Explain any two fucntions of clearing corporation.
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
Two functions of a Clearing Corporation are:
- Clearing and Settlement: It clears and settles all transactions by completing the process of receiving and delivering shares/funds to the buyers and sellers in the market.
- Financial Guarantee: It provides financial guarantee for all transactions executed on the exchange, ensuring safety and reliability of trades.
Source: Chapter 8, Section 8.3 – Clearing & Settlement
Explanation
The passage lists exactly three functions of a Clearing Corporation. Pick any two for a 2-mark question. Each function = 1 mark. State the function name and briefly explain it — one line each is sufficient. Do not write about NSCCL unless specifically asked.