NISM Series VII - Securities Operations and Risk Management Certification - NISM-Series-VII Free Exam Questions

A. Transfer arising out of account closure.

B. Transfer arising out of transmission of securities.

C. Transfer arising out of a transaction done on a recognized Stock Exchange.

D. Transfer for the purpose of evading Stamp Duty.

E. Transfer due to an 'off-market' transaction (person-to-person).

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

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

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

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

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

A. Private Promissory Notes between individuals

B. Government Securities

C. Electronic Gold Receipts

D. Derivatives

E. Zero Coupon Zero Principal Instruments

A. By 11:00 AM on T+1 Day

B. By 1:30 PM on T+1 Day

C. By 4:15 PM on T Day

D. By 7:30 AM on T+1 Day

E. By 9:00 AM on T+1 Day

A. External Commercial Borrowing (ECB)

B. American Depository Receipt (ADR)

C. Masala Bond

D. Global Depository Receipt (GDR)

E. Foreign Currency Convertible Bond (FCCB)

A. It ensures that the pay-out (cash/securities) from the first settlement is available to the member to meet obligations for the subsequent settlement.

B. It prevents members from trading in the derivatives segment during the cash market settlement.

C. It is required to separate institutional trades from retail trades.

D. It allows the stock exchange to close the market early.

E. It allows the Clearing Corporation to recalculate margins for the previous week.

A. Insurance Policies linked to Unit Linked Insurance Plans (ULIPs)

B. Fixed Deposit Receipts issued by Scheduled Commercial Banks

C. Real Estate Sale Deeds registered under the Registration Act

D. Electronic Gold Receipts issued on the basis of deposit of underlying physical gold

E. Promissory Notes issued by private individuals for personal loans

A. Professional Clearing Member (PCM)

B. Authorized Person (AP)

C. Trading Member-cum-Clearing Member (TCM)

D. Trading Member (TM)

E. Trading cum Self-clearing Member (SCM)

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

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

C. 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.

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

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

A. Confidential insider information regarding upcoming mergers and acquisitions.

B. Details on how an industry is faring and whether current policies favour the industry.

C. A comprehensive list of all IPOs expected to hit the market in the next financial year.

D. Mathematical models for algorithmic trading strategies.

E. Detailed technical analysis of stock price movements and volume data for specific scrips.

A. Immediate transfer of the clearing member's proprietary trades to the Investor Protection Fund.

B. Suspension of the clearing bank's license.

C. Automatic cancellation of the certificate of registration by SEBI.

D. Withdrawal of trading facility.

E. Mandatory liquidation of all client assets held in the pool account.

A. Minimum Investment: Rs. 10,000; Trading Lot: Rs. 5 Lakhs

B. Minimum Investment: Rs. 10 Lakhs; Trading Lot: 1 Unit

C. Minimum Investment: Rs. 50 Lakhs; Trading Lot: Rs. 10 Lakhs

D. Minimum Investment: Rs. 1 Crore; Trading Lot: Rs. 25 Lakhs

E. Minimum Investment: Rs. 25 Crores; Trading Lot: 1 Unit

A. It applies to Index Futures and Index Options.

B. The final deliverable/receivable positions at a clearing member are arrived at after netting the obligations of all clients/constituents clearing through them.

C. Delivery settlement is optional and can be cash settled if the client chooses.

D. It considers all open futures positions after the close of trading on the expiry day.

E. It considers all in-the-money option contracts which are exercised and assigned.