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NISM Series X-A practice questions

285 questions. Each answer is explained.

Question 1 of 10Practice · Series X-A — Investment Adviser (Level 1)

0 right · 0 wrong · 10 to go

Series X-A20. Grievance Redress MechanismAdvancedRules and limitsQuestion reference X-A-282

Question 1 of 10Within how many days of receiving a SEBI order must an appeal to the Securities Appellate Tribunal normally be filed?

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Learn these topics

Practise one unit at a time

Exam format

Questions135 · 1 or 2 marks each
Duration180 min · 3 hours
Pass mark60% · 90 of 150 marks
Negative marking25% · 0.25 or 0.5 marks off per wrong answer
Certificate validity3 years · from the date of the examination

NISM Series X-A Investment Adviser (Level 1)

Exam rules read on NISM's site on 3 October 2026. Check the current rules on NISM's site (opens in a new tab)

Series X-A

Investment Adviser (Level 1)

50 questionsPass mark 60%Negative marking 25% / wrong answer
Mock 1Mock 2Mock 3
What these answers assume, and when it was last checked

Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.

Rules used across this bank
  • NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
  • The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
  • The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
  • Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
  • Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
  • F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
  • The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
  • Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
  • On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
  • Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
Extra rules for Series VII
  • This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
  • The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
  • Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
  • The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
  • The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
  • Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
  • Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
  • Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
  • A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
  • SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
  • At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
  • A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
Extra rules for Series I
  • The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
  • Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
  • The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
  • Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
  • Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
  • Daily settlement is on T+1 and final settlement is on T+2.
  • NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
  • A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
  • A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
  • The currency segment has no Securities Transaction Tax.

The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 3 October 2026. Timed practice uses the same figures. Study with the official workbook as well.

The written-out answers on this page are hidden while your timed set runs.

5 sample questions with answers

The other 280 are on the unit pages above, written out the same way.

  1. Q1A client initially has cash of ₹10,00,000, other assets of ₹40,00,000 and liabilities of ₹15,00,000. The client buys a car worth ₹8,00,000 using ₹2,00,000 cash and a new ₹6,00,000 loan. Assume the car’s immediate market value equals its price, with no fees or depreciation. What happens to net worth immediately after the purchase?

    • Option A. It increases by ₹8,00,000.

      Why it is wrong: The car cannot be counted as an ₹8,00,000 gain while ignoring the cash used and debt incurred.

    • Option B. It decreases by ₹2,00,000.

      Why it is wrong: The ₹2,00,000 cash payment buys part of an equally valued asset. It is not an immediate loss under these assumptions.

    • Option C. It decreases by ₹6,00,000.

      Why it is wrong: The new loan is matched by the acquisition of an asset, so subtracting the loan alone is incomplete.

    • Option D. It remains ₹35,00,000. — Correct answer

    Answer: D. The before-and-after calculations both give ₹35,00,000. Before purchase: assets are ₹10,00,000 + ₹40,00,000 = ₹50,00,000. Net worth is ₹50,00,000 − ₹15,00,000 = ₹35,00,000. After purchase: cash falls to ₹8,00,000, other assets remain ₹40,00,000 and the car adds ₹8,00,000. Total assets become ₹56,00,000. Liabilities increase by ₹6,00,000 to ₹21,00,000. Net worth remains ₹56,00,000 − ₹21,00,000 = ₹35,00,000. Remember: An equal-value asset exchange does not itself create wealth. Fees, overpayment or immediate depreciation would change the result, but are expressly excluded.

    Hint, shown before you answer in practice mode: Common mistake: Following only the change in cash or only the change in debt rather than both sides of the balance sheet.

    X-A-003mediumconceptual

    Study this unit

  2. Q2Which institution handles clearing and settlement of trades executed on stock-exchange platforms?

    • Option A. A credit rating agency

      Why it is wrong: A credit rating agency assesses credit risk. That assessment is not the determination and settlement of each trade’s obligations.

    • Option B. An issue underwriter

      Why it is wrong: An issue underwriter has a subscription-related role in a securities issue, not the exchange-trade clearing function.

    • Option C. A registrar to an issue

      Why it is wrong: A registrar administers issue or securities-holder records. This is not the clearing corporation’s trade-settlement role.

    • Option D. A clearing corporation — Correct answer

    Answer: D. The clearing corporation is the institution responsible for the stated clearing and settlement function. The question concerns the post-trade clearing and settlement function, not advice, an issue application or price discovery. The clearing corporation handles that function for trades on the exchange platform. Other institutions perform supporting or distinct roles. Their involvement does not make them the institution asked for here. Remember: Order execution creates a trade. Clearing and settlement deal with the resulting obligations.

    Hint, shown before you answer in practice mode: Common mistake: Repeating the word settlement without distinguishing the post-trade process from order execution.

