100+ Free NISM Series VII (SORM) Practice Questions
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Key Facts: NISM Series VII (SORM) Exam
100 questions
NISM Series VII (SORM) has 100 one-mark multiple-choice questions totalling 100 marks
NISM - SORM assessment structure
2 hours
Candidates must complete the NISM Series VII exam in 120 minutes
NISM - SORM assessment structure
50% pass
The passing score for NISM Series VII is 50 out of 100 marks
NISM - SORM FAQ
25% negative marking
Each wrong answer deducts 25% of the marks assigned to the question
NISM - SORM assessment structure
Rs. 1,500
The NISM Series VII examination fee is Rupees one thousand five hundred
NISM - SORM FAQ
3 years
The NISM SORM certificate is valid for 3 years from the date of the exam
NISM - SORM certification page
8 chapters
The SORM syllabus is divided into eight weighted chapters
NISM - SORM curriculum
100
Free original practice questions here
OpenExamPrep
NISM-Series-VII (SORM) is a SEBI-mandated certification from the National Institute of Securities Markets for associated persons of registered stock-brokers, trading members and clearing members handling operations, risk and investor grievances. The exam has 100 one-mark multiple-choice questions to be completed in 2 hours, with a 50% passing score and negative marking of 25% of the marks per wrong answer. The fee is Rs. 1,500 and the certificate is valid for 3 years from the date of the exam. The syllabus is weighted toward broking operations (20%), with risk management, clearing and settlement at 15% each. This 100-question bank gives original practice across the full SORM curriculum with explanations for every option.
Sample NISM Series VII (SORM) Practice Questions
Try these sample questions to test your NISM Series VII (SORM) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1What is the primary economic function of securities markets in India?
2In which market are newly issued securities sold to investors for the first time, with proceeds going to the issuer?
3Which of the following is a key feature of the money market?
4A debenture issued by a company represents which of the following to its holder?
5Which statement best describes the secondary market?
6Who is the apex regulator of the securities markets in India?
7A Foreign Portfolio Investor (FPI) is best classified as which type of market participant?
8Which intermediary helps companies bring new issues to the primary market, advising on pricing and managing the issue process?
9A stock-broker that is a member of a recognised stock exchange and executes trades on behalf of clients is known as a:
10Which two entities are the principal depositories operating in India?
About the NISM Series VII (SORM) Exam
NISM-Series-VII: Securities Operations and Risk Management (SORM) is a SEBI-mandated certification administered by the National Institute of Securities Markets. It is the requisite standard for associated persons of registered stock-brokers, trading members and clearing members of recognised stock exchanges who deal with client assets or funds, redressal of investor grievances, internal control or risk management, or activities bearing on operational risk. The syllabus covers the structure of the Indian securities market and its participants; securities broking operations including the trade life cycle, KYC, Unique Client Code and order management; risk management, capital adequacy and margining; the clearing process and the roles of clearing corporations, clearing banks, clearing members, custodians and depositories; the settlement cycle for funds and securities and corporate-action adjustments; investor grievance redressal and arbitration; and other services provided by brokers. The examination has 100 one-mark multiple-choice questions to be completed in two hours, a 50% passing score and negative marking of 25% per wrong answer, and the certificate is valid for three years.
Assessment
100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from eight chapters covering the securities market, market participants, broking operations, risk management, clearing, settlement, investor grievances and other broker services.
Time Limit
2 hours (120 minutes).
Passing Score
50% (50 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 VII (SORM) Exam Content Outline
Introduction to the Securities Market
Role of the Indian securities markets in the economy, primary and secondary market structure, money market features and the products traded in the securities market such as equity, debt and derivatives.
Market Participants in the Securities Market
Types of investors (retail, HNI, institutional, FPIs), issuers, intermediaries such as stock-brokers, depository participants and merchant bankers, and the regulators and regulatory framework led by SEBI.
Introduction to Securities Broking Operations
The trade life cycle; front, middle and back office functions; client on-boarding, KYC, Unique Client Code, order types and validity, order routing and execution; and back-office trade enrichment, allocation, confirmation and modification.
Risk Management
Risk management practices in a broking firm, capital adequacy and net worth requirements, client account control, the margining framework (VaR, ELM, MTM, peak margin) and compliance and regulatory reporting.
Clearing Process
The clearing process and the roles of the clearing corporation, clearing banks, clearing members, custodians and depositories/DPs in clearing trades, with separate flows for equities and derivatives.
Settlement Process
The settlement cycle (T+1 rolling settlement for equities), settlement of funds and securities through depositories, settlement of internet-based and telephonic trades, corporate-action adjustments and the auction of securities for short deliveries.
Investor Grievances and Arbitration
Redressal of investor grievances including the SEBI SCORES platform, the Investor Protection Fund, the procedure of arbitration on stock exchanges and the role of appellate arbitration.
Other Services Provided by Brokers
Additional services such as IPO and mutual fund distribution, depository participant services, margin trading facility, portfolio and research support and other value-added broker offerings.
How to Pass the NISM Series VII (SORM) Exam
What You Need to Know
- Passing score: 50% (50 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 eight chapters covering the securities market, market participants, broking operations, risk management, clearing, settlement, investor grievances and other broker services.
- 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 VII (SORM) Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the NISM Series VII (SORM) exam and how long is it?
The exam has 100 multiple-choice questions of 1 mark each, totalling 100 marks, and must be completed in 2 hours (120 minutes).
What is the passing score for NISM Series VII?
The passing score is 50%, meaning you must score at least 50 out of 100 marks. There is also negative marking of 25% of the marks assigned to a question for each wrong answer.
Does NISM Series VII have negative marking?
Yes. There is negative marking of 25% of the marks assigned to a question, so each wrong answer deducts 0.25 marks. Unanswered questions are not penalised.
What is the fee and certificate validity for NISM Series VII?
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 VII (SORM) exam?
SEBI mandates it for associated persons of registered stock-brokers, trading members and clearing members who deal with client assets or funds, investor grievance redressal, internal control or risk management, or activities bearing on operational risk.
Are these official NISM practice questions?
No. These are original OpenExamPrep questions modelled on the NISM-Series-VII (SORM) syllabus. NISM provides its own free workbook and certification materials separately on its website.