n NISM Certifications
VII NISM Series VII
Medium

Who settles the trades in the Mutual Fund platform of the stock exchanges?

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

Options

  1. A

    AMFI

  2. Clearing corporation of the exchanges

    Correct answer

  3. C

    Asset Management Companies (AMCs)

  4. D

    Registrar and Transfer Agents (RTAs)

Why this is the answer

Exchanges provide platforms like NSE’s Mutual Fund Service System and BSE Star MF for trading in open-ended mutual fund schemes. The clearing corporation of the exchange handles settlement of purchases, redemptions, and SIP transactions for mutual fund schemes.

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