100+ Free NISM Series III-A (Compliance) Practice Questions
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Key Facts: NISM Series III-A (Compliance) Exam
100 questions
NISM Series III-A has 100 one-mark multiple-choice questions totalling 100 marks
NISM - III-A assessment structure
2 hours
Candidates must complete the NISM Series III-A exam in 120 minutes
NISM - III-A assessment structure
60% pass
The passing score for NISM Series III-A is 60 out of 100 marks
NISM - III-A FAQ
25% negative marking
Each wrong answer deducts 25% of the marks assigned to the question
NISM - III-A assessment structure
Rs. 1,500
The NISM Series III-A examination fee is Rupees one thousand five hundred plus GST
NISM - III-A FAQ
3 years
The NISM Compliance certificate is valid for 3 years from the date of the exam
NISM - III-A certification page
23 chapters
The syllabus covers 23 chapters across Part A and Part B of the curriculum
NISM - III-A curriculum
100
Free original practice questions here
OpenExamPrep
NISM-Series-III-A is a SEBI-mandated certification from the National Institute of Securities Markets for compliance officers at stock brokers, DPs, merchant bankers, CRAs, and custodians. The exam has 100 one-mark MCQs to be completed in 2 hours, with a 60% passing score and 25% negative marking. The fee is Rs. 1,500 and the certificate is valid for 3 years. This 100-question bank covers the entire 23-chapter syllabus with detailed explanations and wrong option analysis.
Sample NISM Series III-A (Compliance) Practice Questions
Try these sample questions to test your NISM Series III-A (Compliance) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Which of the following authorities is the primary regulator for the money market and banking system in India?
2Which financial market segment primarily deals in short-term debt instruments with maturities of up to one year?
3Which of the following functions is performed by financial intermediaries to resolve the problem of 'mismatch of scale' between savers and investors?
4An investor wants to purchase a corporate bond in the secondary market. Under which regulatory jurisdiction does this transaction fall?
5In the Indian financial system, which of the following is classified as an 'organized money market' instrument that is regulated by the RBI but traded by market intermediaries?
6Under the Constitution of India, which body has the exclusive authority to legislate laws relating to stock exchanges and futures markets?
7Which of the following ministries in the Government of India is the administrative ministry for SEBI?
8Which tribunal is established to hear appeals against decisions made by SEBI?
9Under the judicial hierarchy in India, where does a second appeal lie against an order passed by the Securities Appellate Tribunal (SAT)?
10Which regulatory body administers the Companies Act, 2013, governing the corporate structure and internal administration of companies in India?
About the NISM Series III-A (Compliance) Exam
NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) is a SEBI-mandated certification administered by the National Institute of Securities Markets. It is the requisite standard for Compliance Officers and professionals working in compliance functions at stockbrokers, depository participants, merchant bankers, underwriters, credit rating agencies, custodians, and other non-fund intermediaries. The syllabus is split into Part A (60% weightage) covering the Indian financial system and securities regulatory structure (SEBI Act, SCRA, Intermediaries, Insider Trading, PFUTP, PMLA, KRA), and Part B (40% weightage) covering specific intermediary regulations (FPIs, Brokers, Merchant Bankers, ICDR, Depositories, RTAs, Research Analysts, Investment Advisers, Debenture Trustees, Credit Rating Agencies, Custodians, Proxy Advisors). The examination consists of 100 one-mark multiple-choice questions to be completed in two hours, with a 60% passing score and 25% negative marking for wrong answers, and the certificate is valid for three years.
Assessment
100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from 23 chapters covering financial system, SEBI Act, SCRA, Intermediaries, Insider Trading, PFUTP, PMLA, FPIs, Stock Brokers, Merchant Bankers, ICDR, Depositories, RTAs, Research Analysts, Investment Advisers, Debenture Trustees, Credit Rating Agencies, Custodians, and Proxy Advisors.
Time Limit
2 hours (120 minutes).
Passing Score
60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.
Exam Fee
Rs. 1,500 (plus payment gateway charges and applicable GST). (National Institute of Securities Markets (NISM), established by SEBI.)
NISM Series III-A (Compliance) Exam Content Outline
Introduction to the Financial System
Role of the Indian financial system, regulators like RBI, SEBI, IRDAI, and PFRDA, and money, capital, and forex markets.
Regulatory Framework - General View
Indian legal system, legislative powers of Parliament and States, Ministry of Finance, MCA, RBI, SEBI, SAT, and appellate judicial hierarchy.
Introduction to Compliance
Compliance concepts, independence of compliance officer, reporting lines, responsibilities to senior management and Board, and conflict management.
Securities and Exchange Board of India Act, 1992
SEBI constitution, regulatory powers (legislative, judicial, executive), registration of intermediaries, prohibition of manipulation, SAT, and penalties.
Securities Contracts (Regulation) Act, 1956 and Rules, 1957
Recognition of stock exchanges, contract legality (derivative rules), listing and delisting conditions, and minimum public shareholding (25% SCRR Rule).
SEBI (Intermediaries) Regulations, 2008
Intermediary registration, Fit and Proper Person criteria (Second Schedule), inspection/audit, Designated Authority inquiry, suspension, and cancellation.
SEBI (Prohibition of Insider Trading) Regulations, 2015
Insider/connected person, UPSI, trading window closures, Chinese walls, pre-clearance, contra-trade rules, and trading plan approvals.
SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003
Manipulative and unfair trade practices (circular trading, wash sales, front running, unauthorized trading), news dissemination, and SEBI investigation.
Prevention of Money Laundering Act, 2002
AML requirements, record maintenance (5 years), STR/CTR filing with FIU-IND, tipping-off prohibitions, Principal Officer and Designated Director roles.
SEBI (KYC Registration Agency) Regulations, 2011
Centralized KYC Registration Agency (KRA) framework, client onboarding, in-person verification (IPV), and 10-day upload timeline.
SEBI (Foreign Portfolio Investors) Regulations, 2019
FPI definition, Categories I and II, Designated Depository Participants (DDP) registration role, and investment ceilings (<10% shareholding limit).
SEBI (Stock Brokers) Regulations, 1992
Stock broker registration, UCC requirement, contract note timeline (24 hours), upfront peak margin, segregation of client accounts, and code of conduct.
SEBI (Merchant Bankers) & (Bankers to an Issue) Regulations
Lead manager duties, due diligence certificate, underwriting rules (repealed Underwriters Act merger), and ASBA escrow banker roles.
SEBI (ICDR) Regulations, 2018
Public issue eligibility, book building, QIB allocation (50%/75%), promoter contribution and lock-in, and Green Shoe Option price stabilization.
Depositories Act, 1996
Dematerialization process, fungibility of digital holdings, depository role as Registered Owner, and client as Beneficial Owner.
SEBI (Depositories and Participants) Regulations, 2018
Depository Participant (DP) registration, net worth, system audits, record keeping, and pledge/hypothecation controls.
SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
Category I and II RTAs, public issue allotment processing, register of members maintenance, and corporate action distribution.
SEBI (Research Analyst) Regulations, 2014
Research analyst registration, financial interest disclosures, and trading restrictions surrounding research report publication.
SEBI (Investment Advisers) Regulations, 2013
Investment adviser registration, fee structures, and strict segregation of advisory and distribution activities.
SEBI (Debenture Trustees) Regulations, 1993
Appointment for listed debt, Debenture Trust Deed (DTD) execution, asset cover monitoring, and default handling in interest or redemption.
SEBI (Credit Rating Agencies) Regulations, 1999
CRA registration, independent Rating Committee approvals, conflict disclosures, and mandatory continuous monitoring of assigned ratings.
SEBI (Custodian) Regulations, 1996
Custodian registration, safekeeping of institutional client assets (FPI/MF), transaction settlement, and core activity restrictions.
Proxy Advisors
Proxy advisor registration under Research Analyst rules, conflict disclosures, and voting recommendation policies.
How to Pass the NISM Series III-A (Compliance) Exam
What You Need to Know
- Passing score: 60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.
- Assessment: 100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from 23 chapters covering financial system, SEBI Act, SCRA, Intermediaries, Insider Trading, PFUTP, PMLA, FPIs, Stock Brokers, Merchant Bankers, ICDR, Depositories, RTAs, Research Analysts, Investment Advisers, Debenture Trustees, Credit Rating Agencies, Custodians, and Proxy Advisors.
- Time limit: 2 hours (120 minutes).
- Exam fee: Rs. 1,500 (plus payment gateway charges and applicable GST).
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
NISM Series III-A (Compliance) Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the NISM Series III-A exam and what is the duration?
The exam has 100 multiple-choice questions of 1 mark each, and must be completed in 2 hours (120 minutes).
What is the passing score and negative marking for NISM Series III-A?
The passing score is 60%, meaning you must score at least 60 out of 100 marks. There is negative marking of 25% of the marks assigned to a question for each wrong answer (0.25 marks deducted).
What is the fee and certificate validity for NISM Series III-A?
The exam fee is Rs. 1,500 plus payment gateway charges and applicable GST. The certificate is valid for 3 years from the date of the examination.
Who is required to pass the NISM Series III-A (Compliance) exam?
SEBI mandates it for Compliance Officers and individuals engaged in compliance functions at registered non-fund intermediaries, including stock brokers, depository participants, merchant bankers, underwriters, credit rating agencies, custodians, and debenture trustees.
Are these official NISM practice questions?
No. These are original practice questions created by OpenExamPrep modelled on the official NISM-Series-III-A syllabus. NISM provides its own workbook and official registration on its website.