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

  • Exam Code: NISM-Series-VII
  • Exam Name: NISM Series VII - Securities Operations and Risk Management Certification
  • Updated: Sep 14, 2026
  • Q & A: 334 Questions and Answers

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NISM NISM-Series-VII Exam Syllabus Topics:

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

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

Question #1

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 rejected in its entirety due to the discrepancy in quantity.
  • D. The instruction is kept pending until the Clearing Corporation updates the obligation to match the instruction.
  • E. The instruction is processed fully, but the excess securities are immediately returned to the client's account by the Clearing Member.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

Which of the following statements are CORRECT regarding the Settlement of Securities in the Indian Cash Market? (Select all that apply)

  • A. The securities direct pay-out mandated by SEBI is applicable to all clients, including those having arrangements with registered custodians.
  • B. Purchasers of securities are required to issue a fresh receipt instruction to their DP for every transaction, as standing instructions are prohibited.
  • C. In case of holidays, the CCs settle trades on a sequential basis, ensuring the pay-out of the first settlement is completed before the pay-in of the subsequent settlement.
  • D. Clients can authorize the broker via DDPI to access their BO account for the limited purpose of meeting pay-in obligations.
  • E. As a consequence of Direct Payout, the timing of the securities payout has been revised to 3:30 PM.
Reveal Solution  Discussion  0

Correct Answer: C,D,E  🗳️

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Question #3

A securities broking firm configures its Compliance Management System (CMS) to manage data retention policies in accordance with the Prevention of Money-Laundering Act (PMLA), 2002.
Review the JSON configuration snippet below regarding record retention timelines:

Based on the SEBI directives and PMLA provisions, which setting in the configuration is legally NON-COMPLIANT?

  • A. transaction_records: 5_years_from_transaction_date
  • B. suspicious_transaction_reports: 5_years_from_reporting_date
  • C. Both transaction_records and suspicious_transaction_reports
  • D. client_identity_documents: 3_years_from_account_closure
  • E. All settings are compliant
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #4

Which mechanism enables the Clearing Corporation to act as a legal counterparty to all trades, thereby becoming the buyer to every seller and the seller to every buyer, to ensure settlement guarantee and manage default risks?

  • A. Novation
  • B. Multilateral Netting
  • C. Dematerialization
  • D. Trade Enrichment
  • E. Interoperability
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

Which of the following statements accurately describe the operational procedures and timelines within the Clearing Process of the Indian securities market (Cash Segment)? (Select all that apply)

  • A. Institutional trades are subject to upfront margin collection similar to retail client trades.
  • B. Final obligations for funds and securities are downloaded to members by the Clearing Corporation on T+1 day by 9:00 am.
  • C. The Clearing Corporation performs multilateral netting to determine the net settlement obligations of clearing members.
  • D. Modification of the Custodial Participant (CP) code is permitted on T day up to 4:15 pm.
  • E. Clearing Members are required to maintain a single consolidated clearing account for all segments (Cash, Derivatives, Debt) to facilitate netting.
Reveal Solution  Discussion  0

Correct Answer: B,C,D  🗳️

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