Back Office Operations Module
Back Office Operations Module is designed to provide comprehensive and in-depth knowledge about the back-office operations in the securities markets. This module will help in:
- Firstly, gaining comprehensive and broad-based knowledge about back-office operations.
- Secondly, understanding various types of primary issues and the activities that drive the primary market
- Lastly, learning about various operational activities and gaining insights on post-trade activities in the markets.
Target Audience
For NCFM Backoffice Operations Module Certification Exam, the best suitable roles include:
- Firstly, Students
- Secondly, Teachers
- Thirdly, Employees of brokers and sub-brokers
- Then, Employees of Mutual Funds
- Finance Professionals
- Lastly, individuals with having an interest in this area
Back Office Operations Module: Exam Details
With over 200 plus test centers, NCFM offers online exams as well as self-study based exams that are conducted across India. These exams are available in the English language. Talking about the Back Office Operations Module, for this an Open Office Spreadsheet will be provided with allowance for all types of calculators during the test. However, there will be 0.25% negative marking for any incorrect answers. The NCFM Backoffice Operations Module Exam Questions are available in English language only.
In Back Office Operations Module:
- Firstly, there will be a total of 60 questions in the exam that has to be completed in 120 minutes. And, there will be objective type questions only. In which, for every question, you will find four / five alternative answers. Out of which you have to select the correct one.
- Secondly, in order to pass the exam, it is necessary to score 60%.
- Lastly, the Back Office Operations Module will cost you Rs.2006/ inclusive of GST. And, the NCFM certification is valid for 5 years.
Exam Registration
For NCFM, the exam registration can be done online by accessing the link ‘Online Registration’. This is available under Education. After this, click Certifications and Online Register / Enroll. Once registration is completed, you will receive a unique NCFM registration number along with a user id and password. Also, the confirmation will be sent both on your email id and mobile number provided during registration. After logging in you can have access to:
- Firstly, make payment for the NCFM exam.
- Secondly, enroll for the test.
- Thirdly, update the address
- Lastly, check the status of study material or viewing certificates
Point to remember:
- Firstly, it is necessary to provide the latest address in an online NCFM profile. However, to update addresses candidates need to access the link ‘Edit Profile’ available in their NCFM online login.
- Secondly, the NCFM registration number is unique and a candidate has to use the same NCFM registration number while enrolling for any module.
NCFM Backoffice Operations Module Course structure
NCFM provides a course outline for the Back Office Operations Module to help in understanding the concepts in a sequential manner. This include:
Knowing 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
- Proof of Identity (POI)
- Proof of Address (POA)
- PAN Card
- Additional Requirements for non-individuals
- Unique Client Code
- Power of Attorney (POA)
- Nomination
- Changes in Client Information
- Change of Address
- Then, Change in Bank Details
- Change in Signatory
- Minor becoming major
- KYC Registration Agencies (KRA)
- Suspicious Transactions Reporting (STR)
- Designated Individuals & Entities
- Record Keeping
Primary Market
- Types of Issues
- Public Issue – IPO
- Then, Public Issue – Follow-on Offering
- Public Issue – Offer for Sale
- Rights Issue
- Bonus Issue
- Private Placement
- GDR / ADR Issues
- Sponsored GDR / ADR Issues
- Foreign Currency Convertible Bond (FCCB) Issues
- India Depository Receipts
- Public Issue Process
- Time-line for Public Issue
- Common Bid-cum-Application Form
- ASBA
- Buy-Back of Securities
Secondary Market (Trading in Shares)
- National Stock Exchange
- Trading Members & Clearing Members
- Authorized Persons & Sub-brokers
- Trading Member’s Responsibilities for Trades
- Uniform Documentation for Opening Trading Account
- Screen-based Trading System (SBTS)
- Trade Management
- Market Types
- Normal Market
- Auction Market
- Odd Lot Market
- Retail Debt Market
- Margin Trading
- Exchange Margins
- Settlement
- Clearing House
- Other Agencies Involved in Settlement
- Clearing Mechanism
- Clearing Process
- Settlement Process
- Transaction Cycle
- T+2 Rolling Settlement Calendar
- Delivery Versus Payment (DVP) / Hand Delivery
- Auction Settlement
- F&O Settlement
- Books of Accounts
- Straight Through Processing (STP)
Depository Operations
- Depository and Issuer
- Secondly, Depository Participant
- Transactions
- Account Opening
- De-materialisation
- Re-materialisation
- Secondary Market Purchases
- Secondary Market Sales
- Standing Instructions
- Power of Attorney (PoA)
- Transposition
- Transmission of Securities
- Dividends
- Pledging Securities
- Freezing of Accounts
- SMS Alerts
Registrar & Transfer Agent
- Role & Responsibilities
- Voting Rights in Companies
- Dividend Payments in Companies
- Physical Shares
- Transfer Deed
- Delays in Transfer of Shares by Companies
- Good and Bad Delivery Norms
Mutual Fund: AMC Operations
- Legal Structure
- Net Asset Value (NAV)
- Expenses
- Load
- Offer Documents
- Investor Transactions (Normal Physical Mode)
- Acquisition of Units by Investor from the Scheme
- Sale of Units by Investor to Scheme
- Secondary Market Transactions in Units by Investor
- Redemption of Units on closure of scheme
- Additional Purchase by Investor
- Switch by Investor
- Systematic Investment Plan
- After that, Systematic Withdrawal Plan
- Systematic Transfer Plan
