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NISM NISM-Series-VII Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Securities Market Operations | - Trading process
|
| Clearing and Settlement | - Clearing mechanisms
|
| Depository Operations | - Corporate actions
|
| Risk Management in Securities Markets | - Risk mitigation systems
|
NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
1. Under the 'Segregation and Monitoring of Collateral at Client Level' norms, how is the collateral allocated to a client utilized by the Clearing Corporation?
A) It is pooled with other clients' collateral to cover the aggregate margin requirement of the Trading Member.
B) It is transferred to the Core Settlement Guarantee Fund immediately upon receipt.
C) It is primarily used for the client but can be used for the TM's proprietary obligations in case of a shortfall.
D) It is used to cover the margin obligation of that specific client only.
E) It is used to provide exposure limits to the Clearing Member's other Trading Members.
2. For the purpose of corporate action adjustments in the Equity F&O segment, under what specific condition is a dividend deemed to be 'extra-ordinary', thereby necessitating an adjustment to the futures and options contracts?
A) If the dividend amount exceeds 10% of the closing price of the scrip on the record date.
B) If the dividend amount is at and above 2% of the market value of the underlying security.
C) If the dividend declared is more than 5% of the paid-up capital of the company.
D) If the dividend yield exceeds the risk-free interest rate (MIBOR) prevailing on the declaration date.
E) If the dividend is declared as an 'interim' dividend rather than a 'final' dividend.
3. Identify the correct expiry and settlement logic for Currency Derivative contracts (USD-INR) traded on Indian stock exchanges.
A) Contracts expire on the last Thursday of the month; Settlement is physical delivery of the foreign currency.
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 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.
D) Contracts expire on the 1 5th of every month; Settlement is cash settled based on the crossing of FCY-INR rates.
E) Contracts expire on the last working day of the month; Final Settlement Price is the RBI Reference Rate.
4. In the context of Market Participants, which of the following statements accurately characterizes the regulatory status and operational scope of a 'Custodian' in the securities market?
A) Custodians are Clearing Members (like PCMs) but do not possess trading rights.
B) Custodians are primarily responsible for executing trades on the exchange floor.
C) Custodians are registered as Trading Members but outsource clearing to PCMs.
D) Custodians are exempt from registration with SEBI if they are registered banks.
E) Custodians automatically act as the counterparty for all institutional trades.
5. 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 between 91 and 182 days; Traded on CROMS
B) Maturities of exactly 91 days; Traded on NDS-CALL platform
C) Maturities up to 364 days; Traded on RFQ Platform
D) Maturities less than 91 days; Traded on NDS-OM platform
E) Maturities less than 14 days; Traded on OTC market only
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: D |







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