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

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

The NISM Series-VII: Securities Operations and Risk Management Exam aims to establish a standardized baseline of knowledge essential for individuals associated with registered stock-brokers, trading members, or clearing members in recognized stock exchanges. These individuals are engaged in various activities such as handling investor or client assets or funds, addressing investor complaints, overseeing internal controls or risk management, and managing activities linked to operational risk.

Exam Learning Objectives:

Upon successful completion of the examination, candidates should be able to:

• Grasp the fundamentals of the Indian securities market, including the different traded products and the roles of various market participants.
• Comprehend the regulatory framework and the functions of the Securities Exchange Board of India.
• Understand the roles of the Front Office, Middle Office, and Back Office within a Securities Broking Firm.
• Familiarize themselves with the trade life cycle, including the steps involved, participants, and the Back Office's role in a securities broking firm.
• Gain insight into risk management practices within a securities broking firm and the clearing and settlement processes.
• Understand the procedures for addressing investor grievances.

Who should take the exam?

The NISM Series-VII: Securities Operations and Risk Management exam targets a broad audience within the securities market:

• Individuals working with registered stockbrokers, trading members, or clearing members of recognized stock exchanges in India.
• Students and Professionals
• The exam is open to anyone who wants to gain knowledge.

Exam Details

• Exam Name: NISM-Series-VII: Securities Operations and Risk Management
• Exam Languages: English
• Exam Questions: 100 Questions
• Time: 120 minutes
• Passing Score: 50%

Course Outline 

The Exam covers the given topics  - 

1. Introduction To The Securities Market

• Introduction
• Securities Market
• Money Market
• Products Traded In The Indian Securities Market
• International Financial Services Centres (IFSC)

2. Market Participants In The Securities Market

• Introduction
• Investors
• Issuers
• Market Structure And Participants
• Regulators

3. Introduction To Securities Broking Operations

• Introduction To The Securities Trade Life Cycle
• Front Office Operations
• Middle Office Operations
• Back Office Operations

4. Risk Management

• Risk Management
• Compliances And Regulatory Reporting
• Core Settlement Guarantee Fund

5. Clearing Process

• Introduction
• Role Of The Clearing Corporation
• Clearing Banks And Their Function
• Clearing Members And Custodians
• Depositories & Depository Participants
• Clearing Process
• Beta Version Of T+0 Rolling Settlement Cycle On Optional Basis

6. Settlement Process

• Introduction
• Determination Of Settlement Obligations
• Settlement Of Funds
• Settlement Of Securities
• Auction Of Securities
• Corporate Actions Adjustment

7. Investor Grievances And Arbitration

• Introduction
• Investor Grievance
• Online Resolution Of Disputes In The Indian Securities Market
• Investor Protection Fund

8. Other Services Provided By Brokers

• Introduction
• Ipo Applications
• Trading Of Mutual Fund Units
• Portfolio Management Service
• Research Reports
• Depository Services
• Margin Trading
• Internet Based Trading (IBT) & Securities Trading Using Wireless Technology (STWT)
• Annexure 1: Code Of Conduct For Stock Brokers