100% Pass Quiz 2026 NISM NISM-Series-VII–Reliable Hot Questions
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NISM Series VII - Securities Operations and Risk Management Certification Sample Questions (Q102-Q107):
NEW QUESTION # 102
Why are Institutional Investors (including Foreign Portfolio Investors) explicitly excluded from the mechanism of Net Settlement of cash segment and physical settlement of F&O segment upon expiry?
- A. Because they trade through Custodians who do not have clearing rights in the F&O segment.
- B. Because they are subject to different tax treaties which prevent segment-wise netting.
- C. Because their trading volumes are too high to be accommodated in a net settlement process.
- D. Because the extant regulatory framework specifies that all transactions by institutional investors in the cash market should be backed by delivery.
- E. Because they are not required to pay margins in the F&O segment.
Answer: D
Explanation:
Netting of settlement obligations of cash segment and physical settlement of F&O segment shall not be available for the institutional investors (including all categories of FPIs) since the extant regulatory framework specifies that all transactions by the institutional investors (including all categories of Foreign Portfolio Investors) in cash market should be backed by delivery.
NEW QUESTION # 103
In the context of the Block Mechanism for sale transactions, which of the following statements accurately describes the permissible flow of securities for **matched orders** up to the pay-in day?
- A. Securities are transferred to a temporary 'Client IJnpaid Securities Account' before being moved to the Clearing Member's pool account.
- B. Securities are debited from the Client's demat account and credited directly to the Clearing Corporation's settlement account, bypassing the Trading Member.
- C. Securities are debited from the Client's demat account and credited to the linked TM Pool account; the TM shall further transfer such securities only to the CM Pool account.
- D. Securities remain in the Client's demat account until the pay-out day, after which they are directly transferred to the buyer's account.
- E. Securities are transferred from the Client's account to the Trading Member's (TM) Pool account, and the TM can further transfer them to any other TM's pool account.
Answer: C
Explanation:
For matched orders, blocked securities are debited from the Client's demat account and credited to the linked TM Pool account up to the pay-in day. The TM shall further transfer such securities to the CM Pool account. Crucially, pool-to-pool transfers except from TM pool to CM pool are not permitted.
NEW QUESTION # 104
In the context of primary market issuance, which of the following correctly defines a 'Retail Individual Investor'?
- A. An individual investor (Resident Indians, NRIs, HUF) who applies for specified securities for a value of not more than two lakhs rupees
- B. Any investor who applies for specified securities for a value of not more than five lakhs rupees
- C. An investor who trades strictly in the cash segment with a turnover less than two lakhs rupees
- D. Any non-institutional investor applying for securities up to ten lakhs rupees
- E. An individual investor whose total annual income is less than two lakhs rupees
Answer: A
Explanation:
Retail Individual Investors are defined as an individual investor (Resident Indians, non-resident Indians, HUF) who applies or bids for specified securities for a value of not more than two lakhs rupees.
NEW QUESTION # 105
To ensure compliance while providing research-based advisory services, brokerage houses must adhere to specific regulations and circulars. According to the NISM workbook, which of the following represents the governing framework for Research Reports?
- A. SEBI (Research Analysts) Regulation, 2014 and Master Circular for Research Analyst dated May 21 , 2024
- B. SEBI (Stock Brokers) Regulations, 1992 and Master Circular dated May 21 , 2024
- C. SEBI (Portfolio Managers) Regulations, 2020 and Master Circular dated March 20, 2023
- D. Securities Contracts (Regulation) Rules, 1957 and SEBI (Prohibition of Insider Trading) Regulations, 2015
- E. SEBI (Investment Advisers) Regulations, 2013 and Master Circular dated December 16, 2020
Answer: A
Explanation:
Brokerage houses providing research-based advisory services must comply with the relevant guidelines provided under (Research Analysts) Regulation, 2014" and "'Master Circular for Research Analyst' dated May 21 , 2024**.
NEW QUESTION # 106
Which of the following guidelines are mandated to enable smooth settlement processes and help Clearing Corporations meet obligations in case of holidays? (Select all that apply)
- A. CCs shall clear and settle trades on a sequential basis.
- B. Depositories shall facilitate inter-depository transfers within one hour and before pay-in for the subsequent settlement begins.
- C. Settlements for all trade dates falling on holidays must be deferred to the next working week.
- D. Members are prohibited from using the pay-out of the first settlement for the subsequent settlement's pay-in.
- E. Pay-in and pay-out of the first settlement must be completed before the commencement of the subsequent settlement.
Answer: A,B,E
Explanation:
The guidelines include: 1. 'The CCs shall clear and settle the trades on a sequential basis'; 2. 'pay-in and the pay-out of the first settlement shall be completed before the commencement... of the subsequent settlement(s)'; 3. 'depositories shall... facilitate the inter-depository transfers within one hour and before pay-in for the subsequent settlement begins.' Option D is incorrect as settlements are completed on the same day. Option E is incorrect as the pay-out is specifically made available for the subsequent pay-in.
NEW QUESTION # 107
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