Securities Intermediaries Compliance (Non -fund) Certification Examination Overview
Compliance function is used as a generic reference to refer to the range of roles and responsibilities for carrying out specific compliance activities and responsibilities.
What are the course objectives?
- Understand the structure of financial and securities markets in India; financial intermediaries and the types of products available in the Indian market.
- Understand the regulatory framework and the role of the various regulators in the financial system.
- Understand the Importance of Compliance function and the scope and role of the compliance officer in the Indian securities market.
- Understand the various regulations and rules of the Indian securities market as related to the defined group of intermediaries.
- Understand the importance of compliance with the rules and regulations and the penal actions initiated in case of any default or failure.
Course Fees ?
Name of Module: NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination
|Fees (Rs.)||Test Duration (in minutes)||No. of Questions||Maximum Marks||Pass Marks* (%)||Certificate Validity#(in years)|
*: Negative marking – 25% of the marks assigned to the question
+ Payment gateway charges extra.
# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.
Benefits from this Course ?
• The characteristics of its clients, for example, retail or institutional;
• The structure and diversity of its operations (including the geographical spread of and
the regulatory requirements applicable to its operations); and
• The number of people that it engages to conduct its business
The examination seeks to create a common minimum knowledge benchmark for all persons engaged in compliance function with any intermediary registered as Stock Brokers, Sub-brokers, Depository Participants, Merchant Bankers, Underwriters, Bankers to the Issue, Debenture Trustees and Credit Rating Agencies.
CHAPTER-1: Introduction to the Financial System
- Understand the Indian Financial System
- Know about the Financial Market Intermediaries
- Know the various types of Financial Securities
CHAPTER-2: Regulatory Framework – General View
- Know the Regulatory System in India
- Know the role of the Financial Market Regulators
- Understand the role of other regulators in the financial market: ROC, EOW, FIU-I, Police Authorities,
- Know the role of Appellate Authority
- Know the Legislative Framework Governing the Financial market
CHAPTER-3: Introduction to Compliance
- Understand the need for Compliance
- Know the Role and Reporting Structure of Compliance Officers (CO)
- Understand the Responsibilities of COs towards Stakeholders
- Know the Compliance requirements under the SEBI (CAPSM) Regulations, 2007
CHAPTER-4: SEBI Act, 1992
- Understand the SEBI Act, 1992
- Know the SEBI Act from Compliance aspect
CHAPTER-5: Securities Contracts (Regulation) Act, 1956 and Securities Contracts (Regulation) Rules, 1957
- Understand the sections of the SC(R)A, 1956 pertaining to
- Understand the following Rules of the SC(R)R 1957
- Recognition of Stock Exchanges
- Contracts and options in securities
- Listing of securities
- Penalties and Procedures
- Audit of accounts of members
- Withdrawal of recognition
- Books of account and other documents to be preserved
- Submission of annual reports and periodical returns
- Requirements with respect to the listing of securities on a Stock Exchange
CHAPTER-6: SEBI (Intermediaries) Regulations, 1992
- Understand the SEBI (Intermediaries) Regulations.
- Know the General Obligations of the Intermediaries.
- Know the obligation of the intermediaries on inspection
- Understand the action in case of default
- Know the Code of Conduct for intermediaries.
CHAPTER-7: SEBI (Prohibition of Insider Trading) Regulations, 1992
- Understand the SEBI (Prohibition of Insider Trading) Regulations, 1992
- Discuss the Code of conduct for prevention of insider trading.
CHAPTER-8: SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003
- Understand the Regulation w.r.t. the prohibition of certain dealings in securities.
- Know the various prohibitions related to manipulative, fraudulent and unfair trade practices.
- Know the procedure for Investigation.
CHAPTER-9: Prevention of Money Laundering Act 2002
- Understand the significance of Anti-Money Laundering (AML) measures.
- Know the general obligations keeping in mind the AML guidelines issued by SEBI.
- Know the provisions as stated in the SEBI (Foreign Portfolio Investors) Regulations, 2014.
CHAPTER-10: SEBI (KYC Registration Agency) Regulations, 2011
- Understand the registration process
- Know the obligations while surrendering the certificate of registration.
- Understand the Functions and Obligations of KRA and Intermediary.
- Know the obligations of the KRA on inspection by SEBI.
