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

  • Exam Code: NISM-Series-VII
  • Exam Name: NISM Series VII - Securities Operations and Risk Management Certification
  • Updated: Oct 08, 2026     Q & A: 334 Questions and Answers

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NISM NISM-Series-VII Exam Syllabus Topics:

SectionObjectives
Topic 1: Clearing and Settlement- Clearing mechanisms
  • 1. Clearing corporations and counterparties
    • 2. Netting and settlement obligations
      - Settlement systems
      • 1. T+1/T+2 settlement cycles
        • 2. Margining and risk adjustments
          Topic 2: Depository Operations- Corporate actions
          • 1. Dividends, bonuses, splits
            • 2. Record dates and entitlement processing
              - Demat account framework
              • 1. NSDL and CDSL roles
                • 2. Account opening and maintenance
                  Topic 3: Risk Management in Securities Markets- Risk mitigation systems
                  • 1. Margins and collateral systems
                    • 2. Surveillance and compliance mechanisms
                      - Market and operational risk
                      • 1. Operational risk controls
                        • 2. Types of financial risks
                          Topic 4: Securities Market Operations- Trading process
                          • 1. Trade confirmation and reporting
                            • 2. Order execution and trade lifecycle
                              - Market participants and structure
                              • 1. Order types and trading mechanism basics
                                • 2. Roles of brokers, exchanges, and investors

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

                                  Question #1

                                  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
                                  Reveal Solution  Discussion  0

                                  Correct Answer: E  🗳️

                                  Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).

                                  Question #2

                                  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.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

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                                  Question #3

                                  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.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: A,C,D,E  🗳️

                                  Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).

                                  Question #4

                                  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.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: E  🗳️

                                  Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).

                                  Question #5

                                  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.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).

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