NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Settlement Process
Which of the following best describes the pay-in in the settlement process?
Pay-in is the settlement stage at which members hand over the securities they owe as sellers and the funds they owe as buyers to the clearing corporation, enabling it to complete the pay-out to the entitled counterparties afterwards.
- AThe date when securities or funds are delivered by members to the clearing corporationCorrect
- BThe date when the exchange publishes the trade price
- CThe date when members receive their margin refund
- DThe date when the investor opens a demat account
Explanation
Pay-in is when members deliver securities (sellers) and funds (buyers) to the clearing corporation. Pay-out is when the clearing corporation gives funds and securities back to the entitled members. The other options relate to unrelated events.
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