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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Other Services Provided by Brokers

A broker's client wants to receive trade confirmations and statements electronically instead of on paper. Which is the correct practice?

Brokers may issue contract notes electronically if the client has given a valid email ID and consent, the note is digitally signed, and proof of delivery is kept. Electronic issue is permitted, and the notes must be sent within the prescribed timeline, not a month later.

  1. AThe broker may send electronic contract notes only if the client has provided a valid email ID and consented, with proof of delivery maintainedCorrect
  2. BThe broker may never send contract notes electronically
  3. CThe broker may send contract notes by post only after one month
  4. DElectronic contract notes need not be digitally signed

Explanation

Contract notes can be issued in electronic form to a client's registered email ID, digitally signed and with delivery records maintained. Electronic delivery is permitted, so the claim that it is prohibited is wrong. Contract notes must be issued within the timeline of the trading day, not after a month.

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