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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Grievance Redress Mechanism

Which statement best describes the role of the Online Dispute Resolution (ODR) mechanism in the Indian securities market?

ODR is an online platform offering conciliation and arbitration to settle disputes between investors and market intermediaries or listed companies, generally after the entity's grievance process and SCORES have not resolved the issue. It does not guarantee compensation or replace SEBI's enforcement powers.

  1. AIt replaces SEBI's power to penalise intermediaries
  2. BIt provides an online platform for conciliation and arbitration of disputes between investors and market intermediaries or listed companies after the grievance route is exhaustedCorrect
  3. CIt guarantees that the investor will receive full compensation
  4. DIt is available only to foreign investors

Explanation

ODR is an online institutional mechanism offering conciliation and arbitration for investor disputes with intermediaries and listed companies, typically after the grievance route through the entity and SCORES has not resolved the matter. It does not guarantee compensation and is open to Indian investors.

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