Try and practice the latest NISM : NISM-Series-VII real questions & answers

NISM NISM-Series-VII Exam Overview:

NISM NISM-Series-VII Exam Syllabus Topics:

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

1. In the context of adjustments for corporate actions such as Bonus, Rights, or Mergers in the Equity F&O segment, at what specific point in time is the adjustment carried out?

A) On the Record Date fixed by the company for the corporate action.
B) On the payout date of the relevant settlement cycle.
C) On the date of the Board Meeting where the corporate action was announced.
D) On the last day on which a security is traded on a 'cum' basis in the underlying equities market after the close of trading hours.
E) On the Ex-Date of the corporate action before the start of market hours.

2. Identify the correct expiry and settlement logic for Currency Derivative contracts (USD-INR) traded on Indian stock exchanges.

A) Contracts expire on the 1 5th of every month; Settlement is cash settled based on the crossing of FCY-INR rates.
B) Contracts expire two working days prior to the last business day of the expiry month at 12:30 pm; Final Settlement Price is the FBIL reference rate.
C) Contracts expire on the last Thursday of the month; Settlement is physical delivery of the foreign currency.
D) Contracts expire on the last working day of the month; Final Settlement Price is the RBI Reference Rate.
E) Contracts expire two working days prior to the last business day of the month; Final Settlement Price is the average spot rate of the last 30 minutes.

3. In the event of a failure by a selling broker to deliver securities in the normal T+1 rolling settlement, the Clearing Corporation initiates a
'Close Out' procedure if the auction fails or is not applicable. Consider a scenario where a trade was executed on Monday (T) at Rs. 500.
The auction was scheduled for Tuesday (T+1 ) but no shares were offered. The highest price prevailing across the Exchange from Monday to Tuesday was Rs. 540. The official closing price on Tuesday (Close-out day) was Rs. 550. At what price will the transaction be closed out?

A) Rs. 600 (Highest price + 20% penalty)
B) Rs. 540 (Highest price from T to Close-out day)
C) Rs. 648 (20% above the highest prevailing price)
D) Rs. 550 (Official closing price on Close-out day)
E) Rs. 660 (20% above the official closing price on the close out day)

4. A transferee (buyer) in the depository system wishes to receive securities into their demat account. What is the operational requirement regarding 'Standing Instructions' (SI) for this process?

A) Standing Instructions are valid only for off-market transfers and not for market trades.
B) The SI functionality has been replaced entirely by the Demat Debit and Pledge Instruction (DDPI).
C) If 'Standing Instructions' are not given, the transferee must give separate Receipt Instructions each time to the DP to receive securities.
D) Standing Instructions are mandatory for all accounts; without them, the account remains inactive.
E) Standing Instructions allow the DP to debit the account without a Delivery Instruction Slip (DIS).

5. To manage firm-level exposure, a broking firm must employ specific procedures. Which of the following activities is primarily associated with the 'Assessment of the Effectiveness of the Strategies, Policies and Procedures' in the risk management function?

A) Ensuring the front office staff executes orders without intervention from the risk department.
B) Setting trading limits for individual clients based on their income tax returns only.
C) Reviewing material changes to methodologies, models, and assumptions of risk management by the governing body.
D) Outlining investment guidelines solely for the purpose of maximizing proprietary trading profits.
E) Reporting compliance exceptions to the sales team for immediate rectification.

Solutions: