NISM Certifications · NISM-Series-VIII: Equity Derivatives · Sales Practices and Investors Protection Services
Which statement about an investor's complaint against a trading member in the derivatives segment is correct?
An investor can complain to the exchange's investor grievance redressal system and, if the matter remains unresolved, go to arbitration. It is not limited to courts or institutions, and the investor need not approach SEBI first before using the exchange mechanism.
- AThe investor may approach the exchange's investor grievance mechanism and, if unresolved, arbitrationCorrect
- BThe investor can approach only the courts, as exchanges do not handle complaints
- CThe investor must first approach SEBI before the member
- DThe complaint can be raised only by institutional clients
Explanation
Exchanges provide an investor grievance redressal mechanism, followed by arbitration and appellate arbitration if the matter is not resolved. Complaints are not restricted to institutions, SEBI is not a mandatory first step, and courts are not the only forum.
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