Skip to content

NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

Investor Grievance Redressal and Services in Depository Operations

Updated 11 October 2026 · Fact-checked

Investor grievance redressal is the escalation route for a demat complaint. You first complain to the depository participant (DP), then escalate to the depository, and you can also lodge it on SEBI SCORES. Unresolved disputes can go to arbitration. DPs must also send account statements at the prescribed intervals.

Understand Investor Grievance Redressal and Services

A demat account holder (beneficial owner, or BO) deals mainly with a DP, not with NSDL or CDSL directly. So most complaints start at the DP: a delayed transfer, a wrong debit, a missing corporate benefit, an unexplained charge or a statement that never arrived.

The system works as a ladder. Step one is the DP's own grievance process. If the DP does not solve it, the investor can go to the depository, which supervises its DPs and has an investor grievance cell. The investor can also lodge the complaint on SEBI SCORES (SEBI Complaints Redress System), the web-based system run by SEBI. The complaint is sent to the entity concerned, which must upload an action taken report. The investor can track the status online.

If a dispute cannot be settled by this route, the depositories' bye-laws and business rules provide for arbitration between the investor and the DP. Arbitration is a formal, binding settlement route and is different from a simple complaint.

Services are the other half of the topic. The DP must give the BO a copy of the account opening agreement and the rights and obligations document, and must send periodic statements. A transaction statement lists the debits and credits in a period. A holding statement lists the balances held on a date. The BO can ask for a statement at any time. The DP must also keep a record of complaints received and how they were resolved.

In the exam, questions test who you go to first, what SCORES is, what arbitration is for, and how often statements must be sent. Learn the order and the purpose of each tool.

Key formulas to remember

Escalation order
BO → DP → Depository → SEBI SCORES / arbitration
The DP is the first point of contact. SCORES is SEBI's online system. Arbitration is the route for disputes that remain unresolved.
SCORES
SCORES = SEBI Complaints Redress System (web-based, centralised)
The entity complained against uploads an action taken report. The complainant can track the status online.
Transaction statement
Transaction statement: at least monthly if the account had transactions in the period
The BO can ask for it more often. Check the exact interval in the current workbook before the exam.
Holding statement
Holding statement: periodic statement for accounts with balances but no transactions
The interval is longer than for transaction statements. Confirm the exact period (half-yearly, as the workbook states it) in the latest workbook.
Arbitration
Arbitration = binding dispute settlement under depository bye-laws
It is used between the BO and DP when a complaint cannot be resolved. It is not the same as filing a complaint.

How to solve Investor Grievance Redressal and Services questions

Use this method on any question about complaints, arbitration or statements.

  1. 1Identify what is asked: a complaint route, a body's role, a timeline or a statement type.
  2. 2If it is a complaint question, apply the ladder: DP first, then depository, then SCORES, with arbitration for unresolved disputes.
  3. 3If SCORES is mentioned, recall that it is SEBI's online system and that the entity uploads an action taken report.
  4. 4If it is a statement question, decide between transaction statement (movements) and holding statement (balances).
  5. 5Check the condition in the question: were there transactions in the period, or only a balance?
  6. 6Eliminate options that skip the DP or make the depository the first contact.
  7. 7Pick the option that matches the rule exactly, and watch words like 'only', 'always' and 'never'.

Quickest way: Ladder and statement check

When to use it: Use it when you have under a minute for a one-mark question on grievances or statements.

  1. Say 'DP, depository, SCORES, arbitration' and see which step the question targets.
  2. Say 'movements = transaction, balances = holding'.
  3. Look at whether the account had transactions in the period.
  4. Reject any option that sends the BO straight to arbitration or court first.

Common mistakes in Investor Grievance Redressal and Services

  • Saying the investor must approach the depository first.

    NSDL and CDSL are well known, so students assume they are the first contact.

    Fix: The DP is the BO's service provider. Start there. The depository is the next level.

  • Treating SCORES as a court or a tribunal.

    It is a SEBI system, so students assume it gives binding rulings.

    Fix: SCORES is an online complaint and tracking system. It forwards the complaint to the entity, which reports action taken.

  • Confusing arbitration with a complaint.

    Both deal with disputes and the words are used loosely.

    Fix: A complaint is an informal request to resolve an issue. Arbitration is a formal dispute settlement process under the bye-laws.

  • Mixing up transaction and holding statements.

    Both are called account statements.

    Fix: Transaction statement shows debits and credits. Holding statement shows balances. Link each to the question wording.

  • Quoting a statement frequency from memory without the condition.

    Frequency depends on whether there were transactions, and students drop that detail.

    Fix: Always attach the condition: with transactions, the transaction statement is periodic and at least monthly. Without them, the longer-interval holding statement applies. Verify intervals in the latest workbook.

  • Assuming the DP can refuse a statement if the BO asks for one.

    Students remember only the scheduled intervals.

    Fix: The BO can request a statement at any time. The DP may charge for extra statements as per its tariff.

Worked examples

Example 1

A BO's off-market transfer was wrongly debited and the DP has not resolved the complaint. Which is the correct sequence of escalation?

A. Arbitration, then the DP, then SCORES
B. The DP, then the depository or SEBI SCORES, then arbitration if unresolved
C. SCORES only, with no contact with the DP
D. The issuer company, then the stock exchange

Show the solution
  1. The complaint is against the DP, so the DP is the first point of contact.
  2. If the DP does not resolve it, the BO can escalate to the depository or lodge it on SEBI SCORES.
  3. If the dispute is still unresolved, arbitration under the bye-laws is available.
  4. Option A reverses the order. Option C skips the DP. Option D names bodies that do not handle DP service complaints.

Answer: B

Example 2

Which statement tells a BO the securities held in the account on a particular date?

A. Transaction statement
B. Holding statement
C. Action taken report
D. Delivery instruction slip

Show the solution
  1. The question asks about balances on a date, not movements.
  2. A transaction statement lists debits and credits in a period, so A is wrong.
  3. A holding statement lists the securities held and their balances, so B fits.
  4. An action taken report is the entity's reply on SCORES, and a delivery instruction slip is used to give transfer instructions. Neither is a statement of holdings.

Answer: B. Holding statement

Exam tips

  • Learn the order of escalation as a fixed chain. Many options are built by reordering it.
  • Know the difference between a complaint (SCORES) and a dispute settlement (arbitration).
  • Link each statement type to its content and to the condition on transactions. Check the exact intervals in the latest workbook.
  • NISM-Series-VI has negative marking of 25% of the marks of a question. If two options look right, pick the one that follows the DP-first rule.
  • Be careful with absolute words such as 'only' and 'always' in options. Rules on this topic usually have conditions.

Practice questions from Investor Services (NISM VI)

Investor Grievance Redressal and Services in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Investor Grievance Redressal and Services: frequently asked questions

How do I file a complaint against a depository participant?

Write to the DP first and keep a copy or acknowledgement. If it is not resolved, you can approach the depository or lodge the complaint on SEBI SCORES. Keep the account details and transaction proof ready.

What is SEBI SCORES?

SCORES is SEBI's web-based complaint redress system. You lodge a complaint online, it is sent to the entity concerned, and the entity uploads an action taken report. You can track the status online.

What is the difference between a transaction statement and a holding statement?

A transaction statement shows debits and credits over a period. A holding statement shows what the account holds on a date. Their frequency depends on whether the account had transactions in the period.

When is arbitration used for demat disputes?

Arbitration is the formal route under the depository bye-laws for disputes between a BO and a DP that are not settled through the complaint process. It is separate from a SCORES complaint.