n NISM Certifications
VII NISM Series VII
Medium

Who is authorized to sign the Running Account Authorization for a client?

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Authorised representatives of client

  2. B

    Power of attorney holder of client

  3. Only the client

    Correct answer

  4. D

    All of the above

Why this is the answer

Only the client can authorize the broker to retain funds in the Trading Account under a Running Account Authorization. POA holders or representatives cannot sign this authorization.

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