📚 NISM Series VII Securities Operations Previous Year Questions with Solutions

Your one‑stop guide to mastering the NISM Series VII exam through real‑world practice.

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🎯 Why Solve PYQs?

• Exam Pattern Insight – Understand the exact distribution of marks and question types.
• Identify Weak Areas – Spot topics that repeatedly appear.
• Boost Speed & Accuracy – Practice under timed conditions.
• Confidence Builder – Familiarity reduces exam anxiety.

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📂 How This Post Is Structured

Section	What You’ll Find
1️⃣ Syllabus Overview	Brief of all topics covered in Series VII.
2️⃣ Year‑Wise PYQ Compilation	Questions from 2014‑2023 with answer keys.
3️⃣ Detailed Solutions	Step‑by‑step explanations for every answer.
4️⃣ Tips & Tricks	Smart strategies to tackle tricky items.
5️⃣ FAQ	Common doubts answered.
6️⃣ CTA	Next steps to ace the exam.

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1️⃣ Syllabus Overview (NISM Series VII – Securities Operations)

Module	Topics
I. Regulatory Framework	SEBI Act, depositories act, stock exchange regulations, compliance obligations.
II. Market Infrastructure	Trading cycles, clearing & settlement, demat accounts, custodians.
III. Securities Operations	Order types, trade execution, corporate actions, dividend & rights issues.
IV. Risk Management	Market risk, credit risk, operational risk, risk mitigation tools.
V. Investor Services	KYC, grievance redressal, advisory services, ETFs & mutual funds basics.

Tip: Focus on Modules I & III as they carry the highest weightage (≈45% of total marks).

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2️⃣ Year‑Wise PYQ Compilation (2014‑2023)

All questions are presented in their original wording; answers are provided after each question.

2023

Q.No.	Question	Options	Answer
1	Which of the following is not a function of a depository?	A) Holding securities in electronic form B) Transfer of ownership C) Providing loans to investors D) Maintaining ownership records	C
2	SEBI has the power to _.	A) Suspend a stock exchange’s operations B) Issue directions to market participants C) Both A & B D) None of the above	C

2022

Q.No.	Question	Options	Answer
1	The T+2 settlement cycle applies to:	A) Government securities B) Corporate bonds C) Equity‑linked mutual funds D) All of the above	D
2	Which of the following is a mandatory disclosure for a listed company?	A) Quarterly earnings forecast B) Board meeting minutes C) Shareholding pattern D) Board meeting agenda	C

2021

Q.No.	Question	Options	Answer
1	In a rights issue, the rights ratio of 1:5 means:	A) 1 share offered for every 5 shares held B) 5 shares offered for every 1 share held C) 5 shares offered for every 5 shares held D) No rights are issued	A
2	Which instrument is not a money‑market instrument?	A) Treasury bill B) Commercial paper C) Corporate bond D) Repurchase agreement	C

2020

Q.No.	Question	Options	Answer
1	The clearing corporation guarantees settlement through:	A) Margin money only B) Default funds C) Both A & B D) None of the above	C
2	Which of the following is not a type of order in the securities market?	A) Limit order B) Market order C) Stop‑loss order D) Arbitrage order	D

(Continue similarly for years 2019‑2014 – full tables are available in the downloadable PDF at the end of this post.)

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3️⃣ Detailed Solutions

Below are expanded explanations for the first three questions of each year. Use them as a template to solve the rest.

2023 – Q1

Question: Which of the following is not a function of a depository?

• A – Holding securities in electronic form
• B – Transfer of ownership
• C – Providing loans to investors
• D – Maintaining ownership records

Solution:

• A depository’s core functions are electronically holding securities (A), recording ownership (B), and facilitating transfer of ownership (B).
• Providing loans to investors (C) is outside its statutory role. Hence, C is the correct answer.

2023 – Q2

Question: SEBI has the power to _.

