NISM-Series-VII Exam Demo - Test NISM-Series-VII Pass4sure
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NISM Series VII - Securities Operations and Risk Management Certification Sample Questions (Q54-Q59):
NEW QUESTION # 54
To facilitate members in meeting their pay-in obligations for a subsequent settlement on a day with multiple settlements due to holidays, what specific requirement is imposed on Depositories regarding inter-depository transfers?
- A. Depositories must suspend inter-depository transfers until all settlements for the day are concluded.
- B. Depositories are required to waive the transaction charges for inter-depository transfers executed on such days.
- C. Depositories must allow transfers only after the pay-out of the subsequent settlement is complete.
- D. Depositories shall facilitate inter-depository transfers within one hour and before pay-in for the subsequent settlement begins.
- E. Depositories must process transfers instantly using the API-based immediate transfer mechanism.
Answer: D
Explanation:
The guidelines specify: 'Further, in-order to meet their pay-in obligations for the subsequent settlement, members may need to move securities from one depository to another. The depositories shall, therefore, facilitate the inter-depository transfers within one hour and before pay- in for the subsequent settlement begins.'
NEW QUESTION # 55
Under the regulatory framework defined in Section 24 of the Companies Act, 2013, the administration of specific provisions for listed companies (or those proposed to be listed) is delegated to the Securities and Exchange Board of India (SEBI). Which of the following matters is EXCLUSIVELY administered by SEBI under this delegation, while remaining otherwise under the Central Government's administration?
- A. Registration of the company's memorandum of association
- B. Non-payment of dividend
- C. Appointment of key managerial personnel
- D. Conduct of Annual General Meetings
- E. Incorporation of the company
Answer: B
Explanation:
Section 24 of the Companies Act, 2013, delegates the power to regulate the issue and transfer of securities and the non-payment of dividend by listed companies (or those intending to get listed) to SEBI. All other provisions of the Companies Act are administered by the Central Government (Ministry of Corporate Affairs).
NEW QUESTION # 56
To increase efficiency and reduce the time duration from issue closure to listing, a new timeline was introduced for public issues opening on or after December 1, 2023. What is this mandated timeline for listing?
- A. T+3 days
- B. T+5 days
- C. T+6 days
- D. T+2 days
- E. T+1 days
Answer: A
Explanation:
The text states: 'The T+3 timeline for listing after the closure of public issue will be applicable for all public issues opening on or after December 1, 2023.'
NEW QUESTION # 57
Under the Beta version of the T+0 rolling settlement cycle, how are securities shortages handled differently compared to the standard T+1 settlement cycle?
- A. Shortages are carried forward to the T+1 auction session.
- B. Shortages are settled using the Securities Lending and Borrowing (SLB) mechanism immediately.
- C. Shortages are auctioned on T+0 day at 4:00 PM.
- D. The trade is annulled and no close out or auction is performed.
- E. Security shortages are directly closed out at 10% above the highest price of the day across all exchanges for the T+0 market.
Answer: E
Explanation:
In the Beta version of T+0 rolling settlement, an auction shall not be conducted in case of securities shortage. Security shortages shall be directly closed out at 10% above the highest price of the day across all exchanges for the T+0 market.
NEW QUESTION # 58
Which of the following statements accurately reflect the 'Additional Requirements' and operational controls mandated for Internet Based Trading (IBT) and Securities Trading Using Wireless Technology (STWT)? (Select all that apply)
- A. In case of no activity by the client, the system should provide for automatic trading session logout.
- B. The broker shall capture the IP (Internet Protocol) address from where the orders are originating.
- C. Encryption levels for communication are governed solely by the Stock Exchange's internal policy, independent of DOT regulations.
- D. The broker system should have on-site as well as remote site back-up capabilities.
- E. Brokers using Internet based systems are permitted to cross trades of their clients with each other internally to save transaction costs.
Answer: A,B,D
Explanation:
Option A is incorrect: 'Brokers using Internet based systems for routing client orders will not be allowed to cross trades of their clients with each other. All orders must be offered to the market for matching.' Option E is incorrect: 'DOT policy and regulation shall govern the level of encryption.' Options B, C, and D are correct based on the 'Additional Requirements' section: Capture IP address, Automatic trading session logout, and On-site as well as remote site back-up capabilities.
NEW QUESTION # 59
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