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

A client has a dispute with a trading member over a trade on the exchange. Before approaching arbitration, which step is generally required under the exchange's investor grievance framework?

The client should first lodge the complaint with the exchange's investor grievance or services cell. The exchange takes it up with the trading member and tries to resolve it, including through conciliation or mediation. Only if that fails does the dispute usually proceed to the arbitration mechanism.

  1. AFiling a writ petition in the High Court
  2. BLodging the complaint with the exchange's Investor Services Centre/grievance cell, which attempts resolution or mediationCorrect
  3. CMaking a complaint to the Ministry of Finance only
  4. DApproaching the clearing corporation's settlement guarantee fund committee

Explanation

Exchanges have investor service centres/grievance cells that first take up the complaint with the member and try to resolve it, including through conciliation or mediation. If it is not resolved, the client may go for arbitration. The other options are not the standard first step.

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