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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Investor Grievances and Arbitration

Ms. Rao has a grievance against her broker. Before approaching the exchange's investor grievance mechanism, which action is generally expected of her?

Ms. Rao should first lodge her complaint with the broker and, if it stays unresolved, escalate it to the exchange or SEBI through SCORES. Going to court immediately or complaining only to the depository is not the expected first step.

  1. ALodge the complaint with the broker first and escalate if unresolvedCorrect
  2. BGo directly to court without any complaint
  3. CWait for the broker to be delisted
  4. DComplain only to the depository

Explanation

Investors are generally expected to first raise the complaint with the broker and, if it remains unresolved, escalate it to the exchange or SEBI through SCORES. Directly going to court or waiting for delisting is not required, and the depository handles only depository-related issues.

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