CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries
Rohan Clearing Services in GIFT IFSC guarantees and settles the obligations arising from trades done by exchange members, determining net payment and delivery positions on settlement day. In the intermediary ecosystem, this function is most closely associated with which entity?
The function described belongs to a clearing corporation. It determines net payment and delivery obligations of exchange members and ensures settlement, often guaranteeing performance. Custodians safekeep assets, debenture trustees protect debenture holders, and registrars maintain holder records, so they do not perform trade settlement.
- AA clearing corporationCorrect
- BA custodian
- CA debenture trustee
- DA registrar and transfer agent
Explanation
A clearing corporation novates trades, computes net obligations and ensures settlement, often guaranteeing performance. A custodian safeguards assets, a debenture trustee protects debenture holders, and a registrar maintains holder records and handles transfers, so none of them settles trades.
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