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NISM NISM-Series-VII Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Technology in Securities Markets | 8% | - Systems for trading, clearing and settlement - Data security and business continuity - Emerging technologies and their impact |
| Regulatory Framework | 15% | - Code of conduct and ethical practices - Compliance requirements for intermediaries - SEBI Act, Rules and Regulations |
| Risk Management and Margining | 18% | - Risk monitoring and control measures - Margining systems and methodologies - Types of risks in securities operations |
| Trading Operations | 15% | - Client onboarding and KYC norms - Order management and trade execution - Front office functions and processes |
| Investor Protection | 7% | - Investor rights and grievances redressal - Mechanisms for dispute resolution - Investor education and awareness initiatives |
| Market Microstructure | 12% | - Market indices and their calculation - Price discovery and market efficiency - Trading mechanisms and order types |
| Securities Market Overview | 10% | - Structure and segments of Indian securities market - Market participants and their roles - Types of securities and products |
| Clearing and Settlement | 15% | - Delivery versus payment and settlement guarantee - Settlement cycle and mechanisms - Clearing process and roles of clearing corporations |
NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
1. When implementing the recommended Web Interfaces and Protocols between a Trading Web Server and Trading Client Terminals for IBT, which technical standards are suggested for adoption?
A) WAP 1.0 and WML only
B) FTP Ver 2 or above and SMTP
C) HTTP Ver 4 or above and HTML Ver 4/XML
D) Telnet and Gopher protocols
E) POP3 and IMAP protocols
2. An investor wishes to lodge a complaint against a registered intermediary on the SCORES platform. Under the current limitation period guidelines, which of the following scenarios would likely lead to SEBI reserving the right to reject the complaint?
A) The investor has approached the intermediary, but received no communication, and the cause of action is 8 months old.
B) The complaint is lodged within 6 months from the date the intermediary rejected the initial grievance.
C) The complaint is lodged immediately after the intermediary provided an unsatisfactory reply.
D) The date of the cause of action is more than one year old.
E) The investor has already initiated arbitration proceedings for the same matter.
3. To ensure visibility of client collateral and prevent misuse, SEBI mandated a reporting mechanism. How is the disaggregated collateral information reported up the chain to the Clearing Corporation?
A) Clients report directly to the Clearing Corporation via the web portal.
B) Clearing Members (CM) report only the aggregate figures to the CC, keeping client-level data internal.
C) Trading Members (TM) report directly to the Stock Exchanges, which then forward data to the CC.
D) Depositories report the collateral usage directly to the Clearing Corporation based on pledge data.
E) Trading Members (TM) report to the Clearing Member (CM), and the CM reports to the Stock Exchanges and Clearing Corporations.
4. Identify the correct expiry and settlement logic for Currency Derivative contracts (USD-INR) traded on Indian stock exchanges.
A) Contracts expire on the last working day of the month; Final Settlement Price is the RBI Reference Rate.
B) Contracts expire on the last Thursday of the month; Settlement is physical delivery of the foreign currency.
C) Contracts expire two working days prior to the last business day of the month; Final Settlement Price is the average spot rate of the last 30 minutes.
D) Contracts expire two working days prior to the last business day of the expiry month at 12:30 pm; Final Settlement Price is the FBIL reference rate.
E) Contracts expire on the 1 5th of every month; Settlement is cash settled based on the crossing of FCY-INR rates.
5. Which of the following benefits is explicitly granted to 'Accredited Investors' under the 'regulation-light framework'?
A) Complete waiver of KYC documentation requirements
B) Exemption from payment of Securities Transaction Tax (STT)
C) Ability to participate in investment products with an investment amount lesser than the minimum amount mandated in respective regulations
D) Exemption from the lock-in period requirements for pre-IPO holdings
E) Guaranteed allocation in Initial Public Offers (IPOs)
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: E | Question # 4 Answer: D | Question # 5 Answer: C |








