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

A broker's client, Meera, places an order through a broker's mobile trading app. Which record must the broker retain to evidence that the order was received from the client?

The broker must keep time-stamped order and trade logs showing the details of the order as received through the mobile app. These records evidence receipt and execution of the order and help resolve disputes, unlike contract notes, bank statements or annual reports.

  1. AOnly the contract note issued after the trade
  2. BOnly the client's bank statement
  3. CThe order and trade logs showing time-stamped order details received through the channelCorrect
  4. DThe broker's annual report

Explanation

Brokers must maintain time-stamped order and trade records for orders received through any channel, such as phone, internet or mobile, so that the order can be verified in disputes. A contract note is issued after execution and does not alone evidence receipt of the order. A bank statement and annual report are unrelated.

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