n NISM Certifications
VII NISM Series VII
Medium

Clearing of trades refers to the process initiated when an agreement to buy or sell equity shares/derivatives is made through the exchange – State True or False.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Once a trade is executed on the exchange, the clearing corporation calculates obligations for each member to deliver or receive funds/securities on the settlement date.

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