NISM Series 12 Securities Markets Foundation Certification Exam Notes

Page 90 Of 93

Go to:

  • Regulatory Oversight: SEBI regulates derivatives to prevent manipulation.
  • Position Monitoring: Alerts prevent breaches of position limits.
  • Margin Penalties: Non-payment of margins leads to trading restrictions.
  • Hedging Example: Investors use futures to lock in prices for portfolios.
  • Speculation Example: Traders buy futures expecting price rises.

NISM 12 Securities Markets Foundation

MODELEXAM MODELEXAM®