n NISM Certifications
XIII NISM Series XIII
Medium

What happens if a client defaults on Mark to Market (MTM) margin payments?

Practice question from NISM Series XIII for SIF - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Reported to the client’s bank, and the amount recovered

  2. B

    Allowed 5 more trades to cover margins

  3. Unpaid MTM margin is adjusted against the Initial Margin

    Correct answer

  4. D

    SEBI takes action as per the guidelines

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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