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.
Frequently Asked Questions
Who can take NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination?
The following persons can take NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination:
- The associated persons functioning as compliance officers of intermediaries registered with the SEBI as stock brokers, or depository participants, or merchant bankers, or underwriters, or bankers to the issue, or debenture trustees or credit rating agencies
- Interested students/professionals
- Any other individuals
For whom is this examination mandated?
SEBI notification dated March 11, 2013, Ref. No. LAD-NRO/GN/202-13/33/1103 (in the ‘Circulars’ section) has specified this examination to be the requisite standard for the associated persons functioning as compliance officers of intermediaries registered with the SEBI as stock brokers, or depository participants, or merchant bankers, or underwriters, or bankers to the issue, or debenture trustees or credit rating agencies.
. How can I register for NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination?
Candidates can register with any of the following Test Administrators.
1. National Institute of Securities Markets (NISM) https://certifications.nism.ac.in/nismaol/
For registrations candidates may visit any of the above websites.
After successful registration, candidates may select a test center, date and time slot of their choice on the Test Administrator website. Candidates are required to follow further instructions available on the Test Administrator websites.
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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
CHAPTERE-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 Stock brokers
- 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 (Alternate 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 enquiry and 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 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