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

Frequently Asked Questions about NISM Series 7 SORM Exam

What is the objective of SORM Exam?

The examination seeks to create a common minimum knowledge benchmark as the requisite standard for associated persons of a registered stock-broker / trading member / clearing member in recognized stock exchanges, involved in

  • (a) Assets or funds of investor or clients
  • (b) Redressal of investor grievances,
  • (c) Internal control or risk management
  • (d) Activities having a bearing on operational risk.

Who can write / should write this SORM exam?

  • Approved users (Dealers) of the trading member of a Registered Stock Broker or Trading Member or Clearing Member of a recognized stock exchange.
  • Employees of Stock Brokers and Sub-Brokers in Capital Market Segment
  • Students of all discipline but would be most useful to MBA Finance, B.Com, M.Com, Lecturers, and Professors etc.
  • Anybody having interest in the Capital Market Segment

Importance of NISM SORM

Stock-broker/trading member/clearing member shall ensure that all persons associated with it and carrying on any activity specified above shall obtain valid certification before December 10 2012.

Most of the Stock Broking Entities have started recruiting candidates with NISM SORM Certificate in order to fulfill their regulatory compliance.

Study material for preparing for NISM SORM examination.

You will receive a hard copy of the workbook ie study material by courier, after enrolment for the examination. We provides Study Notes based on NISM Workbook / Study Material. However candidates are advised to read NISM Workbook / Study Material. Register to download NISM SORM study notes from our site.

What kind of topics is covered in the NISM SORM syllabus?

  • Basics of the Indian securities market, the different products traded and the various market participants and the respective roles they play in the Indian securities market.
  • Understand the regulatory framework and the role of the Securities Exchange Board of India.
  • Know the various functions of the Front Office, Middle Office and Back Office in a Securities Broking Firm.
  • Understand the trade life cycle, the steps and participants involved in the trade life cycle and the role of the back office in a securities broking firm.
  • Understand how the risks are managed in a securities broking firm, the clearing and settlement process.
  • Understand the process of investor grievances redressal.

Syllabus Outline for NISM SORM Exam

NISM SORM Syllabus Weightages (Syllabus wise question %)
Unit 1: Introduction to Securities Markets 5%
Unit 2: Market Participants in the Securities Markets 10%
Unit 3: Introduction to Securities Broking Operations 20%
Unit 4: Risk Management 15%
Unit 5: Clearing Process 15%
Unit 6: Settlement Process 15%
Unit 7: Investor Grievances and Arbitration 10%
Unit 8: Other Services Provided by Brokers 10%

Assessment Structure: Exam Pattern for NISM SORM

DURATION 120 Minutes
NO. OF QUESTIONS 100
MAXIMUM MARKS 100
PASS MARK 50
NEGATIVE MARK 25% FOR WRONG ANSWERS
CERTIFICATE VALIDITY 3 YEARS
EXAM FEES Rs 1500/-