n NISM Certifications
VII NISM Series VII
Medium

Stock Exchange members who have a net worth of at least _______ are eligible for providing margin trading facility to their clients.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs.10 crore

  2. B

    Rs.5 crore

  3. Rs.3 crore

    Correct answer

  4. D

    Rs.25 crore

Why this is the answer

SEBI mandates that only corporate brokers with a minimum net worth of Rs.3 crore can offer margin trading facilities. They must also obtain prior permission from the exchange to provide such services.

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