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

An investor has a dispute with a trading member that was not resolved by the exchange's investor grievance cell. Which is the next step available under the exchange framework, after the complaint stage, for resolving the claim?

The next step is to refer the dispute to arbitration under the exchange's bye-laws, rules and regulations. After the grievance cell stage, the exchange framework provides arbitration as the formal mechanism for resolving claims between investors and trading members, rather than direct court action or deregistration.

  1. AFiling a case directly in the Supreme Court
  2. BApproaching the exchange's Investor Service Centre only again
  3. CReferring the dispute to arbitration under the exchange's bye-laws and rulesCorrect
  4. DAsking the clearing corporation to cancel the member's registration

Explanation

Exchanges provide a dispute resolution path of complaint, then conciliation/mediation where available, then arbitration under their bye-laws. Going straight to the Supreme Court is not the prescribed step, and cancelling registration is a SEBI disciplinary matter, not a dispute remedy.

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