n NISM Certifications
VII NISM Series VII
Medium

Custodians are clearing members of the exchange and they are not brokers who trade on behalf of Foreign Financial Institutions (FII) – True or False?

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Custodians hold and settle securities for FIIs/FPIs but do not trade; trading is done by SEBI-registered brokers.

Test yourself for real

Take a full NISM Series VII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.