Skip to content

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

A stockbroker wants to offer clients a facility to apply for IPOs through the UPI mechanism using the broker's platform. In which capacity does the broker act when collecting such applications?

The broker acts as a syndicate member or registered intermediary that accepts and uploads IPO bids for clients. It does not allot shares, which the registrar does, nor refund money as banker, nor price the issue as merchant banker.

  1. ASyndicate member or registered intermediary accepting bids on behalf of the clientCorrect
  2. BRegistrar to the issue allotting shares
  3. CBanker to the issue releasing refunds
  4. DMerchant banker pricing the issue

Explanation

Brokers collect IPO applications as syndicate members or registered intermediaries and upload bids to the exchange bidding platform. Allotment is done by the registrar and issuer, and pricing is handled by the lead merchant bankers, so the other roles do not describe a broker.

Did you get it right without looking?

One question tells you little. A timed set on Other Services Provided by Brokers shows your real accuracy, how long you take and where you lose marks.

Practise Other Services Provided by BrokersFree diagnostic mock

More Other Services Provided by Brokers questions