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NISM NISM-Series-VII Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Investor Protection | 7% | - Mechanisms for dispute resolution - Investor education and awareness initiatives - Investor rights and grievances redressal |
| Clearing and Settlement | 15% | - Settlement cycle and mechanisms - Delivery versus payment and settlement guarantee - Clearing process and roles of clearing corporations |
| Technology in Securities Markets | 8% | - Systems for trading, clearing and settlement - Emerging technologies and their impact - Data security and business continuity |
| Trading Operations | 15% | - Client onboarding and KYC norms - Front office functions and processes - Order management and trade execution |
| Securities Market Overview | 10% | - Types of securities and products - Market participants and their roles - Structure and segments of Indian securities market |
| Risk Management and Margining | 18% | - Risk monitoring and control measures - Margining systems and methodologies - Types of risks in securities operations |
| Regulatory Framework | 15% | - Compliance requirements for intermediaries - Code of conduct and ethical practices - SEBI Act, Rules and Regulations |
| Market Microstructure | 12% | - Trading mechanisms and order types - Market indices and their calculation - Price discovery and market efficiency |
NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
1. In the context of the operations of a Depository Participant (DP), what is identified as the 'main activity' pursuant to the trading activity of an investor?
A) Pledging of dematerialized securities
B) Freezing of the demat account for debits or credits
C) Receiving non-cash corporate benefits like bonus shares
D) Dematerialization of physical securities
E) Settlement and transfer of securities from one beneficiary account to another
2. To bring transparency to the Investor Grievance Redressal Mechanism, stock brokers are mandated to disclose data on complaints received and redressed on their respective websites. What is the specific deadline for this disclosure?
A) By the last day of the succeeding month
B) By the 15th of the succeeding month
C) Within 21 days of the end of the quarter
D) By the 7th of the succeeding month
E) By the 10th of the succeeding month
3. Regarding the premium settlement for option contracts, at what level is the premium payable or receivable value computed by the Clearing Corporation?
A) Netting at the Clearing Member level across all segments.
B) Gross at the individual client level without any netting.
C) Gross at the Trading Member level but netted at the Clearing Member level.
D) Netting is done across all option contracts for a specific underlying security at the client level.
E) After netting the premium payable or receivable positions at the Trading Member/Custodial Participant level for each option contract.
4. In the context of Settlement Dues, the clearing agency pays moneys payable to clearing members and custodians for every settlement. What is the specific basis for determining these payable amounts?
A) The daily margin statement generated by the Clearing Member
B) Information provided by the Exchange or Clearing Agency
C) The bank statement of the Clearing Bank
D) The net worth certificate submitted by the member
E) The contract notes issued by the broker to the client
5. Based on the classification of membership in the Indian securities market, which of the following categories of members holds both trading and clearing rights but is explicitly restricted from clearing trades for custodian participants?
A) Authorized Person
B) Professional Clearing Member (PCM)
C) Trading Member-cum-Clearing Member (TCM)
D) Only Trading Member
E) Trading cum Self-Clearing Member (SCM)
Solutions:
| Question # 1 Answer: E | Question # 2 Answer: D | Question # 3 Answer: E | Question # 4 Answer: B | Question # 5 Answer: E |

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