n NISM Certifications
VII NISM Series VII
Medium

Which of the following can be termed as 'Clearing Members'?

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Trading Members

  2. B

    Self-Clearing Members

  3. C

    Trading-cum-Clearing Members

  4. Professional Clearing Members

    Correct answer

  5. E

    A and B

  6. F

    B and D

  7. ?

    C and D

  8. ?

    B, C and D

Why this is the answer

Trading Members execute trades but do not have clearing rights. Clearing rights are held by Self-Clearing Members, Trading-cum-Clearing Members, and Professional Clearing Members, who handle trade settlement and obligations.

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