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NISM NISM-Series-VII Exam Syllabus Topics:

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

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

                                  Which regulatory framework governs the operationalization of the Bullion Exchange, Bullion Clearing Corporation, Bullion Depository, and Vault Manager within the IFSC?

                                  • A. IFSCA (Bullion Exchange) Regulations, 2020
                                  • B. SEBI (Custodian of Securities) Regulations, 1996
                                  • C. RBI (Gold Monetization Scheme) Directions, 2015
                                  • D. SEBI (Vault Managers) Regulations, 2021
                                  • E. FEMA (Export of Goods and Services) Regulations, 2015
                                  Reveal Solution  Discussion  0

                                  Correct Answer: A  🗳️

                                  Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).

                                  Which of the following statements correctly describe the logic for blocking margins from collateral for different types of trades under the client collateral segregation framework? (Select all that apply)

                                  • A. If a CM'S proprietary collateral is insufficient for a TM's proprietary trade, the CC utilizes the Core SGF immediately.
                                  • B. For a trade from a client account, if client collateral is insufficient, the residual margin is blocked from the TM proprietary collateral.
                                  • C. Margins based on trades from the proprietary account of the CM are blocked from the proprietary collateral of the CM only.
                                  • D. For a client trade, if TM proprietary collateral is insufficient, the residual margin is blocked from the collateral of other clients of the same TM.
                                  • E. For a trade from the proprietary account of a TM, margin is first blocked from the TM proprietary collateral, and if insufficient, from the CM proprietary collateral.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: B,C,E  🗳️

                                  Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).

                                  A securities broking firm configures its Compliance Management System (CMS) to manage data retention policies in accordance with the Prevention of Money-Laundering Act (PMLA), 2002.
                                  Review the JSON configuration snippet below regarding record retention timelines:

                                  Based on the SEBI directives and PMLA provisions, which setting in the configuration is legally NON-COMPLIANT?

                                  • A. Both transaction_records and suspicious_transaction_reports
                                  • B. All settings are compliant
                                  • C. client_identity_documents: 3_years_from_account_closure
                                  • D. suspicious_transaction_reports: 5_years_from_reporting_date
                                  • E. transaction_records: 5_years_from_transaction_date
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).

                                  Consider the following 'Sell' order book for a security. A new Buy Limit Order for 500 shares at a price of Rs. 121.50 is entered into the system.

                                  Based on the price-time priority mechanism, how will this buy order be executed?

                                  • A. 150 shares @ 121.20, 200 shares @ 121.40, and 150 shares @ 121.50
                                  • B. The order will remain pending as the full quantity cannot be matched at a single price.
                                  • C. 50 shares @ 121.20, 100 shares @ 121.20, 200 shares @ 121.40, and 150 shares @ 121.50
                                  • D. 200 shares @ 121.50, 200 shares @ 121.40, and 100 shares @ 121.20
                                  • E. 500 shares @ Rs. 121.50
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).

                                  According to the SEBI (Prohibition of Insider Trading) Regulations, 2015, certain categories of persons are 'deemed to be connected persons' unless the contrary is established. Which of the following entities fall under this 'deemed' category?

                                  • A. A banker of the company.
                                  • B. A person who has been associated with the company in any capacity 8 months prior to the trade.
                                  • C. A holding company or subsidiary company of the listed entity.
                                  • D. An official of a stock exchange or clearing corporation.
                                  • E. A concern, firm, or HUF wherein a director of the company has more than 10% of the holding of interest.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: A,C,D,E  🗳️

                                  Explanation: Only visible for 2Pass4sure members. You can sign-up / login (it's free).

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