NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Trading and Settlement

In an on-market trade settled through the exchange clearing mechanism, a client who has sold shares wants to deliver them. Which statement about the pool account route is correct?

In an on-market trade, securities go from the seller's demat account to the clearing member's pool account, then through the clearing corporation to the buying member's pool account, and finally to the buyer's account. A direct transfer between clients is an off-market transfer, not the pool route.

1. ASecurities are delivered from the client's account to the clearing member's pool account, from where the clearing corporation moves them to the buying side's pool account and onward to the buyerCorrect
2. BThe seller's shares are sent directly to the buyer's demat account without any pool account involvement
3. CThe shares move first to the issuer company's account and then to the buyer
4. DThe depository itself decides the buyer and delivers from its own account