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

An investor wants to take a dispute with a stock broker to the exchange's arbitration mechanism. Which kind of dispute is generally eligible?

Disputes arising out of dealings, transactions or contracts made on the exchange between a client and the trading member are eligible for exchange arbitration. Matters like family property, tax assessments or trades on unrelated platforms are outside its scope.

  1. AA claim, difference or dispute arising out of dealings, transactions or contracts made on the exchange between the client and the memberCorrect
  2. BA dispute about the personal family property of the investor
  3. CA dispute on a trade done on a different, unrelated commodity platform with no link to the member
  4. DA dispute purely about the investor's income tax assessment

Explanation

Exchange arbitration covers claims, differences or disputes arising from dealings, transactions or contracts made on the exchange between the client and the member. Family property and tax assessments are unrelated to exchange trades, and an unrelated platform falls outside this exchange's remit.

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