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NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

Mr. Raghunath Iyer, a beneficiary owner, is dissatisfied with the way his Depository Participant handled his complaint about delayed credit of shares. Where may he escalate the grievance after the DP fails to resolve it?

The investor can escalate the complaint to the depository, because depositories maintain a grievance redressal mechanism for complaints against their Depository Participants. The Registrar of Companies, tax tribunal or company auditor do not handle DP service grievances, so they are not the appropriate forum.

  1. ADirectly to the Registrar of Companies
  2. BTo the depository, which can look into complaints against its DPsCorrect
  3. CTo the Income Tax Appellate Tribunal
  4. DTo the issuer company's statutory auditor

Explanation

A client unhappy with a DP's response can approach the depository, which has a grievance mechanism for complaints against its participants. The Registrar of Companies, the tax tribunal and the auditor have no role in resolving DP service complaints.

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