CBSE 2025 · Region 6 · Set 1 · Q9

If an investor wishes to buy or sell any security, he/she has to

first approach a registered broker or sub-broker and enter into an

agreement with him. An investor has to sign a broker-client

agreement and a client registration form before placing an order to

buy or sell securities. Thereafter, the investor has to open a ‘Demat’

account or ‘Beneficial owner’ account with a depository participant

for holding and transferring securities in the demat form and a bank

account for cash transactions in the securities market. The first two

steps of ‘Trading and Settlement procedure’ in stock market have

been discussed in the above lines.

Place the next four steps in the correct order :

(i)

The broker will then go online and connect to the main

(i)

stock exchange and match the share and best price

(i)

available.

(ii)

After the trade has been executed, within $\displaystyle 24$ hours the

(ii)

broker issues a contract note.

(iii)

The investor then places an order with the broker to buy or

(iii)

sell shares. Clear instructions have to be given about the

(iii)

number of shares and the price at which the shares should be

(iii)

bought or sold.

(iv)

When the shares can be bought or sold at the price mentioned, it

(iv)

will be communicated to the broker's terminal and the order

(iv)

will be executed electronically.

(iv)

Choose the correct option from the following :