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 IBBI - Limited Insolvency Examination is being revised w.e.f July 1, 2017. Candidates appearing for this examination on or after July 1, 2017 can access the REVISED SYLLABUS here.

Sl. No

Coverage

Weight (%)

a.

The Insolvency and Bankruptcy Code, 2016 (Entire Code)

30

b.

Rules and Regulations under the Bankruptcy Code (All Rules and Regulations notified under the Code till 30th November, 2016)

25

c.

Report of the Bankruptcy Law Reforms Committee (Entire Report)

05

d.

(I) The Companies Act, 2013

· Chapter III Prospectus and Allotment of Securities

· Chapter IV Share Capital and Debentures

· Chapter V Acceptance of Deposits by Companies

· Chapter VI Registration of Charges

· Chapter VII Management and Administration

· Chapter IX Accounts of Companies

· Chapter XV Compromises, Arrangements and Amalgamations

· Chapter XVII Registered Valuers

· Chapter XVIII Removal of names of the companies from the register of companies

· Chapter XX Winding-up of the companies

· Chapter XXVII NCLT and NCLAT

(II) The Partnership Act, 1932, and

(III) The Limited Liability Partnership Act, 2008

(Nature of LLP; Partners and their Relations; Limitation of Liability; Financial Disclosures)

10

e.

(i) The Indian Contracts Act, 1872 (Void, Voidable and Contingent Contracts; Novation, Rescission and Alteration of Contracts; Damages for breach; Indemnity, Guarantee, Surety, Bailment and Pledge; Set off)

(II) Transfer of Property Act, 1882;

(III) The Sale of Goods Act, 1930 (Sale, Warranties, Lien and Damages).

05

f.

(I) The Recovery of Debts due to Banks and Financial Institutions Act, 1993;

(II) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002; and

(III) Corporate Debt Restructuring Scheme, Strategic Debt Restructuring, and Scheme for Sustainable Structuring of Stressed Assets (S4A) (of RBI)

05

g.

General Awareness (Constitution, Economy, Finance, Code of Conduct for Insolvency Professionals, and Rights of Workmen)

05

h.

Finance and Accounts

(Corporate Finance, and Financial Analysis)

05

i.

Case Study (Cases on Corporate Insolvency Resolution, Corporate Liquidation, Fresh Start, Individual Insolvency Resolution and Individual Bankruptcy)

10

Total

100

IBBI - Limited Insolvency Examination

Frequently Asked Questions

(1st July 2017 to 31st December 2017)

  1. Is this examination mandated under any law and for what purpose?

Yes. This examination is mandated under the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 made under the Insolvency and Bankruptcy Code, 2016. It is one of the mandatory conditions for registration as an insolvency professional with the Insolvency and Bankruptcy Board of India (IBBI). 

 

  1. What are the eligibility criteria to sit for the examination?

There are no eligibility criteria for appearing in the examination. However, please be informed that registration as Insolvency Professional will be governed by the regulations in force at the time of consideration of application for registration as Insolvency Professional.

 

  1. Case laws up to which date are covered in the syllabus?

Cases up to 30th June, 2017 are covered in the syllabus.

 

  1. Which of the regulations so far issued are a part of the syllabus?

All the regulations that have been notified under the Insolvency and Bankruptcy Code, 2016 till 30th June, 2017 are covered in the syllabus.

 

  1. How can I take the IBBI - Limited Insolvency Examination?

You need to go through three stages for taking the examination and follow instructions given on the screen at every stage:

 

Stage I: Please visit www.ibbi.gov.in/limited-insolvency.html or www.nism.ac.in/certification and Click on ‘Register for Exam’ button. You will be taken to “Candidate registration form”. Please provide your email address and identity details, set a password, upload your photograph, PAN Card and Aadhaar Card and then submit the form online. You will receive an activation link on your registered email id. Please click on this link to verify your email address. This is a one-time registration process and your account will be approved by NISM within 3 working days. No fee is payable for registration. Hereafter, you can access the examination system with your user id which is your email address and the password you have set at the time of registration. You can change the password whenever you like.

