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| NISM/Certification/DOCECPE/2012/1 dated July 9, 2012 |
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National Institute of Securities Markets Communiqué/Press Release
NISM-Series-VI: Depository Operations Certification Examination NISM/Certification/DOCECPE/2012/1 dated July 9, 2012 Further to NISM/Certification/CPE General/2011/1 dated December 21, 2011 and NISM/Certification/ CPE General/2011/2 dated January 23, 2012, in exercise of the powers conferred by sub-regulation (1) of Regulation (9) of SEBI (Certification of Associated Persons in Securities Markets) Regulations, 2007, pursuant to Continuing Professional Education (CPE) requirements for the associated persons engaged or employed by a registered depository participant for performing any of the activities as specified in SEBI Notification No. LAD-NRO/GN/2010-11/26/10252 dated March 29, 2011; NISM now specifies the CPE Program for “NISM-Series-VI: Depository Operations Certification Examination” Background: National Institute of Securities Markets (NISM) performs two functions delegated to it under the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) (SEBI CAPSM) Regulations, 2007. These are: 1. Offering mandatory certification examinations for associated persons of securities market intermediaries. 2. Offering Continuing Professional Education (CPE) programmes for associated persons of market intermediaries who are holding valid certificates.
CPE Requirements: The CPE structure has been specified vide communiqué NISM/Certification/CPE General/2011/1 dated December 21, 2011 On or before expiry of a valid certificate1 possessed by an associated person, the associated person needs to either successfully complete the programme of continuing professional education specified by NISM during 12 months preceding the date of expiry of the certificate, or pass the relevant NISM Certification Examination before the expiry of the existing certificate, so as to have the certificate revalidated for a further period of three years. To obtain a certificate for the first time, associated persons, who are Principals and Grandfathered Persons, will have the following options: (a) Passing the relevant certificate examination, as specified by NISM. (b) Successfully completing a related 2 day CPE Program, as specified by NISM. The mandated two day NISM CPE Programme can be successfully completed by a candidate by either attending the relevant CPE Programme on two consecutive days or with a gap. However, both the days of CPE Programme must be completed during 12 months preceding the date of expiry of the certificate. Attending only one day of the relevant CPE Programme during 12 months preceding the date of expiry of the certificate shall not be considered as successful completion. The fees for the program will be as below:
The certificate will be revalidated for a period of 3 years from the date of expiry of the existing certificate. Launch Date: The CPE Programme will be made available by NISM Accredited CPE Providers from July 13, 2012. The Programme details will be made available at www.nism.ac.in 1Certificates obtained by appearing / completing the following certifications will be considered as a valid certificate if the validity period of the certificate is not over: (i) Examination / CPE Certificate for NISM-Series-VI: Depository Operations Certification Examination. (ii) NSE’s Certification in Financial Markets (NSDL – Depository Operations Module) of the National Stock Exchange of India Limited. (iii) NSDL’s Certification in Depository Operations (NCDO) of the National Securities Depository Limited. (iv) BSE’s Certification in Financial Markets (BSE’s Certification on Central Depository) of the Bombay Stock Exchange Limited. Further, associated person, possessing a certificate on completion of CDSL’s DP Training Programme on Central Depository Services (India) Limited shall be exempted from the requirement of DOCE for a period of 3 years from the date of completion of the programme.
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M. L. Soneji Registrar National Institute of Securities Markets Copy to:
Annexure –I THE GAZETTE OF INDIA EXTRAORDINARY PART - III - SECTION 4 PUBLISHED BY AUTHORITY NEW DELHI, MARCH 29th , 2011 SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 29th March, 2011 Notification under regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007. F. No. LAD-NRO/GN/2010-11/26/10252 - In terms of sub-regulation (1) of regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (the Regulations), the Board is empowered to require, by notification, any category of associated persons as defined in the Regulations to obtain requisite certification(s). 2. Accordingly, it is notified that with effect from the date of this notification, the associated persons engaged or employed by a registered depository participant in: (a) dealing or interacting with clients; (b) dealing with securities of clients; (c) handling redressal of investor grievances; (d) internal control or risk management; (e) activities having a bearing on operational risk, or (f) maintenance of books and records pertaining to the above activities, shall have certification from the National Institute of Securities Markets (NISM) by passing the NISM-Series-VI: Depository Operations Certification Examination (hereinafter referred to as “DOCE”) as mentioned in the NISM communiqué/Press Release NISM/Certification/Series-VI: DOCE/2011/01 dated February 10, 2011: Provided that the depository participant shall ensure that all such associated persons as on the date of this notification obtain DOCE within two years from the date of said notification: Provided further that a depository participant, who engages or employs any such associated person after the date of this notification, shall ensure that such person obtains DOCE within one year from the date of his employment: Provided further that an associated person, who possesses any of the following certificates, as on the date of this notification, shall be exempted from the requirement of DOCE till the validity of the said certificates: (a) NSE’s Certification in Financial Markets (NSDL – Depository Operations Module) of the National Stock Exchange of India Limited, or (b) NSDL’s Certification in Depository Operations (NCDO) of the National Securities Depository Limited, or (c) BSE’s Certification in Financial Markets (BSE’s Certification on Central Depository) of the Bombay Stock Exchange Limited. Provided further that an associated person, who possesses a certificate on completion of CDSL’s DP Training Programme on Central Depository Services (India) Limited, shall be exempted from the requirement of DOCE for a period of 3 years from the date of completion of the programme. U. K. SINHA, CHAIRMAN [ADVT III/4/69 ZB/10-Exty.]
