Securities Intermediaries Compliance (Non-Fund) Certification Examination

Securities Intermediaries Compliance (Non-Fund) Certification Examination Overview

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.

  • 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 of the rules and regulations and the penal actions initiated in case of any default or failure.

Securities Intermediaries Compliance (Non-Fund) Certification Examination Fees Details

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)

1500+ 120 100 100 60 3

*: 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.

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

  1. Understand the SEBI Act, 1992
  2. Know the SEBI Act from Compliance aspect

CHAPTER-5: Securities Contracts (Regulation) Act, 1956 and Securities Contracts (Regulation) Rules, 1957

  1. Understand the sections of the SC(R)A, 1956 pertaining to
  2. 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

  1. 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