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NISM Certifications · Paper VII

NISM-Series-VII: Securities Operations and Risk Management Exam Guide

NISM-Series-VII is a computer-based multiple choice exam on securities broking back-office work: trading, risk management, clearing, settlement and grievances. It has 100 questions, 100 marks, 2 hours, a 50% pass mark and 25% negative marking. Solve it by learning exact rules, timelines and definitions, then practising timed mock tests.

NISM-Series-VII tests how a trade moves through the securities market after it is placed. You need to know who the participants are, how a broker operates, how risk is controlled, how trades are cleared and settled, and how investor complaints are handled. It suits people in broking back offices, risk and compliance roles, and anyone entering those functions.

The exam has 100 questions for 100 marks, runs for 2 hours, and needs 50% to pass. Wrong answers carry negative marking of 25% of the marks assigned to the question. The questions are mostly factual: a defined term, a time limit, a stage in a process, or a small calculation such as a margin or a net obligation. Details such as the exact format of marks per question can differ by version, so check the latest NISM candidate information before you book.

Students who work in operations often find the settlement and clearing chapters easy and the regulatory and grievance chapters harder. Students from outside the industry usually find the process chapters new and need more repetition. In both cases, the people who pass comfortably are those who learn rules precisely and practise timed questions, not those who only read the workbook once.

NISM-Series-VII: Securities Operations and Risk Management: chapters and topics

Introduction to the Securities Market

Market Participants in the Securities Market

Introduction to Securities Broking Operations

Risk Management

Clearing Process

Settlement Process

Investor Grievances and Arbitration

Other Services Provided by Brokers

How to prepare NISM-Series-VII: Securities Operations and Risk Management

Plan for several weeks of steady study. Start with the process flow, then fill in the exact rules, then drill with mock tests. The chapters build on each other, so do not skip ahead.

  1. Read the latest NISM workbook once, quickly, to see the full trade life cycle: order, trade, risk checks, clearing, settlement, and complaint handling. Do not memorise yet.
  2. Study Introduction to the Securities Market and Market Participants carefully. Make a one-page list of each participant (exchanges, clearing corporations, depositories, brokers, regulators) and what each does.
  3. Go through Securities Broking Operations next. Note account opening steps, client documents, order types and the broker's duties to clients.
  4. Give extra time to Risk Management, Clearing Process and Settlement Process. Write down every margin type, time limit and cycle in your own words, and work through each calculation by hand until you can do it without notes.
  5. Cover Investor Grievances and Arbitration and Other Services Provided by Brokers. Learn the order of steps and the bodies involved. These chapters have precise rules that appear as direct questions.
  6. Make flashcards for definitions, timelines and limits. Review them on your phone for 15 to 20 minutes every day.
  7. Take timed mock tests of 100 questions in 2 hours. After each one, list every wrong answer, find the workbook page, and fix the gap.
  8. In the last week, redo only your weak chapters and your flashcards. Check the NISM site for any workbook update before the exam.

Time management in the exam

  • You have about 72 seconds per question on average. Aim for 60 seconds on first pass so you bank time for harder items.
  • Answer sure questions first and mark doubtful ones for review. Do not stay on one calculation for more than two to three minutes.
  • Do calculation questions in a single block after the factual ones, so you stay in one mindset and use rough paper cleanly.
  • Because wrong answers cost 25% of the question's marks, guess only after you remove at least two options.
  • Keep 10 to 15 minutes at the end to review marked questions. Change an answer only if you find a clear reason.
  • Practise under the same 2-hour limit in your mocks so the real exam pace feels familiar.

Mistakes that cost marks in NISM-Series-VII: Securities Operations and Risk Management

  • Reading the workbook once and moving to mocks

    Fix: Use active recall. Write timelines, margin types and definitions from memory, then check them against the workbook.

  • Confusing the roles of clearing corporation, depository and exchange

    Fix: Make a simple table in your notes: who matches the trade, who handles funds and obligations, who holds securities.

  • Mixing up settlement timelines and cut-offs

    Fix: Tie each timeline to a step in the process and revise from the latest workbook, since rules change.

  • Guessing freely despite negative marking

    Fix: Guess only when you can eliminate two options. Leave a question unanswered if you have no basis at all.

  • Skipping the calculation practice

    Fix: Solve margin and obligation problems by hand every week until the steps are automatic.

  • Ignoring the grievance and arbitration chapter

    Fix: Learn the sequence of steps, the bodies involved and the stated time limits, and test yourself on them with flashcards.

NISM-Series-VII: Securities Operations and Risk Management: frequently asked questions

What is the pass mark for NISM-Series-VII?

The pass mark is 50%, which is 50 marks out of 100. The exam has 100 questions and lasts 2 hours.

Is there negative marking in NISM-Series-VII?

Yes. A wrong answer costs 25% of the marks assigned to that question. Unanswered questions are not penalised in this way, so avoid blind guesses.

How long is the NISM-Series-VII certificate valid?

The certificate is valid for 3 years from the date of the examination. You need to renew by taking the exam again as NISM requires.

Which chapters should I focus on most?

Spend extra time on Risk Management, Clearing Process and Settlement Process, because they have exact rules, timelines and calculations. Still cover every chapter, since questions come from all eight.