[Q21-Q39] Dumps for Free NISM NISM-Series-VII Practice Exam Questions [Aug 12, 2026]

Posted On August 12, 2026

Dumps for Free NISM NISM-Series-VII Practice Exam Questions [Aug 12, 2026]

NISM-Series-VII Dumps PDF And Certification Training

QUESTION 21
Transfer of securities from one account to another within the depository system may be done for which of the following purposes?
(Select all that apply)

Transfer due to an ‘off-market’ transaction (person-to-person).

Transfer arising out of a transaction done on a recognized Stock Exchange.

Transfer arising out of transmission of securities.

Transfer arising out of account closure.

Transfer for the purpose of evading Stamp Duty.

QUESTION 22
When handling ‘Trade Allocation’ for institutional clients in the back office, how is a single order placed with the Custodial Participant code ‘INST’ processed?

The back office aggregates multiple ‘INST’ orders into a single block trade for reporting to the Exchange.

The trade is automatically allocated pro-rata to all active clients of the broker to ensure fair distribution.

The back office receives deal sheets from the front office and distributes the single trade across various sub-schemes of the client, generating appropriate contract notes.

The ‘INST’ code is replaced with the broker’s proprietary account code, and the trade is settled as a proprietary trade.

The trade is kept in a suspense account until the Custodian confirms the trade on T+2 day.

QUESTION 23
In the event of a default by a clearing member, the ‘Default Waterfall’ prescribes the specific order in which resources are utilized. Which of the following resources is utilized immediately after the monies of the defaulting member and Insurance (if any) are exhausted, but before the Core SGF is accessed?

Capped additional contribution by non-defaulting members.

Clearing Corporation resources equal to 5% of the segment MRC.

Stock Exchange contribution to the Core SGF.

Penalties credited to the Core SGF.

The entire Core SGF corpus on a pro-rata basis.

QUESTION 24
Which of the following statements accurately describe the operational aspects of the Beta version of T+0 rolling settlement cycle introduced by SEBI? (Select all that apply)

There shall be no netting in pay-in and pay-out obligations between T+1 and T+0 settlement cycles.

Security shortages shall be directly closed out at 10% above the highest price of the day across all exchanges for T+0 market.

Pay-in for T+0 sell obligations is allowed only by way of early pay-in using the block mechanism.

Trading timings for the T+0 session are from 09:15 AM to 3:30 PM.

An auction session will be conducted on T+0 day itself for any securities shortage.

QUESTION 25
Under the regulatory framework defined in Section 24 of the Companies Act, 2013, the administration of specific provisions for listed companies (or those proposed to be listed) is delegated to the Securities and Exchange Board of India (SEBI). Which of the following matters is EXCLUSIVELY administered by SEBI under this delegation, while remaining otherwise under the Central Government’s administration?

Registration of the company’s memorandum of association

Appointment of key managerial personnel

Non-payment of dividend

Conduct of Annual General Meetings

Incorporation of the company

QUESTION 26
When a stock broker places an order for an additional subscription of mutual fund units in physical mode through the Exchange system, which of the following data fields is mandatory to ensure the transaction is processed correctly?

Client Beneficiary ID

Depository Participant ID

Folio Number

UCC Mapping Code

ISIN of the Demat Account

QUESTION 27
To facilitate members in meeting their pay-in obligations for a subsequent settlement on a day with multiple settlements due to holidays, what specific requirement is imposed on Depositories regarding inter-depository transfers?

Depositories must process transfers instantly using the API-based immediate transfer mechanism.

Depositories shall facilitate inter-depository transfers within one hour and before pay-in for the subsequent settlement begins.

Depositories must suspend inter-depository transfers until all settlements for the day are concluded.

Depositories are required to waive the transaction charges for inter-depository transfers executed on such days.

Depositories must allow transfers only after the pay-out of the subsequent settlement is complete.

QUESTION 28
Which of the following statements correctly differentiates the operational and regulatory features of ‘Triparty Repo’ (TREPS) and ‘Repo in Corporate Bonds’ in the Indian Debt Market?

In TREPS, the seller cannot substitute the security during the repo period, whereas in Corporate Bond Repo, substitution is mandatory.

Corporate Bond Repo allows participants to borrow funds against the collateral of their own securities, whereas TREPS prohibits this.

In TREPS, the seller of the security has a right to substitute the security, and funds borrowed are exempted from CRR/SLR computation.

Settlement for Corporate Bond Repo is guaranteed by the RBI directly, while TREPS is settled bilaterally without a central counterparty.

Triparty Repo on corporate bonds uses the NDS-OM platform, while Government Securities use the RFQ platform.

QUESTION 29
According to the regulations governing institutional investors in the Indian Cash Market, which of the following combinations of trading activities is strictly PROHIBITED?

Short selling with mandatory delivery obligation

Algorithmic trading using Direct Market Access

Day trading (squaring off transactions intra-day)

Trading in the Block Deal window

Using the ‘INST’ code for order entry

QUESTION 30
Under the ‘Direct Pay-out’ of securities framework mandated by SEBI, to which category of clients is this facility not applicable?

