Capital Market (Dealers) Module (CMDM) (Intermediate) Practice Exam

The NCFM Capital Market (Dealers) Module aims to equip candidates with valuable knowledge and practical skills essential for dealers in the equity market segment. It helps in:

• Understanding capital market trading operations on the NSE.
• Grasping the clearing, settlement, and risk management processes.
• Familiarizing oneself with the eligibility criteria for NSE membership.
• Exploring other significant regulatory aspects.

Who should take the exam?

The exam will benefit:

• Employees of Stock Brokers and Sub-Brokers
• Students
• Teachers
• Employees of BPO/IT Companies
• Investors
• Anybody having interest in the Stock market operations

Exam Details

• Exam Name: Capital Market (Dealers) Module (CMDM)
• Exam Languages: English
• Exam Questions: 60 Questions
• Time: 120 minutes
• Passing Score: 50%

Course Outline 

The Exam covers the given topics  - 

Topic 1: Overview of the Indian Securities Market

• Market segments, Key indicators of securities market, Products and participants, Market segments and their products, Reforms in Indian securities markets

Topic 2: Understand Trading Membership

• Stock brokers, NSE membership, Surrender of trading membership, Suspension & expulsion of membership, Declaration of defaulter, Authorized person, Sub-brokers, Broker-clients relations, Sub-broker-clients relations, Investor service cell and arbitration, Code of Advertisement

Topic 3: Overview of Trading

•  Introduction, NEAT system, Market types, Trading system users hierarchy, Local database, Market phases, Logging on, Log off/exit from the application, Neat screen, Invoking an inquiry screen, Order management, Trade management, Limited physical market, Block trading session, Retail debt market (RDM), Trading information downloaded to members, Internet broking, Wireless application protocol (wap), Computer to computer link (ctcl) facility

Topic 4:  Clearing and Settlement

• Introduction, Key terminologies used in clearing and settlement process, Transaction cycle, Settlement agencies, Clearing and settlement process, Securities and funds settlement, Shortages handling, Risks in settlement, Risk management, International securities identification number, Data and report downloads

Topic 5: Understand Legal Framework

• SEBI (intermediaries) regulations, 2008, SEBI (prohibition of insider trading) regulations, 1992, SEBI (prohibition of fraudulent and unfair trade practices relating to, Securities market) regulations, 2003, the depositories act, 1996, Indian contract act, 1872, Income tax act, 1961

Topic 6: Fundamental Valuation Concepts

• Time value of money; Understanding financial Statements