- Investor Transactions (NSE MFSS Channel)
- Dividend Options
- Dividend Payout Option
- Growth Option
- Dividend Re-investment Option
- Dividend Mechanics
- Income Distribution Tax
- Securities Transaction Tax (STT)
- Cut-off Time Regulations
- Liquid Schemes & Plans – Subscriptions
- Liquid Schemes & Plans – Re-Purchases
- Other than Liquid Schemes & Plans – Subscriptions
- Other than Liquid Schemes & Plans – Re-purchases
- Official Points of Acceptance (PoA)
- Time Stamping
- RTA Role
- Distributors’ Commission
- Bank Accounts
- Other Back-Office Activities
Mutual Fund Transactions through NSE
- Listed Schemes
- Exchange-Traded Funds (ETFs)
- Mutual Fund Service System (MFSS)
- Subscription (Physical mode)
- Subscription (Demat mode)
- Redemption (Physical mode)
- Redemption (Demat mode)
Qualified Foreign Investors – Equity Shares
- Background
- Permitted Transactions
- Investment Restrictions
- Administration of Investment Limit
- Other Conditions
- Transaction Flow
Qualified Foreign Investors – Mutual Funds
- Background
- Investment Limit
- Transaction Flow
- Direct Route (Demat)
- Indirect Route (Unit Confirmation Receipts – UCR)
- Other Conditions
NCFM Procedures
NCFM has various procedures related to the exam. This is to help the individuals to understand the exam policies as well as the way of taking the exam. Some of them include:
Taking the Test
- Firstly, the exam has to be taken at the designated NSE test center selected at the time of enrollment.
- Secondly, candidates need to be present at the test center 30 minutes prior to the test time. Those reaching late will not have access to take the test, Moreover, they can also be required to enroll again for the exam.
- Thirdly, it is necessary to carry an original Photo ID proof of verification. This can be, PAN card, Driver’s License, Passport, Employee ID, Voter’s ID card, or Student ID card.
- Next, the scientific calculator and a pen are allowed during the test. Moreover, a backup sheet and rough sheet(s) will be provided to the candidates during the test that has to be returned after completion of the exam.
Issuing Certificate
According to NSE, the certificates for all modules will be given to the successful candidates at the test center itself. Those who will not be able to pass the exam will receive a scorecard at the test center. However, the candidates are requested to ensure that they collect their results before leaving the test center. Also, the successful candidates can view their certificates online under the link ‘Query/Report’ available in their NCFM online login portal.
For More: Check Back Office Operations Module FAQs
Preparation Guide for Back Office Operations Module
Exam Objectives
NCFM gives access to the course outline for the Back Office Operations Module. This includes topics categorized into various sections and subsections. Further, this will help candidates to start their preparation in a sequential way. For Back Office Operations Module, the course outline includes:
- Firstly, Know Your Client, Anti-Money Laundering & Combating Financing of Terrorism
- Secondly, Primary Market
- Thirdly, Secondary Market (Trading in Shares)
- Fourthly, Depository Operations
- Then, Registrar & Transfer Agent
- After that, Mutual Fund: AMC Operations
- Next, Mutual Fund Transactions through NSE
- Then, Qualified Foreign Investors – Equity Shares
- Lastly, Qualified Foreign Investors – Mutual Funds
NSE Knowledge Hub
NSE gives access to an AI-First and Mobile-First ecosystem with personalized and community-based learning. This knowledge hub refers to a unique Artificial Intelligence (AI) powered learning platform that helps in financial learning as well as to assist the BFSI sector in enhancing skills for their employees. This also helps academic institutions in preparing advanced future-ready talent for the financial services industry. Further, NSE Knowledge Hub will help:
- Firstly, to be a part of a growing learning community.
- Secondly, in getting access to unlimited content from both global and premium resources.
- Thirdly, in understanding and learning from experts in this field.
- Lastly, learning on the go through mobile.
Further it includes methods like:
Discovering Content
This helps you in getting familiarity with banking, insurance and finance topics. And, this let them discover content in various domains of finance field.
Continuous learning
This provides formal and informal learning through hours of arranged content tailored to the individuals areas of interests and goals.
Deep skilling
This provides in free or paid deep skilling pathways at a marketplace with well-known providers of courses, assessments, labs and credentials.
NSE Study Material
NSE provides a workbook for its certification exam. This can be issued only after making payment for the module. After which, you can download the study material after logging into your account from the E-Library option. NCFM Backoffice Operations Module Books strengthen your exam core concepts. However, candidates who want to purchase the Workbooks for NCFM modules can send a request letter. This is done along with a demand draft of Rs. 500/- per module per workbook. But, they should remember that the request letter should have the valid candidates name, module name, complete postal address, contact details as well as the demand draft details.
Take Practice Tests
For NCFM Backoffice Operations Module Practice Tests can be really helpful during the preparation. That is to say, assessing yourself after completing a topic/section will not only help you improve your answering skills but also you will get to know about your weak areas. Moreover, this will enhance your knowledge about the concepts of the module and to get a good revision. But, to get the unique practice tests, you have to start doing research. Lastly, pass the exam with a good score.
