Grievance Redress Mechanism
15 questions. Each answer is explained.
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Learn these topics
More units in NISM Series X-A
- Introduction to Personal Financial Planning4
- Time Value of Money14
- Evaluating the Financial Position of Clients5
- Debt Management and Loans2
- Introduction to the Indian Financial Markets4
- Securities Market Segments21
- Introduction to Investment5
- Investing in Stocks20
- Investing in Fixed Income Securities25
- Understanding Derivatives25
- Mutual Funds25
- Portfolio Manager10
- Overview of Alternative Investment Funds (AIFs)15
- Introduction to Modern Portfolio Theory14
- Portfolio Construction Process11
- Portfolio Performance Measurement and Evaluation25
- Operational Aspects of Investment Management15
- Key Regulations15
- Ethical Issues15
Exam format
| Questions | 135 · 1 or 2 marks each |
|---|---|
| Duration | 180 min · 3 hours |
| Pass mark | 60% · 90 of 150 marks |
| Negative marking | 25% · 0.25 or 0.5 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | Not published by NISM |
NISM Series X-A Investment Adviser (Level 1)
Exam rules read on NISM's site on 3 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 3 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 15 questions on Grievance Redress Mechanism, with answers
Q1A client has a complaint against her investment adviser. Where should she go first?
Option A. Straight to the Supreme Court
Why it is wrong: Courts are not the first step for a service complaint.
Option B. To the arbitration panel of the stock exchange where she trades
Why it is wrong: Exchange arbitration is for disputes with exchange members.
Option C. To the RBI's Ombudsman
Why it is wrong: The RBI Ombudsman handles complaints against RBI-regulated entities.
Option D. To the adviser, who must resolve it within 21 calendar days — Correct answer
Answer: D. She goes to the adviser first. The IA Regulations require an adviser to resolve a grievance within 21 calendar days of receiving it. Remember: Complaints start with the adviser, who has 21 calendar days to resolve them.
Hint, shown before you answer in practice mode: Common mistake: Going straight to a court or another regulator.
X-A-271easyregulatory
Q2What is SCORES?
Option A. SEBI's online system for lodging and tracking complaints — Correct answer
Option B. A credit score that SEBI gives to investors
Why it is wrong: SCORES is a complaints system, not a credit score.
Option C. The RBI's online portal for lodging complaints against banks
Why it is wrong: Bank complaints go to the RBI's own portal.
Option D. A rating of how well mutual funds have performed
Why it is wrong: SCORES does not rate funds.
Answer: A. SCORES is SEBI's online complaints redress system. Investors lodge complaints against SEBI-regulated entities and track them there. Remember: SCORES is SEBI's online system for investor complaints against regulated entities.
Hint, shown before you answer in practice mode: Common mistake: Confusing SEBI's complaint system with bank or rating systems.
X-A-272easyconceptual
Q3An investor is unhappy with how a regulated entity resolved her complaint on SCORES. What can she do next?
Option A. File the same complaint again as a new one
Why it is wrong: A repeat complaint skips the review route that exists.
Option B. Seek a review by the designated body, then by SEBI if still unhappy — Correct answer
Option C. Wait for SEBI to reopen the closed complaint on its own after a year
Why it is wrong: Reviews start when the investor asks for them.
Option D. Take it straight to the Supreme Court
Why it is wrong: Courts are not the next step in this process.
Answer: B. She can ask for a first review by the designated body, and a second review by SEBI if she is still dissatisfied. SEBI's 2023 SCORES rules set up these two reviews. Remember: SCORES has two reviews: first by the designated body, then by SEBI.
Hint, shown before you answer in practice mode: Common mistake: Thinking the entity's first reply is final.
X-A-273mediumregulatory
Q4An investor still has a money dispute with an adviser after the complaint process. Which route is available next?
Option A. Only a civil suit filed in the district court where she lives
Why it is wrong: An online dispute resolution route is available first.
Option B. A complaint to the Banking Ombudsman
Why it is wrong: The Banking Ombudsman does not hear disputes with advisers.
Option C. Nothing more, as the complaint process is final
Why it is wrong: Disputes can still go to conciliation and arbitration.
Option D. Online conciliation, followed by arbitration if needed — Correct answer
Answer: D. The dispute can go to online dispute resolution, starting with conciliation and moving to arbitration if needed. The IA Regulations send disputes between advisers and clients to this mechanism. Remember: Unresolved disputes can go to online conciliation and then arbitration.
Hint, shown before you answer in practice mode: Common mistake: Thinking a civil suit is the only option left.
X-A-274mediumregulatory
Q5A consumer's complaint involves services worth ₹80 lakh. Which consumer commission has jurisdiction?
Option A. The District Commission
Why it is wrong: District Commissions hear claims up to ₹50 lakh.
Option B. The National Commission
Why it is wrong: The National Commission hears claims above ₹2 crore.
Option C. The State Commission — Correct answer
Option D. The Central Consumer Protection Authority
Why it is wrong: The Authority acts on consumer rights broadly. It does not hear this claim.
