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

Under the exchange arbitration mechanism, an investor is dissatisfied with an arbitral award made by the arbitrators. What is the usual next recourse within the exchange framework?

The aggrieved party can file an appeal before the appellate arbitration panel of the exchange. Exchange bye-laws and rules provide this second tier within the specified time limit and conditions, after which further remedy lies in courts under the Arbitration and Conciliation Act.

  1. AFile an appeal before the appellate arbitration panel of the exchangeCorrect
  2. BAsk the broker to cancel the award
  3. CApproach the depository participant
  4. DSeek re-trading of the disputed transaction

Explanation

Exchange bye-laws provide for an appellate arbitration where a party dissatisfied with the first arbitration award can appeal within a prescribed period, subject to a deposit conditions. The other options have no role in challenging an award.

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