Exam NISM-Series-VII Topic 1 Question 238 Discussion

Actual exam question for NISM's NISM-Series-VII exam
Question #: 238
Topic #: 1
Select the correct statements regarding the regulations and procedures governing the auction of securities and handling of proceeds by the Clearing Corporation. (Select all that apply)

Suggested Answer: B,D,E Vote an answer

Option B is correct: 'In no case the auction shall be held beyond a period of one week from the pay-in day'. Option D is correct: 'Any amount remaining thereof should be credited to the Core Settlement Guarantee Fund... instead of crediting it to the defaulting party's account'. Option E is correct: 'Members participating in the auction... are required to deliver the shares... on or before the auction pay-in day, i.e., subsequent day'. Option A is incorrect as auctions are generally held once unless specially approved. Option C is incorrect because auction seller defaults are closed out at the highest price or 20% over the closing price, not the valuation price.

by Truda at Jul 21, 2026, 02:16 AM

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