n NISM Certifications
VII NISM Series VII
Medium

Custodians are clearing members of the Exchange but not brokers who trade on behalf of Foreign Institutional Investors. 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 settle trades on behalf of clients but do not engage in trading themselves.

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