Clearing Corporations MCQs September 11, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. What is the primary role of a clearing corporation in stock markets? (A) Issue IPOs (B) Guarantee settlement of trades (C) Regulate brokers (D) Set stock prices 2. Which of the following is a clearing corporation in India? (A) NSCCL (B) CDSL (C) RBI (D) IRDA 3. The full form of NSCCL is: (A) National Securities Clearing Corporation Limited (B) National Stock Clearing Company Limited (C) National Settlement Clearing Corporation Limited (D) National Securities Company of Clearing Limited 4. Clearing corporations act as a: (A) Central counterparty to trades (B) Market regulator (C) Stock exchange owner (D) Depository participant 5. The clearing corporation associated with BSE is: (A) ICCL (B) NSCCL (C) CDSL (D) SEBI 6. Which clearing corporation handles trades on NSE? (A) NSCCL (B) ICCL (C) RBI (D) IRDA 7. What does a clearing corporation ensure? (A) Price discovery (B) Risk management and settlement (C) IPO allotment (D) Brokerage rates 8. Which of the following is NOT a clearing corporation? (A) NSCCL (B) ICCL (C) MCX-SX CCL (D) NSDL 9. Clearing corporations reduce: (A) Settlement risk (B) Dividend payments (C) IPO oversubscription (D) Market volatility 10. In case of counterparty default, the clearing corporation: (A) Cancels the trade (B) Completes settlement from its resources (C) Increases stock price (D) Transfers to SEBI 11. Clearing corporations perform which important function? (A) Trade novation (B) Dividend distribution (C) IPO listing (D) Index calculation 12. The clearing corporation of India Ltd. (CCIL) mainly deals with: (A) Government securities and forex trades (B) Equity IPOs (C) Stock market indices (D) Mutual fund units 13. Clearing corporations use which mechanism to manage risk? (A) Margin requirements (B) IPO allotments (C) Dividend policies (D) Buyback offers 14. The guarantee provided by clearing corporations is called: (A) Settlement guarantee (B) Dividend guarantee (C) IPO guarantee (D) Broker guarantee 15. The process of substituting the clearing corporation as counterparty is called: (A) Novation (B) Allocation (C) Dematerialization (D) Liquidity injection 16. Which Indian clearing corporation is linked with commodities? (A) MCX-SX CCL (B) ICCL (C) NSCCL (D) NSDL 17. The clearing corporation manages: (A) Funds settlement (B) Securities settlement (C) Risk monitoring (D) All of the above 18. What is the role of margin collection by clearing corporations? (A) To protect against default risk (B) To increase dividends (C) To reduce IPO price (D) To encourage speculation 19. Which regulator oversees clearing corporations in India? (A) RBI (B) SEBI (C) IRDA (D) NABARD 20. Which clearing corporation handles BSE trades? (A) ICCL (B) NSCCL (C) CCIL (D) CDSL 21. Clearing corporations are also known as: (A) Central counterparties (B) Price regulators (C) Depositories (D) Brokers 22. The settlement guarantee fund (SGF) is maintained by: (A) Clearing corporations (B) SEBI (C) Stock exchanges (D) Depositories 23. The clearing corporation is interlinked with: (A) Stock exchanges, depositories, and banks (B) Only brokers (C) Only regulators (D) Only mutual funds 24. Which of the following is a key risk handled by clearing corporations? (A) Counterparty risk (B) IPO risk (C) Dividend risk (D) Index risk 25. Trade guarantee mechanism is offered by: (A) Clearing corporations (B) Brokers (C) Depositories (D) SEBI 26. What type of trades are settled through CCIL? (A) G-Secs, Forex, and Money market trades (B) IPO shares (C) Equity intraday trades (D) Mutual fund units 27. The clearing corporation collects which type of margins? (A) Initial margin (B) Mark-to-market margin (C) Both A and B (D) Only dividends 28. The introduction of clearing corporations enhanced: (A) Market stability and confidence (B) Dividend payments (C) IPO subscriptions (D) Retail speculation only 29. Clearing corporations maintain close coordination with: (A) Depositories and banks (B) Insurance companies (C) Foreign governments (D) Mutual funds only 30. In derivatives trading, clearing corporations ensure: (A) Daily mark-to-market settlement (B) Dividend payout (C) IPO pricing (D) Stock listing 31. The default risk of one participant is absorbed by: (A) Clearing corporation (B) SEBI (C) RBI (D) Depository participant 32. Clearing corporations operate under which framework? (A) SEBI Act and regulations (B) Banking Regulation Act (C) Insurance Act (D) Companies Act only 33. Which is true about clearing corporations? (A) They reduce systemic risk (B) They delay settlements (C) They replace exchanges (D) They issue IPOs 34. In case of market volatility, clearing corporations demand: (A) Higher margins (B) Lower margins (C) No margins (D) Direct dividends 35. Who becomes the buyer to every seller and seller to every buyer? (A) Clearing corporation (B) Broker (C) Depository (D) SEBI 36. The core function of clearing corporations is: (A) Settlement guarantee and risk management (B) Price discovery (C) IPO allotment (D) Dividend declaration 37. Clearing corporations act as: (A) Central risk managers (B) Stock price regulators (C) IPO distributors (D) Brokers 38. The time taken for settlement is reduced with: (A) Clearing corporations and technology (B) IPOs (C) Dividend payout (D) Mutual funds 39. Clearing corporations provide confidence to: (A) Investors and traders (B) Only regulators (C) Only depositories (D) Only IPO applicants 40. Which of the following is an advantage of clearing corporations? (A) Reduced counterparty risk (B) Guaranteed settlement (C) Transparent risk management (D) All of the above 41. In derivatives, clearing corporations monitor: (A) Daily price movement and exposure (B) Dividend policies (C) IPO demand (D) Broker commissions 42. What helps clearing corporations manage defaults? (A) Settlement Guarantee Fund (SGF) (B) IPO proceeds (C) Dividend reserves (D) Stock buyback funds 43. Which entity provides settlement instructions to depositories? (A) Clearing corporation (B) SEBI (C) Stock exchange (D) RBI 44. Which type of settlement system do clearing corporations support? (A) Rolling settlement (B) Weekly settlement only (C) Monthly settlement only (D) No settlement 45. Clearing corporations are critical for: (A) Smooth functioning of capital markets (B) Dividend distribution (C) IPO pricing (D) Retail broker earnings 46. A clearing corporation provides: (A) Post-trade services (B) Pre-trade services (C) Only IPO services (D) Only dividend services 47. Who settles the net obligations of brokers? (A) Clearing corporations (B) Depositories (C) SEBI (D) RBI 48. Clearing corporations are important for: (A) Reducing systemic risk in markets (B) Delaying settlements (C) Issuing equity shares (D) Pricing IPOs 49. The inter-operability framework among clearing corporations was introduced to: (A) Increase efficiency and reduce costs (B) Delay settlements (C) Increase monopoly (D) Cancel margins 50. Which clearing corporation mainly handles forex and bond trades? (A) CCIL (B) NSCCL (C) ICCL (D) MCX-SX CCL