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

Under the exchange arbitration mechanism for disputes between a client and a trading member, a party dissatisfied with the arbitral award can take which next step within the exchange framework?

The dissatisfied party can file an appeal before the appellate arbitration panel of the exchange within the prescribed time. The exchange rules provide this second tier after the first arbitral award. Depositories, risk committees and the Registrar of Companies do not hear such appeals.

  1. AFile an appeal before the appellate arbitration panel of the exchangeCorrect
  2. BSeek a review from the clearing corporation's risk committee
  3. CAsk the depository to reverse the award
  4. DApproach the Registrar of Companies

Explanation

Exchange rules provide for an appellate arbitration after the first arbitration award, with the appeal filed within the prescribed time limit and with the prescribed deposit. Clearing corporation risk committees, depositories and the RoC have no role in deciding such appeals.

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