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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations

A stockbroker's client wishes to trade through the broker for the first time. Which document must the broker obtain from the client as part of the standard account opening process for the cash and derivatives segments?

The broker must obtain the account opening form with the client's KYC details. This establishes identity and the broker-client relationship. Bank guarantees, NOCs from earlier brokers, or SEBI approval for each client are not required for registering a client.

  1. AAccount opening form with Know Your Client (KYC) detailsCorrect
  2. BA bank guarantee equal to the proposed trading limit
  3. CA no-objection certificate from the client's previous broker
  4. DA written approval from SEBI for each new client

Explanation

Client registration requires a completed account opening form together with KYC details and the standard rights and obligations documents. A bank guarantee from the client is not mandatory, a previous broker's NOC is not required, and SEBI does not approve individual clients.

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