Back Office Operations Module (Intermediate) Practice Exam

Back Office Operations Module (Intermediate) Practice Exam

The Intermediate Back Office Operations Module has been developed to offer an extensive understanding of back office operations within the securities markets. This module aims to provide:

• A comprehensive and wide-ranging understanding of back office operations.
• Insight into various types of primary issues and the activities driving the primary market.
• An overview of diverse operational activities, providing insights into post-trade activities in the markets.

Who should take the exam?

The exam is best for:

• Students
• Teachers
• Employees of brokers and sub-brokers
• Employees of Mutual Funds
• Finance Professionals
• Anybody having interest in this subject

Exam Details 

• Exam Name: Back Office Operations Module (Intermediate)
• Exam Languages: English
• Exam Questions: 60 Questions
• Time: 120 minutes
• Passing Score: 60%

Exam Course Outline 

The Exam covers the given topics  - 

Topic 1: Know Your Client, Anti-Money Laundering & Combating Financing of Terrorism

• Principles
• Client Due Diligence
• Customer Policy
• Clients of Acceptance Special Category (CSC)
• Client Identification Procedure (CIP)
• Client Registration
  • Proof of Identity (POI)
  • Proof of Address (POA)
  • PAN Card
  • Additional Requirements for non-individuals
  • Unique Client Code
  • Power of Attorney (POA)
  • Nomination
• Changes in Client Information
  • Change of Address
  • Change in Bank Details
  • Change in Signatory
  • Minor becoming major
• KYC Registration Agencies (KRA)
• Suspicious Transactions Reporting (STR)
• Designated Individuals & Entities
• Record Keeping

Topic 2: Understand Primary Market

• Types of Issues
  • Public Issue - IPO
  • Public Issue – Follow-on Offering
  • Public Issue – Offer for Sale  
  • Rights Issue
  • Bonus Issue
  • Private Placement
  • GDR / ADR Issues
  • Sponsored GDR / ADR Issues  
  • Foreign Currency Convertible Bond (FCCB) Issues
  • India Depository Receipts
• Public Issue Process
• Time-line for Public Issue
• Common Bid-cum-Application Form
• ASBA
• Buy Back of Securities

Topic 3: Learn about Secondary Market (Trading in Shares)

• National Stock Exchange
• Trading Members & Clearing Members
• Authorised Persons & Sub-brokers
• Trading Member’s Responsibilities for Trades
• Uniform Documentation for Opening Trading Account
• Screen-based Trading System (SBTS)
• Trade Management
• Market Types
  • Normal Market
  • Auction Market
  • Odd Lot Market
  • Retail Debt Market
• Margin Trading
• Exchange Margins
• Settlement
  • Clearing House
  • Other Agencies Involved in Settlement
  • Clearing Mechanism
  • Clearing Process
  • Settlement Process
  • Transaction Cycle  
  • T+2 Rolling Settlement Calendar
  • Delivery Versus Payment (DVP) / Hand Delivery
  • Auction Settlement
  • F&O Settlement
  • Books of Accounts
  • Straight Through Processing (STP)

Topic 4: Overview of Depository Operations

• Depository and Issuer
• Depository Participant
• Transactions
  • Account Opening
  • De-materialisation
  • Re-materialisation
  • Secondary Market Purchases
  • Secondary Market Sales
  • Standing Instructions
  • Power of Attorney (PoA)
  • Transposition
  • Transmission of Securities
  • Dividends
  • Pledging Securities
  • Freezing of Accounts
  • SMS Alerts

Topic 5: Registrar & Transfer Agent

• Role & Responsibilities
• Voting Rights in Companies
• Dividend Payments in Companies
• Physical Shares
  • Transfer Deed
  • Delays in Transfer of Shares by Companies
  • Good and Bad Delivery Norms

Topic 6: Mutual Fund: AMC Operations

• Legal Structure
• Net Asset Value (NAV)
• Expenses
• Load
• Offer Documents
• Investor Transactions (Normal Physical Mode)
  • Acquisition of Units by Investor from the Scheme
  • Sale of Units by Investor to Scheme
  • Secondary Market Transactions in Units by Investor
  • Redemption of Units on closure of scheme
  • Additional Purchase by Investor  
  • Switch by Investor
  • Systematic Investment Plan
  • Systematic Withdrawal Plan
  • Systematic Transfer Plan
• Investor Transactions (NSE MFSS Channel)
• Dividend Options
  • Dividend Payout Option
  • Growth Option
  • Dividend Re-investment Option
• Dividend Mechanics
• Income Distribution Tax
• Securities Transaction Tax (STT)
• Cut-off Time Regulations
  • Liquid Schemes & Plans - Subscriptions
  • Liquid Schemes & Plans – Re-Purchases
  • Other than Liquid Schemes & Plans - Subscriptions
  • Other than Liquid Schemes & Plans – Re-purchases
• Official Points of Acceptance (PoA)
• Time Stamping
• RTA Role
• Distributors’ Commission
• Bank Accounts
• Other Back Office Activities

Topic 7: Mutual Fund Transactions through NSE

• Listed Schemes
• Exchange Traded Funds (ETFs)
• Mutual Fund Service System (MFSS)
  • Subscription (Physical mode)
  • Subscription (Demat mode)
  • Redemption (Physical mode)  
  • Redemption (Demat mode)

Topic 8: Qualified Foreign Investors – Equity Shares

• Background
• Permitted Transactions
• Investment Restrictions
• Administration of Investment Limit
• Other Conditions
• Transaction Flow

Topic 9: Qualified Foreign Investors – Mutual Funds

• Background
• Investment Limit
• Transaction Flow
  • Direct Route (Demat)
  • Indirect Route (Unit Confirmation Receipts – UCR)
• Other Conditions