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

1. In the process of disbursing compensation from the Investor Protection Fund (IPF) in case of a defaulter Trading Member (TM), which body is responsible for the 'sanction and ratification' of claims before they are sent to the IPF Trust?

A) The Governing Board of the Exchange
B) The Defaulters' Committee
C) The Member Committee (MC)
D) The Disciplinary Action Committee (DAC)
E) The Investor Grievance Redressal Committee (IGRC)

2. Under the SCORES 2.0 framework, if a complainant is dissatisfied with the resolution provided by the entity and requests a first review, the Designated Body (DB) may seek clarification from the entity. What is the specific timeline mandated for the Designated Body to submit the revised Action Taken Report (ATR) to the complainant after seeking such clarification?

A) Within 21 calendar days of the review sought
B) Within 7 calendar days of the review sought
C) Within 30 calendar days of the review sought
D) Within 10 calendar days of the review sought
E) Within 15 calendar days of the review sought

3. Regarding the 'Default Waterfall' in the context of the Net Settlement mechanism for Cash and F&O segments, which of the following statements is correct?

A) The default waterfall is triggered only after liquidating the defaulting member's proprietary assets across all exchanges.
B) Clearing Corporations create a unified single default waterfall covering both segments to match the merged settlement.
C) Clearing Corporations continue to maintain segment-wise default waterfalls, and losses are computed on the basis of segment-wise obligations on a pro-rata basis.
D) Default losses are covered solely by the Investor Protection Fund (IPF) in the case of net settlement defaults.
E) The Core Settlement Guarantee Fund (SGF) of the F&O segment is utilized first for any default arising from the net settlement obligation.

4. Select the correct statements regarding the online risk management system capabilities that a broker must possess for Middle Office Operations. (Select all that apply)

A) The system must maintain separate ledgers for proprietary and client trades but need not monitor them in real-time.
B) Only orders within parameters like Order Quantity, Value Limits, and Price Limits should be pushed to the exchange.
C) The system must have on-line real-time risk management for all orders placed on the exchange trading system.
D) The system should have the capability to generate reports relating to margin requirements and delivery obligations.
E) The system should strictly allow order modification only after trade execution is confirmed by the back office.

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

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