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NISM CERTIFICATION EXAMINATION

Securities Operations & Risk Management

Prepare for NISM-Series-VII Securities Operations & Risk Management with structured learning covering securities markets, broking operations, trade life cycle, risk management, clearing and settlement, investor grievances, regulatory compliance and broker services.

NISM Series VII Securities Operations and Risk Management exam preparation at Chart Education

Prepare for the NISM-Series-VII: Securities Operations and Risk Management Certification Examination with structured classroom training at Chart Education.

Learn the fundamentals of Indian securities markets, market participants, securities broking operations, trade life cycle, front office, middle office and back office functions, risk management, clearing and settlement, investor grievance redressal and regulatory compliance.

The program combines concept-based learning, practical examples, question practice, revision and mock-test preparation to help learners build examination readiness and understand the operational framework of securities-market businesses.

EXAM DURATION

2 Hours

MAXIMUM MARKS

100

PASSING MARKS

50%

NEGATIVE MARKING

25%

QUESTIONS

100

 Detailed Syllabus

Unit 1 — Introduction to the Securities Market

  • Indian securities market and its role in the economy

  • Primary and secondary markets

  • Methods of raising capital

  • OTC and exchange-traded markets

  • Money market

  • Equity market and equity products

  • Derivatives market

  • Index and stock futures

  • Currency derivatives

  • Debt market

  • Government securities

  • Corporate debt market

  • International Financial Services Centres (IFSC)

Unit 2 — Market Participants in the Securities Market

  • Types of investors

  • Retail investors

  • HNIs

  • Institutional investors

  • Issuers

  • Raising funds through international markets

  • GDRs

  • ADRs

  • FCCBs

  • ECBs

  • Stock exchanges

  • Clearing corporations/agencies

  • Trading members

  • Depositories

  • Depository Participants

  • Custodians

  • Regulatory framework

  • Role of SEBI

Unit 3 — Introduction to Securities Broking Operations

  • Securities trade life cycle

  • Trade confirmation and affirmation

  • Custodial transactions

  • Clearing and settlement

  • Front office operations

  • Client onboarding

  • Client registration

  • Sales functions

  • Trading account opening

  • KYC

  • Unique Client Code

  • Member-client agreement

  • Rights and obligations

  • Risk disclosure document

  • Order management

  • Order types

  • Order routing

  • Trade execution

  • Order placement and trade matching

  • Middle office functions

  • Risk management and surveillance

  • Back office operations

  • Trade enrichment

  • Trade allocation

  • Trade confirmation/modification

  • Broker accounting

  • Information technology

  • Regulatory compliance

Unit 4 — Risk Management

  • Risk management in the cash segment

  • Margin

  • Value at Risk (VaR)

  • Mark-to-Market

  • Extreme Loss Margin

  • Liquid assets

  • Liquidity categorisation

  • Impact cost

  • Margining of institutional trades

  • Pre-trade risk controls

  • Dynamic price bands

  • Risk Reduction Mode

  • F&O risk management

  • Initial margin

  • Exposure margin

  • Premium margin

  • Assignment margin

  • Regulatory reporting

  • Broker compliance

  • Books and records

  • Periodic reporting

  • Risk-based supervision

  • Core Settlement Guarantee Fund

  • Default waterfall

  • Stress testing

  • Back testing

Unit 5 — Clearing Process

  • Clearing process

  • Role of clearing corporation

  • Clearing banks

  • Clearing members

  • Custodians

  • Depositories and DPs

  • Clearing of equity trades

  • Clearing of derivatives trades

  • Client obligations

  • Netting of client accounts

  • Broker-level netting

  • Exchange-level clearing

Unit 6 — Settlement Process

  • Settlement cycle

  • Settlement procedures

  • Internet-based trading

  • Phone-based orders

  • Settlement of funds

  • Margin payments

  • Settlement dues

  • Settlement of securities

  • Depository clearing system

  • Corporate actions

  • Corporate-action adjustments

  • Auction of securities

  • Auction procedures

  • Conditions requiring auction

  • BSE/NSE auction processes

Unit 7 — Investor Grievances & Arbitration

  • Importance of investor protection

  • Investor grievance redressal

  • Grievance-resolution procedure

  • Investor Protection Fund

  • Customer Protection Fund

  • Arbitration

  • Exchange arbitration procedure

  • Appellate arbitration

  • Online dispute-resolution mechanisms

Unit 8 — Other Services Provided by Brokers

  • IPO applications

  • IPO application processing

  • ASBA

  • Trading of mutual fund units

  • Portfolio Management Services

  • Research reports

  • Depository services

  • Margin trading

  • Internet-based trading

  • Securities trading using wireless technology

  • Code of Conduct for Stock Brokers

These units and their subject areas are based on NISM's current curriculum and test objectives.

Examination Pattern

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

100 Questions | 100 Marks | 2 Hours

Passing Score: 50%

Negative Marking: 25% of the marks assigned to a question

The examination covers the securities market, market participants, securities broking operations, trade life cycle, risk management, clearing and settlement, investor grievances, arbitration and other services provided by brokers.

Candidates should refer to the latest NISM curriculum and examination information before appearing for the examination.

Preparation Approach & Career Relevance


NISM Series VII Preparation at Chart Education

Chart Education follows a structured preparation approach:

Learn → Understand → Practise → Analyse → Revise → Mock Test → Improve

Preparation includes:

• Chapter/unit-wise concept learning


• 40 practice questions per unit


• Detailed answer explanations


• Practical examples related to securities-market operations


• Risk management and compliance-focused question practice


• Clearing and settlement practice


• Investor grievance and regulatory concepts


• 20 full-length mock tests


• Exam-oriented revision


• Case-based/application-oriented practice wherever relevant

Important: Chart Education's practice questions are original preparation material and do not reproduce actual NISM examination questions.

Career relevance


NISM identifies this examination as a common minimum knowledge benchmark for certain associated persons of registered stock-brokers, trading members and clearing members involved in areas such as client assets or funds, investor grievance redressal, internal control, risk management and operational-risk-related activities. Students, professionals and other individuals interested in securities-market operations may also take the examination.

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