Technical NISM-Series-VII Training, Mock NISM-Series-VII Exams
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NISM Series VII - Securities Operations and Risk Management Certification Sample Questions (Q316-Q321):
NEW QUESTION # 316
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. Six months
- C. One year
- D. Two years
- E. Five years
Answer: C
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 # 317
In the context of risk management for the T+0 settlement cycle, how are securities shortages handled if a selling member fails to deliver shares?
- A. By imposing a standard valuation debit of 20% above the closing price.
- B. By conducting an auction session on T+1 day along with the regular market auction.
- C. The trade is annulled, and the buyer is refunded the transaction amount without penalty.
- D. Security shortages are directly closed out at 10% above the highest price of the day across all exchanges for the T+0 market.
- E. By conducting an auction session on T+0 day at 2:30 PM.
Answer: D
Explanation:
The source states that 'Auction shall not be conducted in case of securities shortage. Security shortages shall be directly closed out at 10% above the highest price of the day across all exchanges for T+0 market.'
NEW QUESTION # 318
Stock brokers bring out regular research reports for their clients. Which of the following is NOT explicitly listed in the NISM workbook as a type of research report typically provided by brokers?
- A. Daily/weekly/fortnightly/monthly newsletters
- B. Special Reports to cater to needs of some investors
- C. Fundamental Research
- D. Stock Research
- E. High-Frequency Arbitrage Reports
Answer: E
Explanation:
The source explicitly lists the following types of reports: "Fundamental Research, Stock Research, Daily/weekly/fortnightly/monthly newsletters, Special Reports to cater to needs of some investors, and Sector Reports* *. 'High-Frequency Arbitrage Reports' is not mentioned in this list.
NEW QUESTION # 319
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 4:15 PM on T Day
- B. By 1:30 PM on T+1 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 # 320
The interoperability framework among Clearing Corporations (CCs) allows Clearing Members to select the CC of their choice. Which of the following products or schemes is explicitly excluded from this interoperability framework?
- A. Equity Derivatives
- B. Securities Lending and Borrowing Scheme (SLB)
- C. Currency Derivatives
- D. Equity Cash Segment
- E. Interest Rate Derivatives
Answer: B
Explanation:
The interoperability framework is applicable to all recognized clearing corporations excluding those in IFSC. However, specific schemes are excluded: The Securities Lending and Borrowing Scheme (SLB), Commodity Derivatives, Tri-party repo, Offer for Sale, etc., are kept outside Inter-operability.
NEW QUESTION # 321
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