Valid Braindumps NISM-Series-VII Questions, Latest NISM-Series-VII Test Simulator
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NISM Series VII - Securities Operations and Risk Management Certification Sample Questions (Q115-Q120):
NEW QUESTION # 115
Under the 'Segregation and Monitoring of Collateral at Client Level' norms, how is the collateral allocated to a client utilized by the Clearing Corporation?
- A. It is transferred to the Core Settlement Guarantee Fund immediately upon receipt.
- B. It is used to cover the margin obligation of that specific client only.
- C. It is primarily used for the client but can be used for the TM's proprietary obligations in case of a shortfall.
- D. It is used to provide exposure limits to the Clearing Member's other Trading Members.
- E. It is pooled with other clients' collateral to cover the aggregate margin requirement of the Trading Member.
Answer: B
Explanation:
The CCs provide a facility for upfront segment-wise allocation of collateral. The CCs use such collateral allocation information to ensure that the collateral allocated to a client is used towards the margin obligation of that client only.
NEW QUESTION # 116
With the implementation of direct pay-out of securities to client accounts by Clearing Corporations, what is the revised timing for the pay- out of securities in the T+1 rolling settlement cycle?
- A. 10:30 AM on T+1 day
- B. 3:30 PM on T+1 day
- C. 1:30 PM on T+1 day
- D. 9:00 AM on T+2 day
- E. End of Day (EOD) on T day
Answer: B
Explanation:
SEBI has advised Clearing Corporations to facilitate the direct credit of pay-out securities to the respective client's demat account. As a consequence, the timing of the payout of securities shall be revised from 1:30 PM to 3:30 PM.
NEW QUESTION # 117
A stock broker intends to expand their business scope by offering Portfolio Management Services (PMS) and functioning as a Depository Participant. According to the regulatory framework for 'Other Services Provided by Brokers', which of the following statements accurately reflects the registration requirement for these additional services?
- A. These services can be offered under a general 'Investment Advisory' license without specific product registration.
- B. Registration is only required with the Stock Exchange for PMS, while Depository services require SEBI registration.
- C. The broker needs to convert into a Non-Banking Financial Company (NBFC) to offer these services, but no separate SEBI registration is needed.
- D. The existing stock broker registration with SEBI is comprehensive and covers all financial services including PMS and Depository services.
- E. The broker must obtain separate registration/licenses from SEBI for each of the specific services like PMS and Depository services.
Answer: E
Explanation:
According to the Introduction section of 'Other Services Provided by Brokers', while brokers provide services like PMS, IPO applications, etc., 'for all the other services, the brokers need to be separately registered with SEBI.' Licenses and certifications have to be obtained for each of the services offered.
NEW QUESTION # 118
Which of the following operational parameters and exclusions are correctly associated with the framework for the beta version of the T+0 rolling settlement cycle? (Select all that apply)
- A. Security shortages are handled through a dedicated auction session on T+0 day.
- B. Pre-Open, Special Pre-Open, and Post close sessions are not applicable.
- C. Trading is not permitted on the Ex-date of securities.
- D. Pay-in for sell obligations is allowed only via Early Pay-In using the block mechanism.
- E. The price band is fixed at +1-5% relative to the T+1 market price without re-calibration.
Answer: B,C,D
Explanation:
Option A is correct: No trading for T+0 settlement on Ex-date of securities. Option C is correct: Pre-Open, Special Pre-Open, and Post close sessions are not applicable. Option D is correct: Pay-in is allowed only by way of early pay-in using block mechanism. Option B is incorrect as auctions are not conducted (direct close-out applies). Option E is incorrect as the price band is +1- 100 bps with re-calibration.
NEW QUESTION # 119
Identify the correct expiry and settlement logic for Currency Derivative contracts (USD-INR) traded on Indian stock exchanges.
- A. Contracts expire on the last Thursday of the month; Settlement is physical delivery of the foreign currency.
- B. Contracts expire on the 1 5th of every month; Settlement is cash settled based on the crossing of FCY-INR rates.
- C. Contracts expire on the last working day of the month; Final Settlement Price is the RBI Reference Rate.
- D. Contracts expire two working days prior to the last business day of the expiry month at 12:30 pm; Final Settlement Price is the FBIL reference rate.
- E. Contracts expire two working days prior to the last business day of the month; Final Settlement Price is the average spot rate of the last 30 minutes.
Answer: D
Explanation:
For Currency Derivatives (USD-INR), the source states: 'The expiry day/ last day for the trading of the monthly contract shall be two working days prior to the last business day of the expiry month at 12.30 pm.' and 'The final settlement price for USDINR... is the FBIL (Financial Benchmarks India Pvt. Ltd.) reference rate.'
NEW QUESTION # 120
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