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NISM Series VII - Securities Operations and Risk Management Certification Sample Questions:
1. Under the Online Dispute Resolution (ODR) framework, if a Market Participant wishes to initiate dispute resolution against an investor/client through the ODR Portal, which of the following procedural pre-requisites must be strictly fulfilled?
A) The Market Participant can only initiate ODR if the claim value exceeds Rs. 10 Lakhs.
B) The Market Participant must give due notice of at least 15 calendar days to the investor/client for resolution of the dispute.
C) The Market Participant must wait for a mandatory cooling-off period of 60 days from the date of the transaction.
D) The Market Participant must deposit 50% of the disputed amount with the Stock Exchange.
E) The Market Participant must obtain a 'No Objection Certificate' from SEBI.
2. When a company announces a Bonus Issue in the ratio of A:B, specific adjustments are made to the Strike Price, Market Lot, and Position of Equity F&O contracts. Which of the following formulas correctly represents the Adjustment Factor used for these calculations?
A) (A - B) / B
B) (A + B) / B
C) B / (A + B)
D) A / (A + B)
E) (A * B) / (A + B)
3. Which of the following statements accurately describe the process and components of 'Delivery Settlement' in the equity F&O segment?
(Select all that apply)
A) It applies to Index Futures and Index Options.
B) It considers all in-the-money option contracts which are exercised and assigned.
C) Delivery settlement is optional and can be cash settled if the client chooses.
D) It considers all open futures positions after the close of trading on the expiry day.
E) The final deliverable/receivable positions at a clearing member are arrived at after netting the obligations of all clients/constituents clearing through them.
4. 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)
A) Entities from Financial Action Task Force (FATF) member countries
B) Corporate bodies
C) Government and Government related investors
D) Charitable organizations
E) Pension funds and university funds
5. Periodic settlement of running accounts is mandatory for most clients. However, under which of the following specific circumstances is the periodic settlement of funds **NOT** necessary to the extent of funds involved?
A) For clients who have a credit balance of less than Rs. 10,000.
B) For Non-Resident Indian (NRI) clients dealing through the Portfolio Investment Scheme (PIS).
C) For clients availing Margin Trading Facility (MTF), to the extent of funds/securities relating to MTF used by the client.
D) For High Net Worth Individuals (HNIs) who have provided a 'Do Not Settle' instruction.
E) For clients trading in the derivatives segment with open positions, even if they have excess free cash.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: B,D,E | Question # 4 Answer: A,C,E | Question # 5 Answer: C |



