n NISM Certifications
VII NISM Series VII
Medium

In case of a sale of securities, what instruction should be given to the DP upon trade execution notification?

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Debit

    Correct answer

  2. B

    Credit

  3. C

    Hold

  4. D

    No action

Why this is the answer

Upon selling securities, clients issue debit instructions to their DP to transfer shares from their demat account to the broker’s clearing pool.

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