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: Jul 26, 2026
  • Q & A: 334 Questions and Answers

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NISM NISM-Series-VII Exam Syllabus Topics:

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

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

1. 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) Indian Depository Receipts (IDRs)
B) Global Depository Receipts (GDRs)
C) Foreign Currency Convertible Bonds (FCCBs)
D) Masala Bonds
E) American Depository Receipts (ADRs)


2. Under Section 18A of the Securities Contracts (Regulation) Act, 1956, contracts in derivatives are considered legal and valid only if they satisfy specific conditions. Which of the following is a mandatory condition for such validity?

A) The contract must be traded on a recognized stock exchange and settled on the clearing house of the recognized stock exchange.
B) The contract must involve physical delivery of the underlying asset upon expiry.
C) The contract must be settled bilaterally between the buyer and the seller without an intermediary.
D) The contract must be traded Over-the-Counter (OTC) between two financial institutions.
E) The contract must be validated by the Reserve Bank of India (RBI) prior to execution.


3. Which of the following statements accurately reflect the nature and regulation of 'Research Reports' provided by stock brokers? (Select all that apply)

A) Brokers are exempt from SEBI regulations when providing research reports if they are also registered as Merchant Bankers.
B) Research advice and recommendations can be delivered online or via SMS.
C) Sector reports focus solely on the financial statements of a single company without considering industry policies.
D) Brokerage houses must comply with SEBI (Research Analysts) Regulation, 2014.
E) Research reports normally educate investors about industry trends and which company scrips to buy, sell, or hold.


4. For un-expired illiquid futures contracts on an individual security, how is the Daily Settlement Price determined by the Clearing Corporation?

A) It is determined by the FIMMDA / FBIL reference rate.
B) It is based on the closing price of the underlying security in the Capital Market Segment.
C) It is fixed at the previous day's settlement price adjusted for the risk-free interest rate.
D) It is the weighted average price of the contract during the last half an hour of trading.
E)


5. Which of the following statements accurately describes the currency and jurisdictional nature of an International Financial Services Centre (IFSC) in India?

A) It is a deemed domestic territory for FEMA purposes but deals in foreign currency.
B) It operates in Indian Rupee (INR) but is exempt from RBI regulations.
C) It is a jurisdiction providing financial services to non-residents and residents (to the extent permissible) in a currency other than the domestic currency (Indian Rupee).
D) It caters to domestic customers only, offering products in foreign currency.
E) It operates under the jurisdiction of the state government where it is located, dealing in dual currencies.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: B,D,E
Question # 4
Answer: E
Question # 5
Answer: C

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