NISM : NISM-Series-VII Questions & Answers

NISM NISM-Series-VII Exam Syllabus Topics:

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

1. Select the correct statements regarding the regulations and procedures governing the auction of securities and handling of proceeds by the Clearing Corporation. (Select all that apply)

A) The auction for undelivered quantities can be held multiple times for the same settlement until the full quantity is procured.
B) In no case shall the auction be held beyond a period of one week from the pay-in day of the settlement in which the contract was entered into.
C) Any amount remaining from the proceeds of an Auction or Close-out, after settling the aggrieved party's claim, is credited to the Core Settlement Guarantee Fund (Core SGF).
D) The members participating in the auction session as sellers are required to deliver the shares to the Clearing Corporation on or before the auction pay-in day, which is the subsequent day.
E) If the auction seller fails to deliver on the auction pay-in day, the deal is closed out at the standard valuation price of the T+1 day.

2. The Clearing Corporation (CC) provides the Early Pay-In (EPI) benefit to a client under the block mechanism based on specific matching criteri a. What data points does the CC match to grant this benefit?

A) The CC matches the trade ID provided by the Exchange with the execution date in the physical Delivery Instruction Slip.
B) The CC matches the order time stamp with the block creation time stamp to ensure the block was created pre-trade.
C) The CC matches the client's available margin in the cash segment with the value of securities blocked.
D) The CC matches the client level net obligations with the Block details provided by the depositories.
E) The CC matches the gross sell obligations of the Trading Member with the total quantity blocked in the depository system.

3. Regarding the limitation period for filing complaints, what is the maximum time period from the 'date of cause of action' within which an investor must lodge a complaint on SCORES, provided they have first approached the concerned entity and are unsatisfied with the response?

A) Three years
B) Five years
C) One year
D) Two years
E) Six months

4. What is the mandatory mechanism for effecting the pay-in of securities for sell obligations in the T+0 settlement cycle?

A) Inter-depository transfer from the client's account to the Clearing Corporation's account.
B) Transfer from Client Beneficiary Account to CM Pool Account via standard market instruction.
C) Physical Delivery Instruction Slip submitted to the DP by 10:00 AM.
D) Only by way of early pay-in using block mechanism.
E) Automatic sweeping of securities from the client's demat account at 1 PM.

5. For the purpose of identifying an 'extra-ordinary' dividend (which triggers adjustment in Equity F&O), the declared dividend must be at and above 2% of the market value of the underlying stock. How is this 'market price' specifically defined for the calculation?

A) The closing price of the scrip on the date of the Annual General Meeting (AGM) where the dividend is approved.
B) The volume-weighted average price (VWAP) of the scrip on the cum-dividend date.
C) The closing price of the scrip on the record date fixed for the purpose of dividend payment.
D) The average closing price of the scrip for the last 5 trading days prior to the record date.
E) The closing price of the scrip on the day previous to the date on which the announcement of the dividend is made by the Company after the Board meeting.

Solutions: