Securities Operations and Risk Management (VII) by NISM | SORM

Description

Securities Operations and Risk Management (SORM) is designed to establish a common minimum knowledge benchmark for associated persons of stockbrokers, trading members, and clearing members. These associated persons are those who handle client assets or funds, deal with investor grievances, work in internal control or risk management, or perform any activity having a bearing on operational risk in the securities market. Anchored in SEBI’s regulatory framework, the workbook explains how India’s securities market operates, how trades are executed and settled, how risks are identified and mitigated, and how investor interests are safeguarded. It is tightly aligned with the examination objectives, covering understanding of products and participants, the regulatory framework, the trade life cycle, broker operations, risk management, clearing & settlement, and grievance redressal.

This book is intended for the following audience:

Associated Persons of Stockbrokers, Trading Members, and Clearing Members responsible for:
Handling client funds and securities
Internal controls, compliance, and operational risk
Managing investor grievances and regulatory reporting
Operations, Risk Management & Back-Office Professionals working in broking firms
Compliance Officers & Surveillance Teams seeking to meet regulatory competency requirements
Students & Job Aspirants looking to establish a strong foundation in securities operations
Professionals from FinTech, Depositories, Custodians & Market Intermediaries wishing to deepen their understanding of market processes
Candidates preparing for the NISM-Series-VII: SORM Certification Examination
The Present Publication is the June 2025 Workbook Version, developed in collaboration with the Certification Team of NISM in coordination with Mr Sunil Gawde, Subject Matter Expert. It is published exclusively by Taxmann, with the following noteworthy features:

[End-to-End Coverage of Broker Operations] From client onboarding and KYC to order routing, risk management, clearing & settlement, record-keeping, and compliance
[Market-wide Context] Detailed treatment of the money market, securities market segments, products, and the role of MIIs (stock exchanges, clearing corporations, depositories)
[Regulation-heavy yet Practitioner-friendly] Integrates SEBI Act, SCRA, Depositories Act, Companies Act, PMLA, Insider Trading and PFUTP Regulations, KRA Regulations, AML guidelines, and SEBI circulars into operational narratives
[Current Market Infrastructure] Includes T+1 rolling settlement (fully implemented) and the beta version of optional T+0 settlement, interoperability among clearing corporations, cyber-security and IRRA platform, and upstreaming of client funds
[Risk Management Focus] Explains VaR, ELM, MTM, delivery margins, liquid assets, base minimum capital, pre-trade risk controls, risk-reduction mode, stress testing, SGF, and Core SGF waterfall
[Investor-centric Approach] Covers investor grievance redressal, online dispute resolution, SCORES, arbitration, Investor Protection Fund, GSM and ASM
[Pedagogical Aids] Each chapter begins with learning objectives and ends with sample questions for self-assessment, reinforcing exam-oriented learning
The workbook provides a structured deep dive into:

Basics of the Indian Securities Market
Market structure
Products – Equities, debt, derivatives, and more
Market participants and their respective roles
Regulatory Framework
SEBI’s functions and oversight
Compliance obligations for intermediaries
Regulatory reporting and disclosures
Trade Life Cycle (TLC)
Step-by-step flow from order placement to settlement
Participants involved at each stage
Brokerage Firm Operations
Front Office – Order execution, client interaction
Middle Office – Risk checks, confirmations
Back Office – Record-keeping, settlement, reconciliations
Clearing and Settlement Systems
Clearing corporations
Roles of clearing members and custodians
Settlement cycles, margining, fund/securities movement
Risk Management
Operational risk
Risk containment mechanisms
Monitoring, surveillance, and controls
Investor Grievance Redressal
Mechanisms for complaint handling
SCORES platform process
Arbitration and dispute resolution framework
Pedagogically, the workbook is built as a complete learning pathway:

Learning Objectives at the start of each chapter clearly enumerate what the candidate should know after completing the chapter
Conceptual Exposition, Regulatory Text & Market Practice are interwoven, so that every process (e.g., client onboarding, margining, or AML checks) is simultaneously explained in ‘what, how, and under which regulation’ terms
Tables, Flow Diagrams & Examples—such as trade life cycle schematics and sample order book snapshots—translate abstract rules into operational steps
Sample Questions at the end of each chapter mirror exam style and force reinforcement of key concepts
Syllabus Outline with Weightages (Chapter 1 to 8) helps candidates prioritise study efforts for high-weightage topics like broking operations, risk management, clearing & settlement