NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Investor Grievances and Arbitration
Mr. Iyer has a dispute with his trading member about a trade on an exchange. Before filing for arbitration, which step is generally expected under the exchange's investor grievance framework?
The investor is generally expected to first approach the exchange's investor grievance or complaint mechanism. If the dispute is not settled there, the matter can be taken to conciliation or arbitration under exchange rules. The other options involve bodies with no role in resolving such disputes.
- AApproach the exchange's Investor Grievance Redressal Cell/complaint mechanism, which may refer the matter to conciliation or arbitrationCorrect
- BFile a criminal case directly with the Registrar of Companies
- CRequest the clearing corporation to cancel the trade unilaterally
- DWait for SEBI to appoint a sole arbitrator suo motu
Explanation
Investors typically lodge a complaint with the exchange's investor services/grievance mechanism, which attempts resolution and, failing that, the matter can proceed to conciliation, arbitration or mediation. Registrar of Companies has no role in trade disputes, clearing corporations do not cancel trades at a client's request, and SEBI does not appoint arbitrators suo motu.
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