📚 Top Questions on NISM Series VII Securities Operations

NISM‑Series VII is the Securities Operations certification exam that tests your knowledge of daily trading‑desk functions, settlement mechanics, post‑trade processing, regulatory frameworks, and risk controls.
Whether you’re preparing for the exam or brushing up on industry best‑practices, this post compiles the most common questions, the logic behind the answers, and practical study tips.

Want to ace the exam? Download our free “NISM‑Series VII Cheat‑Sheet” (PDF) and join our 24‑hour live prep webinar series! 👉🔽

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📌 Table of Contents

1. Core Domain Breakdown
2. Top 25 Exam Questions
3. Frequently Asked Questions (FAQs)
4. Study Tips & Resources
5. Key Takeaways
6. Action‑able CTA

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🧩 Core Domain Breakdown

Domain	Weight	Key Topics
A. Settlement & Clearing	30%	Delivery‑vs‑treat‑all, DVP, T+1/T+2, NCD, CO, STP
B. Securities Regulation	25%	SEBI, RBI, CDS, RBI‑CRR, SAIC, FIUs
C. Post‑Trade Processing	20%	BTD, T+2, settlement cycle, Systematic Settlement
D. Risk & Compliance	15%	Counter‑party risk, Operational risk, AML/KYC
E. Technology & Automation	10%	RTGS, BLIS, BMT, SEI, API

Note: These percentages are approximate; actual exam weightings can shift slightly each year.

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🔥 Top 25 Exam Questions

These questions reflect typical patterns you’ll see on the real exam. The answers are concise, but the reasoning is highlighted.

#	Question	Answer	Why it Matters
1	What does DVP stand for and why is it critical?	Delivery‑vs‑Treat‑All – ensures securities are delivered only when payment is received.	Eliminates settlement risk in securities‑to‑securities trades.
2	Which settlement cycle is currently the default for most Indian exchanges?	T+2	Aligns with global best practice, reducing settlement risk.
3	What is the role of BLIS in post‑trade processing?	Bilateral Settlement System – facilitates automated settlement between two counterparties.	Key to efficient clearing in the Indian securities market.
4	Define NCD and give an example.	Non‑Cash Delivery – a settlement method where securities are delivered without cash. Example: Cash‑less settlement of a corporate bond trade.	Used for complex corporate actions and tax‑efficient settlements.
5	Who regulates the securities market in India?	SEBI (Securities and Exchange Board of India).	Primary regulator for market conduct, disclosure, and investor protection.
6	What is a Counter‑party in securities operations?	The party on the other side of a trade.	Counter‑party risk is a major operational risk area.
7	Which RBI regulation addresses banking settlement of securities?	RBI’s “Regulation on Transfer of Securities” (RTS)	Governs how banks handle securities settlements.
8	What does CO stand for in trading?	Cash‑Only	Indicates a trade that requires cash settlement, no securities transfer.
9	Explain Systemic Settlement.	An automated settlement that ensures all trade legs are settled simultaneously.	Reduces settlement risk and counter‑party default risk.
10	What is the penalty for non‑compliance with SEBI’s KYC norms?	Fines, suspension of trading privileges, or cancellation of registration.	Highlights the importance of AML/KYC compliance.
11	What does FTI refer to in the context of securities?	Financial Transaction Interface – a standardized messaging platform.	Enables seamless communication between market participants.
12	Which Indian exchange uses the Sipp system?	National Stock Exchange (NSE).	Sipp is a post‑trade processing system that supports T+2 settlement.
13	What is the difference between T+1 and T+2?	T+1 settles one day after trade; T+2 settles two days after trade.	Understanding settlement windows is essential for risk management.
14	Name two credit default swaps used in India.	CDS on Indian listed companies, CDS on sovereign debt.	Important for hedging credit risk in institutional portfolios.
15	What role does SEI play?	Securities Electronic Infrastructure – a platform for electronic securities issuance and transfer.	Supports efficient issuance and transfer of securities.
16	When is a Transfer of Ownership considered "delivery"?	When the transfer is complete, and the securities are transferred to the new owner’s demat account.	Defines settlement completion in electronic demat.
17	What does MTM stand for?	Mark‑to‑Market.	Used for daily valuation of positions.
18	Define STP.	Straight‑Through Processing – fully automated trade matching and settlement.	Reduces manual intervention and errors.
19	What is the purpose of the FIU?	Financial Intelligence Unit – monitors suspicious financial transactions.	Key for AML compliance.
20	Which document is mandatory for a "delivery‑vs‑treat‑all" trade?	Trade confirmation plus delivery receipt.	Ensures legal proof of settlement.
21	What is the nature of Derivatives Settlement in India?	Cash settlement for most equity derivatives; physical settlement for CDS.	Determines settlement logistics.
22	Who issues Corporate Bonds in India?	Corporate issuers via Over‑the‑Counter (OTC) or listed markets.	Understanding the issuance process is crucial.
23	What does Risk‑Mitigation refer to in securities ops?	Procedures to identify, assess, and control risks.	Central to maintaining market integrity.
24	Define KYC.	Know Your Customer – identity verification process.	Regulatory requirement for all market participants.
25	What is the significance of T+5 for certain trades?	Extended settlement window for minority‑share, complex instruments.	Knowing exceptions to standard settlement cycles.

