Try 100% Updated NISM-Series-VII Exam Questions [2026]
Pass NISM-Series-VII Exam - Real Questions and Answers
NEW QUESTION # 36
According to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, from whom must an issuer obtain 'in-principle approval' for listing securities before issuing further shares, specifically in the case where the company is not listed on any exchange having nationwide trading terminals?
- A. From all the stock exchange(s) in which the securities of the issuer are proposed to be listed
- B. From the Registrar of Companies (ROC) where the company is registered
- C. From any one recognized stock exchange having nationwide trading terminals
- D. Only from the Securities and Exchange Board of India (SEBI)
- E. From the stock exchange with the highest trading volume in the previous financial year
Answer: A
Explanation:
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, if a company is not listed on any exchange having nationwide trading terminals, the in-principle approval is required from all the stock exchange(s) in which the securities of the issuer are proposed to be listed.
NEW QUESTION # 37
Under what specific circumstance is a broker or client strictly **prohibited** from unblocking securities that have been blocked in favour of the Clearing Corporation?
- A. If the Trading Member has not yet transferred the securities to the Clearing Member's pool account.
- B. If the Early Pay-In (EPI) benefit has already been provided by the Clearing Corporation to the client for those securities.
- C. If the block was created using a physical Delivery Instruction Slip (DIS) instead of eDlS.
- D. If the client has an outstanding margin obligation in the derivatives segment.
- E. If the market price of the security increases by more than 5% during the trading day.
Answer: B
Explanation:
The regulations stipulate that the Broker or client shall not be allowed to unblock securities if the Early Pay-In (EPI) benefit is provided by the Clearing Corporation to the client for the same.
NEW QUESTION # 38
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. One year
- C. Six months
- D. Two years
- E. Five years
Answer: B
Explanation:
In line with enhancing ease, speed, and accuracy, the investor may lodge a complaint on SCORES within one year from the date of cause of action, provided specific conditions (like rejection by the entity or non-receipt of communication) are met.
NEW QUESTION # 39
To ensure compliance while providing research-based advisory services, brokerage houses must adhere to specific regulations and circulars. According to the NISM workbook, which of the following represents the governing framework for Research Reports?
- A. Securities Contracts (Regulation) Rules, 1957 and SEBI (Prohibition of Insider Trading) Regulations, 2015
- B. SEBI (Investment Advisers) Regulations, 2013 and Master Circular dated December 16, 2020
- C. SEBI (Research Analysts) Regulation, 2014 and Master Circular for Research Analyst dated May 21 , 2024
- D. SEBI (Stock Brokers) Regulations, 1992 and Master Circular dated May 21 , 2024
- E. SEBI (Portfolio Managers) Regulations, 2020 and Master Circular dated March 20, 2023
Answer: C
Explanation:
Brokerage houses providing research-based advisory services must comply with the relevant guidelines provided under (Research Analysts) Regulation, 2014" and "'Master Circular for Research Analyst' dated May 21 , 2024**.
NEW QUESTION # 40
Cash Management Bills (CMBs) are issued by the Government of India to fund temporary cash flow mismatches. Which of the following correctly identifies their maturity characteristics and trading platform?
- A. Maturities less than 14 days; Traded on OTC market only
- B. Maturities less than 91 days; Traded on NDS-OM platform
- C. Maturities between 91 and 182 days; Traded on CROMS
- D. Maturities of exactly 91 days; Traded on NDS-CALL platform
- E. Maturities up to 364 days; Traded on RFQ Platform
Answer: B
Explanation:
Cash Management Bills (CMBs) have maturities less than 91 days. They are issued to absorb excess liquidity and fund temporary mismatches. Like Treasury bills, they are traded on the NDS-OM platform along with Government Securities.
NEW QUESTION # 41
The Money Market in India comprises various segments based on the tenor and type of instrument. Which of the following statements correctly describe the features of these segments/instruments? (Select all that apply)
- A. Certificate of Deposits (CDs) issued by All India Financial Institutions can have a maturity period not less than 1 year and not exceeding 3 years.
- B. Notice Money market involves lending and borrowing for a period between 2 days and 14 days.
- C. Commercial Papers (CPs) can be issued for maturities exceeding 1 year.
- D. Call Money market is meant for overnight lending and borrowing.
- E. Term Money market involves lending and borrowing for a period between 15 days and 1 year.
