NISM-Series-VII: Securities Operations and Risk Management Certification Examination


I. Introduction to the Securities Market

A. Indian securities markets and its role in Indian economy

B. Structure of Securities market

C. Money market and its key features

D. Products traded in the securities market

II. Market Participants in the Securities Market

A. Types of investors

B. Issuers

C. Intermediaries

D. Regulators and regulatory framework

III. Introduction to the Securities Broking Operations

A. Trade life cycle

B. Front office operations

    • Client on-boarding and registration

    • KYC

    • Unique Client Code

    • Order management

    • Order routing through the exchange

    • Execution of trade

C. Risk management practices

D. Surveillance mechanism

E. Back-office operations

    • Trade enrichment

    • Trade allocation

    • Trade confirmation/modification

    • Clearing and settlement

    • Accounting

    • Information technology

    • Regulatory compliances

IV. Risk Management

A. Risk Management practices

B. Capital adequacy requirements

C. Client account control

D. Margin requirements

E. Compliances and regulatory reporting

V. Clearing Process

A. Clearing process

B. Role of clearing agency in clearing of trades

C. Role of clearing banks in clearing of trades

D. Role of clearing members / Custodians in clearing of trades

E. Role of depositories and depository participants in clearing of trades

F. Clearing process for equities trading

G. Clearing process for derivatives trading

VI. Settlement Process

A. Settlement cycle

B. Settlement of Internet based trading and order placed on phone

C. Settlement of funds

D. Settlement of securities

E. Corporate actions adjustment

F. Auction of securities

VII. Investor Grievances and Arbitration

A. Redressal of investor grievance

B. Procedure of arbitration

C. Role of appellate arbitration

VIII. Other Services Provided by Brokers

A. Services provided by brokers

B. IPO applications

    • Collection of IPO application forms

    • ASBA facility

C. Mutual fund trading through stock exchange

D. Portfolio management services provided by brokers

E. Research reports

F. Depository services

G. Margin trading