The Executive Regulations of the Law No. 7 of 2010 Establishing the Capital Markets Authority and Regulating Securities Activity authorized the settlement of disputes related to money market transactions through the arbitration system contained in Book Three (Law Enforcement) of the Executive Regulations.
In this article, we will explain the arbitration procedures for disputes related to money market transactions:
The arbitration request shall be submitted in writing to the Capital Markets Authority, including the name, capacity and address of the arbitration applicant, the name, capacity and address of the respondent, the subject matter of the dispute, its facts, evidence, documents, arguments and requests, in addition to a copy of the arbitration agreement.
Notifying the respondent of the request for arbitration
The Capital Markets Authority shall notify the respondent against the arbitration request submitted against him and his documents and documents, as well as the name of the arbitrator chosen by the arbitrator and his acknowledgment of his disclosure by registered letter with acknowledgment of receipt or by any other modern means, within five working days from the date of receiving the arbitration request.
Reply to the request
The respondent shall, within five working days from the date of his notification of the arbitration request, submit a defense memorandum containing his response and defenses in the application submitted against him and his requests.
The defendant who wishes to submit a counter-request after being notified or during the course of the arbitration sessions that is related to the subject matter of the dispute and within the arbitration agreement, may submit it to the Capital Markets Authority or the Arbitration Tribunal – as the case may be – and this request shall be included in the arbitration file after payment of the prescribed fee, if any.
Referral of the arbitration file to the arbitral tribunal
The Capital Markets Authority shall refer the dispute file to the Chairman of the Arbitration Tribunal within three working days from the date of formation of the Arbitration Tribunal, and the Arbitration Tribunal shall begin its mission within ten working days from the date of its notification thereof.
Determine the arbitration session
The head of the arbitral tribunal shall set a session to consider the dispute and notify the members of the arbitral tribunal and the litigants of that by registered letter with acknowledgment of receipt or in the manner agreed upon by the arbitration parties.
Place of arbitration
The headquarters of the Capital Markets Authority is the seat of arbitration, and the authority or the arbitral tribunal may hold arbitration sessions in any other place it deems appropriate.
The approved arbitration language shall be Arabic, and the arbitrating parties may accept another language, subject to the approval of all members of the arbitration panel, the arbitral tribunal may, if the circumstances and requirements of settling the dispute require the assistance of translators it deems appropriate in the language spoken by the opponent, the latter shall bear the fees of translators provided by the Capital Markets Authority and in accordance with its decision in this regard. The arbitral tribunal may also accept memoranda and documents submitted by the two parties to the arbitration in a language other than Arabic, provided that they are accompanied by an official certified translation in Arabic.
Applicable rules and procedures
The arbitral tribunal must respect all the basic principles of litigation, in particular the right of defense and confrontation and equality between the parties, and the arbitration procedures shall be in accordance with the provisions of Book Three of the Executive Regulations (Law Enforcement), Arbitration is subject to the procedural rules in the Civil and Commercial Procedures Law, in what is not mentioned in a text or judgment in this book.
The arbitral tribunal shall decide the dispute submitted to it in accordance with Kuwaiti laws, unless the parties to the dispute agree to apply another law, provided that it does not violate the peremptory rules related to public order in Kuwait.
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