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CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries

Priya, a dealer at a registered intermediary in GIFT IFSC, receives a gift of high value from a corporate client who expects priority allotment in an oversubscribed issue. Which response best reflects the code of conduct?

She should decline the gift or escalate it to compliance and ensure allotment follows the prescribed fair process. The code of conduct requires integrity and impartial dealing, so inducements linked to preferential treatment cannot be accepted, shared or merely disclosed to make them acceptable.

  1. AAccept it and give the client priority, since the gift is already received
  2. BAccept it but declare it to the client in writing
  3. CDecline or escalate to compliance and ensure allotment follows the prescribed fair processCorrect
  4. DShare the gift with colleagues so no individual benefits

Explanation

Intermediaries and staff must act fairly and with integrity and avoid inducements that compromise independent, impartial dealing. The right step is to decline or escalate to compliance, and allot only per the prescribed process. Sharing or declaring does not remove the inducement.

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