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

Under the exchange arbitration mechanism, a client who is dissatisfied with an arbitration award passed by the arbitrators may generally do which of the following?

A dissatisfied party can file an appeal before the exchange's appellate arbitration panel within the prescribed time limit, complying with the applicable deposit requirements. The other options, such as asking the broker to reverse the award, are not recognised remedies within the arbitration mechanism.

  1. AFile an appeal before the appellate arbitration panel within the prescribed time limit, subject to the applicable deposit rulesCorrect
  2. BDirectly ask the trading member to reverse the award
  3. CSeek a new SEBI registration for the broker
  4. DRequest the depository to settle the award from the client's demat account

Explanation

Exchange bye-laws provide an appellate arbitration stage. A party aggrieved by the first award can appeal within the prescribed time, with the specified deposit, before a larger appellate panel. Reversal by the member, new registration or depository settlement are not parts of the process.

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