Answer: A,B,D,E
Explanation:
Call Money is predominantly overnight. Notice Money is for 2-14 days. Term Money is for 15 days to 1 year. Certificate of Deposits (CDs) can be issued by All India Financial Institutions for a period not less than 1 year and not exceeding 3 years (Banks issue for up to 1 year). Commercial Papers (CPs) are issued for maturities between 7 days and one year; thus, option E is incorrect.
NEW QUESTION # 42
Under the SEBI (Infrastructure Investment Trusts) Regulations, 2014, if an InvlT raises funds via private placement, which of the following combinations of 'minimum investment' and 'trading lot' criteria must be met?
- A. Minimum Investment: Rs. 50 Lakhs; Trading Lot: Rs. 10 Lakhs
- B. Minimum Investment: Rs. 10 Lakhs; Trading Lot: 1 Unit
- C. Minimum Investment: Rs. 10,000; Trading Lot: Rs. 5 Lakhs
- D. Minimum Investment: Rs. 1 Crore; Trading Lot: Rs. 25 Lakhs
- E. Minimum Investment: Rs. 25 Crores; Trading Lot: 1 Unit
Answer: D
Explanation:
According to the source regarding InvlTs raising funds by way of private placement: 'The minimum investment from any investor should be of rupees one crore.' and 'In case of private placement, trading lot for the purpose of trading of units on the designated stock exchange shall Rs. 25 lakhs.'
NEW QUESTION # 43
According to SEBI guidelines regarding the corpus of the Investor Protection Fund (IPF), specific penalties collected by Stock Exchanges contribute to the fund. What is the prescribed quantum of penalty collected from Trading Members (TMs) for default in pay-in by an investor in an Offer For Sale (OFS) transaction that must be credited to the IPF?
- A. 1% of the trade value
- B. 5% of the trade value
- C. 20% of the shortage amount
- D. 10% of the order value
- E. 2% of the order value
Answer: D
Explanation:
The source explicitly lists the contributions to the IPF. One such contribution is: 'Penalty collected from TMs for default in pay-in by an investor in an Offer For Sale (OFS) transaction - 10% of the order value.'
NEW QUESTION # 44
Which of the following statements accurately reflect the regulatory requirements regarding the 'Statement of Accounts' and dispute resolution related to the settlement of funds? (Select all that apply)
- A. Brokers are permitted to perform inter-client adjustments for the purpose of settlement if the total fund balance at the broker level is sufficient.
- B. If a client requests a return of funds lying with the Clearing Corporation, the broker must transfer them within 7 working days.
- C. The Statement of Accounts must contain an extract from the client ledger for funds and the register of securities.
- D. Clients must bring any dispute arising from the statement of running account to the notice of the broker within 30 working days from the date of the statement.
- E. The actual settlement of funds must be done by the broker at least once in a calendar quarter or month, depending on the client's preference.
Answer: C,D,E
Explanation:
Statement A is correct (Statement must contain extracts). Statement B is correct (Dispute notice within 30 working days). Statement D is correct (Settlement frequency is monthly/quarterly). Statement C is incorrect because 'There is no inter-client adjustment for the purpose of settlement'. Statement E is incorrect because funds lying with the Clearing Member/Clearing Corporation must be transferred within 'three working days' from the request, not 7.
NEW QUESTION # 45
What is the primary objective of the research reports (Fundamental, Stock, Sector, etc.) regularly brought out by stock brokers?
- A. To manipulate the market price of illiquid securities.
- B. To fulfill the mandatory requirement of the Companies Act, 2013.
- C. To generate additional brokerage by encouraging excessive churning of portfolios.
- D. To help the investor make informed investment decisions.
- E. To replace the role of the Investment Adviser completely.
Answer: D
Explanation:
The text explicitly states: 'These reports are aimed at * *helping the investor make informed investment decisions**.'
NEW QUESTION # 46
In the General Clearing Process for the Cash Segment under the T+1 rolling settlement cycle, by what specific time must the custodial confirmation of trades be completed on the T+1 day?
- A. By 1:30 PM on T+1 Day
- B. By 4:15 PM on T Day
- C. By 11:00 AM on T+1 Day
- D. By 9:00 AM on T+1 Day
- E. By 7:30 AM on T+1 Day
Answer: E
Explanation:
According to the General Clearing process in Cash Segment for T+1 rolling settlement, the clearing members/custodians must confirm back institutional/Custodian Participant trades by 7:30 a.m. on T+1 day. Subsequently, the final obligations are downloaded by 9:00 a.m.
