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

Which of the following best describes the purpose of a Unique Client Code (UCC) in broking operations?

A Unique Client Code identifies each client uniquely in the exchange trading system, mapped to the client's PAN and details, so that orders and trades are allotted to the correct client. It is not the broker's registration number, a security code or a margin limit.

  1. AIt identifies each client uniquely on the exchange system so that trades can be allotted to the correct clientCorrect
  2. BIt is the code allotted to the broker by SEBI at registration
  3. CIt is the code given to a security for settlement
  4. DIt denotes the clearing member's margin limit

Explanation

The UCC is assigned by the broker to each client and mapped with the client's PAN and details, so each order and trade is attributed to the right client. The broker's registration number, security identifiers and margin limits are different things.

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