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NISM NISM-Series-VII Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Clearing and Settlement | - Clearing mechanisms
|
| Topic 2: Depository Operations | - Corporate actions
|
| Topic 3: Risk Management in Securities Markets | - Risk mitigation systems
|
| Topic 4: Securities Market Operations | - Trading process
|
NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
In the context of the T+1 rolling settlement cycle for the Cash Segment, by what specific time must the custodial confirmation of trades be completed on the T+1 day to ensure the timely determination of final obligations by the Clearing Corporation?
- A. By 9:00 AM on T+1 Day
- B. By 1:30 PM on T+1 Day
- C. By 4:15 PM on T Day
- D. By 11:00 AM on T+1 Day
- E. By 7:30 AM on T+1 Day
Correct Answer: E 🗳️
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Regarding 'Two-factor authentication' for login sessions in Internet Based Trading (IBT), which of the following implementation details is explicitly advisable/required?
- A. The second factor must always be biometric verification.
- B. The two factors should be identical (e.g., two different passwords).
- C. Public Key Infrastructure (PKI) based implementation using digital signatures is advisable, and the two factors should not be the same.
- D. Two-factor authentication is optional and can be replaced by a static high-complexity password.
- E. It should be implemented using only SMS-based OTP without any other factor.
Correct Answer: C 🗳️
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Transfer of securities from one account to another within the depository system may be done for which of the following purposes?
(Select all that apply)
- A. Transfer due to an 'off-market' transaction (person-to-person).
- B. Transfer for the purpose of evading Stamp Duty.
- C. Transfer arising out of account closure.
- D. Transfer arising out of transmission of securities.
- E. Transfer arising out of a transaction done on a recognized Stock Exchange.
Correct Answer: A,C,D,E 🗳️
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Under Section 18A of the Securities Contracts (Regulation) Act, 1956, contracts in derivatives are considered legal and valid only if they satisfy specific conditions. Which of the following is a mandatory condition for such validity?
- A. The contract must be validated by the Reserve Bank of India (RBI) prior to execution.
- B. The contract must be settled bilaterally between the buyer and the seller without an intermediary.
- C. The contract must be traded Over-the-Counter (OTC) between two financial institutions.
- D. The contract must involve physical delivery of the underlying asset upon expiry.
- E. The contract must be traded on a recognized stock exchange and settled on the clearing house of the recognized stock exchange.
Correct Answer: E 🗳️
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For un-expired illiquid futures contracts on an individual security, how is the Daily Settlement Price determined by the Clearing Corporation?
- A. It is fixed at the previous day's settlement price adjusted for the risk-free interest rate.
- B. It is based on the closing price of the underlying security in the Capital Market Segment.
- C.

- D. It is the weighted average price of the contract during the last half an hour of trading.
- E. It is determined by the FIMMDA / FBIL reference rate.
Correct Answer: C 🗳️
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