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❓ FAQ – Frequently Asked Questions

Question	Answer
Q1. How many multiple‑choice questions are there?	40 MCQs.
Q2. What is the passing score?	50% (20 correct answers).
Q3. Can I use a calculator during the exam?	No.
Q4. Are past exam papers available?	Yes – official NISM site releases a few sample papers.
Q5. How long do I have to complete the exam?	90 minutes.
Q6. Do I need to bring any ID on exam day?	Yes – a government‑issued photo ID is mandatory.
Q7. What happens if I answer a question incorrectly?	No penalty for wrong answers.
Q8. Can I review my answers before submitting?	Yes – you can toggle between questions.
Q9. Is the exam online?	Yes – registered through NISM’s portal.
Q10. How do I receive my certification?	You’ll get a digital certificate via email within 30 days.

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📚 Study Tips & Resources

1. Start Early – 3–4 months of focused prep gives you time to digest core concepts.
2. Use the Official Curriculum – NISM publishes a “Study Guide” that mirrors exam weightings.
3. Practice with Mock Exams – 5–10 full-length papers improve time management.
4. Flashcards for Jargon – Create an Anki deck for terms like DVP, STP, SEI, etc.
5. Group Discussions – Explaining concepts to peers reinforces retention.
6. Stay Updated – Read SEBI circulars and RBI notifications; they often appear on the exam.
7. Leverage Video Lectures – Short 10‑minute clips can clarify complex processes.
8. Hands‑On Labs – If possible, use demo trading platforms (e.g., NSE’s “NSE Demo”) to see settlement flows.
9. Revision Schedule – Review each domain at least twice before the exam.
10. Mind Mapping – Visualize connections between settlement cycles, risk controls, and regulatory frameworks.

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🚀 Key Takeaways

• Understand the flow from trade execution → settlement → post‑trade processing.
• Regulatory frameworks (SEBI, RBI, FIU) form the backbone of every question.
• Risk controls (counter‑party, operational, AML) are critical for compliance.
• Technology (BLIS, SEI, STP) drives efficiency—know the system names and functions.
• Practice: Simulate test conditions to build speed and accuracy.

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📢 Call to Action

Ready to pass NISM‑Series VII with flying colors?

1. Download our FREE Cheat‑Sheet – NISM‑Series VII Quick Reference (PDF).
2. Join our 24‑hour Live Webinar – Mastering Securities Operations for NISM‑VII.
3. Enroll in our 4‑Week Intensive Course – From Basics to Board‑Ready (includes mock exams, doubt‑solving, and exam‑day strategies).

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