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

Mrs. Iyer, a BO, has a complaint against her DP that the DP has not resolved despite repeated representations. Which is the correct next step in the grievance route for a depository-related complaint?

Mrs. Iyer can escalate to the depository, which takes up the complaint with the DP and offers grievance redress and arbitration if needed. The registrar and clearing corporation do not handle DP service complaints, and there is no mandatory multi-year waiting period.

  1. AApproach the depository, which can take up the complaint with the DP and, if needed, use its arbitration/grievance mechanismCorrect
  2. BWait for three years before any complaint can be considered
  3. CFile the complaint only with the issuer company's registrar
  4. DApproach the stock exchange clearing corporation only

Explanation

If the DP does not redress a complaint, the BO can escalate to the depository, which follows up with the DP and offers its grievance and arbitration mechanisms. The registrar and clearing corporation are not the forums for a DP service complaint, and no three-year waiting rule applies.

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