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NISM Certifications · NISM-Series-VIII: Equity Derivatives · Sales Practices and Investors Protection Services

Which of the following is the investor grievance route normally followed first when a client has a complaint against a trading member relating to derivatives trades?

The client should first complain to the trading member, then escalate to the exchange's investor service centre or SEBI's SCORES platform. Courts directly, delayed arbitration or the RBI ombudsman are not the standard route for broker grievances.

  1. AFiling a writ petition directly in the Supreme Court
  2. BLodging the complaint with the trading member, then with the exchange's investor service centre or SEBI SCORESCorrect
  3. CApproaching the clearing corporation's arbitration only after five years
  4. DComplaining to the RBI ombudsman

Explanation

Investors first approach the member, then escalate to the exchange's investor grievance mechanism or lodge it on SEBI's SCORES platform. Arbitration is available under exchange rules within prescribed limits, not after five years, and the RBI ombudsman handles banking matters.

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