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

Mr. Iyer filed an arbitration reference against his broker, and the arbitrators passed an award against him. He is dissatisfied and wishes to challenge it under the exchange mechanism. Which statement is correct?

Mr. Iyer may appeal to the appellate arbitration panel of the exchange within the prescribed time limit, meeting the deposit and fee conditions set by the rules. The award is not replaced by a fresh SCORES complaint, and appeals are not barred altogether.

  1. AHe may file an appeal before the appellate arbitration panel within the prescribed time limit, usually accompanied by a deposit as per the rulesCorrect
  2. BHe can only approach the broker for a fresh award
  3. CNo appeal is possible under any circumstances
  4. DHe must file a new complaint on SCORES, which replaces the award

Explanation

Exchange arbitration rules permit a party aggrieved by an award to file an appeal before an appellate arbitration panel within the prescribed period, subject to conditions such as deposit of part of the award amount or a fee. Awards are not wiped out by a SCORES complaint, and the broker cannot issue a fresh award.

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