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

An investor's complaint on SCORES against an intermediary is not resolved satisfactorily by the intermediary. Which statement about the next step under SEBI's ODR mechanism is most accurate?

An investor unhappy after the intermediary and SCORES stages can start dispute resolution on the SEBI ODR portal, where an empanelled institution first attempts conciliation and, failing that, arbitration.

  1. AThe investor may initiate dispute resolution on the ODR portal, which involves conciliation and, if needed, arbitration by a empanelled institutionCorrect
  2. BODR can be used only before lodging any complaint with the intermediary
  3. CODR decisions are never binding and cannot be enforced
  4. DODR replaces SCORES entirely and SCORES is closed

Explanation

After approaching the intermediary and SCORES, an unsatisfied investor can use the ODR portal, where a market participant institution conducts conciliation and, if that fails, arbitration. ODR is a further step, not a precondition, and it does not abolish SCORES.

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