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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations

A broker wishes to give a client a Unique Client Code (UCC) and upload it to the exchange. Which statement about the UCC is correct?

The Unique Client Code identifies each client in the exchange system, and every order must carry the client code. It is assigned by the broker, not SEBI, applies across segments, and cannot be shared among different clients such as family members.

  1. AThe UCC uniquely identifies the client in the exchange system and each order must carry the client codeCorrect
  2. BThe UCC is allotted by SEBI to every investor at the time of PAN issue
  3. CThe UCC is needed only for derivatives trades and not cash trades
  4. DThe UCC may be shared by several family members trading through the same broker

Explanation

Brokers allot a unique code to each client and upload client details to the exchange, and orders are placed against that code. It is not issued by SEBI, applies to all segments, and cannot be shared across different clients.

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