Skip to content

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

An investor wants to raise a dispute with a trading member about a trade done in 2015. Arbitration claims before the exchange are subject to which of the following conditions?

The reference must be filed within the limitation period under exchange rules, which is generally three years from when the cause of action arose. A very old dispute would normally be time-barred, so the claim could not succeed in exchange arbitration.

  1. AThere is no time limit for filing arbitration
  2. BThe reference must be filed within the limitation period prescribed (generally three years from the date the cause of action arose) under the exchange rulesCorrect
  3. CThe claim can only be filed on the same day as the trade
  4. DOnly claims above Rs 1 crore are accepted

Explanation

Exchange rules require the arbitration reference to be filed within the limitation period, which follows the Limitation Act, generally three years from the cause of action. Hence a claim on a trade many years old would normally be time-barred. The other options are not the rule.

Did you get it right without looking?

One question tells you little. A timed set on Investor Grievances and Arbitration shows your real accuracy, how long you take and where you lose marks.

Practise Investor Grievances and ArbitrationFree diagnostic mock

More Investor Grievances and Arbitration questions