Skip to content

NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Grievance Redress Mechanism

An investment adviser receives a client complaint on 1 March. The adviser's grievance policy is being designed. Which design feature is most consistent with good grievance redress practice for a SEBI-registered adviser?

A sound grievance policy records every complaint in a register, acknowledges it, resolves it within the prescribed timelines and retains evidence of action taken. Avoiding records, pressuring withdrawal or simply redirecting clients to SEBI conflicts with an adviser's duty to redress grievances properly.

  1. AHandle complaints verbally only, with no records, to avoid evidence against the firm
  2. BMaintain a complaint register, acknowledge each complaint, resolve within the prescribed timelines, and keep records of the action takenCorrect
  3. CAsk the client to withdraw the complaint before recording it
  4. DRedirect all complaints to SEBI without responding

Explanation

Good practice requires recording complaints in a register, acknowledging them, resolving them within the stipulated timelines and retaining evidence of the action taken. Discouraging or not recording complaints, or merely redirecting them, breaches the adviser's duty to redress grievances and weakens compliance.

Did you get it right without looking?

One question tells you little. A timed set on Grievance Redress Mechanism shows your real accuracy, how long you take and where you lose marks.

Practise Grievance Redress MechanismFree diagnostic mock

More Grievance Redress Mechanism questions