NISM Series VII - Securities Operations and Risk Management Certification pdf vce dumps & NISM-Series-VII free download training collection

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| Section | Objectives |
|---|
| Depository Operations | - Demat account framework
- 1. NSDL and CDSL roles
- 2. Account opening and maintenance
- Corporate actions
- 1. Record dates and entitlement processing
- 2. Dividends, bonuses, splits
|
| Securities Market Operations | - Trading process
- 1. Order execution and trade lifecycle
- 2. Trade confirmation and reporting
- Market participants and structure
- 1. Order types and trading mechanism basics
- 2. Roles of brokers, exchanges, and investors
|
| Risk Management in Securities Markets | - Market and operational risk
- 1. Types of financial risks
- 2. Operational risk controls
- Risk mitigation systems
- 1. Margins and collateral systems
- 2. Surveillance and compliance mechanisms
|
| Clearing and Settlement | - Settlement systems
- 1. Margining and risk adjustments
- 2. T+1/T+2 settlement cycles
- Clearing mechanisms
- 1. Clearing corporations and counterparties
- 2. Netting and settlement obligations
|
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NISM Series VII - Securities Operations and Risk Management Certification Sample Questions (Q159-Q164):
NEW QUESTION # 159
In the context of handling settlements during holidays, specific provisions are made regarding the utilization of assets received from a prior settlement. How is the pay-out from the first settlement treated in relation to subsequent obligations?
- A. The cash or securities pay out from the first settlement shall be made available to the member for meeting his pay-in obligations for the subsequent settlement(s).
- B. It is returned to the Clearing Corporation to cover potential shortfalls in the subsequent settlement's auction.
- C. It is locked in the member's pool account for 24 hours to prevent misuse.
- D. It must be transferred to the client's beneficiary account immediately and cannot be used for subsequent proprietary obligations.
- E. It is automatically converted into liquid assets and pledged to the Core Settlement Guarantee Fund.
Answer: A
Explanation:
The source states: 'The cash or securities pay out from the first settlement shall be made available to the member for meeting his pay-in obligations for the subsequent settlement(s).'
NEW QUESTION # 160
A corporate stock broker with a net worth of Rs. 10 Crore wishes to offer the margin trading facility (MTF) to its clients. According to SEBI regulations, what is the maximum limit on the broker's total indebtedness for the purpose of margin trading and the maximum allowable exposure towards MTF?
- A. Total Indebtedness: Rs. 100 Crore; Maximum Exposure: 5 times Net Worth
- B. Total Indebtedness: Rs. 20 Crore; Maximum Exposure: Rs. 50 Crore
- C. Total Indebtedness: Rs. 50 Crore; Maximum Exposure: Borrowed Funds + Rs. 5 Crore
- D. Total Indebtedness: Rs. 50 Crore; Maximum Exposure: Borrowed Funds + Rs. 10 Crore
- E. Total Indebtedness: Rs. 30 Crore; Maximum Exposure: Borrowed Funds + Rs. 10 Crore
Answer: C
Explanation:
According to the leverage and exposure limits for margin trading: 1) The total indebtedness of a broker for the purpose of margin trading shall not exceed 5 times of his net worth (5 10 Cr = 50 Cr). 2) The maximum allowable exposure of the broker towards the margin trading facility shall not exceed the borrowed funds and 50% of his 'net worthe (Borrowed Funds + 50% of 10 Cr = Borrowed Funds + 5 Cr).
NEW QUESTION # 161
Under the SCORES 2.0 mechanism, complaints are monitored by a 'Designated Body' to ensure timely redressal. Who acts as the Designated Body for complaints lodged against a Stock Broker?
- A. The Association of Mutual Funds in India (AMFI)
- B. The Depository (NSDL or CDSL)
- C. Securities and Exchange Board of India (SEBI)
- D. The Stock Exchange
- E. The Investor Protection Fund Trust
Answer: D
Explanation:
For a Stock Broker, the Stock Exchange is the Designated Body. The Designated Body ensures that the concerned Entity submits the Action Taken Reports (ATRs) within the stipulated time.
NEW QUESTION # 162
Under the 'Framework for Adoption of Cloud Services by SEBI Regulated Entities (REs)', which of the following statements correctly describes the permissibility of different cloud deployment models?
- A. Private cloud is considered an on-premise deployment and is governed by general SEBI circulars (cyber security, outsourcing) rather than the specific cloud framework.
- B. RES are mandated to use only Community Cloud models hosted within the International Financial Services Centres (IFSC).
- C. Public cloud is strictly prohibited for all SEBI Regulated Entities due to data localization concerns.
- D. Community cloud models are treated as 'other cloud models' and are currently prohibited unless explicitly permitted.
- E. Hybrid cloud deployments are prohibited as they combine public and private clouds, creating security vulnerabilities.
Answer: A
Explanation:
The framework clarifies that a Private Cloud shall be considered as an on-premise deployment and consequently, private cloud deployments shall be governed by SEBI circulars (e.g., cyber security, outsourcing, BCP-DR) issued from time to time, and may not be governed by the specific cloud framework. Public, Community, and Hybrid clouds are permitted subject to conditions.
NEW QUESTION # 163
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. Disciplinary actions
- B. Actions as decided by the Relevant Authority
- C. Withdrawal of trading facility
- D. Immediate forfeiture of the member's personal assets
- E. Automatic transfer of the member's clearing bank account to the Investor Protection Fund
Answer: A,B,C
Explanation:
The source states: 'A clearing member... shall render him liable for withdrawal of trading facility [Option A] or such other actions including disciplinary actions [Option B], as may be decided by the Relevant Authority [Option D].'
NEW QUESTION # 164
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