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NISM NISM-Series-VII Exam Overview:

NISM NISM-Series-VII Exam Syllabus Topics:

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

Question 1

Clearing Members are required to open specific demat accounts known as 'Clearing Member Settlement Pool Accounts' with depositories. Which of the following statements is legally and operationally ** TRUE** regarding these accounts?

A. The clearing member does not get any ownership or beneficiary rights over the shares held in these accounts.
B. The clearing member acquires full beneficiary ownership rights over the securities transferred into this account.
C. Clients are prohibited from transferring shares directly into the member's pool account; all transfers must route through the Exchange.
D. Credits to this account are not permitted; it is used solely for delivering securities to the Clearing Corporation.
E. These accounts are strictly used for holding the member's long-term proprietary investments to separate them from client assets.

Question 2

SEBI has issued guidelines regarding the discontinuation of usage of pool accounts for transactions in units of Mutual Funds on Stock Exchange Platforms. Under this framework, which of the following practices is explicitly **PERMITTED** as an exception to the general rule against routing units through pool accounts?

A. Holding non-demat units in a 'Client Unpaid Securities Account' if the client defaults on the subscription payment.
B. Issuance of Delivery Instruction Slip (DIS) to the Depository Participant to debit units held in dematerialized mode for delivery to the Clearing Corporation during redemption.
C. Crediting subscription units to the broker's pool account for reconciliation before transferring to the client.
D. Pooling of redemption proceeds in the broker's settlement account for deduction of statutory levies before payout to the client.
E. Routing funds for subscription through the broker's clearing bank account for clients availing margin trading facilities.

Question 3

SEBI has formalized a Risk Based Supervision (RBS) model for market intermediaries. Which of the following sequences correctly identifies the four distinct steps of this supervision model?

A. Client Profiling -> Transaction Monitoring Risk Rating -> Surveillance Action
B. Risk Assessment -> Assigning Risk & Impact Rating -> Determining Supervisory Risk Rating Score -> Supervisory Approach
C. Internal Audit External Audit -> Risk Classification -> Penalty Determination
D. Data Collection -> Compliance Check -> Risk Scoring -> Inspection
E. Risk Identification -> Risk Analysis -> Risk Mitigation -> Risk Reporting

Question 4

SEBI has mandated the Direct Pay-out of securities to client demat accounts. What is the specific operational consequence of this mandate regarding the revision of the securities pay-out timing in the T+1 settlement cycle?

A. The pay-out timing remains unchanged at 1 :30 PM.
B. The pay-out timing is advanced from 1:30 PM to 11 AM.
C. The pay-out timing is revised from 1:30 PM to 3:30 PM.
D. The pay-out timing is deferred to T+2 day at 9:00 AM.
E. The pay-out timing is synchronized with the funds pay-out at 10:30 AM.

Question 5

In the context of Back Office Operations, specifically regarding 'Trade Enrichment', which of the following best describes the process that occurs automatically after trade execution to prepare for clearing and settlement?

A. The manual verification of the 'INST' Custodial Participant code against the clearing member's exposure limits.
B. The generation of a unique client code (IJCC) and mapping it to the client's PAN before the order is routed to the exchange.
C. The splitting of a single institutional order into multiple sub-accounts based on deal sheets provided by the front office.
D. The netting of buy and sell positions to determine the final open position for the purpose of margin calculation.
E. The automatic appending of brokerage rates, GST, stamp duty, and Securities Transaction Tax (STT) to the raw trade data.

Solutions: