NISM Series VII - Securities Operations and Risk Management Certification - NISM-Series-VII Exam Practice Test

A. If the dividend is declared as an 'interim' dividend rather than a 'final' dividend.

B. If the dividend declared is more than 5% of the paid-up capital of the company.

C. If the dividend amount is at and above 2% of the market value of the underlying security.

D. If the dividend amount exceeds 10% of the closing price of the scrip on the record date.

E. If the dividend yield exceeds the risk-free interest rate (MIBOR) prevailing on the declaration date.

A. The client must manually submit an unblocking request to the Depository Participant on T+1 day.

B. The shares are transferred to the Clearing Member's pool account and then returned to the client.

C. The shares remain blocked until the payout date of the next settlement cycle.

D. The shares are auctioned by the Clearing Corporation to recover the blockage fees.

E. The Clearing Corporation uploads cancellation of Block instruction on T day, and securities are unblocked and become free in the client's demat account on T day itself.

A. The funds can be used for the TM's operational expenses provided they are replaced within 24 hours.

B. The funds should be invested in equity mutual funds to generate returns for the client.

C. The funds can be used to settle the running accounts of other clients to ensure liquidity.

D. The funds must remain in the 'Up Streaming Client Nodal Bank Account' and cannot be used for settlement of running accounts of other clients.

E. The funds must be immediately transferred to the TM's proprietary account.

A. Offers placed in the system are automatically purged at the end of each trading session if not confirmed by the Registrar.

B. The system accepts offers only during the pre-open session of the Exchange on the issue open days.

C. Trading Members can modify or cancel all offers placed in the system from the start till the last day of the book-building process.

D. Offers are batched and uploaded at the end of the day, receiving a collective time stamp for the batch.

E. Once entered and numbered, offers cannot be modified by the Trading Member; they must be cancelled and re-entered.

A. It explicitly authorizes the broker to access the client's beneficial owner account for the limited purpose of transferring securities to the broker's pool account to meet pay-in obligations.

B. It grants full power of attorney to the broker to buy and sell securities without specific trade instructions from the client.

C. It is a mandatory requirement for opening a demat account and cannot be revoked by the client under any circumstances.

D. It allows the broker to pledge the client's securities with a Non-Banking Financial Company (NBFC) to raise working capital for the brokerage firm.

E. It authorizes the broker to transfer securities for off-market trades between unrelated parties to settle personal debts of the client.

A. Securities are credited to the Broker's Pool Account by 1 PM, and the broker must transfer them to the client by 3:30 PM on the same day.

B. Securities are credited directly to the client's demat account by the Clearing Corporation, and the pay-out timing is revised from 1 PM to 3:30 PM.

C. The pay-out timing remains 1 PM, but the securities are credited to the client's account on T+2 day instead of T+1.

D. Direct pay-out is applicable only for Institutional Clients, while Retail Clients continue to receive shares via the Broker's Pool Account.

E. Securities are credited to a temporary 'Client Unpaid Securities Account' maintained by the Clearing Corporation until funds are cleared.

A. The revised strike prices due to extra-ordinary dividend are applicable from the record date.

B. Adjustment for extra-ordinary dividend is carried out only on futures contracts, not options.

C. If shareholders in the AGM change the rate declared by the Board, the market price reference changes to the closing price on the day previous to the AGM.

D. In case of extra-ordinary dividend, the total dividend amount is reduced from all strike prices of option contracts.

E. Dividends below 2% of the market value of the underlying stock are deemed ordinary dividends and no adjustment is made.

A. Pledging of dematerialized securities

B. Freezing of the demat account for debits or credits

C. Settlement and transfer of securities from one beneficiary account to another

D. Receiving non-cash corporate benefits like bonus shares

E. Dematerialization of physical securities