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

Ms. Kavita Rao, a client, wants to know where an investment adviser must record details of complaints received. Which practice is consistent with record-keeping expectations under the SEBI (Investment Advisers) Regulations?

An adviser must maintain records of complaints received and the action taken, along with other client records, for the prescribed period so they can be inspected. Deleting resolved complaints, keeping them only for institutions, or publishing them to clients is not consistent with the regulations.

  1. AMaintain records of complaints received and actions taken, along with other client records, for the prescribed periodCorrect
  2. BDelete complaint records once resolved to keep files clean
  3. CKeep complaint records only if the client is an institution
  4. DShare complaint records publicly with all clients

Explanation

Advisers must keep records, including those on complaints and their redress, for the period specified in the regulations so that SEBI can inspect them. Deleting them or limiting retention by client type defeats this purpose, and public sharing breaches confidentiality.

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