This comprehensive book offers an in-depth analysis of the operational facets of stock brokerage, catering to individuals keen on mastering broker operations and risk management within the securities markets. It is structured to enhance understanding through a detailed examination of various critical areas, such as:

• Client Onboarding
• Trade Life Cycle
• Compliance Requirements Related to Report Submission
• Redressal of Investor Grievances

Upon completing this book, readers will gain a foundational understanding of the Indian securities market, including its products, participants, and the roles they play. The book aims to establish a minimum knowledge benchmark for associated persons of registered stock brokers, trading members, and clearing members, focusing on managing assets or funds, investor grievance redressal, internal control, risk management, and operational risk aspects.

The Present Publication is the January 2024 workbook version, published exclusively by Taxmann for NISM Certification Examination VII [Securities Operations and Risk Management], with the following noteworthy features:

• [Know] the following in detail:
  • Basics of the Indian Securities Market – Explores the basics of securities, the money market, products traded in the Indian securities market, and the concept of International Financial Services Centres (IFSC)
  • Market Participants – Details the roles of investors, issuers, the market structure, participants, and regulators in the securities market
  • Securities Trade Life Cycle – Offers insights into front office, middle office, and back office operations, outlining their functions and significance
• [Understanding] of the following:
  • Clearing Process – Explains the role of clearing corporations, clearing banks, clearing members, custodians, depositories, and the clearing process itself
  • Settlement Process – Covers the determination of settlement obligations, settlement of funds and securities, auction of securities, and corporate actions adjustment
  • Risk Management – Discusses risk management strategies, compliance, regulatory reporting, and the Core Settlement Guarantee Fund
  • Investor Grievances and Arbitration – Focuses on investor grievance mechanisms, online dispute resolution, and investor protection funds
  • Other Services Provided by Brokers – Explores IPO applications, trading of mutual fund units, portfolio management service, research reports, depository services, margin trading, and internet-based trading technologies

The contents of the book are as follows:

• Introduction to the Securities Market
  • Overview of the securities market
  • Insights into the money market
  • Exploration of products traded in the Indian securities market
  • Discussion on International Financial Services Centres (IFSC)
• Market Participants in the Securities Market
  • Detailed introduction to different market participants
  • Roles and perspectives of investors and issuers
  • Overview of market structure and key participants
  • An in-depth look at regulators in the securities market
• Introduction to the Securities Broking Operations
  • Detailed stages of the securities trade life cycle
  • Examination of front office, middle office, and back office operations
• Risk Management
  • A comprehensive exploration of risk management strategies and practices
  • Discussion on compliances and regulatory reporting
  • Insight into the Core Settlement Guarantee Fund
• Clearing Process
  • Introduction to the clearing process
  • Roles and functions of the Clearing Corporation, clearing banks, clearing members, custodians, depositories, and depository participants
  • Detailed explanation of the clearing process
• Settlement Process
  • Overview of the Settlement process in securities trading
  • Determination and settlement of obligations, both in funds and securities
  • Procedures for auction and corporate actions adjustment
• Investor Grievances and Arbitration
  • Introduction to investor grievances and arbitration mechanisms
  • Online resolution of disputes in the Indian securities market
  • Overview of the Investor Protection Fund
• Other Services Provided by Brokers
  • Range of services offered by brokers, including IPO applications, trading of mutual fund units, and portfolio management services
  • Discussion on research reports, depository services, margin trading, and internet-based trading technologies

About NISM Certifications:

NISM is a leading provider of high-end professional education, certifications, training and research in financial markets. NISM Certification programs aim to enhance the quality and standards of professionals employees in various segments of financial services sector. NISM’s School of Certification of Intermediaries (SCI) develops and conducts certification examinations and Continuous Professional Education (CPE) programs that aim to ensure that professional meet the defined minimum common knowledge benchmark for various critical market functions like:

• Mutual Funds
• Equities
• Derivatives
• Securities Operations
• Compliance
• Research Analysis
• Investment Advice

These Certifications and CPE Programs are being developed and administered by NISM as mandated under ‘Securities and Exchange Board of India (Certification of Associated Persons in the Securities Market) Regulations, 2007’. The Certifications creates quality market professionals and catalyzes greater investor participating in the markets. Certifications also provides structured career paths to students and job aspirants in the securities market.