatc thc sccurities market bl,adhcrine to
all provisions and hryclaws of thc lrxchangc.

CASF] DI.]'I.AII,S

Reliancc lttdustries has ant.tounced right issuc tbr which record date was l4th May 2020 and the
right cnt ncnt was irr thc ratio ol' I :15.

Page 3l5
'['hc
constitllcnt vvas an c.rislitLl sharcholclcr ol'thc cotrpany prior to purchase of REs t'om thc opclr
tnarket. llascd upott the currcrr[ holdirrgs thc appcllant had received 2 shares under the Ill:s liorn
thc
corrparry arlcl thc sittrrc is dtrly crcclitcd and rcf'lcctcd in dcrnat accoult undcr ISIN :lNLlO02A2OO|8
[RIL-
RI )-trQ-l'['. t(s.2.50] as
llcncliciary balance 0
Opcning
16.0.5.2020 10008251 146 lly allotmcnr [iights l:rrrilcrncnr 2 Cr. 2
26.05.2020 8 10000285 45290 lly CM lCll('l SccLrritics l,td. I:or tradcl2O2OO96 8 tCtr 83
27.05.2020 8100002t1-58.53(r I lly l('l('l Securitics Ltd. 1:or tradel2O20O97 58Cr. t4I
ll.0(r2020 l008jc)9ttlt I)1 Right Issuc t4tCr. 0
Closing Balancc: 0

'l'hc corrstitucnt l'lad

applicd lor thc right issuc lbr thcsc 2 shares and had beerr allotted with sharcs
tunclcr thc ncw ISIN : IN9002A0 1024/tlll.-llQ-PP-Rs. 2..50
llcncl'iciarv Open ing []alancc 0
l-i.06 2020 l00tt40(r l2ti bi, Ilights tssLrc 2Cr. 2
C'losing l]alancc: ).

-l-hc
abovc actiott clcarlv slrorvs that thc constitucnt is firlly aware ol'the Rights issr-rc proccdurc
arrd R[: sharcs r,vhiclr s,as purchascd liom thc opcn markct.

'l'hc
consLitLtcttt did not appl,r' tbr thc aclditional sharcs purchascd fiorrr thc open market and as pcr
thc process the sharcs u,crc cxtinguishccl as fbllows:

l-hc dcrnat statemcnt ltas shown clearly thc trades cxecuted by the constituent.

Rcliancc had scrtt lcttel of ol'l'cr etc. along rvith tlre proccdure lbr applying for Rights Issuc ro all
the cxisl.in-u sharcholdcrs. [-hc appcllarrt lras lailcd to take the cognizance of the same.'l-he letterol'ol'lcr
tr'as alstl uploadcd on thc sitc o1'Rll. and availatrlc in public domain.-[he samc could havc heen accesscd
br arly lrtvcstor.'l'hc ol'l'cr lcttcrclcarly'has statcd thc risks rclating to equitl, slrarcs and right equitl sharcs
o1'this issLrc. "l ailurc to c.rercise or sell thc Rl:s will cause the Res to lapsc without compensation and
rcsult in dilution ol'sharc holdirrs."'l'hc companv has also providcd thc term and conditions in all lcadin,l
llc\\rs pzlpcrs and irrdividual communications was sctlt to bv cmail to all rcgistcrcd sharcholdcrs.

It is subrnittcd that thc constitLrcnI has lirlly awarc of all complete tacts and 'frading Memhcr cannot
bc hcld tift failurc of thc Constitucnt in not applving for right shares on time.

I. I NI)I N(;S

Page 4l5
 It is notcd li'orr tltc clctailccl suhtrissions rradc bv thc hoth partics that therc was 1o specific or.dcr
b)'tlrc ('orlsLiLttctrt to thc'l'raclirtg Mctnbcr to applr. lirr additional slrarcs urrclcr.'n SBA' systcm stipulatcd
-l-he
b1' 11',. lctter of ottcr.C'onstitLrtc rncrly allcgccl that Rclationship Manager has tailed to rcspord and
givc proper gLridancc r,r'hich has rcsLrltcd in inaction on thc part ol-the constitLrent in timcly subrnitti,g
application lbr thc Right sharcs belbrc the due/closing date.
Orr thc contrary the'l'raclirrg Mcmbcr has cstablishcd that hcre was no specilic trading instructions
/tlrdcrs atld hcrtcc thcrc is tr() casc usainst thc'l'rading Mcrlbcr lirr non-cxccr-rtion of thc -l-rading.rdcrs.
'l
raclirlg Platlirrrr lor ott Onlinc'l'rading \vas vcrv rluclr availahlc to thc constitLrcnt and hc has donc thc
onlitrc trading trsirrg thc'l'r'adirrs Mcnrbcr's platlirrm lirr pLrrchasing aclditiorral Rcs ll.opn thc operr rnarkct.
'l'hc
ctlrrstitucrlI had pLrrchascd thc aciditional Rl:s r,ritlr thc clcar unclcrstanding to apply lbr additional
sharcs but lirilcd to do thc santc.

[)ost allttlttrcrtt of'r'ight lssuc. thc I{l: sharcs wcrc autor.ltaticalll, c.rtirrguishcd.

As pcr thc lcttcr ol'ol'l'cr. indiviclLrallv cornrnurricated to all investors/shareholdcrs of thc corrpa;\,
il'l{l- is t.tot cxcrcisccl priol Lo closing datc thc sanrc will cxpirc arrd becornc null & void and the ccluitr
shareholdcrs arc not cntitIcd tbr anv corrsidcration/compcnsatron.

Ilcncc it is clcarl,"- cstablished that'l'rading Mcrnber is not lound guilty lbr any inaction as thcrc is
no s1-rccific trading instrttctiiltts /ordcrs. l:vcn cornplaint ol'thc cor-rstitucpt holdilg 'l'rading Mcntbcr
rcsporlsihlc lirr lris ittitctitttts dttcs ttot lirllu,ithin the scopc/arnbit of stock [:xclrangc disputc and hcncc thc
satllc is llot tctlablc.'l'hc corlstitucttt lrcittg an cclucatcd pcrson as an ordirrarl- prudent investor could havc
carclirllr utldcrstotlcl Ihc Icrnls arrd conclititttts ol'thc ot'tl'r'lcttcr/docurncnt and acted accordingll. Ilencc
thc clairr ol'constitucnt is not tcnablc and thc sarnc is disrrisscd.

llott'cr'cr if'thc constitLrcrrt lccls thc dclicicnc-r in scrviccs providcd by thc "-l'radins Mcrnbc-r" hc
is at libcrtr to apprttaclr thc appropliatc fbrurn likc "( onsume-r tirrum" fbrthc rcdressal ol'thc sricrapccs.

..\ \\ ,.\ tt I)

I. A V Muralidharan. Sole Arbitraror hercby dismiss the claim ol' thc appellant fradine
Mcnrher.
7\r
I)atc: I 2-.lan-202 I
IDt]ARAN
Placc: l]angalorc Sole Arbitrator

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