NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Other Services Provided by Brokers
A stockbroker wants to offer its clients a facility to place orders through a mobile application connected to the exchange trading system. Under exchange and SEBI norms, this service is classified as which of the following?
Placing orders through a broker's mobile application linked to the exchange trading system is internet-based trading, which includes mobile trading. It is a client order-routing facility, not algorithmic trading, portfolio management or securities lending and borrowing.
- AInternet-based trading (including mobile trading)Correct
- BAlgorithmic trading by the exchange
- CPortfolio management service
- DSecurities lending and borrowing scheme
Explanation
Orders routed by clients over the internet or a mobile app to the broker's system, and then to the exchange, are internet-based trading. Algorithmic trading involves automated order generation by programs, PMS involves discretionary fund management, and SLB involves lending of securities.
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.
More Other Services Provided by Brokers questions
- A broker holds client securities in its depository account. Under current SEBI norms on client securities, the broker is permitted to do whi…
- A stockbroker wants to offer clients the facility to place orders through a mobile application connected to the exchange trading system. Und…
- A broker provides research recommendations to clients alongside its trading services. Which requirement is most relevant for the broker's re…
- A client who buys shares through a broker under the MTF fails to maintain the required margin after a sharp price fall. What is the broker's…
- A broker's client holds shares bought under MTF. Which of the following is correct about those shares?
- A client wishes to use the broker's 'pledge' route to give margin against securities held in demat. Under the current framework for client s…