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

Mr. Iyer, a client of a registered investment adviser, is unhappy with the advice and wants to escalate. Which sequence best reflects the usual escalation path for an investor grievance?

The usual path is to complain first to the adviser's own grievance channel, then escalate to SEBI's SCORES platform if unresolved, and finally use the Online Dispute Resolution mechanism for conciliation and arbitration.

  1. AApproach the adviser's grievance cell first, then lodge on SCORES, and then consider the Online Dispute Resolution mechanism if unresolvedCorrect
  2. BFile directly with the Supreme Court, then approach the adviser
  3. CLodge on SCORES only after ODR has failed, skipping the adviser
  4. DApproach the stock exchange investor service centre, which handles all adviser complaints

Explanation

Investors are expected to first take the complaint to the intermediary, then escalate to SCORES if unresolved, and then use the SEBI Online Dispute Resolution (ODR) mechanism for further resolution. Going directly to courts or reversing the order is not the prescribed path.

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