Answer: C. The State Commission has jurisdiction. Under the 2021 rules, District Commissions hear claims up to ₹50 lakh, State Commissions above ₹50 lakh up to ₹2 crore, and the National Commission above ₹2 crore. Remember: District up to ₹50 lakh, State above ₹50 lakh to ₹2 crore, National above ₹2 crore.
Hint, shown before you answer in practice mode: Common mistake: Using the older, higher limits for each commission.
X-A-275mediumregulatory
Q6Within what time must a consumer complaint normally be filed under the Consumer Protection Act, 2019?
Option A. Within 30 days of the cause of action
Why it is wrong: Thirty days is far shorter than the limit in the Act.
Option B. Within one year of the cause of action
Why it is wrong: The Act allows two years, not one.
Option C. At any time at all, as there is no limit
Why it is wrong: The Act sets a time limit.
Option D. Within two years of the cause of action — Correct answer
Answer: D. A complaint is normally filed within two years from when the cause of action arose. A commission can admit a late complaint only if there is sufficient cause for the delay. Remember: Consumer complaints are normally filed within two years of the cause of action.
Hint, shown before you answer in practice mode: Common mistake: Assuming there is no time limit for consumer complaints.
X-A-276mediumregulatory
Q7A bank rejects a customer's complaint about a failed transaction. What can the customer do next?
Option A. Nothing, as the bank's decision is final
Why it is wrong: The bank's reply is not the last word.
Option B. Lodge it on SEBI's SCORES
Why it is wrong: SCORES is for SEBI-regulated entities, not banks.
Option C. Wait one full year before the Ombudsman will agree to hear it
Why it is wrong: No such waiting period applies after a rejection.
Option D. Complain to the RBI Ombudsman, as the bank has rejected it — Correct answer
Answer: D. The customer can complain to the RBI Ombudsman. Under the RBI's Integrated Ombudsman Scheme, a customer may approach the Ombudsman when the bank rejects the complaint or does not reply within 30 days. Remember: Complain to the bank first, then to the RBI Ombudsman if rejected or unanswered in 30 days.
Hint, shown before you answer in practice mode: Common mistake: Thinking the bank's rejection ends the matter.
X-A-277mediumapplication
Q8Under the RBI's Integrated Ombudsman Scheme, 2026, what is the most the Ombudsman can award for consequential loss?
Option A. ₹20 lakh, plus up to ₹1 lakh for harassment and lost time
Why it is wrong: These were the limits of the 2021 scheme, which the 2026 scheme replaced.
Option B. ₹50 lakh, with no separate amount for harassment
Why it is wrong: ₹50 lakh is the Insurance Ombudsman's limit, not the RBI's.
Option C. ₹30 lakh, plus up to ₹3 lakh for harassment and lost time — Correct answer
Option D. Any amount, with no ceiling at all
Why it is wrong: The 2026 scheme sets ceilings on what can be awarded.
Answer: C. The Ombudsman can award up to ₹30 lakh for consequential loss and up to ₹3 lakh for harassment and lost time. The 2026 scheme took effect on 1 July 2026 and raised the 2021 limits. Remember: Under the 2026 scheme: up to ₹30 lakh for loss and up to ₹3 lakh for harassment.
Hint, shown before you answer in practice mode: Common mistake: Quoting the 2021 limits of ₹20 lakh and ₹1 lakh.
X-A-278hardregulatory
Q9An insurer has not replied to a policyholder's complaint for over a month. What can the policyholder do?
Option A. Approach the RBI Ombudsman
Why it is wrong: The RBI Ombudsman does not hear insurance complaints.
Option B. File an appeal with the Securities Appellate Tribunal
Why it is wrong: SAT hears appeals against regulators' orders, not first complaints.
Option C. Approach the Insurance Ombudsman, within one year — Correct answer
Option D. Wait until the insurer replies, however long it takes
Why it is wrong: One month without a reply is enough to approach the Ombudsman.
Answer: C. The policyholder can approach the Insurance Ombudsman. This is allowed when the insurer rejects the complaint or does not reply within a month, and it must be done within one year. Remember: No reply from an insurer in one month opens the way to the Insurance Ombudsman, within a year.
Hint, shown before you answer in practice mode: Common mistake: Taking an insurance complaint to the banking ombudsman.
X-A-279mediumapplication
Q10Up to what amount can an Insurance Ombudsman award compensation?
Option A. ₹50 lakh — Correct answer
Option B. ₹20 lakh
Why it is wrong: ₹20 lakh is not the Insurance Ombudsman's limit.
Option C. ₹30 lakh
Why it is wrong: ₹30 lakh was the limit before the November 2023 increase.
Option D. ₹1 crore
Why it is wrong: The limit is lower than ₹1 crore.
Answer: A. An Insurance Ombudsman can award up to ₹50 lakh. The government raised the limit from ₹30 lakh in November 2023. Remember: The Insurance Ombudsman's award limit is ₹50 lakh.
Hint, shown before you answer in practice mode: Common mistake: Quoting the old limit of ₹30 lakh.
