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

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

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

Question #1

To provide depository services to investors, a stock broker or trading member must register as a Depository Participant (DP). Under which specific legislative framework is this registration mandated and governed?

  • A. The Companies Act, 2013 and the Banking Regulation Act, 1949
  • B. The Information Technology Act, 2000 and the Indian Contract Act, 1872
  • C. The Prevention of Money Laundering Act, 2002 and SEBI (Intermediaries) Regulations, 2008
  • D. The SEBI Act, 1992 and the Depositories Act, 1996
  • E. The Securities Contracts (Regulation) Act, 1956 and the RBI Act, 1934
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

What is the mandatory mechanism for effecting the pay-in of securities for sell obligations in the T+0 settlement cycle?

  • A. Physical Delivery Instruction Slip submitted to the DP by 10:00 AM.
  • B. Only by way of early pay-in using block mechanism.
  • C. Inter-depository transfer from the client's account to the Clearing Corporation's account.
  • D. Automatic sweeping of securities from the client's demat account at 1 PM.
  • E. Transfer from Client Beneficiary Account to CM Pool Account via standard market instruction.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

While the Securities and Exchange Board of India (SEBI) is the primary regulator for the securities market, certain powers under the Securities Contracts (Regulation) Act (SCRA) are exercised concurrently by the Reserve Bank of India (RBI). For which of the following instrument types is this concurrent jurisdiction explicitly applicable?

  • A. Infrastructure Investment Trusts (InvITs)
  • B. Ready forward contracts in debt securities
  • C. Real Estate Investment Trusts (REITs)
  • D. Equity Derivatives settled physically
  • E. Commodity Derivatives
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

Which of the following is typically listed as a distinct facility offered by a stock broker's outlet to facilitate advanced trading strategies and execution for clients?

  • A. Algorithmic trading
  • B. Adjudication of securities disputes as a Court
  • C. Formulation of Monetary Policy
  • D. Currency printing and minting
  • E. Issuance of Sovereign Gold Bonds as an Issuer
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

Regarding the operational timeline for the auction of securities by the Clearing Corporation under the compulsory rolling settlement, which of the following statements is accurate?

  • A. Members participating in the auction must deliver the shares immediately within 1 hour of acceptance of their offer.
  • B. Auctions are conducted on the T+2 day to allow members extra time to arrange securities.
  • C. The auction for undelivered quantities is conducted on the settlement day itself, typically after the completion of the pay-out process.
  • D. If an auction is not successful in the first attempt, it is automatically rescheduled for the next three consecutive days.
  • E. Auctions are held exclusively during the pre-open session of the next trading day.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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