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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Grievance Redress Mechanism

Mr. Raghunath Iyer, a client, complains to his investment adviser that a recommended product was unsuitable. Which step should the adviser primarily follow first under good grievance handling practice?

The adviser should acknowledge the complaint, record it in the complaint register and resolve it within the prescribed timeline. Good grievance handling requires prompt internal action, not discouraging the client, ignoring the complaint, or merely forwarding it to the regulator.

  1. AAcknowledge the complaint, record it in the complaint register and work to resolve it within the prescribed timelineCorrect
  2. BAsk the client to withdraw the complaint before any inquiry
  3. CForward it to SEBI and take no further action
  4. DIgnore it until the client approaches SCORES

Explanation

An adviser should have an internal grievance process: acknowledge, record, investigate and respond within timelines. Pressuring withdrawal, ignoring, or passing it on without action violates good practice and regulatory expectations.

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