CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries
Zenith Capital IFSC Ltd is a registered capital market intermediary in GIFT IFSC. A client complains that the firm executed trades without a clear order record. Under the general conduct expectations for IFSCA-registered intermediaries, which approach is most consistent with the code of conduct?
The firm should maintain proper records of client orders and instructions and keep them available for IFSCA inspection. Record-keeping is a basic general obligation of registered intermediaries, and discarding or selectively keeping records conflicts with the code of conduct.
- AMaintain proper records of client orders and instructions and keep them available for inspection by the AuthorityCorrect
- BKeep records only where the client specifically requests them in writing
- CDestroy order records once the trade is settled to protect confidentiality
- DMaintain records only for trades above a self-chosen value threshold
Explanation
A registered intermediary must maintain books, records and documents as required and make them available to IFSCA on request. Selective or post-settlement destruction of order records is inconsistent with this duty, so the other options are wrong.
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
- Rohan Brokers, an IFSCA-registered intermediary, discovers that one of its employees has mis-sold a product to a client and that the matter …
- During an IFSCA inspection of Ganga Capital IFSC Pvt Ltd, the inspecting authority finds that client funds were mixed with the firm's own fu…
- Kaveri Trusteeship Ltd is appointed for a series of non-convertible debt securities listed in GIFT IFSC. Its principal role is to hold secur…
- Meera Advisors, an IFSC-registered entity, receives fees from clients to give personalised recommendations on buying and selling listed secu…
- 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 beha…
- Meridian Securities IFSC, a registered intermediary, holds non-public information that a client's listed issuer will announce a large order …