The arbitration system in accordance with Law No. 7 of 2010 regarding the establishment of the Capital Markets Authority and the regulation of securities activity includes all obligations arising from capital market activities, whether they arise from securities trading, portfolios or investment funds, or any activity related to securities activities.
The rules for forming the arbitration board in disputes related to the capital market came within the third book (Law Enforcement) of the executive regulations of the law establishing the Capital Markets Authority, and they are as follows:
Formation of the arbitral tribunal
The executive regulation of the law establishing the Capital Markets Authority clarifies the mechanism for appointing the arbitrator, as it stipulates that each of the two parties to the dispute, even if there are more than one party, has the right to choose an arbitrator for him from among the arbitrators registered in the list of the Capital Markets Authority or others within five working days from the date of notifying the Authority of this and in the event that none of them chooses the arbitrator on his behalf, the Capital Markets Authority shall appoint the arbitrator with the role from among the arbitrators registered in its roll according to the nature of the dispute.
The Capital Markets Authority shall appoint the weighted arbitrator who holds the role or other arbitrators from the list of arbitrators registered with the Authority within three working days in consultation with the arbitrators of the two parties.
In cases of disputes of a special nature arising from securities transactions that take place in the stock exchange, the Capital Markets Authority shall choose the arbitration panel within seven working days from the date of applying the arbitration request.
Arbitration Dispute Fees and Charges
Determining the fees and charges of arbitrators
The fees and charges in the arbitration dispute shall be determined in accordance with the fees schedule approved by the Capital Markets Authority, and the fees shall be paid equally between the two parties to the arbitration within five working days from the date of their notification thereof.
Refusal of the appellant to pay the arbitrator’s fees
In the event the defendant refuses to pay his share of those fees, the matter shall be presented to the defendant to pay them in case he wishes to continue the procedures, within three working days from the date of notification of the other party’s abstention, and it shall be disposed of to the arbitrator as soon as the judgment ending the dispute is issued and handed over to the Capital Markets Authority and in all cases if The specified periods lapse without depositing these fees. The Commission issues a decision to keep the arbitration file.
The minimum fee of 500 Kuwaiti dinars applies to disputes of a special nature arising from securities transactions that take place in the Stock Exchange, regardless of the value of the arbitration dispute.
Resignation and removal of the arbitrator
The arbitrator may not step down after accepting the task of arbitration unless there are serious reasons for his stepping down, which are estimated by the Capital Markets Authority based on a request submitted to it by the arbitrator. Otherwise, the litigants may resort to the judiciary to award him compensation.
The arbitrator may not be dismissed except with the consent of all the litigants, and in the event that the arbitrator is unable to perform his task, does not perform it, or stops performing it, leading to an unjustified delay in the arbitration procedures, the Capital Markets Authority may terminate his task upon a reasoned request submitted by one of the arbitration parties.
Reasons for the arbitrator’s response
The arbitrator may not be challenged except for the reasons stated by the judge in accordance with the Kuwaiti Civil and Commercial Procedures Law, or if circumstances arise that raise serious doubts about his impartiality or independence. arise after it was set.
Submitting a request for the arbitrator’s response
The request for dismissal of the arbitrator shall be submitted to the court originally competent to hear the case, indicating the reasons for the response and its circumstances, within five working days from the date of the respondent’s announcement of the arbitrator’s disclosure or from the date of his knowledge of the reason for the response, and the Capital Markets Authority shall notify the relevant arbitrator of the response request.
Consequences of submitting an application to dismiss the arbitrator
Submitting a request to dismiss the arbitrator does not result in stopping the arbitration proceedings, and if a decision is made in the request to dismiss the arbitrator, the procedures that took place before the ruling to dismiss the arbitrator shall be considered as if they had not been.
Replacing the arbitrator
The executive regulations of the law establishing the Capital Markets Authority stipulated that in the event of a ruling dismissing the arbitrator, stepping down, removing or ending the arbitrator’s mission, a replacement shall be appointed with the same procedures that were followed when appointing him.
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