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NISM Certifications · NISM-Series-VIII: Equity Derivatives · Legal and Regulatory Environment

A client trades Nifty futures through a broker and has a dispute with the broker over the trade. Which of the following is the appropriate first step to resolve the dispute under the investor protection framework?

The client should first raise the complaint with the broker, and if unresolved, use the exchange's investor grievance mechanism or SEBI's SCORES platform. Arbitration can follow later. Going directly to the Supreme Court, police or the RBI Ombudsman is not the standard first step for a broker dispute.

  1. AApproach the Supreme Court directly
  2. BLodge a complaint with the broker and, if unresolved, with the exchange's investor grievance mechanism, including through the SEBI SCORES platformCorrect
  3. CWait until the contract expires and then file a police complaint
  4. DApproach the RBI Ombudsman

Explanation

The investor should first complain to the broker, and if not resolved can approach the exchange's investor service and grievance mechanism or lodge a complaint on SEBI's SCORES platform. Subsequently arbitration may follow. Courts, police and the RBI Ombudsman are not the first routes for broker disputes.

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