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

"NISM Series VII - Securities Operations and Risk Management Certification", also known as NISM-Series-VII exam, is a NISM Certification. With the complete collection of questions and answers, PrepPDF has assembled to take you through 334 Q&As to your NISM-Series-VII Exam preparation. In the NISM-Series-VII exam resources, you will cover every field and category in National Institute of Securities Markets Certification helping to ready you for your successful NISM Certification.

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  • Exam Code: NISM-Series-VII
  • Exam Name: NISM Series VII - Securities Operations and Risk Management Certification
  • Certification Provider: NISM
  • Corresponding Certification: National Institute of Securities Markets
  • Updated: Oct 07, 2026
  • No. of Questions: 334 Questions & Answers with Testing Engine
  • Download Limit: Unlimited

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NISM NISM-Series-VII Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Clearing and Settlement15%- Clearing process and roles of clearing corporations
- Delivery versus payment and settlement guarantee
- Settlement cycle and mechanisms
Topic 2: Market Microstructure12%- Trading mechanisms and order types
- Market indices and their calculation
- Price discovery and market efficiency
Topic 3: Technology in Securities Markets8%- Systems for trading, clearing and settlement
- Data security and business continuity
- Emerging technologies and their impact
Topic 4: Investor Protection7%- Investor rights and grievances redressal
- Mechanisms for dispute resolution
- Investor education and awareness initiatives
Topic 5: Regulatory Framework15%- Code of conduct and ethical practices
- Compliance requirements for intermediaries
- SEBI Act, Rules and Regulations
Topic 6: Risk Management and Margining18%- Types of risks in securities operations
- Margining systems and methodologies
- Risk monitoring and control measures
Topic 7: Trading Operations15%- Client onboarding and KYC norms
- Front office functions and processes
- Order management and trade execution
Topic 8: Securities Market Overview10%- Market participants and their roles
- Types of securities and products
- Structure and segments of Indian securities market

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

Under the framework for 'Demat Debit and Pledge Instruction' (DDPI), which replaces the Power of Attorney (POA) for specific purposes, for which of the following activities is the use of DDPI strictly limited to?

  • A. Execution of off-market trades between parties other than the related parties.
  • B. Transfer of funds from the bank account of the client to the stock broker's settlement account for meeting margin requirements.
  • C. Opening a new beneficial owner account or a broking facility with another stock broker.
  • D. Transfer of securities to the demat account of the Trading Member for margin purposes (title transfer).
  • E. Transfer of securities held in the beneficial owner accounts of the client towards Stock Exchange related deliveries or settlement obligations.
Reveal Solution  Discussion  0

Correct Answer: E  🗳️

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In the context of the validation process for Pay-In of securities from a client's demat account to the Member Pool Account, how do Depositories handle a specific transfer instruction where the quantity specified in the instruction exceeds the client-wise net delivery obligation provided by the Clearing Corporation?

  • A. The instruction is partially processed by the depositories up to the matching obligation quantity.
  • B. The instruction is processed fully, creating an excess balance in the Member Pool Account which is flagged for audit.
  • C. The instruction is processed fully, but the excess securities are immediately returned to the client's account by the Clearing Member.
  • D. The instruction is rejected in its entirety due to the discrepancy in quantity.
  • E. The instruction is kept pending until the Clearing Corporation updates the obligation to match the instruction.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Which of the following statements accurately describe the operational mechanisms and participants of the Indian Money Market segments? (Select all that apply)

  • A. All India Financial Institutions can issue Certificates of Deposit (CDs) for a period not exceeding 1 year.
  • B. Treasury Bills (T-bills) are zero coupon securities issued at a discount and traded on the NDS-OM platform.
  • C. Notice Money transactions refer to borrowing for a period specifically between 15 days and 1 year.
  • D. Repo transactions against Government Securities are traded/reported on the Clearcorp Repo Order Matching System (CROMS).
  • E. Call money market transactions are restricted to Scheduled Commercial Banks (SCBs) and Primary Dealers (PDs).
Reveal Solution  Discussion  0

Correct Answer: B,D,E  🗳️

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Select the correct statements regarding the regulations and procedures governing the auction of securities and handling of proceeds by the Clearing Corporation. (Select all that apply)

  • A. The members participating in the auction session as sellers are required to deliver the shares to the Clearing Corporation on or before the auction pay-in day, which is the subsequent day.
  • B. If the auction seller fails to deliver on the auction pay-in day, the deal is closed out at the standard valuation price of the T+1 day.
  • C. In no case shall the auction be held beyond a period of one week from the pay-in day of the settlement in which the contract was entered into.
  • D. Any amount remaining from the proceeds of an Auction or Close-out, after settling the aggrieved party's claim, is credited to the Core Settlement Guarantee Fund (Core SGF).
  • E. The auction for undelivered quantities can be held multiple times for the same settlement until the full quantity is procured.
Reveal Solution  Discussion  0

Correct Answer: A,C,D  🗳️

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A stock broker receives a request from a client to maintain a running account for funds to avoid frequent pay-ins and pay-outs. Regarding the authorization for this running account, which of the following conditions is **MANDATORY** for the broker to accept the request?

  • A. The authorization is valid for a lifetime unless the broker decides to revoke it due to risk management concerns.
  • B. The authorization must be signed by the client only and cannot be signed by any Authorized Person or POA holder.
  • C. The actual settlement of funds must be done at least once in a financial year.
  • D. The authorization automatically allows the broker to transfer funds between different clients to manage temporary shortages.
  • E. The authorization can be signed by the Power of Attorney (POA) holder if the client is traveling abroad.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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