n NISM Certifications
VII NISM Series VII
Medium

Identify the CORRECT statements regarding Margin Shortfall:A. No penalty for three margin shortfalls in a month, B. Partial non-fulfillment of margin obligations is not a violation

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

Options

  1. A

    Only A is true

  2. B

    Only B is true

  3. C

    Both A and B are true

  4. Neither A nor B is true

    Correct answer

Why this is the answer

Any margin shortfall is treated as a violation. Penalties can be imposed, and the Exchange may restrict trading or clearing rights.

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NISM Series VII Mock Test 5