WorksheetsClearing and Settlement Quiz
Total questions: 25
Worksheet time: 13mins
What is the main purpose of the clearing process?
Buying stocks
Confirming buyer and seller obligations
Depositing money
Paying dividends
What does settlement refer to in the stock market?
Buying a house
Opening a bank account
Final exchange of money and securities
Closing a business
What is the full name of BMSC?
Bursa Malaysia Securities Corporation
Bursa Malaysia Securities Clearing Sdn Bhd
Bank of Malaysia Securities Clearing
Bursa Malaysia Stock Center
When did BMSC start operations?
1990
1983
1986
2000
What does T+3 mean?
Trade plus 3 seconds
Trade plus 3 minutes
Trade plus 3 market days
Trade plus 3 months
What does DvP stand for?
Delivery vs Payment
Deposit vs Purchase
Dividend vs Profit
Development vs Planning
What kind of settlement is done on a net basis?
T+0
Institutional
Manual
Direct
What activity ensures the seller delivers securities on time?
Dividend declaration
Automatic buying-in
Bonus issue
Share allotment
When must the seller ensure they have tradable balance?
T+1
T+2
T+3
T+4
What time is the seller's CDS account debited on T+3?
12:00 PM
10:00 AM
5:00 PM
9:00 AM
Why was the settlement period reduced from T+5 to T+3?
For fun
Increase delays
Reduce risk and improve efficiency
Increase tax collection
What is the CDS system used for?
Holding physical share certificates
Electronic record of shares
Storing cash
Printing statements
Who manages the CDS system?
Maybank
Bank Negara
Bursa Malaysia Depository Sdn Bhd
Ministry of Finance
What does ADA stand for?
Automated Deposit Account
Authorized Depository Agent
Asset Development Authority
Account Deposit Association
Who can open a CDS account?
Only companies
Only individuals
Individuals and corporations
Only brokers
What happens if no CDS activity occurs for 36 months?
Account becomes active
Account is closed
Account becomes dormant
Money is refunded
What is the function of IBT?
Transfer money between banks
Allow CDS transactions at any ADA branch
Print tax receipts
Convert shares to cash
What does ESA allow investors to do?
Apply for loans
Apply for IPOs electronically
Withdraw money
File complaints
How are IPO shares allotted in ESA?
Manual ballot
First come, first served
Electronic ballot
Random pick
What is PAL in corporate actions?
Personal Allocation Letter
Provisional Allotment Letter
Prepaid Allotment Log
Permanent Allocation Ledger
Who gets the CDS statement?
All Malaysians
Only active account holders
Only brokers
Only dormant accounts
When are CDS statements issued for accounts with transactions?
Annually
Monthly
Weekly
Daily
What is the trade settlement process?
Making purchases
Delivering securities and receiving money
Selling goods
Issuing loans
What is the benefit of reducing settlement time?
Higher fees
Increased risk
Lower exposure and faster transactions
Less transparency
What does a CDS account NOT show?
Share quantity
Share value
Number of transactions
Balance of shares
