NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Other Services Provided by Brokers
A stockbroker offers clients a facility under which a client can place orders using a mobile application connected to the broker's trading system. Under SEBI's framework, this service is best described as:
Placing orders through a broker's mobile application that connects to the broker's trading system is Internet-based trading. It differs from algorithmic trading, which involves automated order generation, and from portfolio management, which is a separate regulated activity.
- AInternet-based trading (IBT)Correct
- BAlgorithmic arbitrage trading
- CPortfolio management service
- DDirect market access by the exchange
Explanation
Orders routed through the internet or a mobile app to the broker's trading system on the exchange are Internet-based trading. Algorithmic trading refers to automated order generation by pre-programmed logic. Portfolio management is a discretionary service needing a separate registration.
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