n NISM Certifications
VII NISM Series VII
Medium

What will be the action of the Exchange if there is a shortfall in the margin amount?

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

Options

  1. Terminals deactivated immediately

    Correct answer

  2. B

    Warning issued to the broker

  3. C

    Broker registration cancelled

  4. D

    Broker limits reduced

Why this is the answer

Broker terminals are deactivated to prevent further trading until margins are restored.

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