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NISM NISM-Series-VII Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Market Microstructure | 12% | - Trading mechanisms and order types - Market indices and their calculation - Price discovery and market efficiency |
| Topic 2: Risk Management and Margining | 18% | - Margining systems and methodologies - Risk monitoring and control measures - Types of risks in securities operations |
| Topic 3: Regulatory Framework | 15% | - SEBI Act, Rules and Regulations - Code of conduct and ethical practices - Compliance requirements for intermediaries |
| Topic 4: Clearing and Settlement | 15% | - Clearing process and roles of clearing corporations - Settlement cycle and mechanisms - Delivery versus payment and settlement guarantee |
| Topic 5: Trading Operations | 15% | - Front office functions and processes - Order management and trade execution - Client onboarding and KYC norms |
| Topic 6: Technology in Securities Markets | 8% | - Emerging technologies and their impact - Systems for trading, clearing and settlement - Data security and business continuity |
| Topic 7: Securities Market Overview | 10% | - Market participants and their roles - Structure and segments of Indian securities market - Types of securities and products |
| Topic 8: Investor Protection | 7% | - Investor rights and grievances redressal - Investor education and awareness initiatives - Mechanisms for dispute resolution |
NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
1. Regarding the settlement timelines for Mutual Fund transactions executed on the Stock Exchange platform, which of the following statements accurately describes the funds pay-in requirement for subscription and the funds pay-out timeline for redemption?
A) Funds pay-in for subscription: T+1 ; Funds pay-out for redemption: T+1 for all schemes.
B) Funds pay-in for subscription: T+1 ; Funds pay-out for redemption: T+2.
C) Funds pay-in for subscription: T+0; Funds pay-out for redemption: T+1 to T+7 depending on the scheme.
D) Funds pay-in for subscription: T+0; Funds pay-out for redemption: T+0 for Liquid funds and T+2 for Equity funds.
E) Funds pay-in for subscription: T+2; Funds pay-out for redemption: T+3.
2. Under the SEBI (Foreign Portfolio Investors) Regulations, 2019, which of the following entities are classified as Category I Foreign Portfolio Investors? (Select all that apply)
A) Corporate bodies and Family offices
B) Appropriately regulated entities such as insurance entities from FATF member countries
C) Unregulated funds in the form of limited partnerships
D) Government and Government related investors such as central banks and sovereign wealth funds
E) Pension funds and university funds
3. Stock brokers provide various types of research reports to assist investors. Specifically, what content is a 'Sector Research' report expected to cover to help investors in their decision-making process?
A) Detailed technical analysis of stock price movements and volume data for specific scrips.
B) A comprehensive list of all IPOs expected to hit the market in the next financial year.
C) Confidential insider information regarding upcoming mergers and acquisitions.
D) Mathematical models for algorithmic trading strategies.
E) Details on how an industry is faring and whether current policies favour the industry.
4. In the context of the operations of a Depository Participant (DP), what is identified as the 'main activity' pursuant to the trading activity of an investor?
A) Freezing of the demat account for debits or credits
B) Receiving non-cash corporate benefits like bonus shares
C) Dematerialization of physical securities
D) Pledging of dematerialized securities
E) Settlement and transfer of securities from one beneficiary account to another
5. In the context of Interest Rate Derivatives traded on Indian exchanges, specifically for single bond futures on Government of India (GOI) securities, how is the final settlement price determined if the liquidity criteria in the underlying bond are not met during the last two hours of trading?
A) It is based on the polling of prices from the top 5 Primary Dealers if less than 10 trades are executed on the exchange.
B) It is the simple average of the best bid and ask prices available on the NDS-OM platform at 5:00 PM.
C) It is calculated based on the Value Weighted Average Price (VWAP) of the underlying bond executed during the last 30 minutes of trading on the NDS-OM platform.
D) If less than 5 trades are executed in the underlying bond during the last two hours, the FIMMDA/FBIL price shall be used.
E) It is derived from the theoretical price formula: Cash Price + Financing Cost - Income on cash position.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B,D,E | Question # 3 Answer: E | Question # 4 Answer: E | Question # 5 Answer: D |