CHAPTER-11: SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, Listing Agreement and SEBI (Delisting of Securities) Guidelines, 2003
- Understand the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, w.r.t to the following:
- Registration of Stock Brokers
- Registration of Sub-Brokers
- Registration of trading and clearing member
- General obligations and responsibilities
- Procedure for Inspection
- Procedure for action in case of default
- Code of conduct for Stockbrokers
- Code of conduct for Sub-brokers
- Regulation of transactions between clients and brokers
- Transactions between clients and brokers
- Unique Client Code
- Capital Adequacy norms for brokers
- Maintenance of books of account and other documents in the manner sought by the enforcement agencies
- Inspection of brokers by Stock exchanges
- Direct Market Access – operational specifications, risk management, broker to be liable for DMA trades
- Fees payable by Stock Brokers
2.Understand the SEBI (Alternative Investment Funds) Regulation, 2012 w.r.t
- Registration as an AIF
- Eligibility Criteria
- Investment conditions and restriction
- General obligations of AIF
CHAPTER-12: SEBI (Merchant Bankers) Regulations, 1992, SEBI Takeover Code and SEBI (BuyBack of Securities) Regulations, 2006
- Understand the SEBI (Merchant Bankers) Regulations, 1992 w.r.t.
- Know the general obligations and responsibilities of the merchant banker.
- Know the obligations of the Merchant Banker as per the SEBI Takeover Code.
- Know the main requirements under the Listing Agreement of the Stock Exchanges
- Know the SEBI (Delisting of Securities) Guidelines, 2003
- Understand the obligations of the Intermediary under the SEBI (Buyback of Securities) Regulations, 2006
- Definition of a merchant banker.
- Procedure for registration as a merchant banker.
- Eligibility criteria for grant of certificate
- Capital adequacy requirement
CHAPTER-13: SEBI (Issue of Capital Disclosure and Requirements) Regulations, 2009
- Understand the ICDR Regulation from Merchant Banker aspect
- Know the role of merchant bankers as advisors to the issuer company.
- List out the key activities and related compliances undertaken by the merchant banker
- Know the Post Issue activities of the merchant banker.
CHAPTER-14: SEBI (Depositories) Regulations, 1996
- Understand the SEBI (Depositories) Regulations, 1996.
- Know the Rights and Obligations of the Depositories.
- Know the
enquiryand inspection procedure followed by SEBI and the penalties.
CHAPTER-15: SEBI (Depositories and Participants) Regulations
- Understand the procedure of registration of a depository participant.
- Know the rights and obligations of the depository participant.
- List the documents related to records of services which need to be maintained.
- Know the investor grievance redressal mechanism.
- Know the Code of conduct for participants and the action in case of any default.
CHAPTER-16: SEBI (Bankers to an Issue) Regulations, 1994
- Know the procedure of application and registration as a Banker to an Issue.
- Understand the general obligations and responsibilities of Banker to an Issue.
- Know the Code of conduct for the Bankers to an Issue.
- List the obligations of a banker to an issue in case of inspection and the action taken by SEBI on the inspection and investigation report.
CHAPTER-17: SEBI (Underwriters) Regulations, 1993
- Know the role of an Underwriter
- Know the Capital Adequacy requirements as an Underwriter.
- Know the Code of conduct for the Underwriters.
- List the general obligations and responsibilities as an Underwriter.
- Know the Obligations of underwriter on Inspection by SEBI.
CHAPTER-18: SEBI (Debenture Trustees) Regulations, 1993
- Understand the procedure of application and registration as Debenture Trustees.
- Know the Capital Adequacy requirements as Debenture Trustees.
- Understand the following general obligations and responsibilities.
- Know the Code of conduct for the Debenture Trustees.
- Know the Obligations of the Debenture Trustees on Inspection by SEBI.
- List the various contents which should form a part of the trust deed.
CHAPTER-20: SEBI (Credit Rating Agencies) Regulations, 1999
- Know the Registration process for Credit Rating Agencies.
- Know the General Obligations of Credit Rating Agencies.
- Understand the Restrictions on Rating w.r.t:
- Securities issued by Promoters
- Securities issued by entities connected with Promoter etc
- Securities already rated
- Know the obligations of credit rating agency on inspection or investigation by SEBI.
- Know Code of the conduct of the Credit Rating Agencies.
- List out the Guidelines issued by SEBI for Credit Rating Agencies.
CHAPTER-21: SEBI(Custodian of Securities) Regulations 1996
- Understand the different Custodial Services.
- Know the eligibility criteria and the registration process.
- Highlight the General Obligations and Responsibilities of Custodians.
- Know the Code of Conduct.
- Know the obligation of custodian on inspection conducted by SEBI