Back Office Operations Module (Intermediate) Practice Exam

Back Office Operations Module (Intermediate) Practice Exam

The Intermediate Back Office Operations Module has been developed to offer an extensive understanding of back office operations within the securities markets. This module aims to provide:

• A comprehensive and wide-ranging understanding of back office operations.
• Insight into various types of primary issues and the activities driving the primary market.
• An overview of diverse operational activities, providing insights into post-trade activities in the markets.

Who should take the exam?

The exam is best for:

• Students
• Teachers
• Employees of brokers and sub-brokers
• Employees of Mutual Funds
• Finance Professionals
• Anybody having interest in this subject

Exam Details 

• Exam Name: Back Office Operations Module (Intermediate)
• Exam Languages: English
• Exam Questions: 60 Questions
• Time: 120 minutes
• Passing Score: 60%

Exam Course Outline 

The Exam covers the given topics  - 

Topic 1: Know Your Client, Anti-Money Laundering & Combating Financing of Terrorism

• Principles
• Client Due Diligence
• Customer Policy
• Clients of Acceptance Special Category (CSC)
• Client Identification Procedure (CIP)
• Client Registration
• Changes in Client Information
• KYC Registration Agencies (KRA)
• Suspicious Transactions Reporting (STR)
• Designated Individuals & Entities
• Record Keeping

Topic 2: Understand Primary Market

• Types of Issues
• Public Issue Process
• Time-line for Public Issue
• Common Bid-cum-Application Form
• ASBA
• Buy Back of Securities

Topic 3: Learn about Secondary Market (Trading in Shares)

• National Stock Exchange
• Trading Members & Clearing Members
• Authorised Persons & Sub-brokers
• Trading Member’s Responsibilities for Trades
• Uniform Documentation for Opening Trading Account
• Screen-based Trading System (SBTS)
• Trade Management
• Market Types
• Margin Trading
• Exchange Margins
• Settlement

Topic 4: Overview of Depository Operations

• Depository and Issuer
• Depository Participant
• Transactions

Topic 5: Registrar & Transfer Agent

• Role & Responsibilities
• Voting Rights in Companies
• Dividend Payments in Companies
• Physical Shares

Topic 6: Mutual Fund: AMC Operations

• Legal Structure
• Net Asset Value (NAV)
• Expenses
• Load
• Offer Documents
• Investor Transactions (Normal Physical Mode)
• Investor Transactions (NSE MFSS Channel)
• Dividend Options
• Dividend Mechanics
• Income Distribution Tax
• Securities Transaction Tax (STT)
• Cut-off Time Regulations
• Official Points of Acceptance (PoA)
• Time Stamping
• RTA Role
• Distributors’ Commission
• Bank Accounts
• Other Back Office Activities

Topic 7: Mutual Fund Transactions through NSE

• Listed Schemes
• Exchange Traded Funds (ETFs)
• Mutual Fund Service System (MFSS)

Topic 8: Qualified Foreign Investors – Equity Shares

• Background
• Permitted Transactions
• Investment Restrictions
• Administration of Investment Limit
• Other Conditions
• Transaction Flow

Topic 9: Qualified Foreign Investors – Mutual Funds

• Background
• Investment Limit
• Transaction Flow
• Other Conditions