n NISM Certifications
VII NISM Series VII
Medium

A buyer of a security can give _____________ instructions to his Depository Participant (DP) for receiving the securities.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Standing Instructions

  2. B

    Receipt instructions for each and every trade

  3. Both of the above

    Correct answer

Why this is the answer

In the depository system, a transferee can give standing instructions to the DP for receiving securities, or issue separate instructions for each trade.

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