Question:
Who is responsible for verifying documents related to the UCC?
Who is responsible for verifying documents related to the UCC?
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The broker is the gatekeeper of the exchange. They must verify all KYC documents before generating a UCC to prevent fake accounts or financial crime.
Updated On: Jun 22, 2026
- Clients
- Stock Exchanges
- Brokers
- Clearing Corporations
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The Correct Option is C
Solution and Explanation
Step 1: Explaining the Unique Client Code (UCC):
The Unique Client Code (UCC) is a mandatory, unique identification code assigned to every investor trading on an exchange. This code is used to track and audit all secondary market transactions.
Step 2: Understanding the Investor Onboarding Process:
When an investor decides to trade, they must register with a registered intermediary—the stockbroker. This onboarding process requires completing the standardized “Know Your Customer” (KYC) documentation.
Step 3: Identifying the Verifying Party:
The stockbroker (C) (or trading member) acts as the primary contact point. It is the broker's regulatory duty to physically verify the client's documents (such as PAN, proof of address, and bank credentials), perform the mandatory In-Person Verification (IPV), and register the client's UCC on the exchange platform.
The Unique Client Code (UCC) is a mandatory, unique identification code assigned to every investor trading on an exchange. This code is used to track and audit all secondary market transactions.
Step 2: Understanding the Investor Onboarding Process:
When an investor decides to trade, they must register with a registered intermediary—the stockbroker. This onboarding process requires completing the standardized “Know Your Customer” (KYC) documentation.
Step 3: Identifying the Verifying Party:
The stockbroker (C) (or trading member) acts as the primary contact point. It is the broker's regulatory duty to physically verify the client's documents (such as PAN, proof of address, and bank credentials), perform the mandatory In-Person Verification (IPV), and register the client's UCC on the exchange platform.
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