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

A beneficial owner (BO) is unhappy with the service of his Depository Participant (DP) and wants to complain. Which is the correct first step in the usual grievance route for a depository investor?

The investor should first file a written complaint with the Depository Participant. The DP is the front-line service provider and must try to resolve the grievance. If it is unresolved, escalation to the depository and SEBI's SCORES platform follows.

  1. AFile a written complaint with the DP and seek resolution thereCorrect
  2. BFile a writ petition directly in the High Court
  3. CApproach the Income Tax department
  4. DWrite to the issuer company's auditor

Explanation

The usual route is to first lodge the complaint with the DP, which is expected to redress it. If unresolved, the investor can approach the depository and then use SEBI's SCORES platform. Courts, tax authorities and auditors are not the first step for a service complaint against a DP.

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