Test Your NISM-Series-7: Securities Operations and Risk Management (SORM) Mock Tests Knowledge in 5 Minutes

1. Who informs clearing members about pay-in/pay-out of funds?

A. Depository Participant B. Clearing Banks C. Trading Members D. Stock Exchange

2. Which of the following best describes the term “Private Placement”? (NISM workbook)

A. Issue made to select group of people. B. Issue made to all investors in the Indian securities market. C. Issue made to those investors who already hold shares of the company.

3. State which of these statements is true? (NISM workbook)

A. Call Option gives the buyer the right but not the obligation to sell the underlying asset. B. Call Option gives the buyer the right but not the obligation to buy the underlying asset. C. Put Option gives the buyer the right but not the obligation to buy the underlying asset.

4. The fractional ownership in a company is represented by which of the following? (NISM workbook)

A. Equity Shares B. Debentures C. Bonds

5. ___________ Instruments are not allowed to be traded on IFSC? (NISM workbook)

A. Currency and interest rate derivatives B. Equity shares of an Indian Companies C. Equity shares of a company incorporated outside India

6. “Entering into a transaction in securities without the intention to perform it or without the intention to change the ownership of such securities” is an example of ____________. (NISM workbook)

A. Fraudulent and Unfair Trade B. Money Laundering C. Insider Trading

7. Following member does not have trading rights? (NISM workbook)

A. Only Trading Member B. Professional Clearing Member C. Trading cum Clearing Member D. Trading cum Self Clearing Member

8. Providing financial guarantee for all transactions executed on the Exchange, is known as _________. (NISM workbook)

A. Novation B. Indemnification C. Coverage D. Insurance

9. The records under PMLA shall be maintained for a period of ____ years from the date of transaction between a client and the reporting entity. (NISM workbook)

A. Seven B. Five C. Ten D. Three

10. Direct Market Access facility is mainly introduced for __________________. (NISM workbook)

A. Institutional Clients. B. Specific International Broking Firms. C. Retail Investors.