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

A client disputes a trade executed on the exchange and, after the broker's internal grievance process fails, wants to approach the stock exchange's investor grievance mechanism. Which sequence correctly describes the usual order of redress at the exchange?

The usual order is complaint resolution at the exchange first, then conciliation or mediation, and finally arbitration if the dispute is still unresolved. Arbitration is a formal, later step, and the investor retains further appellate rights afterwards rather than going directly to the Supreme Court.

  1. AArbitration first, then complaint resolution, then mediation
  2. BComplaint resolution, then conciliation or mediation, then arbitrationCorrect
  3. CArbitration, then appeal to the Supreme Court directly
  4. DMediation only, with no further recourse

Explanation

At the exchange level, the investor first lodges a complaint for resolution with the exchange's investor services. If that fails, the dispute can go to conciliation or mediation, and then to arbitration. Arbitration is therefore the later formal step, not the first; direct Supreme Court appeal is not the normal route.

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