n NISM Certifications
VII NISM Series VII
Medium

Identify the correct statements regarding Clearing and Settlement: (A) Depositories carry out clearing. (B) The Clearing Corporation carries out settlement. (C) Custodians can act as clearing members.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A and B

  2. B

    Only A and C

  3. Only B and C

    Correct answer

  4. D

    All A, B and C

Why this is the answer

Clearing is handled by clearing members, while settlement is done by the Clearing Corporation with support from clearing banks and custodians. Depositories do not perform clearing.

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