n NISM Certifications
VII NISM Series VII
Medium

A Clearing Member must open a depository account with ______ for clearing and settlement purposes.

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

Options

  1. A

    CDSL

  2. B

    NSDL

  3. Both CDSL and NSDL

    Correct answer

  4. D

    None of the above

Why this is the answer

Clearing members are required to maintain demat accounts with both depositories, CDSL and NSDL, for settlement of trades. These accounts are known as clearing member settlement pool accounts.

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