CPE Process for “Principal”
As CPE providers, intermediaries and persons seeking certificate through this channel, have been seeking clarification about the term “Principal”. To facilitate operational convenience, the process that is to be followed in certification / CPE of persons from “Principal” category, is explained below:
1. Process to be followed for “Principal”
The eligibility criteria for obtaining certificate through Principal category, as per Regulation 4 of SEBI (CAPSM) Regulations, 2007 are:
4. (1) Subject to the provisions of this regulation, an associated person may obtain the certificate in any of the following manners, namely:-
(a) by passing a certification examination conducted by any organization or self regulatory organization approved or engaged as may be specified by NISM from time to time; or
(b) by obtaining such number of classroom credits accumulated through attending classes on such subjects as may be specified by NISM from time to time; or
(c) by delivering such number of formal classroom sessions in all or specific programmes of continuing professional education as may be specified by NISM from time to time.
(2) An associated person being principal shall obtain the certificate in any of the manners specified in clause (a) or clause (b) or clause (c) of sub regulation (1).
The SEBI (CAPSM) Regulations, 2007 defines Principal as
2 (k) “a person who is actively engaged in the management of the intermediary’s securities business including supervision, solicitation, conduct of business, and includes: a) Sole Proprietors, b) Managing Partners and c) Whole Time Directors”.
For operational convenience and to help CPE providers and persons seeking certificate, the following processes may be followed:
1. If a person is seeking CPE certificate through Principal category, then
“__________ (Name of person) is ‘Principal’ and is eligible to obtain CPE certificate by attending the specified CPE Program, as per sub-regulation (2) of regulation 4 of SEBI (CAPSM) Regulations, 2007”
b. Further, there shall be pre-verification of Compliance Officers’ certificate by NISM, before a person registers for a CPE programme. For this, a candidate shall apply to NISM in prescribed format with the required certificate.
c. On the basis of the required documentation submitted by the candidate NISM will give ‘No objection letter’ to the candidate and to enable him to seek certification by appearing for NISM CPE programme, by submitting the ‘No objection letter’ at the registration desk of the CPE programme along with the required registration form and details.
2. Similarly, a person from ‘Principal’ category, seeking certificate by delivering 4 sessions in a specific two days programme,
“__________ (Name of person) is ‘Principal’ and is eligible to obtain CPE certificate by delivering 4 sessions, in the specified 2 day CPE Program, as per sub-regulation (1C) of regulation 4 of SEBI (CAPSM) Regulations, 2007”
b. NISM may approve the ‘Principal’ as a Trainer, after the due empanelment process, post which the ‘Principal’ may make himself available to NISM and CPE providers to take 4 sessions of 90 minutes each in the specified CPE programme.
c. The ‘Principal’ shall not be entitled to any professional fees / remuneration for 4 sessions of 90 minutes that he takes as part of his certification process. The ‘Principal’ shall not be required to pay any fees for obtaining CPE Certification.
d. Certification requirements will be complete only after the ‘Principal’ completes the delivery of 4 sessions of 90 minutes each in the specified CPE programme within the period of 12 months preceding the date of expiry of the certificate.
3. In both (1) and (2) above, NISM will verify that the required certificates have been received and they are sufficient proof that the applicant can be considered as “Principal”. On the basis of the above NISM shall issue a ‘No objection letter’ to the candidate and enable him to seek certification by appearing for NISM CPE programme by submitting the same at the registration desk of the CPE programme or by delivering sessions in the specified CPE program, as the case may be.
4. While clear cases may be accepted by NISM officers, any ambiguous requests need to be referred to a committee of NISM senior officers designated for this purpose. The Committee may meet periodically and consider these cases.