NISM SECURITIES OPERATIONS AND RISK MANAGEMENT COURSE

I. Introduction to the 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

II. Market Participants in the Securities Market

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

III. Introduction to the Securities Broking Operations

  • Trade life cycle
  • Front office operations
    • Client on-boarding and registration
    • KYC
    • Unique Client Code
    • Order management
    • Order routing through the exchange
    • Execution of trade
  • Risk management practices
  • Surveillance mechanism
  • Back-office operations
    • Trade enrichment
    • Trade allocation
    • Trade confirmation/modification
    • Clearing and settlement
    • Accounting
    • Information technology
    • Regulatory compliances

IV. Risk Management

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

V. 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

VI. 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

VII. Investor Grievances and Arbitration

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

VIII. Other Services Provided by Brokers

  • Services provided by brokers
  • IPO applications
    • Collection of IPO application forms
    • ASBA facility
  • Mutual fund trading through stock exchange
  • Portfolio management services provided by brokers
  • Research reports
  • Depository services
  • Margin trading