Latest NISM NISM-Series-VII Actual Free Exam Questions & Community Discussion, Page 1

Question #1

A Trading Member executes trades in both T+1 and T+0 settlement cycles for the same security on the same day. Which of the following statements correctly describes the netting of obligations between these two segments?

A. Netting is permitted only if the member opts for the 'Unified Settlement' facility.

B. Funds are netted across segments, but securities are settled separately.

C. There shall be no netting in pay-in and pay-out obligations between T+1 and T+0 settlement cycle.

D. Sell obligations in T+0 are netted against Buy obligations in T+1 to reduce margin requirements.

E. Obligations are netted at the client level but not at the member level.

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #2

Consider the following 'Sell' order book for a security. A new Buy Limit Order for 500 shares at a price of Rs. 121.50 is entered into the system.

Based on the price-time priority mechanism, how will this buy order be executed?

A. 500 shares @ Rs. 121.50

B. 200 shares @ 121.50, 200 shares @ 121.40, and 100 shares @ 121.20

C. 50 shares @ 121.20, 100 shares @ 121.20, 200 shares @ 121.40, and 150 shares @ 121.50

D. 150 shares @ 121.20, 200 shares @ 121.40, and 150 shares @ 121.50

E. The order will remain pending as the full quantity cannot be matched at a single price.

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #3

While Equity Derivatives generally follow a T+1 settlement cycle for daily and final settlement, which specific segment has a Final Settlement cycle of T+2 basis?

A. Index Options

B. Currency Derivatives

C. Index Futures

D. Stock Options (Physical Settlement)

E. Interest Rate Futures

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #4

Which of the following statements accurately describe the settlement mechanisms and schedules in the Indian Securities Market?
(Select all that apply)

A. In Cash Settlement of derivatives, counterparties exchange the underlying physical asset upon expiry.

B. Equity Cash market trades executed on T day are settled on T+1 day.

C. Exchange-traded equity derivatives contracts on Indices are cash-settled.

D. Funds pay-in for the T+1 settlement cycle in the Cash Market must occur by 11 AM on T+1 day.

E. The final settlement of Currency Derivatives occurs on a T+1 basis.

Discussion 0

Correct Answer: B,C,D Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #5

The secondary market operates through different mediums with distinct settlement mechanisms. Which of the following statements accurately differentiates the Over-The-Counter (OTC) market from the Exchange Traded Market?

A. Exchange Traded Markets allow buyers and sellers to know each other's identity directly.

B. OTC markets are informal markets where trades are negotiated and settled bilaterally.

C. OTC markets consist of standardized contracts traded on a screen-based system.

D. Exchange Traded Markets do not adhere to a fixed time schedule for settlement.

E. OTC markets use a centralized Clearing Corporation to guarantee all trades.

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #6

Large stock brokers have evolved from pure trading intermediaries into comprehensive 'Financial Services Companies'. In this capacity, which specific service is highlighted as being offered primarily to High Net Worth Individuals (HNIs)?

A. Direct Benefit Transfer (DBT) facilitation

B. Public Provident Fund (PPF) management

C. Wealth management services

D. Basic savings bank account services

E. Micro-credit facilities

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #7

According to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, from whom must an issuer obtain 'in-principle approval' for listing securities before issuing further shares, specifically in the case where the company is not listed on any exchange having nationwide trading terminals?

A. From any one recognized stock exchange having nationwide trading terminals

B. Only from the Securities and Exchange Board of India (SEBI)

C. From the Registrar of Companies (ROC) where the company is registered

D. From all the stock exchange(s) in which the securities of the issuer are proposed to be listed

E. From the stock exchange with the highest trading volume in the previous financial year

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #8

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. Dematerialization of physical securities

B. Settlement and transfer of securities from one beneficiary account to another

C. Receiving non-cash corporate benefits like bonus shares

D. Pledging of dematerialized securities

E. Freezing of the demat account for debits or credits

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #9

Regarding 'Market Makers' in the Indian securities market, which of the following statements regarding their mandatory obligations is correct?