 

Stage II: You decide when you would like to take the examination. Then visit www.ibbi.gov.in/limited-insolvency.html or www.nism.ac.in/certification  to enroll yourself for the examination. You need to select ‘IBBI-Limited Insolvency Examination’ (http://nism.ac.in/certification/index.php/nism-certifications/ibbi-limited-insolvency-examination/ibbi-limited-insolvency-examination). Click on “Register and Enroll Online” link and access the system with user ID created in Stage I to choose the time and the day when you would like to take the examination and also choose the examination centre from where you would like to take the examination. After selecting time, day and centre, please pay examination fee of Rs.1500 online by using Credit Card / Debit Card / Net Banking. Thereafter, you can download your Admit Card for the examination. 

 

Stage III: Please carry your Printout of Admit Card, original PAN Card / Aadhaar Card / Driving License / Passport and arrive 30 minutes before the scheduled time at the examination center. Please note that without the Admit Card and the Original Photo Identity proof (mentioned above), candidate/s shall not be permitted to appear for the Examination.

 

You will be provided on a computer screen a question paper which carries 90 questions for 100 marks. Each question has four alternate answers. You need to select the correct answer. A wrong answer attracts negative marks. Answer all the 90 questions within two hours and submit the answer paper at any time within the said two hours. If you do not submit the answer paper earlier, the paper will be auto submitted by the system on expiry of two hours. Immediately on submission of the answer paper or expiry of two hours, whichever is earlier, a temporary mark sheet would be displayed on the computer screen indicating the marks you have scored in the examination. If you score 60 marks or above, you are declared successful in the examination. In that case, you would be issued a pass certificate by the IBBI within 30 days of the examination. You would be eligible to apply for registration as an insolvency professional with the temporary mark sheet and you need not wait to get the pass certificate from the IBBI.

 

If you do not pass the examination and wish to take the examination again, you need to repeat stage II and stage III, as many times as you wish.

  

  1. I live in North-east where the process of Aadhaar registration has not started yet. How do I register without Aadhaar number?

Please contact NISM’s Helpline at +91-8080806476 for necessary support in this regard.

 

  1. What is the fee payable for the examination?

You need to pay a fee of Rs.1500 (Rupees One Thousand Five Hundred only) with every enrolment. You need to pay the fee online by using Credit Card / Debit Card / Net Banking. 

 

  1. What is the structure of the question paper?

The question paper carries 80 questions of 1 mark each and 10 questions of 2 marks each. You need to answer these 90 questions in 2 hours. Each question is followed by four alternate answers. You need to select the correct answer among these. A correct answer gives you the marks assigned to the question. A wrong answer attracts a negative mark of 25% of the marks assigned to the question. You need to score 60% to pass the examination.

 

  1. I got less than 90 questions in the examination. Kindly clarify?

As per the structure of examination there are 90 questions of which 5 questions are based on one case study, which appear as one cohesive group in your exam paper. As the computer system draws these 5 questions as a set, these appear as a single question, the testing platform displays the question count as "out of 86 questions" but when the sub-questions of the case study are taken into account, you would have received a total of 90 multiple choice questions in your examination.

 

  1. Can I have an idea of the structure of the question paper before the examination?

A sample question paper is available at http://ibbi.gov.in/limited-insolvency.html

 

  1. When is the examination held?

The examination is available on all days beginning 1stJuly, 2017 from 9:30 AM to 5:30 PM from 100+ examination centres. To check on the availability of date and time at the examination centre of your choice, please visit https://certifications.nism.ac.in/nismaol/ 

 

  1. How many times I can take the examination?

You can appear for the examination any number of times till you clear the exam. However, you have to enroll yourself afresh and pay the examination fee for each enrollment. 

