NISM-Series-VII: Securities Operations and Risk Management · Investor Grievances and Arbitration

Exchange Investor Service Centres and Grievance Committees (IGRC)

Updated 11 October 2026 · Fact-checked

An investor service centre is the exchange office where an investor files a complaint against a trading member. If the member does not settle it, the complaint goes to the exchange's Investor Grievance Redressal Committee (IGRC), which hears both sides and recommends a resolution. IGRC is a grievance step. Arbitration is a later, separate step.

Understand Exchange Investor Service Centres and Grievance Committees

Every stock exchange must give investors a way to complain about the trading members (brokers) who deal on it. The exchange does not trade for you. It supervises its members. So when a broker fails you, the exchange is the first place to go after the broker itself.

The investor service centre (ISC) is the exchange's front desk for investors. It receives complaints, forwards them to the trading member concerned and follows up. Many exchanges also take complaints online, but the idea is the same: the exchange acts as a facilitator between investor and member.

If the member and the investor cannot settle the matter, the dispute can go to the Investor Grievance Redressal Committee (IGRC) set up by the exchange. The IGRC is a panel that includes persons independent of the exchange's business. It looks at the complaint and the member's reply, and it tries to reach a resolution through a recommendation. It works on a grievance basis and is meant to be quick and low-cost for the investor.

Keep the order clear. First you complain to the broker. Then you approach the exchange (ISC or online). If it is not resolved, the IGRC takes it up. If the investor is still not satisfied, the dispute can move to arbitration, which is a formal process that gives a binding award. The IGRC is not arbitration.

Exam questions test who does what, the sequence of steps, and the difference between a grievance mechanism and arbitration. Precise limits, such as filing periods and amounts, change by SEBI circular, so learn them from your current NISM workbook rather than guessing.

Key formulas to remember

Escalation order: Broker → Exchange (ISC / online) → IGRC → Arbitration; Learn this as a sequence. Questions often ask what comes before or after a step.
ISC role: ISC = receive complaint + forward to member + follow up; The ISC facilitates. It does not give a binding decision.
IGRC outcome: IGRC = hearing + recommendation (grievance step); IGRC works on resolution of grievances. It is not a court and not arbitration.
Arbitration outcome: Arbitration = formal process + award; Arbitration is the formal stage after grievance resolution fails. Check the workbook for time limits and amounts.

How to solve Exchange Investor Service Centres and Grievance Committees questions

Use this method for any question on exchange-level grievance handling.

1Identify the stage the question describes: complaint to broker, complaint to exchange, IGRC hearing or arbitration.
2Ask who is acting: the investor, the trading member, the ISC, the IGRC or an arbitrator.
3Decide if the process is facilitation or recommendation (ISC, IGRC) or a formal award (arbitration).
4Check whether the question asks for sequence, role or difference, and match your answer to it.
5Eliminate options that give the exchange the role of the investor's broker, or that call IGRC an arbitration.
6If a number or time limit appears, use the NISM workbook figure. If you do not recall it, prefer the option that fits the role logic.

Quickest way: Stage-and-role check

When to use it: Use when you have under a minute for a definition or sequence question.

Match the keyword: 'receives complaint' means ISC.
'Panel hears and recommends' means IGRC.
'Binding award' means arbitration.
Pick the option that respects the order Broker → Exchange → IGRC → Arbitration.

Common mistakes in Exchange Investor Service Centres and Grievance Committees

Treating IGRC and arbitration as the same thing.
Both are dispute processes run through the exchange, so they sound alike.
Fix: Remember IGRC resolves grievances by recommendation. Arbitration is the formal stage that ends in an award.
Thinking the investor can skip the broker and go straight to the exchange.
Students assume the exchange is the main authority.
Fix: Learn the order: the member gets the first chance to resolve the complaint.
Saying the ISC decides the complaint.
The word 'centre' suggests an authority.
Fix: The ISC receives and forwards complaints and follows up. Resolution beyond that is for the member or the IGRC.
Believing the exchange is liable for the broker's wrong in every case.
Mixing grievance handling with compensation schemes.
Fix: The exchange handles the complaint process. Compensation comes from separate schemes such as the Investor Protection Fund, with their own conditions.
Quoting time limits and amounts from memory.
Figures change through SEBI circulars and are easy to mix up.
Fix: Use the current workbook figure. When unsure, choose the option that matches the role logic.

Worked examples

Example 1

An investor has a complaint against a trading member that the member has not resolved. Which body at the exchange level is set up to hear both sides and recommend a resolution before arbitration? (a) Investor service centre (b) Investor Grievance Redressal Committee (c) Clearing corporation (d) Depository participant

Show the solution

The question asks for a body that hears both sides and recommends a resolution.
The investor service centre only receives and forwards complaints, so (a) is out.
The clearing corporation handles settlement and risk, not grievances, so (c) is out.
A depository participant serves demat accounts, so (d) is out.
The IGRC is the panel that hears the matter and recommends a resolution, before arbitration.

Answer: (b) Investor Grievance Redressal Committee

Example 2

Which statement best distinguishes IGRC from arbitration? (a) IGRC gives a formal award, arbitration only forwards complaints (b) IGRC is a grievance step with a recommendation, arbitration is the formal stage ending in an award (c) Both are run only by the broker (d) Arbitration comes before the complaint to the broker

Show the solution

Recall the order: broker, exchange, IGRC, arbitration.
Option (a) reverses the roles, so it is wrong.
Option (c) is wrong because the broker is a party to the dispute, not the forum.
Option (d) breaks the order, since the broker complaint comes first.
Option (b) correctly states that IGRC recommends and arbitration issues an award.

Answer: (b) IGRC is a grievance step with a recommendation, arbitration is the formal stage ending in an award

Exam tips

Memorise the order Broker → Exchange → IGRC → Arbitration. Many questions are just this sequence in disguise.
Watch for role-swap traps: options that give the ISC a decision-making role or call IGRC an award.
On a negative-marking paper, 25% of the question's marks is lost for a wrong answer, so skip a question only if you cannot eliminate any option.
Check the current NISM workbook for time limits and amounts, since these change by SEBI circular.
Read the verb in the stem: 'receives', 'recommends' and 'awards' point to ISC, IGRC and arbitration.

Practice questions from Investor Grievances and Arbitration

Exchange Investor Service Centres and Grievance Committees: frequently asked questions

What is an investor service centre at a stock exchange?

It is the exchange's point of contact where investors lodge complaints against trading members. It forwards the complaint to the member and follows up. It facilitates and does not give a binding decision.

What does the IGRC do?

The Investor Grievance Redressal Committee hears the investor's complaint and the member's reply. It then recommends a resolution. It is a grievance step, not arbitration.

What is the difference between IGRC and arbitration?

IGRC is the grievance stage that works through hearing and recommendation. Arbitration is the formal dispute process that ends in an award. An investor normally tries the grievance route first.

Should I complain to the broker or the exchange first?

Complain to the broker first, so it has a chance to resolve the matter. If it does not, approach the exchange through the investor service centre or its online system.