n NISM Certifications
VII NISM Series VII
Medium

The clearing member does not get ownership rights over securities held in demat accounts with CDSL and NSDL – State True or False.

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

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Clearing members must open demat accounts with both CDSL and NSDL to perform clearing and settlement functions. Unlike regular demat accounts, clearing members do not have ownership or beneficiary rights over shares held in these accounts.

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