Before placing an order, an investor gives the broker certain details along with the client registration form. Which of the following is NOT one of these details?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Photograph and power of attorney
Option (1) Residential status (Indian/NRI) — A detail given to the broker. It shows whether the investor is an Indian or an NRI.
Option (2) Depository account details — A detail given to the broker. The broker needs the investor’s depository account details for delivering shares.
Option (3) Photograph and power of attorney — Not a detail given to the broker. These belong to the demat account opening form, completed with the depository participant along with PAN card details.
Option (4) Date of birth and address — A detail given to the broker. The investor’s date of birth and address are among the basic details asked for.
NCERT (Pre-rationalised Edition): “Steps in the Trading and Settlement Procedure … 1. If an investor wishes to buy or sell any security he has to first approach a registered broker or sub-broker and enter into an agreement with him. The investor has to sign a broker-client agreement and a client registration form before placing an order to buy or sell securities. He has also to provide certain other details and information. These include: “Working of the Demat System 1. A depository participant (DP), either a bank, broker, or financial services company, may be identified. |