NISM-Series-VII Exam Test - Latest NISM-Series-VII Test Dumps
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NISM Series VII - Securities Operations and Risk Management Certification Sample Questions (Q143-Q148):
NEW QUESTION # 143
Which of the following facilities are normally offered by a stock broker's outlet as part of their diversified services? (Select all that apply)
- A. Internet-based Online Trading (IBT)
- B. Mobile trading & Smart Order Routing (SOR)
- C. Margin funding
- D. Issuance of Indian Currency
- E. Investment advice & Research reports
Answer: A,B,C,E
Explanation:
The text explicitly lists the following facilities offered by a stock broker's outlet: 'Investment advice & Research reports', 'Margin funding', 'Mobile trading & Smart Order Routing (SOR)', and 'Internet-based Online Trading (IBT)'. Option D is incorrect.
NEW QUESTION # 144
While institutional trades generally do not attract upfront margins, specific categories of institutional investors are subject to upfront margining similar to non-institutional trades. Identify the category from the list below.
- A. Insurance Companies registered with IRDAI
- B. Public Financial Institutions defined under the Companies Act
- C. Category II FPIs who are corporate bodies, individuals, or family offices
- D. Category I Foreign Portfolio Investors (Sovereign Wealth Funds)
- E. Mutual Funds registered with SEBI
Answer: C
Explanation:
Trades of Category II FPIs who are corporate bodies, individuals, or family offices and domestic entities who may choose to settle trades through a Custodian shall be margined on an upfront basis as per the margining framework of non-institutional trades. Other institutional trades are margined on T+1 day subsequent to confirmation.
NEW QUESTION # 145
Under which of the following circumstances does the Clearing Corporation directly 'Close Out' the shortage WITHOUT conducting an auction session? (Select all that apply)
- A. Shortage in delivery of securities under corporate action (e.g., undergoing stock split/bonus).
- B. Shortage in securities under the Trade for Trade Surveillance (TFTS) category.
- C. Shortage arising from trades in the T+0 rolling settlement cycle.
- D. Shortage arising from trades executed in the Block Deal window.
- E. Shortage arising from trades executed in the normal rolling settlement cycle (T+1) for Group I liquid securities.
Answer: A,B,C,D
Explanation:
The source specifies that for certain delivery shortages, CC directly does the close-out without conducting an auction. Examples include: Securities under trade for trade category, securities under corporate action, trades done on block deal window (Section 6.5.2). Additionally, regarding the T+0 rolling settlement cycle, it is stated that 'Auction shall not be conducted in case of securities shortage. Security shortages shall be directly closed out' (Section 3.4.3 / 5.7). Option C is incorrect because normal rolling settlement shortages are handled via auction.
NEW QUESTION # 146
If an auction seller, who participated to fulfill a short delivery, fails to deliver the securities on the auction pay-in day, the deal is closed out. What is the specific pricing formula used to charge the defaulting auction seller in this instance?
- A. Highest price prevailing on the Exchange on the auction day only.
- B. The maximum price of the security recorded during the entire settlement cycle.
- C. The price at which the auction offer was originally accepted plus a 5% penalty.
- D. Official closing price on the close out day plus the auction premium.
- E. Highest price from trade day to close out day OR 20% over official closing price on the close out day, whichever is higher.
Answer: E
Explanation:
When the auction seller fails to deliver the securities on the auction pay-in day, the deal will be closed out at the highest price prevailing across the Exchange from the day on which the trade was originally executed till the day of closing out or 20 percent over the official closing price on the close out day whichever is higher.
NEW QUESTION # 147
Under the SCORES 2.0 mechanism, complaints are monitored by a 'Designated Body' to ensure timely redressal. Who acts as the Designated Body for complaints lodged against a Stock Broker?
- A. The Association of Mutual Funds in India (AMFI)
- B. Securities and Exchange Board of India (SEBI)
- C. The Investor Protection Fund Trust
- D. The Depository (NSDL or CDSL)
- E. The Stock Exchange
Answer: E
Explanation:
For a Stock Broker, the Stock Exchange is the Designated Body. The Designated Body ensures that the concerned Entity submits the Action Taken Reports (ATRs) within the stipulated time.
NEW QUESTION # 148
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