Retail Individual Investors

High Net-worth Individuals (HNls)

Clients having arrangements with custodians registered with SEBI for clearing and settlement

Non-Resident Indians (NRIs) dealing through a Portfolio Investment Scheme (PIS)

Qualified Stock Brokers’ proprietary trading accounts

QUESTION 31
The secondary market operates through different mediums with distinct settlement mechanisms. Which of the following statements accurately differentiates the Over-The-Counter (OTC) market from the Exchange Traded Market?

OTC markets use a centralized Clearing Corporation to guarantee all trades.

OTC markets consist of standardized contracts traded on a screen-based system.

OTC markets are informal markets where trades are negotiated and settled bilaterally.

Exchange Traded Markets allow buyers and sellers to know each other’s identity directly.

Exchange Traded Markets do not adhere to a fixed time schedule for settlement.

QUESTION 32
Under the SEBI (Foreign Portfolio Investors) Regulations, 2019, which of the following entities are classified as Category I Foreign Portfolio Investors? (Select all that apply)

Pension funds and university funds

Charitable organizations

Entities from Financial Action Task Force (FATF) member countries

Corporate bodies

Government and Government related investors

QUESTION 33
Identify the correct timeline for the ‘Auction Pay-in’ and ‘Auction Pay-out’ of securities and funds in the context of the T+1 rolling settlement cycle.

Auction Pay-in: T+1 (Evening); Auction Pay-out: T+2 (Morning)

Auction Pay-in: T+2 (Subsequent day); Auction Pay-out: T+2 (Same day)

Auction Pay-in: T+2; Auction Pay-out: T+3

Auction Pay-in: T+1 (After auction session); Auction Pay-out: T+1 (End of day)

Auction Pay-in: T+3; Auction Pay-out: T+3

QUESTION 34
Regarding the issuance of Contract Notes by stock brokers, which of the following statements are legally and operationally correct as per regulations? (Select all that apply)

Contract notes must be issued within 24 hours of the execution of the trade.

A contract note is valid even if it does not explicitly state the brokerage and statutory levies separately.

Electronic Contract Notes (ECNs) sent via email must be digitally signed, encrypted, and non-tamperable.

Contract notes should have a unique running serial number starting from the beginning of the financial year.

If an ECN bounces, the broker is not required to take further action if the client has opted for electronic delivery.

QUESTION 35
Regarding the maintenance and preservation of books of account and other records by stock brokers, which of the following statements accurately reflects the regulatory requirements under the Securities Contracts (Regulation) Rules, 1957 (SCRR) and SEBI Regulations?

Books must be preserved for 3 years; seized originals need not be tracked once handed over to agencies.

Books must be preserved for 8 years in alignment with the Companies Act, regardless of SEBI regulations.

Books must be preserved for 5 years; if originals are seized by an enforcement agency, they must be preserved (originals or copies) until the trial is completed.

Books must be maintained in physical form only for a minimum of 5 years; electronic records are optional.

Books must be preserved for 10 years if the broker is involved in algorithmic trading.

QUESTION 36
A Trading Member executes trades in both T+1 and T+0 settlement cycles for the same security on the same day. Which of the following statements correctly describes the netting of obligations between these two segments?

Obligations are netted at the client level but not at the member level.

There shall be no netting in pay-in and pay-out obligations between T+1 and T+0 settlement cycle.

Funds are netted across segments, but securities are settled separately.

Netting is permitted only if the member opts for the ‘Unified Settlement’ facility.

Sell obligations in T+0 are netted against Buy obligations in T+1 to reduce margin requirements.

QUESTION 37
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)

Call Money market is meant for overnight lending and borrowing.

Notice Money market involves lending and borrowing for a period between 2 days and 14 days.

Term Money market involves lending and borrowing for a period between 15 days and 1 year.

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.

Commercial Papers (CPs) can be issued for maturities exceeding 1 year.

QUESTION 38
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?

SEBI (Investment Advisers) Regulations, 2013 and Master Circular dated December 16, 2020

SEBI (Stock Brokers) Regulations, 1992 and Master Circular dated May 21 , 2024

SEBI (Research Analysts) Regulation, 2014 and Master Circular for Research Analyst dated May 21 , 2024

Securities Contracts (Regulation) Rules, 1957 and SEBI (Prohibition of Insider Trading) Regulations, 2015

SEBI (Portfolio Managers) Regulations, 2020 and Master Circular dated March 20, 2023

QUESTION 39
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?

Minimum Investment: Rs. 10 Lakhs; Trading Lot: 1 Unit

Minimum Investment: Rs. 1 Crore; Trading Lot: Rs. 25 Lakhs

Minimum Investment: Rs. 25 Crores; Trading Lot: 1 Unit

Minimum Investment: Rs. 10,000; Trading Lot: Rs. 5 Lakhs

Minimum Investment: Rs. 50 Lakhs; Trading Lot: Rs. 10 Lakhs