Are investors affected, in case a counter trading member fails to pay-in funds as per his settlement obligation?
No, the investor is not affected in case the counter trading member fails to meet his obligation since National Securities Clearing Corporation Limited (NSCCL) guarantees the net settlement obligations. The Clearing Corporation guarantees completion of settlement through the Settlement Guarantee Fund (i.e. NSCCL steps in on behalf of the trading member who failed to bring in funds).
Related Questions
- What other funds in the current plan lineup are closed to new investors? Will any of the closed funds be available to participants who invest in the new self-directed mutual fund window?
- Are investors affected, in case a counter trading member fails to pay-in funds as per his settlement obligation?
- What are the costs to TSP participants invested in the funds affected by frequent trading activity?
