Moreover, payment from investor protection fund would not be available to MFDs "not implementing the arbitration award".
Top stock exchange BSE today said it will extend its conciliation and arbitration facility to deal with disputes between investors and mutual fund distributors.
BSE had provided detailed operating procedure for mutual fund distributors (MFDs) wherein the exchange had decided to extend necessary support for speedy redressal of any disputes.
Accordingly, in a circular, BSE said it would "extend conciliation and arbitration mechanism to deal with disputes between investor and mutual fund distributors (MFDs)/mutual fund intermediaries (MFIs) in line with existing practice".
The exchange said all disputes between the investor and MFDs/MFIs shall be referred to conciliation committee.
In case conciliation is not possible, the parties could avail of the arbitration mechanism of the exchange.
The existing panels of investors grievance redressal committee (IGRC) and arbitrators appointed by BSE only would be eligible to hear matters relating to disputes between investors and MFDs/MFIs.
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