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
• 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  - 

Topic 1: Overview of Securities Market

• Indian securities markets and its role in Indian economy
• Structure of Securities market
• Money market and its key features
• Products traded in the securities market

Topic 2: Understand Market Participants in the Securities Market

• Types of investors
• Issuers
• Intermediaries
• Regulators and regulatory framework

Topic 3: Learn about Securities Broking Operations

• Trade life cycle
• Front office operations
  
• Risk management practices
• Surveillance mechanism
• Back-office operations

Topic 4: Risk Management

• Risk Management practices
• Capital adequacy requirements
• Client account control
• Margin requirements
• Compliances and regulatory reporting

Topic 4: Understand Clearing Process

• Clearing process
• Role of clearing agency in clearing of trades
• Role of clearing banks in clearing of trades
• Role of clearing members / Custodians in clearing of trades
• Role of depositories and depository participants in clearing of trades
• Clearing process for equities trading
• Clearing process for derivatives trading

Topic 6: Settlement Process

• Settlement cycle
• Settlement of Internet based trading and order placed on phone
• Settlement of funds
• Settlement of securities
• Corporate actions adjustment
• Auction of securities

Topic 7: Understand Investor Grievances and Arbitration

• Redressal of investor grievance
• Procedure of arbitration
• Role of appellate arbitration

Topic 8: Explore Other Services Provided by Brokers

• Services provided by brokers
• IPO applications
• Mutual fund trading through stock exchange
• Portfolio management services provided by brokers
• Research reports
• Depository services
• Margin trading