Annexure –II National Institute of Securities Markets Communiqué/Press Release NISM Continuing Professional Education Requirements NISM/Certification/ CPE General/2011/1 dated December 21, 2011 NISM Continuing Professional Education Program National Institute of Securities Markets (NISM) performs two functions delegated to it under the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) (SEBI CAPSM) Regulations, 2007. These are:
Certification and Continuing Professional Education Requirements Obtaining a certificate for the first time Regulation 4 of SEBI (CAPSM) Regulations, 2007 specifies the manner of obtaining the certificate the first time. These are further detailed below: Principal1 A Principal may obtain the certificate by any of the following manners:- (a) Passing the relevant certificate examination, as may be specified by NISM. (b) Successfully completing a related 2 day CPE Program, as may be specified by NISM. (c) Delivering at least four sessions in specific 2 day CPE program, as may be specified by NISM. Grandfathered person A person other than a Principal, who has attained 50 years of age or who has 10 years of experience, may obtain the certificate by any of the following methods: (a) Passing the relevant certificate examination, as may be specified by NISM. (b) Successfully completing a related 2 day CPE Program, as may be specified by NISM. Others All other persons may obtain the certificate by the following method: (a) Passing the relevant certificate examination, as may be specified by NISM. According to Regulation 5 of SEBI (CAPSM) Regulations, 2007, the certificate granted is valid for three years from the date of the grant of the certificate or revalidation thereof, as the case may be.
Continuing Professional Education Requirements for Revalidating the Certificate Upon expiry of the validity of the certificate possessed by an associated person, the certificate may get revalidated, provided the associated person successfully completes a programme of continuing professional education, as may be specified by NISM during 12 months preceding the date of expiry of the certificate, or by passing the relevant NISM Certification Examination before the expiry of the existing certificate. The certificate will be revalidated for a period of three years from the date of expiry of the existing certificate. Different categories of persons may get their certificate revalidated through different methods as follows: Principal A Principal may get his/her certificate revalidated by any of the following ways: (a) Passing the relevant certificate examination, as may be specified by NISM. (b) Successfully completing a related 2 day CPE Program, as may be specified by NISM. (c) Delivering at least four sessions in specific 2 day CPE program, as may be specified by NISM. Grandfathered person A person other than a Principal, who has attained 50 years of age or who has 10 years of experience, may get the certificate revalidated by any of the following methods: (a) Passing the relevant certificate examination, as may be specified by NISM. (b) Successfully completing a related 2 day CPE Program, as may be specified by NISM. Other persons All other persons may get their certificate revalidated by any of the following methods: (a) Passing the relevant certificate examination, as may be specified by NISM. (b) Successfully completing a related 2 day CPE Program, as may be specified by NISM.
Registration for CPE Registration with NISM
Enrolment for attending CPE Program
Design of CPE programs CPE programs will be developed specific to each NISM certification.
Delivery of CPE programs
----sd---- M. L. Soneji Registrar National Institute of Securities Markets Annexure –III
National Institute of Securities Markets Addendum NISM Continuing Professional Education Requirements NISM/Certification/ CPE General/2011/2 dated January 23, 2012 Further to NISM Communiqué/Press Release on “NISM Continuing Professional Education Requirements” - NISM/Certification/ CPE General/2011/1 dated December 21, 2011, NISM hereby issues the following clarification pertaining to the ‘experience’ as referred to in the section on Certification and Continuing Professional Education Requirements for grandfathered person for (a) obtaining a certificate for the first time and (b) for revalidating the certificate: Certification and Continuing Professional Education Requirements for grandfathered person for obtaining a certificate for the first time Grandfathered person A person other than a Principal, who has attained 50 years of age or who has 10 years of experience, may obtain the certificate by any of the following methods: (a) Passing the relevant certificate examination, as may be specified by NISM. (b) Successfully completing a related 2 day CPE Program, as may be specified by NISM.
Certification and Continuing Professional Education Requirements for grandfathered person for revalidating the certificate: Grandfathered person A person other than a Principal, who has attained 50 years of age or who has 10 years of experience, may get the certificate revalidated by any of the following methods: (a) Passing the relevant certificate examination, as may be specified by NISM. (b) Successfully completing a related 2 day CPE Program, as may be specified by NISM.
In both of the above cases, the term “experience” will be construed as experience in the securities markets in the activities as specified in sub-regulation (4) of regulation 3 of SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007. [SEBI (CAPSM) Regulations, 2007 ] Where the sub-regulation (4) of regulation 3 of SEBI (CAPSM) Regulations, 2007 states the following activities: (a) whether the associated person as part of his work or operation deals or interacts with the investors, issuers or clients of intermediaries; (b) whether the associated person deals with assets or funds of investor or clients; (c) whether the associated person handles redressal of investor grievances; (d) whether the associated person is responsible for internal control or risk management; (e) whether the associated person is responsible for compliance of any rules or regulations; (f) whether the associated person is engaged in activities that have a bearing on operational risk of the intermediary.
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1 A Principal is 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
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