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NISM NISM-Series-VII Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Trade Life Cycle | - Steps and participants involved in the trade life cycle
|
| Risk Management | - Risk management in a securities broking firm
|
| Securities Broking Operations | - Front Office, Middle Office and Back Office functions in a Securities Broking Firm
|
| Indian Securities Market | - Overview of the Indian securities market
|
| Regulatory Framework | - Role of the Securities and Exchange Board of India (SEBI)
|
| Investor Grievance Redressal | - Process of investor grievances redressal
|
NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
Regarding the payment of upfront margin by a clearing member to the Clearing Corporation, which of the following statements accurately describes the timing and method of collection?
- A. Margins are adjusted from the liquid assets of a clearing member on a real-time basis.
- B. Margins are collected only in the form of cash equivalents deposited with the Clearing Bank.
- C. Margins are calculated weekly and adjusted against the Base Minimum Capital.
- D. Margins are collected on T+1 day before the pay-in of funds.
- E. Margins are collected at the end of the trading day via a debit to the settlement account.
Correct Answer: A 🗳️
Explanation: Only visible for DumpsTorrent members. You can sign-up / login (it's free).
Cash Management Bills (CMBs) are issued by the Government of India to fund temporary cash flow mismatches. Which of the following correctly identifies their maturity characteristics and trading platform?
- A. Maturities less than 91 days; Traded on NDS-OM platform
- B. Maturities of exactly 91 days; Traded on NDS-CALL platform
- C. Maturities up to 364 days; Traded on RFQ Platform
- D. Maturities between 91 and 182 days; Traded on CROMS
- E. Maturities less than 14 days; Traded on OTC market only
Correct Answer: A 🗳️
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Regarding the utilization of proceeds generated from an Auction or Close-out procedure, what is the regulatory requirement for handling any residual amount remaining after settling the claim of the aggrieved party?
- A. It is transferred to the SEBI General Fund.
- B. It should be credited to the Core Settlement Guarantee Fund (Core SGF).
- C. It is returned to the defaulting member after deducting a 1% processing fee.
- D. It must be credited to the Investor Protection Fund (IPF) of the Exchange.
- E. It is distributed equally among all non-defaulting clearing members.
Correct Answer: B 🗳️
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An investor wishes to lodge a complaint against a registered intermediary on the SCORES platform. Under the current limitation period guidelines, which of the following scenarios would likely lead to SEBI reserving the right to reject the complaint?
- A. The complaint is lodged immediately after the intermediary provided an unsatisfactory reply.
- B. The date of the cause of action is more than one year old.
- C. The investor has already initiated arbitration proceedings for the same matter.
- D. The complaint is lodged within 6 months from the date the intermediary rejected the initial grievance.
- E. The investor has approached the intermediary, but received no communication, and the cause of action is 8 months old.
Correct Answer: B 🗳️
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In certain market segments or scenarios, the Clearing Corporation bypasses the auction mechanism and directly initiates a 'Close Out' for delivery shortages. Which of the following is a specific case where this direct close-out procedure is mandated?
- A. Internal shortages within a broker's firm that could not be resolved via self-auction.
- B. Shortages arising from institutional trades not confirmed by the Custodian.
- C. Shortages in liquid securities (Group l) where the impact cost is less than 1%.
- D. Trades executed in the Block Deal window.
- E. Shortages where the value is less than Rs. 1 Lakh.
Correct Answer: D 🗳️
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