X-A-280hardregulatory
Q11Where does a person appeal against an order of SEBI?
Option A. The National Consumer Disputes Redressal Commission
Why it is wrong: Consumer commissions do not hear appeals against SEBI orders.
Option B. The RBI's Ombudsman
Why it is wrong: The RBI Ombudsman handles complaints against banks and other RBI entities.
Option C. A stock exchange's grievance cell
Why it is wrong: An exchange cannot hear appeals against SEBI's orders.
Option D. The Securities Appellate Tribunal — Correct answer
Answer: D. Appeals against SEBI's orders go to the Securities Appellate Tribunal (SAT). The SEBI Act sets this route. Remember: Appeals against SEBI orders go to the Securities Appellate Tribunal.
Hint, shown before you answer in practice mode: Common mistake: Taking an appeal against a regulator to a consumer forum.
X-A-281easyregulatory
Q12Within how many days of receiving a SEBI order must an appeal to the Securities Appellate Tribunal normally be filed?
Option A. 15 days
Why it is wrong: Fifteen days is shorter than the period the SEBI Act allows.
Option B. 30 days
Why it is wrong: Thirty days is shorter than the period the SEBI Act allows.
Option C. 45 days — Correct answer
Option D. 60 days
Why it is wrong: Sixty days is the time for appealing a SAT order to the Supreme Court.
Answer: C. An appeal to SAT is normally filed within 45 days of receiving the order. SAT can allow a later appeal if there is sufficient cause. A SAT order can then be appealed to the Supreme Court within 60 days. Remember: Appeal to SAT within 45 days, and from SAT to the Supreme Court within 60 days.
Hint, shown before you answer in practice mode: Common mistake: Swapping the 45-day and 60-day appeal periods.
X-A-282hardregulatory
Q13A client bought an insurance policy on her adviser's recommendation. Her complaint is about the insurer's handling of her claim. Which route handles it?
Option A. The insurance grievance route, as the complaint is about the insurance — Correct answer
Option B. SEBI, because a SEBI-registered investment adviser recommended the policy
Why it is wrong: The product's own regulator handles complaints about that product.
Option C. The adviser's compliance auditor
Why it is wrong: An auditor does not resolve client complaints.
Option D. The RBI, as money changed hands through a bank
Why it is wrong: Paying through a bank does not make it a banking complaint.
Answer: A. The complaint goes through the insurance sector's grievance route. The IA Regulations say grievances about a financial product fall under that product's own regulator. Remember: A complaint about a product goes to that product's regulator, even if an adviser recommended it.
Hint, shown before you answer in practice mode: Common mistake: Sending a product complaint to SEBI just because an adviser was involved.
X-A-283hardapplication
Q14An NPS subscriber's grievance is not resolved by the intermediary. How does it move up the NPS complaint system?
Option A. To SEBI's SCORES, as NPS money is invested in markets
Why it is wrong: NPS is regulated by PFRDA, not SEBI.
Option B. To the Insurance Ombudsman, as NPS is a retirement product
Why it is wrong: The Insurance Ombudsman does not hear NPS complaints.
Option C. To the NPS Trust, then to PFRDA's Ombudsman — Correct answer
Option D. To the RBI's Ombudsman, as contributions pass through banks
Why it is wrong: The RBI Ombudsman does not hear NPS complaints.
Answer: C. An unresolved NPS grievance moves to the NPS Trust, and then to the Ombudsman appointed by PFRDA. Complaints are lodged in PFRDA's central grievance system. Remember: NPS complaints go from the intermediary to the NPS Trust and then to PFRDA's Ombudsman.
Hint, shown before you answer in practice mode: Common mistake: Sending an NPS complaint to another sector's ombudsman.
X-A-284hardregulatory
Q15Which feature belongs in a sound grievance system for an investment adviser?
Option A. Handling all complaints only by phone, without keeping any written record
Why it is wrong: Without records, complaints cannot be tracked or reviewed.
Option B. Closing every complaint automatically after seven days
Why it is wrong: Complaints are closed when resolved, not on a fixed date.
Option C. Recording each complaint with a reference and tracking it to closure — Correct answer
Option D. Dealing only with complaints from large clients
Why it is wrong: Every client's complaint must be handled.
Answer: C. A sound system records every complaint, gives it a reference and tracks it until it is resolved. Records let the adviser meet the 21-day deadline and learn from complaints. Remember: Record, number and track every complaint until it is resolved.
Hint, shown before you answer in practice mode: Common mistake: Handling complaints informally without records.
X-A-285easyconceptual
Grievance Redress Mechanism: common questions
How many practice questions are there on Grievance Redress Mechanism?
15 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 20 practice topics for NISM Series X-A, which has 285 questions in total.
Are these real NISM Series X-A questions on Grievance Redress Mechanism?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
Does negative marking apply to NISM Series X-A?
Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1 or 2-mark question that is 0.25 or 0.5 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Try a paper on all of NISM Series X-A
This is the last unit of Investment Adviser (Level 1). The series page runs one quiz across every unit.
Open the NISM Series X-A practice page