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

An investor is dissatisfied with an arbitration award passed by the exchange's arbitrators. What is the usual next step available under the exchange framework?

The usual next step is to file an appeal before the exchange's appellate arbitration panel within the prescribed time limit. A fresh SCORES complaint does not replace an award, and neither the broker nor the clearing corporation has power to cancel or reverse it.

  1. AFile an appeal before the appellate arbitration panel of the exchange within the prescribed timeCorrect
  2. BFile a fresh complaint on SCORES, which replaces the award
  3. CAsk the broker to cancel the award
  4. DApproach the clearing corporation to reverse the award

Explanation

The exchange framework provides for an appeal to an appellate arbitration panel within the prescribed time limit after the first award. A SCORES complaint does not override an award, and the broker or clearing corporation cannot cancel it.

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