CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries
Meridian Securities Pvt Ltd, a company in GIFT IFSC, wants to execute buy and sell orders on a recognised stock exchange in the IFSC on behalf of its clients and receive brokerage. Under the IFSCA capital market intermediary framework, in which category does this activity fall?
The activity is that of a stock broker. A stock broker executes client buy and sell orders on a recognised exchange and earns brokerage. Registrars, debenture trustees and rating agencies perform different functions and do not carry out trading on behalf of clients.
- AStock brokerCorrect
- BRegistrar to an issue
- CDebenture trustee
- DCredit rating agency
Explanation
A person who buys, sells or deals in securities on an exchange on behalf of clients for a fee acts as a stock broker. A registrar handles issue applications and allotment records, a debenture trustee protects debenture holders, and a rating agency assesses credit risk. None of these executes client trades.
Did you get it right without looking?
One question tells you little. A timed set on Capital Market Intermediaries shows your real accuracy, how long you take and where you lose marks.
More Capital Market Intermediaries questions
- Kiran Brokers IFSC, a registered intermediary, discovers that one of its employees has breached a conduct provision and that the matter coul…
- After a hearing, IFSCA finds that a registered intermediary in GIFT IFSC repeatedly violated its regulations and endangered investor interes…
- Aarav Advisors IFSC is a registered intermediary. Its relationship manager wishes to recommend a product to a client mainly because the firm…
- Zenith Advisors in GIFT IFSC plans to do three things: (a) manage a public offer of securities by an issuer including due diligence and pros…
- Veda Securities, a company incorporated in India, wants to act as a stock broker dealing in securities on a recognised stock exchange in GIF…
- Zenith Capital IFSC Ltd is a registered capital market intermediary in GIFT IFSC. A client complains that the firm executed trades without a…