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NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market

Ramesh holds shares in demat form with a depository participant (DP) of NSDL. His broker is a clearing member of NSE's clearing corporation. For a pay-in of securities against a sale, from which account does Ramesh's broker typically deliver the securities to the clearing corporation?

For pay-in, the client's sold shares are moved to the broker's pool account, and the broker then delivers them from that pool account to the clearing corporation's account. Delivery does not go straight from the client's account to the trading terminal or from the issuer.

  1. AFrom the client's demat account directly to the exchange's trading terminal
  2. BFrom the broker's pool account to the clearing corporation's account after client shares are moved inCorrect
  3. CFrom the clearing corporation's account to the broker's proprietary account
  4. DFrom the issuer company's account to the broker

Explanation

Clients transfer sold securities to the broker's pool account, and the pool account delivers to the clearing corporation at pay-in. The other routes reverse or invent flows that do not occur in settlement.

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