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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Other Services Provided by Brokers

Which of the following is an investor-facing service that stock brokers are generally required to provide under exchange and SEBI rules?

Brokers must issue contract notes to clients for executed trades within the prescribed time after the trade day. Guaranteeing profits and sharing client passwords are prohibited, and clients' trades are settled through the broker as clearing member, not directly by the client.

  1. AIssuing contract notes for trades executed, within the prescribed time after the trade dayCorrect
  2. BGuaranteeing a minimum profit on client trades
  3. CSharing client passwords with sub-brokers
  4. DSettling client trades directly with the clearing corporation in the client's own name

Explanation

Brokers must issue contract notes for trades executed on behalf of clients within the prescribed time after the trading day, in the prescribed format. Guaranteeing profits and sharing credentials are prohibited, and clients do not settle directly with the clearing corporation.

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