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

An investor wishes to file an arbitration reference against a broker for a dispute arising from trades on the exchange. Within what period from the date of the dispute-causing event must the reference ordinarily be filed under the exchange arbitration mechanism?

An arbitration reference against a broker must ordinarily be filed within three years from the date of the event that caused the dispute. This follows the limitation period under the Limitation Act, which exchange arbitration rules adopt.

  1. AWithin three yearsCorrect
  2. BWithin six months
  3. CWithin thirty days
  4. DWithin ten years

Explanation

Under the exchange arbitration rules, which follow the limitation period of the Limitation Act, an arbitration reference must be filed within three years from the date of the event giving rise to the dispute. Shorter periods such as six months or thirty days are not the standard limit.

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