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Unit study guide · NISM Series X-A

Grievance Redress Mechanism

15 questions in this unit

What this unit covers

Key ideas

From the practice bank · 1

A client has a complaint against her investment adviser. Where should she go first?

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 Common mistake: Going straight to a court or another regulator.

X-A-271

From the practice bank · 2

What is SCORES?

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 Common mistake: Confusing SEBI's complaint system with bank or rating systems.

X-A-272

From the practice bank · 3

An investor is unhappy with how a regulated entity resolved her complaint on SCORES. What can she do next?

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 Common mistake: Thinking the entity's first reply is final.

X-A-273

From the practice bank · 4

An investor still has a money dispute with an adviser after the complaint process. Which route is available next?

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 Common mistake: Thinking a civil suit is the only option left.

X-A-274

From the practice bank · 5

A consumer's complaint involves services worth ₹80 lakh. Which consumer commission has jurisdiction?

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 Common mistake: Using the older, higher limits for each commission.

X-A-275

From the practice bank · 6

Within what time must a consumer complaint normally be filed under the Consumer Protection Act, 2019?

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 Common mistake: Assuming there is no time limit for consumer complaints.

X-A-276

From the practice bank · 7

A bank rejects a customer's complaint about a failed transaction. What can the customer do next?

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 Common mistake: Thinking the bank's rejection ends the matter.

X-A-277

From the practice bank · 8

Under the RBI's Integrated Ombudsman Scheme, 2026, what is the most the Ombudsman can award for consequential loss?

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 Common mistake: Quoting the 2021 limits of ₹20 lakh and ₹1 lakh.

X-A-278

From the practice bank · 9

An insurer has not replied to a policyholder's complaint for over a month. What can the policyholder do?

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 Common mistake: Taking an insurance complaint to the banking ombudsman.

X-A-279

From the practice bank · 10

Up to what amount can an Insurance Ombudsman award compensation?

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 Common mistake: Quoting the old limit of ₹30 lakh.

X-A-280

From the practice bank · 11

Where does a person appeal against an order of SEBI?

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 Common mistake: Taking an appeal against a regulator to a consumer forum.

X-A-281

From the practice bank · 12

Within how many days of receiving a SEBI order must an appeal to the Securities Appellate Tribunal normally be filed?

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 Common mistake: Swapping the 45-day and 60-day appeal periods.

X-A-282

From the practice bank · 13

A 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?

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 Common mistake: Sending a product complaint to SEBI just because an adviser was involved.

X-A-283

From the practice bank · 14

An NPS subscriber's grievance is not resolved by the intermediary. How does it move up the NPS complaint system?

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 Common mistake: Sending an NPS complaint to another sector's ombudsman.

X-A-284

From the practice bank · 15

Which feature belongs in a sound grievance system for an investment adviser?

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 Common mistake: Handling complaints informally without records.

X-A-285