n NISM Certifications
VII NISM Series VII
Medium

When an arbitration award is passed, the stock exchange has to _______ the deposit to the party against whom the award has been made.

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

Options

  1. A

    Refund

  2. Debit

    Correct answer

  3. C

    Credit

  4. D

    None of the above

Why this is the answer

The stock exchange debits the member’s security deposit against whom the award has been passed and keeps it in a separate escrow account.

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