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

Mr. Iyer wants to file an arbitration reference against his stockbroker for a trade dispute. Which condition is generally necessary for the exchange to entertain the reference?

The reference must be filed within the limitation period prescribed under exchange rules, counted from the date of the event that caused the dispute. Claims cannot be filed at any time, need no admission by the broker, and have no Rs 1 crore minimum threshold.

  1. AThe claim must be filed within the limitation period prescribed, counted from the date of the dispute-causing eventCorrect
  2. BThe claim can be filed at any time without any time limit
  3. CThe claim can be filed only after the broker admits the dispute in writing
  4. DThe claim can be filed only if the amount exceeds Rs 1 crore

Explanation

Arbitration references must be filed within the limitation period prescribed by the exchange rules, aligned with the Limitation Act, from the date of the event giving rise to the dispute. There is no unlimited window, no need for the broker's admission, and no crore-level minimum.

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