n NISM Certifications
VII NISM Series VII
Medium

In the cash segment, for trades by mutual fund houses, the ______ act as clearing members.

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

Options

  1. A

    Exchanges

  2. Custodians

    Correct answer

  3. C

    Trading Members

  4. D

    Clients

Why this is the answer

Custodians act as clearing members for institutional investors like mutual funds, insurance companies, and FPIs in the cash market.

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