Unit study guide · NISM Series VI
Investor Services
6 questions in this unit
What this unit covers
- A BO notices an unexplained DP charge and wants it investigated. Which first step best supports a documented grievance process?
- What is the principal purpose of SEBI’s SCORES platform?
- A DP replies that a disputed debit was authorised, but the BO disagrees. What information most directly supports a meaningful escalation or review?
- Which institution is associated with administering the statutory process for refund of eligible unclaimed dividends and shares transferred to IEPF?
- An investor learns that shares and unclaimed dividends have already been transferred to IEPF. Which conclusion is correct?
- A holder’s shares are correctly recorded in demat, but dividend credits repeatedly fail because the registered bank account is closed. What servicing action addresses the immediate cause?
Key ideas
From the practice bank · 1
A BO notices an unexplained DP charge and wants it investigated. Which first step best supports a documented grievance process?
The concerned intermediary should be given the specific complaint through its recognised channel, creating a record of the issue and response. Supporting statements and the complaint reference help if escalation becomes necessary. A public comment or disclosure of credentials is not a substitute for a traceable grievance. Remember: Start a complaint with the responsible entity and preserve an audit trail.
Hint Common mistake: Skipping the basic complaint record and then being unable to show what was raised.
VI-145From the practice bank · 2
What is the principal purpose of SEBI’s SCORES platform?
SCORES is SEBI’s investor complaint-redressal platform. It supports lodging and tracking eligible complaints and the associated response/review process. It is not an order-entry system, a personal security identifier service or an insurance contract against investment losses. Remember: Use a grievance platform for a grievance, not for trading or return guarantees.
Hint Common mistake: Confusing the ability to complain with an automatic right to compensation.
VI-146From the practice bank · 3
A DP replies that a disputed debit was authorised, but the BO disagrees. What information most directly supports a meaningful escalation or review?
Review needs a traceable record of the disputed event, the complaint and the intermediary’s explanation. These materials help identify what happened and what remains unresolved. Subsequent price movement may affect a claimed consequence but does not itself establish whether the debit was authorised. Passwords are not appropriate evidence to disclose. Remember: Escalation should identify the unresolved issue and its evidence, not merely repeat dissatisfaction.
Hint Common mistake: Submitting a complaint without the reference or earlier response needed to investigate it.
VI-147From the practice bank · 4
Which institution is associated with administering the statutory process for refund of eligible unclaimed dividends and shares transferred to IEPF?
IEPFA administers the statutory fund and the relevant refund process for eligible unclaimed assets, including dividends and shares. Its function should not be confused with exchange trade execution or a bank’s routine account access. A claimant must follow the prescribed entitlement and verification procedure. Remember: Direct a claim to the authority responsible for the particular unclaimed-asset framework.
Hint Common mistake: Treating all investor-protection mechanisms as the same fund or portal.
VI-148From the practice bank · 5
An investor learns that shares and unclaimed dividends have already been transferred to IEPF. Which conclusion is correct?
The official IEPFA description expressly includes refund of shares and unclaimed dividends to eligible claimants. Transfer into the statutory framework does not mean the investor should assume that no recovery route exists. The claimant must establish entitlement and comply with the current procedure. Recovery is not achieved by substituting someone else’s assets. Remember: Check the prescribed refund route before concluding that an unclaimed asset is lost forever.
Hint Common mistake: Confusing transfer to IEPF with cancellation of all rights to make an eligible claim.
VI-149From the practice bank · 6
A holder’s shares are correctly recorded in demat, but dividend credits repeatedly fail because the registered bank account is closed. What servicing action addresses the immediate cause?
Securities ownership records and cash-payment instructions are linked but distinct. A valid holding can still have unpaid benefits when bank details are obsolete. The investor should correct the payment details through authenticated procedures and establish the unpaid amount and claim route with the responsible issuer/RTA. Any already transferred IEPF claim follows its own statutory process. Remember: Reconcile cash benefits as well as securities balances and keep payment details current.
Hint Common mistake: Checking demat quantity but never checking whether issuer cash benefits actually arrived.
VI-150