Online Access Free NISM.NISM-Series-VII.v2026-07-14.q164 Practice Test (Page 12)

NISM-Series-VII Exam Question 51

Cash Management Bills (CMBs) are issued by the Government of India to fund temporary cash flow mismatches. Which of the following correctly identifies their maturity characteristics and trading platform?

A.Maturities less than 91 days; Traded on NDS-OM platform

B.Maturities of exactly 91 days; Traded on NDS-CALL platform

C.Maturities between 91 and 182 days; Traded on CROMS

D.Maturities less than 14 days; Traded on OTC market only

E.Maturities up to 364 days; Traded on RFQ Platform

NISM-Series-VII Exam Question 52

A Clearing Member (CM) maintains a designated clearing account with a Clearing Bank. While the CM is permitted to deposit funds into this account in any form, which of the following specific restrictions is imposed on the withdrawal of funds from this account to ensure regulatory compliance?

A.Funds can be withdrawn only after obtaining a 'No Objection Certificate' from the Stock Exchange.

B.Funds can be withdrawn only in 'self-name' of the Clearing Member.

C.Funds can be withdrawn directly to the client's beneficiary bank account to facilitate faster payout.

D.Withdrawals are restricted to 50% of the account balance on any given trading day.

E.Funds can be withdrawn only via physical Demand Drafts and not through electronic transfer.

NISM-Series-VII Exam Question 53

Why are Institutional Investors (including Foreign Portfolio Investors) explicitly excluded from the mechanism of Net Settlement of cash segment and physical settlement of F&O segment upon expiry?

A.Because they are not required to pay margins in the F&O segment.

B.Because they trade through Custodians who do not have clearing rights in the F&O segment.

C.Because the extant regulatory framework specifies that all transactions by institutional investors in the cash market should be backed by delivery.

D.Because their trading volumes are too high to be accommodated in a net settlement process.

E.Because they are subject to different tax treaties which prevent segment-wise netting.

NISM-Series-VII Exam Question 54

Regarding the premium settlement for option contracts, at what level is the premium payable or receivable value computed by the Clearing Corporation?

A.Gross at the individual client level without any netting.

B.Netting at the Clearing Member level across all segments.

C.After netting the premium payable or receivable positions at the Trading Member/Custodial Participant level for each option contract.

D.Gross at the Trading Member level but netted at the Clearing Member level.

E.Netting is done across all option contracts for a specific underlying security at the client level.

NISM-Series-VII Exam Question 55

When the obligations arising out of the cash segment settlement and physical settlement of the F&O segment are settled on a net basis, how are the Securities Transaction Tax (STT) and Stamp Duty treated?

A.They are computed and levied on the final netted delivery obligation after merging both segments.

B.STT is levied on the gross position, while Stamp Duty is levied on the net obligation.

C.They continue to be computed, levied, and reported on a segment-wise level, regardless of the netting for settlement.

D.They are waived for the cash segment leg if the position is hedged in the F&O segment.

E.They are calculated based on the notional value of the F&O contract only.

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NISM-Series-VII Exam Question 51

NISM-Series-VII Exam Question 52

NISM-Series-VII Exam Question 53

NISM-Series-VII Exam Question 54

NISM-Series-VII Exam Question 55

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