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

Under the exchange arbitration framework, an investor who is aggrieved by an arbitral award passed by the arbitrators and wants to challenge it first approaches which of the following?

The aggrieved investor first approaches the appellate arbitration panel of the exchange. Exchange rules allow an appeal against the original award to a fresh panel of arbitrators, before the party seeks any further remedy through courts under the Arbitration and Conciliation Act.

  1. AThe Local police station
  2. BAppellate arbitration panel of the exchangeCorrect
  3. CThe depository's compliance officer
  4. DThe stock broker's principal officer

Explanation

Exchange rules provide an appellate arbitration stage, with a bench of arbitrators different from those who passed the original award, before further court remedies under the Arbitration and Conciliation Act. The other options have no role in reviewing awards.

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