 

  1. Can I get refund of the fee, if I do not take the examination?

Refund of fee is not permissible. However, you can get the examination rescheduled to a different date at least fifteen days before the scheduled examination date. Please note that only one such rescheduling is allowed.

 

  1. How do I prepare for the examination?

The examination is based on the syllabus notified by the IBBI on its website on 17th May, 2017. Please visit http://www.ibbi.gov.in/limited-insolvency.html to find out syllabus. This syllabus will hold good for all examinations conducted from 1stJuly, 2017 to 31st December, 2017. You need to be thorough on every part of the syllabus. The IBBI does not provide any study material or workbook for the examination. You may use the books or other resources available on the subject.

 

  1. Can I refer books or other material during the examination?

No. It is not an open book examination.

 

  1. When will I receive the pass certificate?

On submission of the answer paper, you would see your score on the computer screen. You would be issued a pass certificate, if you have secured 60 marks or above, by the IBBI within 30 days of the examination.

 

  1. How long is the certificate valid?

 The certificate is valid for life.

 

  1. Can I request for re-evaluation of my answer paper?

 Since the answer paper is checked by computer without any human intervention, no re-evaluation is allowed. Subject to this, request/s received from a candidate for resolution of doubts about a question forming part of examination will be considered as per the following policy:

(1) Candidate’s request/s will be considered only when he/she specifically mentions a particular question or at best two questions which he/she thinks contain errors. Claim/s to recheck more than two questions shall be not permitted unless substantive material is provided by the candidate as to why he/she considers errors in such questions. 

(2) No request/s to disclose/discuss question/s and/or their answers shall be entertained as disclosure of the question/s will violate the integrity of the question bank, namely, breach the confidentiality/secrecy of the question bank.

(3) Only those request/s made on-the-spot (before leaving the test center) will be considered for verification.

(4) When a request is received from a candidate at the Test Centre, it shall be forwarded by the respective Test Administrator to NISM.

(5) Such matter will then be escalated with the question / answer to the IBBI with the details of the nature of error, the correct version of the question or contested correct answer and system recognized correct answer. IBBI, after due diligence and proper scrutiny, will arrive at a conclusion whether the claim made by a candidate in relation to a question or answer is right. 

(6) Score computation, kept in abeyance as per point 4, shall be carried based on the approval as per point (5). Such score card will then be issued to the candidate by Test Administrator.

(7) The above policy and process will be subject to review from time to time and shall be binding and final in relation to any claim and/or matter when disposed off with the approval of the authority of IBBI.

 

  1. Who should I contact for any clarification about the examination?

You may send an e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it. you may call up on number +91-8080806476.

 

 


The examinations seeks to create a common minimum knowledge benchmark for Auditors (who are chartered accountants, company secretaries or cost and management accountants as mentioned in SEBI Circular no. MRD/DMS/Cir-29/2008 dated October 21, 2008) and/or its employees or partners signing the internal audit report.

The exam will further seek to ensure understanding of regulatory framework under which the stock brokers perform their various activities, the operations performed by the Stock brokers and compliance and reporting requirements from audit perspective.

Examination Objectives:

The examination seeks to create a common minimum knowledge benchmark for Independent Chartered Accountants, Company Secretaries and Management Accountants, who carry out Internal Audit of the Operations of Stock Brokers/Clearing Members.

On successful completion of the examination the candidate should:

  • Know regulatory framework under which the stock brokers perform their various activities.
  • Understand the various operations performed by the Stock brokers
  • Understand the various compliance and reporting requirements from audit perspective

Assessment Structure

The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score on the examination is 60 percent. There shall be negative marking of 25 percent of the marks assigned to a question.

Test Details

Name of Examination: NISM Series-XIV: Internal Auditors for Stock Brokers Certification Examination

Fees (Rs.)

