NISM NISM-Series-VII : 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: Oct 12, 2026
  • Q & A: 334 Questions and Answers

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NISM NISM-Series-VII Exam Syllabus Topics:

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

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

Question #1

When a Partnership Firm registered under the Indian Partnership Act, 1932 applies for admission as a member of a Stock Exchange, which specific structural requirement must be identified and maintained as per Exchange norms?

  • A. The firm must convert to a Limited Liability Partnership within 1 year.
  • B. The firm must maintain a static profit-sharing ratio for 5 years.
  • C. All partners must hold NISM Series-VII certification.
  • D. A minimum of 51% of capital must be held by a designated clearing bank.
  • E. The applicant must identify a Dominant Promoter Group.
Reveal Solution  Discussion  0

Correct Answer: E  🗳️

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Question #2

Stock brokers are required to report specific transactions to the Financial Intelligence Unit - India (FIU-IND) under the Prevention of Money Laundering Act. Which of the following combinations correctly specifies the submission timelines for the Cash Transaction Report (CTR), Suspicious Transaction Report (STR), and Non-Profit Organization Transaction Report (NTR)?

  • A. CTR: By 1 5th of succeeding month; STR: Within 24 hours of conclusion; NTR: By 30th of succeeding month.
  • B. CTR: By 7th of succeeding month; STR: Within 3 days of conclusion; NTR: By 7th of succeeding month.
  • C. CTR: By 10th of succeeding month; STR: Within 7 days of occurrence; NTR: By 10th of succeeding month.
  • D. CTR: By 15th of succeeding month; STR: Within 7 days of arriving at a conclusion; NTR: By 15th of succeeding month.
  • E. CTR: By end of the quarter; STR: Within 15 days of conclusion; NTR: By end of the quarter.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #3

Regarding 'Two-factor authentication' for login sessions in Internet Based Trading (IBT), which of the following implementation details is explicitly advisable/required?

  • A. Two-factor authentication is optional and can be replaced by a static high-complexity password.
  • B. It should be implemented using only SMS-based OTP without any other factor.
  • C. The second factor must always be biometric verification.
  • D. Public Key Infrastructure (PKI) based implementation using digital signatures is advisable, and the two factors should not be the same.
  • E. The two factors should be identical (e.g., two different passwords).
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #4

Which of the following instruments is specifically defined as a rupee-denominated bond issued outside India by Indian entities to raise money in local currency from foreign investors?

  • A. Masala Bonds
  • B. American Depository Receipts (ADRs)
  • C. Global Depository Receipts (GDRs)
  • D. Indian Depository Receipts (IDRs)
  • E. Foreign Currency Convertible Bonds (FCCBs)
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

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. POP3 and IMAP protocols
  • B. WAP 1.0 and WML only
  • C. FTP Ver 2 or above and SMTP
  • D. Telnet and Gopher protocols
  • E. HTTP Ver 4 or above and HTML Ver 4/XML
Reveal Solution  Discussion  0

Correct Answer: E  🗳️

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