FNFreeNISMMockTest
Series VII · Exam Focus

NISM Series VII: Securities Operations and Risk Management Certification — Exam Focus Practice Questions

Exam-specific finance and market-practice questions for NISM Series VII: Securities Operations and Risk Management Certification. Every question below shows the correct answer and a full explanation, so you can read through this set as a study page or attempt it as a timed mock test.

Attempt this set as a timed mock

Prefer an exam-like experience? Start this set as a shuffled, timed mock test with instant scoring, negative marking, and a full review screen.

Start timed mock test Back to Series VII exam page

Advertisement

Advertisement space

Practice questions

All 25 questions in Exam Focus

Read each question, think through your answer, then expand it to check the correct option and explanation.

Settlement

Q1. The securities settlement process mainly ensures:

  1. A. Transfer of securities and funds between buyer and seller
  2. B. Guaranteed profit to brokers
  3. C. No need for margins
  4. D. Tax exemption
Show correct answer & explanation

Correct answer: A. Transfer of securities and funds between buyer and seller

Settlement completes the exchange of securities and funds according to market rules.
Risk Management

Q2. Margins in the trading system help to:

  1. A. Reduce default risk
  2. B. Increase investor complaints
  3. C. Avoid KYC
  4. D. Guarantee returns
Show correct answer & explanation

Correct answer: A. Reduce default risk

Margins reduce the risk that a participant fails to meet obligations.
KYC

Q3. KYC is important because it helps intermediaries:

  1. A. Verify client identity and comply with regulations
  2. B. Avoid all reporting
  3. C. Guarantee portfolio return
  4. D. Bypass risk disclosure
Show correct answer & explanation

Correct answer: A. Verify client identity and comply with regulations

KYC supports identity verification, AML controls and regulatory compliance.
Contract Note

Q4. A contract note provides:

  1. A. Trade details and charges for executed transactions
  2. B. Guaranteed profit statement
  3. C. Only market rumours
  4. D. Bank balance certificate
Show correct answer & explanation

Correct answer: A. Trade details and charges for executed transactions

Contract notes document trades, prices, charges and other required details.
Investor Grievance

Q5. If an investor has a complaint, the intermediary should:

  1. A. Follow the grievance redressal process and maintain records
  2. B. Ignore the complaint
  3. C. Delete trade records
  4. D. Ask the investor to trade more
Show correct answer & explanation

Correct answer: A. Follow the grievance redressal process and maintain records

Grievance handling requires proper process, timelines and documentation.
Trade Lifecycle

Q6. A typical trade lifecycle includes:

  1. A. Order placement, execution, clearing and settlement
  2. B. Only marketing and sales
  3. C. Only dividend credit
  4. D. Only tax filing
Show correct answer & explanation

Correct answer: A. Order placement, execution, clearing and settlement

Trade lifecycle covers the chain from order to final settlement.
Operational Risk

Q7. Operational risk can arise from:

  1. A. Process failure, system failure or human error
  2. B. Only market price changes
  3. C. Only tax rates
  4. D. Only dividends
Show correct answer & explanation

Correct answer: A. Process failure, system failure or human error

Operational risk includes failures in systems, people or processes.
Surveillance

Q8. Market surveillance is used to detect:

  1. A. Unusual or potentially manipulative trading activity
  2. B. Guaranteed winners
  3. C. Tax deductions
  4. D. Dividend eligibility only
Show correct answer & explanation

Correct answer: A. Unusual or potentially manipulative trading activity

Surveillance protects market integrity by detecting abnormal trading patterns.
Power of Attorney

Q9. Client authorisation documents should be handled:

  1. A. As per regulatory requirements and client consent
  2. B. Without record keeping
  3. C. By verbal approval only
  4. D. Only after losses
Show correct answer & explanation

Correct answer: A. As per regulatory requirements and client consent

Authorisations require proper consent, scope and documentation.
Client Funds

Q10. Segregation of client funds and securities helps:

  1. A. Protect client assets and improve accountability
  2. B. Mix all balances freely
  3. C. Avoid reconciliation
  4. D. Guarantee intraday profits
Show correct answer & explanation

Correct answer: A. Protect client assets and improve accountability

Segregation reduces misuse risk and supports proper reconciliation.
Clearing

Q11. In Series VII Exam Focus, a learner wants to improve accuracy in Clearing. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Risk controls

Q12. In Series VII Exam Focus, a learner wants to improve accuracy in Risk controls. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Trading lifecycle

Q13. In Series VII Exam Focus, a learner wants to improve accuracy in Trading lifecycle. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Settlement

Q14. In Series VII Exam Focus, a learner wants to improve accuracy in Settlement. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Investor grievance

Q15. In Series VII Exam Focus, a learner wants to improve accuracy in Investor grievance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Clearing

Q16. In Series VII Exam Focus, a learner wants to improve accuracy in Clearing. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Risk controls

Q17. In Series VII Exam Focus, a learner wants to improve accuracy in Risk controls. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Trading lifecycle

Q18. In Series VII Exam Focus, a learner wants to improve accuracy in Trading lifecycle. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Settlement

Q19. In Series VII Exam Focus, a learner wants to improve accuracy in Settlement. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Investor grievance

Q20. In Series VII Exam Focus, a learner wants to improve accuracy in Investor grievance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Clearing

Q21. In Series VII Exam Focus, a learner wants to improve accuracy in Clearing. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Risk controls

Q22. In Series VII Exam Focus, a learner wants to improve accuracy in Risk controls. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Trading lifecycle

Q23. In Series VII Exam Focus, a learner wants to improve accuracy in Trading lifecycle. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Settlement

Q24. In Series VII Exam Focus, a learner wants to improve accuracy in Settlement. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Investor grievance

Q25. In Series VII Exam Focus, a learner wants to improve accuracy in Investor grievance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.

How to use this set

Work through the questions in order without expanding the answers first, exactly as you would in the real Series VII exam. Once you have picked an option, expand the answer to confirm whether you were right and read the explanation, even for questions you answered correctly, since the reasoning behind each option is where most of the learning happens.

If you get a question wrong, note the topic tag above the question and revisit that topic in the Series VII exam page before your next attempt. When you are ready for exam-condition practice, use the timed mock test above; it shuffles these questions, applies the negative marking rule, and gives you a scored review at the end.