Test Duration (in minutes)

No. of Questions

Maximum Marks

Pass Marks* (%)

Certificate # Validity (in years)

1770+

120

100

100

60

3

*: Negative marking - 25% of the marks assigned to the question

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

For registering as a Retirement Adviser with PFRDA, applicant should be minimum, a graduate in any discipline and should possess a valid certification on retirement planning or retirement advisory services issued by National Institute of Securities Market (NISM). NISM certification shall not be mandatory in the following cases:

  • an Investment Adviser registered with Securities and Exchange Board of India under its regulations.
  • any Certified Financial Planner (CFP) or Associate Financial Planner (AFP)- Retirement Planning Certification/s, awarded by Financial Planning Standards Board India (FPSB India).

 

For detailed information, refer to the below documents:

PFRDA (Retirement Advisers) Regulations, 2016

Circular on Advisory Fee

FAQs for:

  1.   Individuals and  
  2. Other than Individuals

For Online Retirement Adviser Registration, click here.

 

 

Chapter 1: Introduction to Research Analyst Profession

1.1 Primary role of a Research Analyst

1.2 Primary responsibilities of a Research Analyst

1.3 Basic principles of interaction with Companies / Clients

1.4 Important qualities of a Research Analyst

Chapter 2: Introduction to Securities Market

2.1 Introduction to Securities and Securities Market

2.2 Product Definitions / Terminology

2.2.1 Equity Shares

2.2.2 Debentures/Bonds/Notes

2.2.3 Warrants and Convertible Warrants

2.2.4 Indices

2.2.5 Mutual Fund Units

2.2.6 Exchange Traded Funds

2.2.7 Hybrids/Structured Products

2.2.7.1 Preference Shares

2.2.7.2 Convertible Debenture & Bonds

2.2.7.3 Indian Depository Receipts (IDRs), Global Depository Receipts (GDRs) and American Depository Receipts (ADRs)

2.2.7.4 Foreign Currency Convertible Bonds (FCCB)

2.2.7.5 Equity Linked Debentures

2.2.7.6 Commodity Linked Debentures

2.2.7.7 Mortgaged Backed Securities (MBS) and Asset Backed Securities (ABS)

2.3 Structure of Securities Market

2.3.1 Primary market- Explain various ways to issue Securities - Initial Public Offer (IPO), Follow on Public Offer (FPO), Private Placement, Qualified Institutional Placements (QIPs), Preferential issue, Rights and Bonus issue,  Onshore and offshore offerings, Offer for Sale (OFS)

2.3.2 Secondary market - Over-the-counter Market and Exchange Traded Markets, Trading, Clearing and Settlement and Risk Management

2.4 Various market participants and their activities

2.4.1 Market Intermediaries – Stock Exchanges, Depositories, Depository Participant, Trading Member/Stock Brokers & Sub-Brokers, Authorised Person, Custodians, Clearing Corporation, Clearing Banks, Merchant Bankers and Underwriters

2.4.2 Institutional participants – Foreign Institutional Investors (FIIs), P-Note Participants, Mutual Funds, Insurance Companies, Pension Funds, Venture Capital Funds, Private Equity Firms, Hedge Funds, Alternative Investment Funds, Investment Advisers

