NISM Series VII: Securities Operations And Risk Management Certification Examination

Who Should Prepare NISM Series VII Certification Examination?

NISM Series VII is also known as NISM Securities Operations And Risk Management Certification Examination. As Risk Management is a very important task in Securities Market. Like other NISM modules, this series covers all the relevant aspects of Securities Operations And Risk Management in brief.

A must course for  those who work as a Stock Market Analyst, Risk managers or analysts .

Study Material For NISM Series VII:

You can buy Nism Series VII workbook from Amazon or you can get previous edition of Ebook of NISM Securities Operations And Risk Management from here free of cost.

We also provide free mock test. We have covered all the NISM Securities Operations And Risk Management Certification questions and answers with detailed explanation for each question. This mock test also includes numericals as they also very important part of this modules.

There Are About 8 Units / Chapters In NISM Series VII:

Chapter No.TitleWeights(%)
1Introduction to the Securities Market05
2Participants in the Securities Market10
3Introduction to Securities Broking Operations20
4Risk Management15
5Clearing Process15
6Settlement Process15
7Investor Grievances & Arbitration10
8Services Provided by Brokers10

Introduction to Securities Broking Operations, Risk Management, Clearing Process, Settlement Process are the most important chapters in NISM Series VII: Securities Operations And Risk Management Certification Examination and have most Weightage.

As you can see their are only 8 chapters in this NISM Module And all of them have significant weightage. All chapters are important. You should not ignore first chapter despite having lowest weightage because it is very basic chapter and can be covered in just few hours.

My takeaway: stop using what we know doesn’t work, start using or learning about what we know does work, and measure the performance of risk management scientifically. Most important of all, quit fooling yourself! Most methods make us feel better without actually improving over the long run our estimates and decisions.

I am making this required reading for everyone on my team.

The 4th chapter of the book is the “Why It’s broken” section and it starts with an interesting  classification of methods based on what he calls the “Four Horseman” of risk management: the actuaries, the war quants, the economists, and the management consultants. All approached the problem in different ways but some were influenced by others. The stand out of this group are the management consultants who like to develop methods in less than scientific ways and seem to be the least aware of other methods. Yet, it is the management consultants that have the most influence on Chief Risk Officers.

Hubbard then systematically debunks several risk management methods that I have personally seen employed. I can vouch for Hubbard’s observation that these methods seem to improve confidence in decisions without actually making the track records of decision makers any better. He criticizes well-known methods in finance but also much softer methods.

Doug Hubbard really knows his stuff. He is not just an author who has learned enough about a current popular topic to write a book, but instead is a talented consultant in this area, who has learned how to write, and write well. He displays a deep real world understanding that ranges from mathematics to everyday human behavior, a trait that is all too rare in this age of specialization.

Because this subject is poorly understood by the public at large, many “accepted” risk management procedures, both qualitative and quantitative are fundamentally flawed. Doug has the experience to know what actually works.

NISM Series VII Mock Test (Play And Earn):

This NISM Series VII mock test is created by our very experienced teacher who have deep knowledge and experience regarding NISM Series VII: Securities Operations And Risk Management Certification Examination.

These questions are up to date with detailed explanation of every question. The answers are easy to understand and are 100% accurate.

#1. A Mutual Fund Trust is

Mutual Fund is a Trust not a company. And AMC is managing investor’s money not their own. So they are exempt from tax.

#2. A Mutual Fund scheme will be considered as Equity-oriented scheme if atleast 65% of the asset are invested in

#3. Long term capital gain tax on debt mutual fund is

In debt mutual fund,

if units are hold for more than 36 months

then it is considered as long term and are taxed at 20%

with indexation benefit.

#4. Short term capital gain tax on debt mutual fund is

In debt mutual fund,

if units are hold for less than 3 years

then it is considered as short term and are taxed as per the investor’s slab rate. 

For instance: if investor’s tax slab rate is 30% then his/her investment in debt mutual fund will be taxed at the rate of 30%.

#5. Long term capital gain tax on equity mutual fund is

In equity mutual fund,

if units are hold for more than 12 months

then it is considered as long term and are taxed at 10% without Indexation. And Long term capital gains are not taxed upto 1 lakh rupees.

#6. Short term capital gain tax on equity mutual fund is

In equity mutual fund,

if units are hold for less than 1 year

then it is considered as short term and are taxed at a flat rate of 15%.

#7. STT in an equity oriented fund is

Security Transaction tax is only for equity oriented fund and is taxed at 0.001%.

STT is only applicable at the time of withdrawal not  in case of purchase of an equity share.

While Capital gain tax is only applicable on profit while STT applicable on entire principle amount.

 

#8. The dividend receive by the unit holders is

The Finance Act 2020 has abolished DDT.

So from 1st April 2020, The dividend receive by the shareholders is tax as per the applicable slab rate.

Now Dividend is taxable in the hands of shareholders.

#9. Stamp duty is applicable on

From 1st July 2020,

Stamp duty is applicable on the purchase of mutual funds,

but not on the redemption of units.

 

#10. Stamp duty will be imposed at a rate of

From 1st July 2020,

Stamp duty will be imposed at a rate of 0.005%

on the purchase of mutual funds.

#11. Stamp duty will be imposed on the transfer of mutual fund units.

From 1st July 2020,

Stamp duty will be imposed on the transfer of mutual fund units.

Stamp duty will be imposed on Transfer of units from one demat account to another at the rate of 0.015%.

finish

Results

 

 

Click here to Start : Part 8 of Premium NISM Mock Test of NISM V A

 

 

Click here to Start : Part 8 of Premium NISM Mock Test of NISM V A

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges.

As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Past performance of securities/instruments is not indicative of their future performance. This post is only for Educational purpose.

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