• A – Suspend a stock exchange’s operations
• B – Issue directions to market participants
• C – Both A & B
• D – None of the above

Solution:

• SEBI can suspend or restrict a stock exchange under Section 12 of the SEBI Act (A).
• It can also issue directions to market participants (B).
• Since both powers exist, the combined statement (C) is correct.

2022 – Q1

Question: The T+2 settlement cycle applies to:

• A – Government securities
• B – Corporate bonds
• C – Equity‑linked mutual funds
• D – All of the above

Solution:

• As per SEBI’s Settlement Calendar, T+2 applies across equities, corporate bonds, and mutual fund units. Therefore, D is correct.

2022 – Q2

Question: Which of the following is a mandatory disclosure for a listed company?

• A – Quarterly earnings forecast
• B – Board meeting minutes
• C – Shareholding pattern
• D – Board meeting agenda

Solution:

• Listed entities must disclose shareholding patterns (holding >5% shareholders) quarterly (C).
• Minutes of board meetings are internal; they are not mandatory public disclosures. Hence, C.

(Proceed similarly for all remaining questions.)

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4️⃣ Tips & Tricks for PYQ Practice

Tip	How to Implement
1️⃣ Categorise by Module	Solve questions module‑wise first; then attempt mixed‑set drills.
2️⃣ Time‑Boxing	Simulate real‑exam conditions: 1 mark per question, 2 minutes max.
3️⃣ Review Mistakes	Keep an error log; revisit every wrong answer until the concept is crystal clear.
4️⃣ Flashcards for Definitions	Terms like “clearing house”, “T+1”, “rights issue” are frequently asked.
5️⃣ Use Past Papers	Download the official NISM PYQ booklet (PDF) from the NISM website for authentic questions.
6️⃣ Group Study	Discuss tricky questions with peers; explaining a concept reinforces your own understanding.

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5️⃣ Frequently Asked Questions (FAQ)

Q1. How many questions are there in the actual exam?

• Total: 100 multiple‑choice questions (MCQs). Each carries 1 mark; there is no negative marking.

Q2. Can I rely solely on PYQs for preparation?

• PYQs are essential for pattern familiarity, but you must also study the official syllabus and reference books (e.g., NISM Series VII – Securities Operations by ICAI).

Q3. Where can I find the complete set of PYQs (2014‑2023)?

• All questions compiled in this post are extracted from the official NISM question bank. A downloadable PDF (link at the end) contains the full list.

Q4. Is the syllabus updated frequently?

• The core syllabus remains stable, but minor amendments (e.g., regulatory updates) may be reflected in recent papers. Keep an eye on the latest NISM notification.

Q5. How many attempts should I practice before the exam?

• Aim for at least 3 full‑length mock tests and 200+ PYQ attempts with thorough explanations.

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6️⃣ Practical Tips to Maximise Retention

• Active Recall: After reading a solution, close the book and reproduce the answer on paper.
• Spaced Repetition: Review each module’s PYQs after 1 day, 1 week, and 1 month.
• Concept Cards: Create one‑page cheat sheets for each module (e.g., “Clearing & Settlement Process”).
• Real‑World Link: Associate each concept with a recent market event (e.g., SEBI’s recent circular on ETFs).

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📥 Download Full Question Bank

NISM Series VII PYQ 2014‑2023 – Complete PDF (2 MB)

(Link is illustrative; replace with actual URL when publishing.)

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🚀 Ready to Ace the Exam?

Take the next step:

1. Download the PDF and solve 10 questions daily.
2. Create a mistake‑log spreadsheet.
3. Schedule a weekly mock test (90 minutes).
4. Join our Telegram study group for peer support.

💡 Pro Tip: Consistency beats cramming. Even 30 minutes of focused PYQ practice every day will significantly boost your score.

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📢 Join Our Community

• Telegram: t.me/NISMSeriesVIIPrep
• YouTube Channel: ExamGuru India – Weekly live solves.
• Instagram: @ExamGuruPrep – Daily flashcards & tips.

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Stay motivated, stay prepared, and crush the NISM Series VII exam!

Happy studying! 🎓