Broker and Custodian Interaction
Fund Operation & NAV
Learning Outcome
5
Recognize the importance of broker-custodian coordination.
4
Describe the complete trade lifecycle.
3
Understand custodian responsibilities.
2
Explain broker-custodian interaction.
1
Understand broker, custodian, and AMC roles.
Broker
Example: ICICI Securities or Motilal Oswal acting as the broker when an AMC wants to buy shares of Reliance Industries.
An intermediary who executes buy/sell orders on the stock exchange on behalf of the fund.
Executes buy/sell orders placed by the AMC's dealing desk on the exchange
1
Matches the order with a counterparty through the exchange's order book
2
3
Issues a contract note confirming price, quantity, brokerage, and taxes
Sends trade details to the custodian and AMC for confirmation
4
Does not hold the fund's securities or handle settlement
5
Role of the Broker:
Custodian
An entity that holds and safekeeps the fund's securities and cash, and settles trades once they are matched.
Example: HDFC Bank Custody Services or Deutsche Bank acting as custodian for a mutual fund's demat holdings.
Role of the Custodian:
Role of the Custodian:
AMC (Asset Management Company)
Core Concepts (Slide 6)
Core Concepts (Slide 7)
Core Concepts (.....Slide N-3)
Summary
5
Build strong branding
4
Use different marketing channels
3
Target the right audience
2
Create and communicate value
1
Understand customer needs
Choose cool, soft colors instead of vibrant colors
Max 5 Points for Summary & Min 2
Quiz
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Quiz-Answer
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
