Investor Grievances and Arbitration

What is the first step an investor should take in case of a grievance against an intermediary or company in the securities market?

Approach the stock exchange directly
Contact the securities market regulator (SEBI) immediately.
File a legal case against the intermediary.
Approach the concerned intermediary or trading firm.

What is SEBI Complaints Redress System (SCORES)?

A centralized database for investor grievances.
A system for penalizing investors for making baseless complaints.
An online platform for trading securities.
A regulatory body for stock exchanges.

What is the role of SEBI in handling investor grievances through SCORES?

SEBI only facilitates the resolution of grievances at the intermediary level.
SEBI directly handles all investor complaints without involving intermediaries
SEBI digitizes manual complaints and uploads them on SCORES.
SEBI provides financial compensation to aggrieved investors.

What is the limitation period for filing a complaint on SCORES from the date of the cause of the complaint?

One year
Two years
Three years
Five years

Which of the following types of complaints is not dealt with through SCORES?

Complaints against listed companies.
Sub-judice complaints.
Complaints under the purview of other regulatory bodies.
Complaints against sick companies.

What is the purpose of the “Complaint Review facility” under SCORES?

To reject investor complaints.
To escalate complaints to higher authorities.
To facilitate immediate resolution of complaints.
To provide compensation to investors.

What is the primary purpose of the Investor Protection Fund (IPF/CPF) established by Stock Exchanges?

To generate profits for the Stock Exchanges.
To compensate investors for speculative losses.
To protect the interests of clients of defaulting trading members.
To fund technology upgrades for Stock Exchanges.

Which of the following is NOT eligible for compensation from the IPF/CPF?

Legitimate claims of clients who have not received securities they paid for.
Claims of brokers who have incurred speculative losses.
Claims against trading members who are declared defaulters.
Claims arising from sham or collusive transactions.

What is the time frame within which Stock Exchanges are required to resolve investor complaints related to trade, settlement, and deficiency in services?

30 working days
15 working days
7 working days
3 working days

When can a claimant seek arbitration for an unresolved complaint with the Investor Grievance Redressal Committee (IGRC)?

After 30 days of filing the complaint with IGRC.
Within 6 months from the date of filing the complaint with IGRC.
After receiving a response from the Stock Exchange.
Only if the claim value is above Rs. 25 lakhs.

What is the purpose of the facilitation desks set up at investor services centers by Stock Exchanges?

To provide investment advice to investors.
To assist investors in obtaining documents for filing arbitration.
To conduct investor education programs.
To handle trade execution for investors.

What is the primary purpose of arbitration in the securities market?

To generate profits for Stock Exchanges.
To resolve disputes between clients and members through a legal process.
To facilitate speculative trading.
To provide investment advice to clients.

How is the panel of arbitrators for securities market disputes selected?

By a randomized computer-generated selection process.
Based on the recommendations of trading members.
Appointed by SEBI.
Chosen by the Stock Exchange's Managing Director.

Which of the following documents is NOT typically required when filing an arbitration application?

PAN/GIR number of the applicant.
Certified copy of the Balance Sheet of the applicant.
Medical records of the applicant.
Contract Notes pertaining to the transaction in dispute.

Who decides the arbitration reference for claims up to Rs. 25 lakhs?

A panel of three arbitrators.
The Securities and Exchange Board of India (SEBI).
A sole arbitrator.
The Stock Exchange's Managing Director.

What is the time frame for issuing an arbitral award in securities market arbitration proceedings?

Four months from the date of appointment of arbitrator(s).
One year from the date of filing the arbitration application.
Two months from the date of the dispute.
Six months from the date of hearing both parties.

How long does a party have to file an appeal to the appellate panel of arbitrators against an arbitral award in the securities market?

15 days
30 days
60 days
90 days

How many arbitrators typically make up the appellate panel for securities market appellate arbitration?

One arbitrator
Two arbitrators
Three arbitrators
Four arbitrators

What is the minimum qualification required for at least one member of the appellate panel in securities market appellate arbitration?

Chartered Accountant
Financial Analyst
Retired Judge
Securities Broker

What action can a party take if they are aggrieved by the appellate arbitral award in securities market appellate arbitration?

File an appeal to the stock exchange.
Challenge the award in the Court of competent jurisdiction.
Request an extension of the appeal period.
Seek mediation with the opposing party.

What is the purpose of the fee structure for filing arbitration reference in the securities market?

To discourage members from participating in arbitration.
To generate revenue for stock exchanges.
To ensure faster implementation of awards and discourage delayed filing of arbitrations.
To cover the administrative costs of the arbitration process.

If a claim is filed within six months from the date of dispute, what is the fee for a claim/counter claim of Rs. 12,00,000 (Rs. 12 lakh)?

Rs. 36,000
Rs. 3,000
Rs. 13,000
Rs. 9,000

What is the additional fee if a claim is filed beyond one month from the date of IGRC order, for a member, when the claim amount is greater than Rs. 25,00,000 (Rs. 25 lakh)?

Rs. 3,000 per month
Rs. 6,000 per month
Rs. 12,000 per month
Rs. 9,000 per month

What happens to the excess of filing fee over the fee payable to the arbitrator for a claim/counter claim up to Rs. 10 lakh?

It is retained by the stock exchange.
It is refunded to the party in whose favor the award has been passed.
It is transferred to the Investor Protection Fund (IPF) of the respective stock exchange.
It is used to cover statutory dues like stamp duty and GST.

What is the maximum fee a party filing an appeal before the appellate panel may have to pay, as prescribed by the stock exchange?

Rs. 5,400
Rs. 10,000
Rs. 25,000
Rs. 54,000

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question

24. Question

25. Question

Recent Post