In the clearing process for the cash segment, the clearing corporation/house groups the trades under the various clearing members and informs them about the transactions of their respective clients. True or False?

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

Options

True

Correct answer
B

False

Why this is the answer

At the end of trading (T Day), trades are sent to the clearing house, which groups them by clearing members. Members then confirm trades, and multilateral netting is performed to determine final obligations for T+1 settlement.

Test yourself for real

Take a full NISM Series VII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

NISM Series VII Mock Test 5