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

An investor's complaint against a trading member has not been resolved by the member. Under the exchange's investor grievance framework, what is the usual next step before the dispute can proceed to arbitration?

The investor first lodges the complaint with the exchange's investor services cell, which tries to resolve it with the member. If that fails, the dispute can proceed to the exchange's conciliation or arbitration mechanism. Court cases, cancellation of registration or depository reversals are not prerequisite steps.

  1. AComplaint is lodged with the exchange's investor services cell, which attempts resolution, and if unresolved the matter can go to conciliation or arbitrationCorrect
  2. BThe investor must directly file a criminal case in the High Court
  3. CThe investor must wait for the clearing corporation to cancel the member's registration
  4. DThe investor must apply to the depository for reversal of the trade

Explanation

The exchange's investor services cell first takes up the complaint and tries to get it resolved. If that fails, the dispute can be taken to the exchange's conciliation or arbitration mechanism. The other steps are not required prerequisites and are not part of the framework.

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