n NISM Certifications
VII NISM Series VII
Medium

What action is taken on a trading member when there is a shortfall in margin?

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Issue a strict warning

  2. B

    Ask SEBI to cancel registration

  3. Clearing Corporation may advise withdrawal of membership rights

    Correct answer

  4. D

    All of the above

Why this is the answer

The Clearing Corporation can advise the Exchange to withdraw trading or clearing facilities from members with margin shortfalls, alongside applicable penalties.

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