n NISM Certifications
NSM General NISM
Medium

When there is a short-delivery on the settlement day, the shortage is auctioned on the same day and this is called “Auction-in” – State True or False?

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

Options

  1. A

    False

  2. True

    Correct answer

Why this is the answer

When short delivery occurs, the shortage is auctioned on the same day, called a “Buy-in” or sometimes referred to as “Auction-in.”

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