2) What measures we can take to avoid customer complaints w.r.t. trade related disputes?

Please find below points which should be implemented at your end to avoid trade related disputes (complaints of unauthorized trades) and to have strong control at your end.

Clear message should be communicated to your dealers/advisors/employees that, unauthorized trading is not acceptable.
Order for placing trades has to be captured on recorded lines and also should be accepted from registered number of client.
Pre Trade confirmation should be obtained from client before placing any order on behalf of client; also it should be on recorded lines.
Periodic ledger confirmations for risky customers based on various parameters (Dormant, Loss making, No instance of Banking transactions, old age customers etc) should be obtained and maintained.
PODs of any Contract notes / other statements sent from Branch / BA end should be preserved.
Authority letter as prescribed by MOSL needs to be obtained in case of family accounts where orders are not placed by customers.
Dealers should not execute the trades on their own discretion and should not give any commitment of assured returns or recovery of earlier losses.
Educate / inform customers to update their contact details (Email / Mobile) so that trade related information can be received by customers from HO as well as Exchanges & Depositories.
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