n NISM Certifications
VII NISM Series VII
Medium

The stock brokers are not allowed to net the client account within the broking firm.

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

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

Brokers are allowed to net clients’ positions within the firm. At the end of the day, each client’s position is netted, and the final pay-in/pay-out of funds and securities is executed through clearing banks and depository participants.

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.