NISM Certifications · NISM-Series-VIII: Equity Derivatives · Sales Practices and Investors Protection Services
Which of the following is a client protection service available to investors in the derivatives segment if a dispute with a trading member arises?
An investor can complain to the exchange's investor service centre and, if unresolved, proceed to arbitration under exchange rules. Bank branch managers, issuing companies or employers have no role in settling disputes with a trading member.
- AComplaint to the exchange's investor service centre, followed by arbitrationCorrect
- BDirect appeal to the clearing bank's branch manager
- CReference to the stock's issuing company
- DComplaint only to the client's employer
Explanation
Investors can lodge complaints with the exchange's investor services mechanism, and disputes can go to arbitration under exchange rules. The other options have no role in resolving broker-client disputes.
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