A. Market making has been made mandatory in respect of all scrips listed and traded on SME Exchanges

B. Market making is voluntary for all scrips listed on Small and Medium Enterprise (SME) Exchanges

C. Market makers are appointed solely by SEBI and not by the Exchanges

D. Market makers are required to provide only buy quotes to ensure exit options for investors

E. Market making is restricted to the derivatives segment only

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #10

Under which of the following circumstances does the Clearing Corporation directly 'Close Out' the shortage WITHOUT conducting an auction session? (Select all that apply)

A. Shortage arising from trades in the T+0 rolling settlement cycle.

B. Shortage in delivery of securities under corporate action (e.g., undergoing stock split/bonus).

C. Shortage arising from trades executed in the normal rolling settlement cycle (T+1) for Group I liquid securities.

D. Shortage arising from trades executed in the Block Deal window.

E. Shortage in securities under the Trade for Trade Surveillance (TFTS) category.

Discussion 0

Correct Answer: A,B,D,E Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #11

Which of the following statements accurately describe the operational guidelines for the Online Dispute Resolution (ODR) mechanism in the Indian Securities Market? (Select all that apply)

A. Investors must mandatorily exhaust the SCORES portal process before they can initiate any dispute resolution through the ODR Portal.

B. The Market Participant can initiate dispute resolution through the ODR Portal after giving due notice of at least 15 calendar days to the investor.

C. If a Market Participant wishes to pursue online arbitration following an unsuccessful conciliation, they must deposit 50% of the admissible claim value with the relevant Mll.

D. The conciliator shall attempt to reach a resolution within 21 calendar days, which can be extended by a maximum of 10 calendar days by consent.

E. The ODR Institution must appoint a sole independent and neutral conciliator within 5 days of receipt of the reference.

Discussion 0

Correct Answer: B,D,E Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #12

Which of the following services can a Depository Participant (DP) engage in, as explicitly listed in the NISM workbook? (Select all that apply)

A. Receiving electronic credit in respect of securities allotted by issuers under IPO

B. Issuing equity research reports for the depository

C. Underwriting of Initial Public Offers (IPOs)

D. Freezing of the demat account for debits, credits, or both

E. Pledging of dematerialized securities & facilitating loans against shares

Discussion 0

Correct Answer: A,D,E Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #13

Which of the following statements accurately reflect the operational requirements and functions of Clearing Members and Custodians in the Clearing Process? (Select all that apply)

A. Custodians are required to confirm whether they will settle a trade assigned to them; if they fail to confirm, the onus of settlement falls on the executing trading member.

B. Clearing Members must maintain a separate and distinct clearing bank account with a designated clearing bank.

C. It is mandatory for clearing members to open demat accounts with both depositories (CDSL and NSDL) known as clearing member settlement pool accounts.

D. Clearing Members act as the legal counterparty to all trades through the process of novation, replacing the Clearing Corporation.

E. Clearing Members can withdraw funds from their designated clearing bank account in favor of third-party vendors for operational expenses.

Discussion 0

Correct Answer: A,B,C Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #14

Based on the 'Cyber Security and Cyber Resilience Framework (CSCRF)' for Stock Brokers, which of the following correctly match the 'Cyber Resiliency Goals' with their definitions? (Select all that apply)

A. Withstand: Restore business functions to the maximum extent subsequent to adversary attacks.

B. Contain: Localise containment of crisis and isolate trusted functions from untrusted ones to continue business operations.

C. Anticipate: Maintain a state of informed preparedness from adversary attacks.

D. Recover: Continue essential business functions at times of adversary attacks.

E. Evolve: To change business functions and its supporting cyber capabilities to minimize adverse impacts of adversary attacks.

Discussion 0

Correct Answer: B,C,E Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

Question #15

Under the framework for validation of instructions for Pay-In of securities, which of the following scenarios results in the immediate rejection of the transfer instruction by the Depositories?

A. When the quantity in the instruction is less than the obligation provided by the Clearing Corporation.

B. When there are discrepancies in details like UCC, TM ID, CM ID, or ISIN between the instruction and the obligation data.

C. When the instruction is initiated by a Power of Attorney (POA) holder instead of the client directly.

D. When the instruction is received on T+1 day instead of T day.

E. When the quantity in the instruction is exactly equal to the obligation provided by the Clearing Corporation.

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for EduDump members. You can sign-up / login (it's free).

NISM NISM-Series-VII Actual Free Exam Questions & Community Discussion

Download Free NISM NISM-Series-VII Demo