NEW QUESTION # 47
Stock Exchanges are required to jointly issue an annual calendar for the settlement of running accounts. According to the regulations, on which specific days of the month/quarter is the settlement of running accounts scheduled to take place?
- A. Any day chosen by the broker provided the gap does not exceed 30/90 days.
- B. Last Friday and/or Saturday of every month/quarter.
- C. First Friday and/or Saturday of every month/quarter.
- D. First Monday and/or Tuesday of every month/quarter.
- E. 15th and/or 30th of every month/quarter.
Answer: C
Explanation:
To ensure uniformity and clarity, settlement of running account shall be settled on the "first Friday and/or Saturday" of every month/quarter. Stock exchanges issue the annual calendar for this purpose.
NEW QUESTION # 48
A claim against a defaulter trading member is received by the Stock Exchange after three years from the date of expiry of the specified period for lodging claims. How is such a claim categorized under the IPF guidelines?
- A. It is referred to the SEBI Complaints Redressal System (SCORES) for arbitration.
- B. It is eligible for 50% of the compensation limit applicable to timely claims.
- C. It is automatically rejected and cannot be pursued in any forum.
- D. It may be dealt with as a civil dispute.
- E. It is treated as a priority claim but paid only after all timely claims are settled.
Answer: D
Explanation:
The text states: 'Any claim received after three years from the date of expiry of the specified period may be dealt with as a civil dispute.'
NEW QUESTION # 49
In the process of Broker Netting with the Clearing Corporation, what is the sequence of events regarding the determination of obligations?
- A. Gross settlement determination Netting within firm Multilateral netting.
- B. List of transactions sent to member -> Multilateral netting -> Members informed of amount/securities to receive/pay.
- C. Pay-in of funds Multilateral netting -> Pay-out of securities.
- D. Multilateral netting -> List of transactions sent to member -> Pay-in/Pay-out confirmation.
- E. Bilateral netting between brokers -> Confirmation to CC -> Settlement.
Answer: B
Explanation:
The source describes the process: 'Every day, the clearing corporation sends the clearing member a list of all trading transactions made by him and his clients for the day. After this, clearing is performed by multilateral netting. Then the members are informed by the clearing corporation of the amount/securities to be received/paid by them to the other members.'
NEW QUESTION # 50
In the event of holidays affecting the settlement schedule, Clearing Corporations (CCs) follow specific guidelines to ensure smooth settlement. Which of the following statements accurately describes the procedure for sequential settlement and inter-depository transfers?
- A. CCs club multiple settlements into a single netted obligation to avoid sequential processing delays.
- B. CCs prioritize the settlement with the highest value regardless of the chronological order of trade dates.
- C. Settlements are postponed to the next working week to ensure all banks are operational.
- D. Depositories must facilitate inter-depository transfers within one hour and before the pay-in for the subsequent settlement begins.
- E. The pay-out from the first settlement is blocked for 24 hours and cannot be used for the subsequent settlement's pay-in.
Answer: D
Explanation:
To meet pay-in obligations for subsequent settlements during holidays, members may need to move securities from one depository to another. The depositories shall, therefore, facilitate the inter-depository transfers within one hour and before pay-in for the subsequent settlement begins.
NEW QUESTION # 51
Section 15A of the SEBI Act, 1992, prescribes penalties for failure to furnish information, returns, or reports. What is the specific penalty liability for a person who fails to furnish such documents within the specified time?
- A. Imprisonment for a term which may extend to one year, or with fine, or with both.
- B. A penalty of ?1 Crore irrespective of the duration of the failure.
- C. Not less than ? 1 Lakh but may extend to ?1 Lakh for each day during which such failure continues, subject to a maximum of ?1 Crore.
- D. Not less than ? 10 Lakhs but may extend to ?25 Crore depending on the severity of the failure.
- E. A fixed penalty of ?5 Lakhs plus ? 10,000 for every day of delay.
Answer: C
Explanation:
Section 15A of the SEBI Act states that a person shall be liable to a penalty which shall not be less than one lakh rupees, but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees, if he fails to furnish any document, return or report to SEBI.
NEW QUESTION # 52
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