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

A stockbroker wants to offer a client the facility of buying shares in an IPO through the exchange platform without a bank-ASBA form. Which service of a broker is this most closely linked to?

Accepting client bids for a public issue through the exchange's bidding platform is the broker's IPO distribution service. Registered brokers can act as syndicate members and submit bids electronically, which is different from algorithmic trading, lending intermediation or portfolio management.

  1. ADistribution of public issues through the exchange's IPO bidding platformCorrect
  2. BAlgorithmic trading support for institutional clients
  3. CSecurities lending and borrowing intermediation only
  4. DPortfolio management service for high-net-worth clients

Explanation

Brokers registered with the exchange can act as syndicate or sub-syndicate members and accept IPO bids from clients through the exchange's bidding system. The other options are different services and do not relate to accepting public issue applications.

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