NISM Series 7 Mock Test 1: Free Securities Operations Paper

How this mock is marked

• 50 questions, one mark each.
• 60 minutes on the clock. That is the real exam's pace: 120 minutes for 100 questions.
• A wrong answer loses a quarter of a mark. A blank loses nothing.
• You pass with 50% or more.
• Submit to see your score and the chapters to work on. Then check each right answer and why it is right.

What this paper covers

50 questions from 8 chapters. Each chapter gets a share that follows our question bank.

• Introduction to the Securities Market: 6 questions.
• Market Participants in the Securities Market: 5 questions.
• Introduction to Securities Broking Operations: 7 questions.
• Risk Management: 10 questions.
• Clearing Process: 5 questions.
• Settlement Process: 7 questions.
• Investor Grievances and Arbitration: 5 questions.
• Other Services Provided by Brokers: 5 questions.

By level: Beginner 16 · Intermediate 27 · Advanced 7.

Chapter split of Mock 1

How Mock 1 shares its questions between chapters and levels. This split belongs to this paper. The other mocks of this exam have their own.

• Introduction to the Securities Market: Beginner 4 · Intermediate 2 · Advanced 0.
• Market Participants in the Securities Market: Beginner 4 · Intermediate 1 · Advanced 0.
• Introduction to Securities Broking Operations: Beginner 2 · Intermediate 4 · Advanced 1.
• Risk Management: Beginner 0 · Intermediate 7 · Advanced 3.
• Clearing Process: Beginner 1 · Intermediate 3 · Advanced 1.
• Settlement Process: Beginner 1 · Intermediate 5 · Advanced 1.
• Investor Grievances and Arbitration: Beginner 2 · Intermediate 3 · Advanced 0.
• Other Services Provided by Brokers: Beginner 2 · Intermediate 2 · Advanced 1.

3 sample questions, with answers

These 3 questions are not in Mock 1, so reading them spoils nothing here. They come from Mock 3 of this exam. Each one shows the hint, the answer and why every wrong option is wrong.

1. Q1An example margin model takes 10% of the total absolute net position value, netting within each account and each share first. Alpha is valued at ₹400 and Beta at ₹100. Client R is net long 200 Alpha. Client S is net short 150 Alpha and net long 200 Beta. The own account is net long 50 Alpha and net short 50 Beta. What margin follows?

   • A

     Option A. ₹18,500 — Correct answer

   • B

     Option B. ₹5,500

     Why it is wrong: This uses only the member's overall net of 100 Alpha and 150 Beta.

   • C

     Option C. ₹26,000

     Why it is wrong: This values Beta at the Alpha price of ₹400.

   • D

     Option D. ₹16,000

     Why it is wrong: This leaves out the own account's ₹25,000.

   Answer: A. Add the absolute values account by account. R: 200 × ₹400 = ₹80,000. S: ₹60,000 + ₹20,000 = ₹80,000. Own account: ₹20,000 + ₹5,000 = ₹25,000. Total ₹1,85,000 × 10% = ₹18,500. Remember: Keep the level of netting consistent with the margin model being tested.

   Hint, shown before you answer in practice mode: Common mistake: Using the smaller member-level settlement net as though it were every client’s gross margin exposure.

   VII-073hardnumerical

   Study this unit

2. Q2A client buys 3 index futures contracts at 20,000. Each contract is 25 index units. The day's settlement price is 19,920. What is the day's mark-to-market cash flow?

   • A

     Option A. Pay ₹2,000

     Why it is wrong: This uses only one contract of 25 units.

   • B

     Option B. Receive ₹6,000

     Why it is wrong: A long position loses money when the price falls.

   • C

     Option C. Pay ₹240

     Why it is wrong: This forgets the 25-unit contract size.

   • D

     Option D. Pay ₹6,000 — Correct answer

   Answer: D. A long position loses when the price falls. The fall is 80 points on 3 × 25 = 75 units. 80 × 75 = ₹6,000, which the client pays. Remember: Apply the price change to both contract count and contract multiplier.

   Hint, shown before you answer in practice mode: Common mistake: Calculating one contract’s MTM when several contracts are open.

   VII-121mediumnumerical

   Study this unit

3. Q3In one netted settlement of one share, client A buys 800 and sells 200, B buys 100 and sells 500, C buys 100 and sells 350, and D buys 200 and sells 50. What are the total shares due to net-buying clients, and the member's overall net shares to receive?

   • A

     Option A. 600 shares and 100 shares

     Why it is wrong: This leaves out D's 150 shares.

   • B

     Option B. 750 shares and 100 shares — Correct answer

   • C

     Option C. 750 shares and 750 shares

     Why it is wrong: 750 is the net buyers' total, not the member's overall net.

   • D

     Option D. 1,200 shares and 100 shares

     Why it is wrong: 1,200 is total gross buying, not the net buyers' total.

   Answer: B. A is a net buyer of 600 and D of 150, so net buyers are due 750. All buys total 1,200 and all sales 1,100, so the member nets 100 to receive. Remember: Reconcile client net-buy entitlements and client net-sell deliveries before reporting a member-level net figure.

   Hint, shown before you answer in practice mode: Common mistake: Equating the member’s small net receipt with the entire quantity owed to its buying clients.

   VII-147mediumnumerical

   Study this unit

Then take Mock 2

Read the chapters your result names first. A new paper then shows whether those gaps have closed.