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

Mr. Iyer had a dispute with his broker, lost at the arbitration stage, and wishes to appeal. Under the exchange arbitration framework, what is the usual next step?

Mr. Iyer should file an appeal before the appellate arbitrators of the exchange within the prescribed time limit. The framework provides a second arbitration level; re-filing with the same arbitrators, or approaching the clearing corporation or depository, is not the appeal route.

  1. AFile an appeal before the appellate arbitrators of the exchange within the prescribed timeCorrect
  2. BFile a fresh complaint with the same arbitrators
  3. CApproach the clearing corporation for review
  4. DRequest the depository to reverse the award

Explanation

The framework provides a first-level arbitration award and a further appellate arbitration stage at the exchange, which must be invoked within the prescribed time limit. Re-filing before the same arbitrators is not an appeal, and clearing corporations and depositories do not review arbitration awards.

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