Skip to content

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

Ms. Rao's complaint against her broker on SCORES was not resolved to her satisfaction. She now wishes to take the matter to a forum that settles disputes between investors and intermediaries through a neutral third-party process under SEBI's framework. Which is the correct option?

She should use the SEBI-framework online dispute resolution platform, where the dispute goes through conciliation and then arbitration if needed. SAT hears appeals against SEBI orders, the RBI Ombudsman handles banking complaints, and a depository compliance officer cannot issue binding awards against brokers.

  1. AOnline dispute resolution (ODR) platform for the securities market, using conciliation and then arbitrationCorrect
  2. BDirect appeal to the Securities Appellate Tribunal against the broker
  3. CPetition to RBI Ombudsman against the broker
  4. DComplaint to the depository's compliance officer for a binding award

Explanation

SEBI's framework provides an ODR platform for the securities market, where unresolved disputes proceed to conciliation and, if needed, arbitration. SAT hears appeals against SEBI orders, not disputes with brokers; the RBI Ombudsman covers banking; a depository's compliance officer cannot give binding awards in broker disputes.

Did you get it right without looking?

One question tells you little. A timed set on Investor Grievances and Arbitration shows your real accuracy, how long you take and where you lose marks.

Practise Investor Grievances and ArbitrationFree diagnostic mock

More Investor Grievances and Arbitration questions