NISM Series VII: Securities

NISM Series VII: Securities Operations & Risk Management

The NISM Series VII: Securities Operations and Risk Management Certification Examination is designed for individuals working in the back-office, operations, clearing, settlement, and risk management functions of stock broking firms, clearing members, and depository participants. It is a mandatory certification for operations staff of SEBI-registered stock brokers.

Exam Overview

Duration: 2 hours. Questions: 100 MCQs. Passing Marks: 60%. Negative Marking: 25%. Fees: ₹1,500 + GST. Validity: 3 years.

Syllabus Highlights

Unit 1 — Securities Market Overview (10%): Primary markets, secondary markets, market participants. Unit 2 — Trading Operations (20%): Order management, trade confirmation, contract notes, margin requirements. Unit 3 — Clearing & Settlement (25%): T+1 settlement cycle, pay-in/pay-out obligations, delivery vs payment. Unit 4 — Risk Management (20%): SPAN margin, VAR margin, peak and end-of-day margins, client-level exposure. Unit 5 — Depository Operations (15%): Demat account opening, pledging, hypothecation, corporate actions. Unit 6 — Regulatory Framework (10%): SEBI circulars on client fund segregation, investor grievances, audit requirements.

T+1 Settlement: India's Global First

India became the first major market globally to implement T+1 settlement (Trade + 1 day settlement) for equity cash markets in 2023. This significantly reduced counterparty risk and freed up capital faster for investors. Understanding T+1 mechanics is critical for NISM VII candidates and all capital market operations professionals.

Regulatory Statutory Warning & Disclaimers

Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.