Curriculum: NISM-Series-III-C: Securities Intermediaries Compliance (Fund)

Curriculum: NISM-Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination

Part A – Understanding the securities markets and the securities market’s Regulatory Structure in India

Chapter 1: Introduction to the Financial System

• Securities Market Intermediaries.
• Define and understand types of Securities.

Chapter 2: Regulatory Framework – General View

• Securities Market Regulations in India.
• Financial Market Regulators and understand their role.
• Key Agencies in the Financial Market: ROC, EOW, FIU-I, NCLT, SFIO, and Police Authorities.
• Role of Appellate Authority –SAT.
• Legislative Framework- SEBI Act, SCRA, Depositories Act, Companies Act.
• Functions, Role, and Regulation of the International Financial Services Centre (IFSC)

Chapter 3: Introduction to Compliance

• Compliance Function Overview.
• Roles, Responsibilities, and Reporting Structure.
• Governance and Fiduciary Duties in Compliance.

Chapter 4: SEBI Act, 1992

• Overview of SEBI Act 1992.

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

• Key Sections of SCRA 1956.

Chapter 6: SEBI (Intermediaries) Regulations, 2008

• Overview of SEBI (Intermediaries) Regulations.
• General Obligations of Intermediaries.
• Importance of the ‘Fit and Proper’ Criteria.
• Obligations of Intermediaries During Inspection.
• Dealing with Defaults and Suspension or Cancellation of Certificate.
• Code of Conduct for Intermediaries.
• Compliance Officer Duties under SEBI Intermediaries Regulations.

Chapter 7: SEBI (Prohibition of Insider Trading) Regulations, 2019

• Applicability of SEBI Insider Trading Regulations 2019.
• Code of Conduct for Prevention of Insider Trading.
• Code of fair disclosure & Responsibilities of Compliance Officer under SEBI PIT Regulations.

Chapter 8: SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003

• Prohibition of Certain Dealings in Securities.
• Prohibitions on Manipulative, Fraudulent, and Unfair Trade Practices.
• Responsibilities of Compliance Officer under SEBI FUTP Regulations.

Chapter 9: Prevention of Money Laundering Act 2002

• Role and Importance of Anti-Money Laundering Measures.
• Obligations Related to Anti-Money Laundering Guidelines.
• Overview of SEBI Circulars on AML/CFT.

Chapter 10: SEBI (KYC Registration Agency) Regulations, 2011

• Overview of SEBI KYC Registration Agency Rules 2011.
• Obligations on Surrendering Certificate of Registration.
• Functions and Obligations of Fund Houses Regarding KRA and CKYC.
• KRA Obligations During SEBI Inspection.
• Guidelines for Intermediaries, KRAs & In-Person Verification.
• Understanding FATCA Guidelines.

Chapter 11: SEBI (Foreign Portfolio Investors) Regulations, 2019

• Concept of Foreign Portfolio Investors (FPIs)
• General Obligations and Responsibilities.

Chapter 12: Foreign Exchange Management Act

• Introduction to FEMA and Its Relation to Securities Markets in India.
• Foreign Direct Investment in India.
• Introduction to FEMA (Non-Debt) Rules.
• RBI Master Direction 2022.
• RBI Reporting Requirement.

Chapter 13: SEBI (Depositories) Act, 1996

• SEBI (Depositories) Act, 1996.
• Overview of SEBI Guidelines for InvITs, REITs, and AIFs.
• SEBI Enquiry, Inspection, and Penalties.

Part B – Understanding Intermediary Specific Regulations

Chapter 14: SEBI (Mutual Fund) Regulations

• Mutual Fund Structure and Key Features.
• Important Concepts and Terminologies.
• Role of stakeholders in a Mutual Fund.
• Schemes of Mutual Fund.
• Redemption and Reporting Redemptions.
• Investment Objectives of a Mutual Fund.
• Scheme Related Disclosure.
• Portfolio Disclosures.
• Overview of Board and Committees.
• Norms for Shareholding in Mutual Funds.
• Stewardship Code – Public Listed Companies.
• Risk Management Framework.
• Overview of Mutual Fund Reports.
• SEBI Prohibition of Insider Trading Regulations.
• General Obligation and Investment Rights.
• Certification and Registration of Intermediaries.

Chapter 15: SEBI (AIF) Regulations

• Introduction to SEBI AIF Regulations and Key Terminologies.
• Classification of AIFs.
• Investment Strategy.
• Overview of Compliance and Obligations.
• Special Types of Funds.
• General Obligations, Responsibilities, and Transparency for All AIFs.
• Other Relevant Topics.

Chapter 16: SEBI (InvIT) Regulations

• Introduction to Infrastructure Investment Trusts (InvITs).
• Definition and Structure of InvITs (Including Regulation 7A).
• Rights and Responsibilities of Trustees, Investment Managers, Project Managers, Sponsors, Valuers, and Auditors.
• Fundraising and Issuance of Debt Securities by InvITs.
• InvIT Units: Offer, Listing, and Delisting.
• Overview of Borrowing Practices.
• Valuation of Assets.
• Investment Conditions and Dividend Policy.
• Other Significant Matters.
• Inspections Conducted by SEBI.

Chapter 17: SEBI (REITs) Regulation

• Overview of SEBI REIT Regulations, Structure, and Definitions.
• Roles and Duties of Trustees, Managers, Sponsors, Valuers, and Auditors.
• Fundraising and Issuance of Debt Securities by REIT.
• REIT Units: Issue, Listing, and Delisting.
• Overview of Borrowing Practices.
• Valuation of Assets.
• Investment Conditions and Dividend Policy.
• Other Significant Matters.
• Continuous Disclosures to Stock Exchanges.
• Overview of Board Structure and Responsibilities.
• Other important concepts related to REITs.
• Inspections Conducted by SEBI.