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CS Professional · IFSCA - Regulations, Listing and Compliances · India International Bullion Exchange (IIBX)

Aarav Metals, a trading member of IIBX, wishes to also act as a professional clearing member for other firms. Which is the most accurate position under the exchange's membership structure?

Aarav Metals needs the specific clearing admission before acting as a clearing member. Trading, clearing and combined memberships are separate categories, so holding one does not automatically confer the other; each is granted under exchange and clearing corporation requirements.

  1. AMembership categories distinguish trading members, clearing members and professional or trading-cum-clearing roles, and each role needs the corresponding admission by the exchange and clearing corporationCorrect
  2. BOne membership automatically authorises all activities without any separate admission
  3. COnly foreign banks can ever be clearing members
  4. DClearing members must be individuals with no corporate status

Explanation

Membership rules separate trading, clearing and combined roles, and each requires admission under exchange and clearing corporation rules. A trading membership does not automatically carry clearing rights, and no rule limits clearing membership to foreign banks or individuals.

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