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

An investor is unhappy with a stockbroker's resolution of a dispute about a trade. Under the SEBI framework for online dispute resolution, what is the usual sequence of escalation?

The investor first complains to the intermediary, then escalates on SCORES if not resolved, and finally can use the online dispute resolution platform for conciliation and arbitration. Bypassing the intermediary or waiting for a court decree is not the prescribed escalation sequence.

  1. AComplaint to the intermediary first, then SCORES, and then the online dispute resolution (ODR) platform if still unsatisfiedCorrect
  2. BDirect filing in the ODR platform, bypassing the intermediary and SCORES
  3. CApproach SEBI chairman in writing, then the intermediary
  4. DFile a complaint with the stock exchange only after a civil court decree

Explanation

The investor first approaches the intermediary's grievance channel. If unresolved, the complaint can be raised on SCORES, and thereafter the investor may go to the ODR platform (conciliation and arbitration). Skipping the intermediary step or requiring a court decree is not the prescribed sequence.

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