    X-A-028easyconceptual

    Study this unit

  3. Q3A bond is valued at ₹2,000 and has a modified duration of 6. If its yield rises by 0.50 percentage point, what is its approximate new price, ignoring convexity?

    • Option A. ₹2,060

      Why it is wrong: ₹2,060 reverses the sign and increases the price despite the yield rise.

    • Option B. ₹1,400

      Why it is wrong: ₹1,400 uses a 5-percentage-point move, ten times the one specified.

    • Option C. ₹1,940 — Correct answer

    • Option D. ₹1,990

      Why it is wrong: ₹1,990 applies only the yield change itself to price and omits the duration multiplier.

    Answer: C. ₹1,940 correctly applies the estimated 3% price decline to ₹2,000. A rise of 0.50 percentage point is Δy = +0.005, not 0.50 or 0.05. Estimated proportional price change = −6 × 0.005 = −0.03, or −3%. The rupee change is −3% × ₹2,000 = −₹60. Approximate new price = ₹2,000 − ₹60 = ₹1,940. This is a first-order estimate. It is not a full repricing or an exact promise for larger yield moves. Remember: Convert yield changes carefully and label duration-based prices as approximations.

    Hint, shown before you answer in practice mode: Common mistake: Confusing a percentage-point yield change with a proportional change in price.

    X-A-088mediumnumerical

    Study this unit

  4. Q4A long-short fund has investor equity of ₹100 crore, long positions of ₹140 crore and short positions of ₹60 crore. What are its gross and net exposures, as a share of equity?

    • Option A. 80% and 200%

      Why it is wrong: This reverses the addition-based gross measure and the signed net measure.

    • Option B. 100% and 0%

      Why it is wrong: These assume complete offsetting without applying the actual position amounts supplied.

    • Option C. 140% and 60%

      Why it is wrong: These report the two sides separately rather than calculating gross and net exposure.

    • Option D. 200% and 80% — Correct answer

    Answer: D. Gross exposure adds ₹140 crore and ₹60 crore. Net exposure subtracts ₹60 crore from ₹140 crore. Gross positions = ₹140 crore + ₹60 crore = ₹200 crore. Dividing by ₹100 crore equity gives 200%. Net positions = ₹140 crore − ₹60 crore = ₹80 crore. Dividing by the same equity base gives 80%. Offsetting exposures do not guarantee offsetting profits or losses, because the long and short assets can behave differently. These definitions are an explicit teaching convention, not a calculation of any regulatory leverage ceiling. Remember: Keep signed net exposure separate from the total size of long and short positions.

    Hint, shown before you answer in practice mode: Common mistake: Assuming low net exposure would eliminate liquidity, financing or mismatch risks.

    X-A-168mediumnumerical

    Study this unit

  5. Q5A resident client moves abroad for good and becomes a non-resident Indian. What should he do about his resident accounts used for investing?

    • Option A. Keep using the resident accounts, since residency matters only for tax

      Why it is wrong: Residency also decides which accounts he may hold under FEMA.

    • Option B. Sell all his Indian investments, because NRIs cannot hold any Indian securities

      Why it is wrong: NRIs can hold Indian securities, through the right accounts.

    • Option C. Inform his intermediaries and change the accounts to NRI status under FEMA — Correct answer

    • Option D. Open a new account for future trades and leave the old ones unchanged

      Why it is wrong: The existing resident accounts must also be redesignated.

    Answer: C. He must report the change and move his accounts to NRI status. Under FEMA, a non-resident holds investments through non-resident accounts, such as NRO or NRE bank accounts. Resident accounts cannot simply carry on. Remember: A move from resident to non-resident must be reported so accounts are redesignated under FEMA.

    Hint, shown before you answer in practice mode: Common mistake: Treating residency as a tax-only matter and leaving resident accounts unchanged.

    X-A-233mediumapplication

    Study this unit

NISM Series X-A practice: common questions

Are these the real NISM Series X-A exam questions?

No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.

How many practice questions are there for NISM Series X-A?

285 at the moment, across 20 practice topics, with one page per unit. It is a practice set, not a copy of the paper: the real NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination has 135 questions.

Where are all the questions and answers?

On the 20 practice topics listed above. There are 5 in full. Each unit's page has the rest, with all four options, the correct answer and why each other option is wrong.

Does negative marking apply to NISM Series X-A?

Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1 or 2-mark question that is 0.25 or 0.5 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.

How do I book the NISM Series X-A exam?

You register and pay on NISM's own website, nism.ac.in. The steps and the fee change from time to time, so read them there on the day you book.

Are these practice questions kept up to date?

Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.

Do this next

See the exam these questions follow

The Investment Adviser (Level 1) exam page shows the question count, the time, the pass mark and the marking rule.

Open the NISM Series X-A exam page