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NISM NISM-Series-VII Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Depository Operations | - Corporate actions
|
| Securities Market Operations | - Market participants and structure
|
| Risk Management in Securities Markets | - Market and operational risk
|
| Clearing and Settlement | - Clearing mechanisms
|
NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, which of the following parties is deemed to be a 'Connected Person' unless the contrary is established?
- A. A former employee who left the company 12 months prior to the act.
- B. A vendor supplying office stationery on a one-off basis.
- C. An individual who has never held a position in the company.
- D. A shareholder holding 5% interest in the company.
- E. A banker of the company.
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A Clearing Member (CM) maintains a designated clearing account with a Clearing Bank. While the CM is permitted to deposit funds into this account in any form, which of the following specific restrictions is imposed on the withdrawal of funds from this account to ensure regulatory compliance?
- A. Funds can be withdrawn only after obtaining a 'No Objection Certificate' from the Stock Exchange.
- B. Funds can be withdrawn only in 'self-name' of the Clearing Member.
- C. Funds can be withdrawn directly to the client's beneficiary bank account to facilitate faster payout.
- D. Withdrawals are restricted to 50% of the account balance on any given trading day.
- E. Funds can be withdrawn only via physical Demand Drafts and not through electronic transfer.
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According to the provisions regarding 'Settlement dues', if a clearing member fails to discharge their funds obligations at the notified time, which of the following liabilities or actions may they face? (Select all that apply)
- A. Immediate forfeiture of the member's personal assets
- B. Withdrawal of trading facility
- C. Actions as decided by the Relevant Authority
- D. Automatic transfer of the member's clearing bank account to the Investor Protection Fund
- E. Disciplinary actions
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According to the requirements for maintaining books of account, what specific details must be recorded in the 'Register of Transactions' (Sauda Book)?
- A. Only the net obligation of funds and securities to be settled with the Clearing Corporation.
- B. Receipts and payments of funds involving clients, distinguishing between margin and settlement obligations.
- C. General expenses, overheads, salaries, and petty cash adjustments for the broking firm.
- D. Details of all dematerialized securities held in the broker's pool account and beneficiary account.
- E. Each transaction effected, showing the name of the security, its value, rates gross and net of brokerage, and names of the clients.
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In the context of the 'Application Supported by Blocked Amount' (ASBA) facility processed by intermediaries in public issues, what is the critical pre-condition explicitly mandated by SEBI before the ASBA applications can be processed?
- A. The physical form must be received by the Registrar.
- B. The application monies must be blocked in the investor's bank account.
- C. The application must be uploaded to the Exchange bidding platform.
- D. The syndicate member must issue a physical acknowledgement slip.
- E. The General Index Register (GIR) number must be verified.
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