If you’re dealing with a dispute involving your stockbroker or trading member and are now thinking of filing an arbitration, then it is important to get an answer to a question like- how long does the arbitration decision take?
Although arbitration is significantly faster than traditional court proceedings, but complete investigation of the case can lead to some delays.
Understanding the expected timelines helps you stay informed, follow up effectively, and protect your rights.
This blog explains the average time taken for arbitration decisions under SEBI-regulated exchanges in India (like NSE and BSE), the steps involved, and how you can avoid unnecessary delays.
How Long Does Arbitration Decision Take in Indian Stock Market?
The purpose of arbitration is to provide you with clean and fair justice for the case related to a registered stockbroker, advisory, or listed company. Hence, the time of resolution may vary.
However, as per the standard protocol, the arbitration decision depends upon the time involved in the appointment of an arbitrator, hearing, case processing & dispatching of final results.
Each step has a specific deadline.
Here’s a breakdown of the standard timelines based on SEBI’s master circulars and guidelines issued by stock exchanges:
1. Filing to Appointment of Arbitrator
Time taken: Up to 30 days
Once the arbitration application is submitted with proper documentation and the fee, the exchange typically appoints an arbitrator within 30 days.
2. Hearings and Case Processing
Time taken: Up to 90 days
The arbitrator conducts hearings, examines documents, and reviews arguments from both parties.
In most cases, the decision (arbitral award) is issued within 90 days of the arbitrator’s appointment.
3. Dispatch of the Final Award
Time taken: Within 15 days
Once the award is passed, the arbitrator submits it to the exchange, which then dispatches it to both parties within 15 days.
Based on the above timeline and internal meetings, in most cases, 4-6 months from the date of filing is taken to deliver arbitration decisions in the stock market.
This can vary depending on case complexity and the cooperation of both parties.
What Causes Delay in Arbitration Proceedings?
Although timelines are clearly defined, certain situations can extend the duration of the case:
- Incomplete or delayed submission of documents
- Non-appearance by either party at hearings
- Requests for multiple adjournments
- Complexity of the claim
- Delay in arbitrator availability or appointment (rare)
How to Ensure Timely Resolution of Arbitration in India?
To help your arbitration case proceed without unnecessary delays, follow these best practices:
- Submit complete and accurate documentation at the time of filing
- Respond promptly to all communication from the exchange or arbitrator
- Attend all scheduled hearings, or authorize a representative to do so
- Avoid requesting adjournments unless necessary
- Maintain clear records of all communication and case progress.
If you need any help in filing for arbitration or to represent you, then register with us now. We will provide end-to-end assistance in the same.
What Happens After the Arbitration Award?
Once the arbitrator issues the award:
- The losing party is expected to comply with the decision within 30 days
- If the award is not honored, the winning party can file for enforcement in civil court
- Either party may challenge the award through appellate arbitration, but this must be done within 30 days of receiving the original decision
Arbitration Timelines in Indian Stock Market
| Stage | Expected Duration |
|---|---|
| Filing to Arbitrator Appointment | Up to 30 days |
| Hearings and Award Decision | Up to 90 days |
| Dispatch of Final Award | Within 15 days |
| Compliance with Award | 30 days post-decision |
| Appeal Filing (if applicable) | Within 30 days |
Conclusion
So, how long does an arbitration decision take? Typically, four to six months, but this depends on case preparation, responsiveness, and adherence to the process.
Stock exchange arbitration is designed to offer investors and intermediaries a fair and efficient dispute resolution mechanism, without the delays of traditional courts.
However, sometimes two parties resolve it mutually, which leads to the termination of arbitration proceedings between them. The two parties settle the dispute between themselves without involving arbitrators.
In case, you didn’t get claim as settled, you can reclaim the arbitration within the limitation period of 3 years.
If you’re planning to file arbitration or already have a case in progress, staying proactive can make a big difference in how quickly and successfully your dispute is resolved.
Need help preparing your arbitration documents or understanding the process? We support investors through every stage — from filing to enforcement. Fill in your details below and we will contact you soon to assist you with the process.