2.4.3 Retail participants

2.5 Kinds of transactions

2.5.1 Cash, Tom and Spot trades/transactions

2.5.2 Forward transactions

2.5.3 Futures

2.5.4 Options

2.5.5 Swaps

2.5.6 Trading, Hedging, Arbitrage, Pledging of Shares

2.6 Dematerialization and Rematerialization of securities

Chapter 3: Terminology in Equity and Debt Markets

3.1 Terminology in Equity Market

3.1.1 Face Value

3.1.2 Book Value

3.1.3 Market Value

3.1.4 Replacement Value

3.1.5 Intrinsic Value

3.1.6 Market Capitalization

3.1.7 Enterprising Value

3.1.8 Earnings – Historical, Trailing and Forward

3.1.9 Earnings Per Share

3.1.10 Dividend Per Share

3.1.11 Price to Earnings Ratio

3.1.12 Price to Sales Ratio

3.1.13 Price to Book Value Ratio

3.1.14 Differential Voting Rights (DVRs)

3.2 Terminology in Debt Market

3.2.1 Face Value

3.2.2 Coupon Rate

3.2.3 Maturity

3.2.4 Principal

3.2.5 Redemption of a Bond

3.2.6 Holding Period Returns

3.2.7 Current Yield, Yield to Maturity (YTM)

3.2.8 Duration and Modified Duration

3.2.9 Convexity

3.3 Types of Bonds

3.3.1 Zero Coupon Bonds

3.3.2 Floating Rate Bonds

3.3.3 Convertible Bonds

3.3.4 Amortization Bonds

3.3.5 Callable Bonds

3.3.6 Puttable Bonds

3.3.7 Payment in Kind Bonds

3.3.8 Principal Protected Note

3.3.9 Inflation Protection Securities

Chapter 4: Fundamentals of Research

4.1 What is investing

4.2 Research on businesses or stocks

4.3 Fundamental Analysis - Top down approach and Bottom up approach

4.4 Technical Analysis

4.5 Behavioral Finance

Chapter 5: Economic Analysis

5.1 Basic principles of microeconomics

5.2 Basic principles of macroeconomics

5.3 Introduction to various macroeconomic variables

5.3.1 National income

5.3.2 Savings and Investments

5.3.3 Inflation (Consumer/Wholesale Price Indices) and interest rate

5.3.4 Unemployment rate

5.3.5 Flows from Foreign Direct Investment (FDI) and Foreign Institutional Investors (FIIs)

5.3.6 Fiscal policies and their impact on Economy

5.3.7 General Anti-Avoidance Rules (GAAR)

5.3.8 Monetary policies and their impact on Economy

5.3.9 International trade, Exchange rate and Trade Deficit

5.3.10 Globalization– Positives and Negatives

5.4 Sources of information for economic analysis

Chapter 6: Industry Analysis

6.1 Dr. Michael Porter’s five force model for industry analysis

6.1.1 Industry rivalry

6.1.2 Threat of substitutes

6.1.3 Bargaining power of buyers

6.1.4 Bargaining power of suppliers

6.1.5 Barriers to entry

6.2 Political, Economic, Socio-cultural, Technological, Legal and Environmental (PESTLE) Analysis

6.3 Boston Consulting Group (BCG) Analysis

6.4 Structure Conduct Performance (SCP) Analysis

6.5 Key Industry Drivers

6.6 Regulatory environment/framework

6.7 Sources of information for industry analysis

Chapter 7: Company Analysis – Qualitative Dimensions

7.1 Understand Business and Business Models

7.2 Competitive Advantages/Points of differentiation over the competitors

7.3 Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

7.4 Quality of management (including independent directors) and governance

7.5 Pricing power and sustainability of this power

7.6 Organization structure

7.7 Critical business drivers/success factors

7.8 Risks in the business

7.9 Compliance orientation of the company

7.10 Documentation on Guidance v/s Actuals

7.11 Sources of information for analysis

Chapter 8: Company Analysis – Quantitative Dimensions

8.1 History of Business Vs. Future of Business

8.2 Basics of Profit and Loss Account (P/L)

8.3 Basics of Balance Sheet (B/S)

8.4 Basics of Cash Flows

8.5 Contingent Liabilities, Off-balance sheet items, Accounting Policies, Notes to Accounts

8.6 Basics of Taxation affecting to Companies

8.7 Important points to keep in mind while looking at financials

