Online Access Free NISM.NISM-Series-VII.v2026-07-14.q164 Practice Test (Page 27)

NISM-Series-VII Exam Question 126

SEBI introduced Chapter IVA in the SEBI (Stock Brokers) Regulations, 1992, to mandate an 'Institutional Mechanism for Prevention and Detection of Fraud or Market Abuse'. Which of the following is NOT explicitly listed as a required component of this mechanism?

A.Systems for surveillance of trading activities and internal controls

B.Obligations of the stock-broker and its employees

C.Escalation and reporting mechanisms

D.Whistle Blower Policy

E.Mandatory rotation of the Principal Officer every 3 years

NISM-Series-VII Exam Question 127

To ensure compliance with Margin Trading Facility (MTF) regulations, stock brokers are required to submit a certificate to the exchange.
What is the frequency and timeline for this submission?

A.Quarterly; within 15 days from the end of the quarter.

B.Annually; along with the Annual Returns by October 31st.

C.Half-yearly; within one month from the half-year ending 31st March and 30th September.

D.Monthly; by the 7th of the succeeding month.

E.Event-based; within 7 days of exceeding the exposure limits.

NISM-Series-VII Exam Question 128

Regarding the operational obligations of a Portfolio Manager, which of the following statements regarding the maintenance of books, audit, and reporting to clients is legally accurate?

A.Books of account must be audited every quarter, and reports furnished to clients every month.

B.Books of account must be audited yearly, and a report furnished to the client not exceeding a period of three months.

C.Books of account must be preserved for 3 years, and reports furnished to clients annually.

D.The portfolio manager is not required to appoint a custodian if they provide discretionary services.

E.Audit of books is optional for non-discretionary portfolio managers.

NISM-Series-VII Exam Question 129

According to the framework for the Core Settlement Guarantee Fund (Core SGF), how is the Minimum Required Corpus (MRC) for a segment determined for the upcoming month?

A.It is the simple average of the daily stress test losses of the preceding month, capped at 15% of the total open interest.

B.It is determined by the Risk Management Committee based on the highest single day loss observed in the last one year.

C.It is the higher of the average of all daily worst-case loss numbers determined from stress tests of the preceding month and the segment MRC as per the previous review.

D.It is fixed annually by SEBI based on the projected volume and turnover of the Clearing Corporation.

E.It is calculated as 25% of the liquid net worth of the Clearing Corporation plus the total Base Minimum Capital collected from members.

NISM-Series-VII Exam Question 130

Regarding the execution of transfer instructions, under what condition is a Depository Participant (DP) permitted to register the transfer of securities from a beneficial owner's account?

A.Upon implied consent derived from the client's trading pattern

B.Only on receipt of instructions from the beneficial owner and thereafter confirming the same to the beneficial owner

C.Immediately upon receipt of a market rumour regarding the security

D.Based on a standing instruction from the Stock Exchange for all accounts

E.Whenever the account balance falls below the minimum required balance

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NISM-Series-VII Exam Question 126

NISM-Series-VII Exam Question 127

NISM-Series-VII Exam Question 128

NISM-Series-VII Exam Question 129

NISM-Series-VII Exam Question 130

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