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

A client's complaint against a stock broker is received by the exchange through SCORES, and the exchange forwards it to the broker. Which statement about the broker's obligation is most accurate?

The broker must file an action taken report on the platform within the prescribed timeline, and failure to do so can lead to escalation and regulatory consequences. There is no complaint value threshold, fee or physical hearing needed before the broker must respond.

  1. AThe broker must respond with an action taken report within the timeline prescribed, failing which the matter may escalateCorrect
  2. BThe broker may ignore it if the client has not paid a fee
  3. CThe broker can respond only after the investor attends a physical hearing
  4. DThe broker need respond only if the complaint is above ₹1 lakh

Explanation

Intermediaries must upload an action taken report on SCORES within the prescribed timeline; failure to do so can lead to escalation and regulatory action. There is no fee or value threshold for lodging a complaint, and no physical hearing precondition.

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