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

NISM NISM-Series-VII Actual PDF
  • Exam Code: NISM-Series-VII
  • Exam Name: NISM Series VII - Securities Operations and Risk Management Certification
  • Updated: Sep 12, 2026
  • Q & A: 334 Questions and Answers
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NISM NISM-Series-VII Exam Syllabus Topics:

SectionObjectives
Trade Life Cycle- Steps and participants involved in the trade life cycle
  • 1. Clearing and settlement process
  • 2. Role of the back office in a securities broking firm
Risk Management- Risk management in a securities broking firm
  • 1. Identifying and mitigating risks
  • 2. Compliance and control measures
Investor Grievance Redressal- Process of investor grievances redressal
  • 1. Regulatory requirements
  • 2. Procedures for handling complaints
Regulatory Framework- Role of the Securities and Exchange Board of India (SEBI)
  • 1. Investor protection
  • 2. Regulatory oversight
Indian Securities Market- Overview of the Indian securities market
  • 1. Different products traded
  • 2. Various market participants and their roles
Securities Broking Operations- Front Office, Middle Office and Back Office functions in a Securities Broking Firm
  • 1. Risk management
  • 2. Trade execution
  • 3. Settlement processing

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

Question #1

The interoperability framework among Clearing Corporations (CCs) allows Clearing Members to select the CC of their choice. Which of the following products or schemes is explicitly excluded from this interoperability framework?

  • A. Currency Derivatives
  • B. Interest Rate Derivatives
  • C. Equity Derivatives
  • D. Securities Lending and Borrowing Scheme (SLB)
  • E. Equity Cash Segment
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

SEBI has introduced the mechanism of Net Settlement of cash segment and F&O segment upon expiry of stock derivatives. Which of the following scenarios specifically qualifies for this benefit of netting (merged settlements)?

  • A. An investor whose Trading Member clears trades in F&O segment and cash segment through the same Clearing Member (CM).
  • B. All institutional investors including Foreign Portfolio Investors (FPIs).
  • C. Portfolio Managers (PMS) who are mandatorily directed to enter into delivery backed transactions.
  • D. An institutional investor trading through a Custodian in Cash and a Professional Clearing Member in F&O.
  • E. An investor trading through different Trading Members who use different Clearing Members.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

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

Correct Answer: A  🗳️

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Question #4

What specific regulatory benefit regarding reserve requirements is accorded to funds borrowed through the Triparty Repo Dealing System (TREPS) in India?

  • A. Eligibility for priority sector lending classification
  • B. Exemption from Securities Transaction Tax (STT)
  • C. Automatic guarantee by the Central Government
  • D. Waiver of stamp duty on the underlying collateral
  • E. Exemption from RBI's CRR/SLR computation
Reveal Solution  Discussion  0

Correct Answer: E  🗳️

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Question #5

Which of the following statements accurately reflect the operational rules and fee structures of the Online Dispute Resolution (ODR) mechanism? (Select all that apply)

  • A. If a Market Participant initiates the dispute resolution process, the fees shall be borne by the MIIs and not the Market Participant.
  • B. Initiation of the conciliation process after six months from the date of the dispute requires payment of a late fee of Rs 1 ,000 by the initiator.
  • C. The ODR Portal allocates disputes to ODR Institutions based on a competitive bidding system for fees.
  • D. For claims of Rs 1 or below, the Sole Arbitrator shall conduct a document-only arbitration process unless a hearing is specifically granted.
  • E. The Market Participant is strictly prohibited from shifting the incidence of fees and charges to the investor/client.
Reveal Solution  Discussion  0

Correct Answer: B,D,E  🗳️

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