n NISM Certifications
VII NISM Series VII
Medium

In the Clearing and Settlement process for equities, the clearing agency determines the obligation after custodial confirmation. True or False?

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

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

In equity settlements, the Clearing Corporation first receives trade details from the exchange, and after custodial confirmation, it determines each party’s settlement obligations.

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