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NISM NISM-Series-VII Exam Overview:

NISM NISM-Series-VII Exam Syllabus Topics:

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

1. Which of the following statements are CORRECT regarding the Settlement of Securities in the Indian Cash Market? (Select all that apply)

A) Clients can authorize the broker via DDPI to access their BO account for the limited purpose of meeting pay-in obligations.
B) The securities direct pay-out mandated by SEBI is applicable to all clients, including those having arrangements with registered custodians.
C) Purchasers of securities are required to issue a fresh receipt instruction to their DP for every transaction, as standing instructions are prohibited.
D) As a consequence of Direct Payout, the timing of the securities payout has been revised to 3:30 PM.
E) In case of holidays, the CCs settle trades on a sequential basis, ensuring the pay-out of the first settlement is completed before the pay-in of the subsequent settlement.

2. Which of the following services can a Depository Participant (DP) engage in, as explicitly listed in the NISM workbook? (Select all that apply)

A) Underwriting of Initial Public Offers (IPOs)
B) Issuing equity research reports for the depository
C) Receiving electronic credit in respect of securities allotted by issuers under IPO
D) Pledging of dematerialized securities & facilitating loans against shares
E) Freezing of the demat account for debits, credits, or both

3. Every clearing member is required to maintain a separate primary clearing account with a designated clearing bank. Which of the following operational restrictions applies to this account regarding withdrawals?

A) Funds can be withdrawn directly to third-party vendor accounts for operational expenses.
B) Withdrawals are limited to 50% of the account balance on any given day.
C) Funds can be withdrawn only in the self-name of the clearing member.
D) Funds can be withdrawn only after obtaining a No Objection Certificate (NOC) from the Stock Exchange.
E) Withdrawals are strictly prohibited; funds must only be used for settlement obligations.

4. A corporate stock broker with a net worth of Rs. 10 Crore wishes to offer the margin trading facility (MTF) to its clients. According to SEBI regulations, what is the maximum limit on the broker's total indebtedness for the purpose of margin trading and the maximum allowable exposure towards MTF?

A) Total Indebtedness: Rs. 50 Crore; Maximum Exposure: Borrowed Funds + Rs. 5 Crore
B) Total Indebtedness: Rs. 50 Crore; Maximum Exposure: Borrowed Funds + Rs. 10 Crore
C) Total Indebtedness: Rs. 20 Crore; Maximum Exposure: Rs. 50 Crore
D) Total Indebtedness: Rs. 100 Crore; Maximum Exposure: 5 times Net Worth
E) Total Indebtedness: Rs. 30 Crore; Maximum Exposure: Borrowed Funds + Rs. 10 Crore

5. Regarding the utilization of interest or income received out of investments made from the Investor Protection Fund (IPF), which of the following statements accurately reflects the regulatory mandate for ploughing back funds into the corpus?

A) The entire interest income must be transferred to the Investor Services Fund (ISF) annually.
B) Only the interest earned on the security deposit of the issuer companies is ploughed back; other income is free for use.
C) At least 70% of interest or income from IPF received every year shall be ploughed back to IPF.
D) 100% of the interest or income received every year must be strictly used for settling claims and cannot be reinvested.
E) At least 50% of the interest or income must be ploughed back, while the remaining 50% can be used for administrative expenses.

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