NISM NISM-Series-VII Q&A - in .pdf

  • NISM-Series-VII pdf
  • Exam Code: NISM-Series-VII
  • Exam Name: NISM Series VII - Securities Operations and Risk Management Certification
  • Updated: Oct 12, 2026
  • Q & A: 334 Questions and Answers
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  • Exam Name: NISM Series VII - Securities Operations and Risk Management Certification
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  • Updated: Oct 12, 2026
  • Q & A: 334 Questions and Answers
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NISM NISM-Series-VII Q&A - Testing Engine

  • NISM-Series-VII Testing Engine
  • Exam Code: NISM-Series-VII
  • Exam Name: NISM Series VII - Securities Operations and Risk Management Certification
  • Updated: Oct 12, 2026
  • Q & A: 334 Questions and Answers
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NISM NISM-Series-VII Exam Syllabus Topics:

SectionObjectives
Topic 1: Indian Securities Market- Overview of the Indian securities market
  • 1. Different products traded
  • 2. Various market participants and their roles
Topic 2: Regulatory Framework- Role of the Securities and Exchange Board of India (SEBI)
  • 1. Investor protection
  • 2. Regulatory oversight
Topic 3: Risk Management- Risk management in a securities broking firm
  • 1. Identifying and mitigating risks
  • 2. Compliance and control measures
Topic 4: Investor Grievance Redressal- Process of investor grievances redressal
  • 1. Procedures for handling complaints
  • 2. Regulatory requirements
Topic 5: Trade Life Cycle- Steps and participants involved in the trade life cycle
  • 1. Clearing and settlement process
  • 2. Role of the back office in a securities broking firm
Topic 6: Securities Broking Operations- Front Office, Middle Office and Back Office functions in a Securities Broking Firm
  • 1. Settlement processing
  • 2. Trade execution
  • 3. Risk management

NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:

Question #1

Periodic settlement of running accounts is mandatory for most clients. However, under which of the following specific circumstances is the periodic settlement of funds **NOT** necessary to the extent of funds involved?

  • A. For clients trading in the derivatives segment with open positions, even if they have excess free cash.
  • B. For High Net Worth Individuals (HNIs) who have provided a 'Do Not Settle' instruction.
  • C. For clients who have a credit balance of less than Rs. 10,000.
  • D. For clients availing Margin Trading Facility (MTF), to the extent of funds/securities relating to MTF used by the client.
  • E. For Non-Resident Indian (NRI) clients dealing through the Portfolio Investment Scheme (PIS).
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

In the context of determining the 'venue and seat' of online proceedings for a dispute between an individual investor and a listed company/intermediary, which location is deemed to be the venue and seat?

  • A. The place where the investor resides permanently.
  • B. The location of the SEBI Regional Office nearest to the investor.
  • C. The registered office of the ODR Institution administering the dispute.
  • D. The location where the Market Infrastructure Institution (Mll) is headquartered.
  • E. The High Court jurisdiction where the listed company is registered.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

Under the 'Block Mechanism' in demat accounts for sale transactions, what is the specific operational protocol regarding the movement and unblocking of shares if the sale transaction is **not** executed on the trade day (T day)?

  • A. Shares are transferred to the Clearing Corporation's settlement pool and returned only after the auction session on T+1 .
  • B. Shares continue to remain in the client's demat account and will be unblocked at the end of the T day.
  • C. Shares remain blocked until the client explicitly submits a cancellation instruction via the depository participant.
  • D. Shares are debited from the client's account and held in a suspense account by the Depository until the next trading session.
  • E. Shares are automatically transferred to the Trading Member's pool account and returned to the client on T+1 day.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

Under the 'Segregation and Monitoring of Collateral at Client Level' norms, how is the collateral allocated to a client utilized by the Clearing Corporation?

  • A. It is pooled with other clients' collateral to cover the aggregate margin requirement of the Trading Member.
  • B. It is transferred to the Core Settlement Guarantee Fund immediately upon receipt.
  • C. It is used to cover the margin obligation of that specific client only.
  • D. It is primarily used for the client but can be used for the TM's proprietary obligations in case of a shortfall.
  • E. It is used to provide exposure limits to the Clearing Member's other Trading Members.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

In the context of the 'SEBI Complaints Redress System (SCORES 2.0)', which of the following accurately describes the 'Review' mechanism available to a complainant who is dissatisfied with the resolution provided by the regulated entity?

  • A. A mandatory arbitration process initiated automatically upon dissatisfaction.
  • B. A single-level review conducted directly by the Securities Appellate Tribunal (SAT).
  • C. Two levels of review: First by the 'Designated Body' and Second by SEBI.
  • D. No review option is available; the complainant must approach the civil court immediately.
  • E. A review by the Investor Service Centre of the nearest Stock Exchange within 30 days.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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