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

Mr. Iyer, a client of a SEBI-registered investment adviser, alleges mis-selling of a product. As the adviser, which action best aligns with good grievance-handling practice?

The adviser should acknowledge the complaint, investigate it, respond within the prescribed timeline and maintain records. Ignoring it, pressuring the client to withdraw, or passing it on silently violates fair dealing and proper grievance-handling obligations expected of a registered investment adviser.

  1. AAcknowledge the complaint, investigate, and respond within the prescribed timeline while keeping recordsCorrect
  2. BIgnore it until the client approaches SEBI
  3. CAsk the client to withdraw the complaint in exchange for a fee waiver
  4. DTransfer the complaint to the product issuer without informing the client

Explanation

An adviser must have a grievance redress process: acknowledge, investigate, resolve within timelines and maintain records. Ignoring, pressuring withdrawal, or silently passing it on breaches fair-treatment and ethical duties.

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