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

Ms. Rao, a client of an adviser, wishes to complain about a stock exchange member's broker. To which body can she direct a complaint for redress in the first instance, apart from the broker itself?

She can complain to the stock exchange where the broker is a member, since exchanges operate investor grievance redress mechanisms for complaints against their trading members. The RBI's monetary policy committee, the Income Tax Appellate Tribunal and the Registrar of Companies do not handle such broker complaints.

  1. AThe stock exchange where the broker is a member, through its investor grievance mechanismCorrect
  2. BThe Reserve Bank of India monetary policy committee
  3. CThe Income Tax Appellate Tribunal
  4. DThe Registrar of Companies only

Explanation

Stock exchanges run investor service centres and grievance redress mechanisms for complaints against their trading members. The MPC, ITAT and ROC do not deal with broker grievances of this kind.

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