Which of the following statements accurately describe the regulatory and operational framework regarding Clearing Banks and Clearing Members? (Select all that apply)

• A. Additional clearing accounts may be maintained for the specific purpose of enhancing collateral in the form of cash.
• B. Clearing Members must irrevocably authorize the Clearing Bank to allow the Clearing Corporation to access their accounts for debiting and crediting.
• C. Every clearing member must maintain a separate and distinct primary clearing account for each segment.
• D. Clearing Banks are responsible for determining the final net settlement obligations of the Clearing Members.
• E. Clearing Members are permitted to withdraw funds from their clearing accounts in favor of third-party beneficiaries.

Which of the following statements accurately describe the application of the 'Close Out' procedure by the Clearing Corporation? (Select all that apply)

• A. Any surplus proceeds from a close out are credited to the defaulting party's settlement account.
• B. The close out price is strictly fixed at the closing price of the trade day for all scenarios.
• C. Securities under 'Trade for Trade' category are subject to direct close out without an auction.
• D. Close out is conducted if an auction for short delivery finds no sellers.
• E. Delivery shortages in securities undergoing corporate action are directly closed out.

In the context of the operations of a Depository Participant (DP), what is identified as the 'main activity' pursuant to the trading activity of an investor?

• A. Dematerialization of physical securities
• B. Receiving non-cash corporate benefits like bonus shares
• C. Settlement and transfer of securities from one beneficiary account to another
• D. Freezing of the demat account for debits or credits
• E. Pledging of dematerialized securities

To participate in the trading of mutual fund units through the stock exchange trading platform, a trading member must fulfill specific criteri a. Which of the following combinations accurately represents the mandatory requirements for a trading member to place orders for a specific Mutual Fund Company?

• A. Hold an AMFI Registration Number (ARN), pass the relevant NISM certification examination, and register as a distributor with the specific Mutual Fund Company.
• B. Be a registered Depository Participant, hold a valid ARN, and have a dedicated Mutual Fund desk with at least two certified employees.
• C. Hold a valid SEBI Registration as a Portfolio Manager, pass the NISM Series-V-A examination, and register with the Association of Mutual Funds in India (AMFI).
• D. Obtain a specific 'MF-Trading' license from the Stock Exchange, maintain a minimum net worth of Rs. 50 Lakhs, and hold a valid ARN.
• E. Register directly with SEBI as an Investment Adviser, hold a valid ARN, and execute a Service Level Agreement with the Clearing Corporation.

Under the framework for 'Settlement of Account of Clients', specific provisions exist for clients who have not traded for a certain period. If a client has a credit balance but has not executed any transaction in the last 30 calendar days, how must the Trading Member (TM) handle the settlement of funds?

• A. The TM can continue to maintain the running account if the credit balance is below ? 10,000.
• B. The TM must return the entire credit balance to the client on the upcoming settlement date of the monthly running account settlement cycle, irrespective of the client's preference for a quarterly cycle.
• C. The TM must settle the account within 24 hours of the 30th day of inactivity.
• D. The TM must retain the funds until the next quarterly settlement date chosen by the client.
• E. The TM is permitted to transfer the funds to the Investor Protection Fund (IPF) if the client remains inactive for more than 30 days.