Skip to content

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

After executing a client's trade, the broker must issue a contract note. Within what time frame must the contract note ordinarily be sent to the client?

The contract note must be issued to the client within 24 hours of execution of the trade. It is a mandatory confirmation document, not something sent only on request or after a long delay such as a month or the financial year end.

  1. AWithin 24 hours of execution of the tradeCorrect
  2. BWithin one month of the trade
  3. CAt the end of the financial year
  4. DOnly on the client's written request

Explanation

Brokers must issue contract notes to clients within 24 hours of the execution of trades. A month or year-end delay would defeat the purpose of confirmation, and issue is mandatory, not request-based.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Securities Broking Operations shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Securities Broking OperationsFree diagnostic mock

More Introduction to Securities Broking Operations questions