8.8 Quality of business in the past through quantitative lenses

8.8.1 Profitability ratios

8.8.2 Return ratios

8.8.3 Leverage ratios

8.8.4 Liquidity ratios

8.8.5 Efficiency ratios

8.9 Peeping in to future with caution

8.10 Peer Comparison

8.11 History of Equity expansion

8.12 Dividend and earnings history

8.13 History of corporate actions

8.14 Ownership and Insiders’ Sales and Purchase of stocks in the past

Chapter 9: Corporate Actions

9.1 Philosophy of corporate actions

9.1.1 Dividend

9.1.2 Rights Issue

9.1.3 Bonus Issue

9.1.4 Stock Split

9.1.5 Share Consolidation

9.1.6 Merger and Acquisition

9.1.7 Loan Restructuring

9.1.8 Buy back of shares

9.1.9 Delisting of shares

9.1.10 Share Swap

Chapter 10: Valuation Principles

10.1 Difference between Price and Value

10.2 Why Valuations are required

10.3 Sources of Value in a Business – Earnings and Assets

10.4 Discounted Cash Flows model for Business Valuation

10.5 Absolute Valuations vs. Price-Value sense

10.6 Earnings based Valuation Matrices

10.6.1 Dividend Yield – Price to Dividend Ratio

10.6.2 Earning Yield - Price to Earnings Ratio

10.6.3 Growth adjusted Price to Earnings Ratio (PEG Ratio)

10.6.4 Enterprise Value to EBDITA Ratio

10.6.5 Enterprise Value (EV) to Sales Ratio

10.7 Assets based Valuation Matrices

10.7.1 Return on Equity (ROE) based valuation –Price to Equity Book Value Ratio

10.7.2 Return on Capital Employed (ROCE) based valuation – Enterprise Value (EV) to Capital Employed Ratio

10.7.3 Net Asset Value approach

10.8 Relative Valuations - Trading Multiples and Transaction Multiples

10.9 Sum-Of-The-Parts (SOTP) Valuation

10.10Other Valuation Parameters in new age economy and businesses

10.11Capital Asset Pricing Model

10.12Objectivity of Valuations

10.13Some important considerations in the context of Business Valuation

Chapter 11: Fundamentals of Risk and Return

11.1 Concept of return of investment and return on investment

11.2 Calculation of simple, annualized and compounded returns

11.3 Risks in investments

11.4 Concepts of market risk (Beta)

11.5 Sensitivity analysis to assumptions

11.6 Concept of Margin of Safety

11.7 Comparison of equity returns with bond returns

11.8 Basic Behavioral Biases influencing investments

11.9 Some pearls of wisdom from Investment Gurus across the world

Chapter 12: Qualities of a good Research Report

12.1 Qualities of a good Research Report

12.1.1 Rating Conventions – Over-weight, Under-weight, Buy, Sell and Hold recommendations

12.2 Checklist based approach to the Research Reports

12.3 A sample checklist for Investment Research Reports

Chapter 13: Legal and Regulatory Environment

13.1 Regulatory infrastructure in Financial Markets s

13.1.1 Ministry of Finance (MoF)

13.1.2 Ministry of Corporate Affairs (MCA)

13.1.3 Reserve Bank of India (RBI)

13.1.4 Securities and Exchange Board of India (SEBI)

13.1.5 Insurance Regulatory and Development Authority (IRDA)

13.1.6 Pension Fund Regulatory and Development Authority (PFRDA)

13.1.7 Forward Markets Commission (FMC) etc.

13.2 Important regulations in Indian Securities Market

13.2.1 Securities Contract (Regulation) Act, 1956

13.2.2 Securities and Exchange Board of India (SEBI) Act, 1992

13.2.3 Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015

13.2.4 SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulation, 2003

13.2.5 Securities and Exchange Board of India (Research Analyst) Regulations, 2014

13.3 Code of Conduct/Ethics for Research Analysts

13.4 Disclosure Requirements for Research Analysts

Annexure:

1. Case Studies (Some cases from history on market events)

2. Suggested Readings

3. Reference websites

 

 

 

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