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

Mr. Iyer's claim against his broker is Rs 8 lakh and he files for arbitration at the exchange. Dissatisfied with the arbitral award, he wants to challenge it. What is the correct next step under the exchange arbitration framework?

Mr. Iyer should appeal to the exchange's appellate arbitral panel within the prescribed time limit. The framework provides a two-tier arbitration structure, so a dissatisfied party challenges the first award through appeal rather than filing a new arbitration or approaching a risk committee.

  1. AFile an appeal before the appellate arbitral panel of the exchange within the prescribed timeCorrect
  2. BFile a fresh arbitration with the same panel
  3. CComplain to the clearing corporation's risk committee
  4. DAsk the broker to refund the amount voluntarily as the only option

Explanation

The exchange framework provides an appellate arbitration stage: a party aggrieved by the first award may appeal to the appellate panel within the prescribed time limit. Re-filing before the same panel is not permitted, and the clearing corporation risk committee does not hear such disputes.

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