Other Services provided by Brokers

What is the primary role of brokers in the IPO application process?

They act as underwriters for the IPO.
They facilitate the IPO process by connecting with the stock exchange's IPO system.
They provide investment advice to clients.
They handle the allotment of shares in the IPO.

How is the IPO application process simplified for investors through broking firms?

Investors need to physically visit the stock exchange to apply for IPOs.
Brokers submit IPO applications on behalf of investors without their consent.
Investors can call or log in to their broker's system to apply for IPOs, with online uploading of forms facilitated by brokers.
Investors must apply for IPOs directly through the company going public.

What is the purpose of the Application Supported by Blocked Amount (ASBA) facility in the IPO process?

It allows investors to withdraw their application at any time before allotment.
It debits the application money from the bank account only if the application is selected for allotment.
It eliminates the need for investors to use the Unified Payment Interface (UPI).
It speeds up the IPO process by allowing instant allotment.

As per SEBI’s circular, what is the mandatory requirement for investors applying in public issues opening from January 01, 2016, onwards?

Use of the Unified Payment Interface (UPI) mechanism.
Use of physical IPO application forms.
Submission of documents in person at the stock exchange.
Filing IPO applications through intermediaries.

In which phase of the UPI payment mechanism introduction did the UPI mechanism for retail individual investors through intermediaries become effective?

Phase I
Phase II
Phase III
Phase IV

What is the primary payment mechanism introduced for making applications in public issues for investors?

Physical application forms
Unified Payment Interface (UPI)
Submission of documents in person at the stock exchange
Use of online trading platforms

Which channel allows Retail Individual Investors (RIIs) to submit the bid-cum-application form with Application Supported by Blocked Amount (ASBA) for making payments?

Channel I
Channel II
Channel III
Channel IV

What does ASBA stand for in the context of IPO applications?

Allotted Shares Block Amount
Application Supported by Blocked Amount
Account for Stock Broker Applications
Automated Securities Booking and Allocation

In Phase I of the UPI payment mechanism introduction, which channel(s) are available for Retail Individual Investors (RIIs) to use for making applications in a public issue?

Channels I and II
Channels II and III
Channels III and IV
Channels I, II, III, and IV

What is the primary purpose of Channels I and II for making applications in a public issue for Retail Individual Investors (RIIs)?

Uploading bid details on stock exchange platforms
Submitting physical application forms at the branch of a Self-Certified Syndicate Bank (SCSB)
Using the Unified Payment Interface (UPI) mechanism
Submitting bid-cum-application forms with ASBA for payment

Who is permitted to participate in the trading of mutual fund units through the exchange trading platform?

All stockbrokers
Only AMFI Registration Number (ARN) holders
Only registered mutual fund distributors
Only clients of mutual fund companies

Which organization handles the settlement of funds and mutual fund units in the case of subscription and redemption orders for mutual funds traded on stock exchanges?

Stock Exchanges
Asset Management Companies (AMCs)
Clearing Corporations (CCs)
Depositories

What does ASBA stand for in the context of mutual fund applications?

Allotted Shares Blocking Amount
Application Supported by Blocked Amount
Association of Stock Brokers and Advisors
Asset and Securities Blocking Authorization

Under which condition is it mandatory for a stockbroker to enter depository details while processing mutual fund subscriptions?

For all subscription requests
Only for subscription requests in physical mode
Only for subscription requests in depository mode
For additional subscription requests in physical mode

What is the purpose of Portfolio Management Services (PMS) offered by stock brokers?

To provide investment options in IPOs
To manage the portfolio of clients on their behalf
To offer mutual fund distribution services
To provide depository services

What types of research reports are typically provided by stock brokers to help clients make informed investment decisions?

Technical Analysis and Regulatory Updates
Market Timing and Economic Indicators
Fundamental Research and Stock Research
Currency Analysis and Forex Reports

How often do stock brokers usually release newsletters to their clients?

Hourly
Daily
Monthly
Annually

What does SEBI stand for in the context of research-based advisory services provided by broking houses?

Stock Exchange Board of India
Securities and Exchange Bureau of India
Securities and Exchange Board of India
Securities Exchange and Brokers Institute

In the context of depository services, what is the role of a Depository Participant (DP)?

To act as a mediator between buyers and sellers in the stock market
To provide investment advice and recommendations to clients
To open and manage demat accounts for investors
To regulate the functioning of stock exchanges

What is the main activity of a DP in the depository services sector?

Providing investment advice to clients
Maintaining records of economic indicators
Settling and transferring securities between beneficiary accounts
Managing mutual fund schemes

What is margin trading in the context of securities trading?

Buying and selling securities within the same trading session
Trading with borrowed funds or securities to increase exposure
Trading in international stock markets
Trading in commodities and derivatives only

What are “Collateral stocks” and “Funded stocks” in margin trading?

Stocks owned by the broker for trading purposes
Stocks pledged by the client as collateral and stocks purchased under the margin trading facility
Stocks traded in the futures market
Stocks listed on the Group 1 securities list

What is the primary objective of ensuring system security and encryption in Internet Based Trading (IBT) and Securities Trading Using Wireless Technology (STWT)?

To minimize system downtime
To reduce data storage costs
To ensure client anonymity
To protect data integrity and confidentiality

What is the purpose of mutual authentication between the client and the broker server in IBT and STWT?

To ensure high system availability
To establish secure communication channels
To identify and authenticate both the client and server
To implement two-factor authentication

What is the recommended method for implementing two-factor authentication in IBT and STWT?

Password and PIN
User ID and password
Digital signatures and public key infrastructure (PKI)
Username and security questions

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