SORM (Series VII)
Most-taken exam after V-A — broker back-office, clearing, settlement, margin, and risk management for securities markets.
Exam Pattern & Marking
Detailed Syllabus
8 chapters · 100 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | VII Introduction to Securities Broking Operations | 20 | 100 |
| 2 | VII Clearing Process | 15 | 75 |
| 3 | VII Risk Management | 15 | 75 |
| 4 | VII Settlement Process | 15 | 75 |
| 5 | VII Investor Grievances and Arbitration | 10 | 50 |
| 6 | VII Market Participants in Securities Markets | 10 | 50 |
| 7 | VII Other Services Provided by Brokers | 10 | 50 |
| 8 | VII Introduction to Securities Market | 5 | 25 |
| Total | 100 | 500 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series VII is the second-most-taken NISM exam after V-A. It’s mandatory for dealers and back-office staff at SEBI-registered stock brokers, and covers the full trade lifecycle — order placement, matching, clearing, settlement, margining, and risk management.
At a glance: 100 questions · 2 hours · 50% pass mark · 0.25 negative marking · ₹1,500 + GST.
Who should take VII
- Dealers and authorised persons at stock brokers
- Back-office and operations staff
- Compliance officers needing operational depth
- Anyone applying for sub-broker / authorised-person registration
Key Knowledge Areas
Trading mechanism
NSE and BSE run anonymous, order-driven, electronic limit-order books. Orders match on price-time priority. Special order types include market, limit, stop-loss, IOC, GTC, and AMO (after-market order).
Clearing & settlement
| Segment | Settlement | Pay-in / Pay-out |
|---|---|---|
| Equity (cash) | T+1 | Funds & securities settle 1 day after trade |
| Equity F&O | T+1 daily MTM, T+1 final | Daily mark-to-market plus expiry settlement |
| Currency | T+1 | NSE-CC / ICCL |
| Commodity | T+1 / T+2 | MCX-CC / NCCL |
Key Fact: SEBI moved Indian equity to T+1 settlement in January 2023 — the fastest in the world. Optional T+0 settlement is being phased in for select scrips.
Margin & risk
Brokers collect SPAN + Exposure margin upfront on F&O. For cash, VaR + ELM (Extreme Loss Margin) + adhoc margins apply. Margin shortfall attracts penalty per SEBI’s Margin Trading Facility framework.
Investor protection
- Investor Protection Fund (IPF) — compensation for default-affected clients up to ₹25 lakh per claim
- Settlement Guarantee Fund (SGF) — backstops counterparty default risk
- SCORES — SEBI’s online grievance portal
Exam Tips
Tip 1: Settlement-cycle dates and segment-specific rules are exam-favourites. Know T+1 (equity, currency), T+2 / T+3 special segments, and the difference between trading day and settlement day.
Tip 2: Margin questions are heavy. Know SPAN (scenario-based), exposure margin, MTM, and circuit filters.
Tip 3: Codes of conduct (broker, sub-broker, authorised person) appear in 8–10 marks of questions. Memorise the obligations: KYC, fair dealing, no insider trading, segregation of client funds.
Tip 4: Practice with full-length 100-Q mocks. The exam is conceptually straightforward but tests breadth — you cannot bluff.
Try the Free Quiz
Test your knowledge with our free Series VII practice quiz — or get the full bank of 500+ VII questions plus mock tests in the NISM Exam Prep app.
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