Securities Operation And Risk Management

Policy of NISM Series VII-Securities Operation & Risk Management (SORM)


SEBI issued Notification no. LAD-NRO/GN/2010-11/21/29390 dated December 10, 2010 according to which, following categories of associated persons associated with a registered stock broker/trading member/clearing member in any recognized stock exchanges, who are involved in, or deal with any of the following:

  1. Assets or Funds of investors or clients
  2. Redressal of investor grievances
  3. Internal control or risk management
  4. Activities having a bearing on operational risk

Shall obtain the valid certification of NISM Series VII - Securities Operation and Risk Management (SORM) within two years from the date of such notification, Simultaneously, whenever the company employs any associated person specified as mentioned above, the said associated person shall obtain valid certification of NISM Series VII – Securities Operation and Risk Management (SORM) within one year from the date of his / her employment.

Accordingly, Mr. Ram Niwas Mangla obtaining a valid Series VII certification will look after the funds & securities of the clients.


Definition - Associated Person
“Associated Person” means a principal or employee of an intermediary or an agent or distributor or other natural person engaged in the securities business and includes an employee of a foreign institutional investor or a foreign venture capital investor working in India.


Exemption
Associated persons handling the basic clerical / elementary functions in the aforesaid specified areas shall be exempted from obtaining the certification of NISM Series VII – Securities Operation and Risk Management (SORM).

However, any of the work (as stated herein above) being performed by such persons, obtaining, NISM SORM Certification shall be optional provided that they are supervised by his / her supervisor who shall have to obtain / continue to have NISM – SORM Certification or such other prescribed certification at all times. 


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