Rajesh invests in the share market in India. He wants to complain about his share broker's wrong practices. Which institution should he approach?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Securities and Exchange Board of India (SEBI)
A complaint goes to the regulator of the market in which the wrong was done. Share brokers are registered with and regulated by SEBI, the regulator of India’s securities (share) market, set up in 1988 and given statutory powers by the SEBI Act, 1992. An investor can lodge a complaint against a broker on SEBI’s online grievance system, SCORES.
Why the other options are incorrect
Option (1) Reserve Bank of India (RBI) — Incorrect. The RBI is India’s central bank; it regulates banks, non-banking finance companies and the money supply, not share brokers.
Option (2) National Financial Reporting Authority (NFRA) — Incorrect. The NFRA, set up in 2018, oversees auditors and accounting and auditing standards of companies.
Option (3) Insurance Regulatory and Development Authority of India (IRDAI) — Incorrect. The IRDAI regulates insurance companies and insurance agents.