NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Settlement Process
On the pay-out day, securities due to a buyer client are first credited by the clearing corporation to which account before reaching the client's demat account?
On pay-out, the clearing corporation credits securities to the clearing member's pool account at the depository. The member must then transfer them to the respective client's demat account within the prescribed time after pay-out.
- AThe clearing member's pool accountCorrect
- BThe exchange's proprietary account
- CThe seller's beneficial owner account
- DThe depository's escrow account
Explanation
Securities are credited in pay-out to the clearing member's pool account at the depository, and the member then transfers them to the clients' demat accounts within the prescribed time. The other accounts are not part of the standard flow.
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