n NISM Certifications
VII NISM Series VII
Medium

For clients having outstanding obligations on the settlement date, the stock broker may retain the requisite securities/funds towards such obligations and may also retain the funds expected to meet margin obligations for the next ___ trading days, as specified by the Exchanges.

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

Options

  1. A

    2

  2. B

    3

  3. 5

    Correct answer

  4. D

    7

Why this is the answer

If a client owes money or securities on the settlement date, the broker can hold back the necessary amount to settle that debt for the next 5 trading days, as calculated per Exchange rules.

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