Curriculum (Securities Intermediaries Compliance(Non Fund))


NISM-Series-IIIA: Securities Intermediaries Compliance (Non-Fund) Certification Examination


Part A – Understanding the Financial and Regulatory Structure in India

  1. Introduction to the Financial System
  1. Understand the Indian Financial System
  2. Know about the Financial Market Intermediaries
  3. Know the various types of Financial Securities
  4. Regulatory Framework – General View
  1. Know the Regulatory System in India
  2. Know the role of the Financial Market Regulators
  3. Understand the role of other regulators in the financial market: ROC, EOW, FIU-I, Police Authorities,
  4. Know the role of Appellate Authority
  5. Know the Legislative Framework Governing the Financial market
  6. Introduction to Compliance
  1. Understand the need for Compliance
  2. Know the Role and Reporting Structure of Compliance Officers (CO)
  3. Understand the Responsibilities of COs towards Stakeholders
  4. Know the Compliance requirements under the SEBI (CAPSM) Regulations, 2007
  5. SEBI Act, 1992
  6. Understand the SEBI Act, 1992
  7. Securities Contracts (Regulation) Act, 1956 and Securities Contracts (Regulation) Rules, 1957
  8. Understand the sections of the SC(R)A, 1956 pertaining to
  • Call for Periodical Returns
  • Contracts and options in securities
  • Penalties and Procedures

  2. Understand the following Rules of the SC(R)R 1957

  • Eligibility criteria for membership of a recognized stock exchange
  • Contracts between members
  • Audit of accounts of members
  • Books of account

  3. Understand the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations 2012

  1. SEBI (Intermediaries) Regulations, 1992
  1. Understand the SEBI (Intermediaries) Regulations.
  2. Know the General Obligations of the Intermediaries.
  3. Know the obligation of the intermediaries on Inspection and Disciplinary Proceedings
  4. Understand the action in case of default and Manner of Suspension and Cancellation of Certificate
  5. Know the Code of Conduct for intermediaries.
  6. SEBI (Prohibition of Insider Trading) Regulations, 1992
  1. Understand the SEBI (Prohibition of Insider Trading) Regulations, 2015
  2. Discuss the Code of conduct for prevention of insider trading.
  3. SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2015
  1. Understand the Regulation w.r.t. the prohibition of certain dealings in securities.
  2. Know the various prohibitions related to manipulative, fraudulent and unfair trade practices.
  3. Know the procedure for Investigation.
  4. Prevention of Money Laundering Act 2002
  1. Understand the Prevention of Money Laundering Act, 2002.
  2. Know the highlights of PMLA, 2002
  3. Know the general obligations keeping in mind the AML guidelines issued by SEBI.
  4. Know the provisions as stated in the SEBI (Foreign Portfolio Investors) Regulations, 2014.
  5. Unit 10: SEBI (KYC Registration Agency) Regulations, 2011
  1. Understand the registration process
  2. Know the obligations while surrendering the certificate of registration.
  3. Understand the Functions and Obligations of KRA and Intermediary.
  4. Know the obligations of the KRA on inspection by SEBI.

Part B – Understanding Intermediary Specific Regulations

  1. SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, Listing Agreement and SEBI (Delisting of Securities) Guidelines, 2003
  2. 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
  1. SEBI (Merchant Bankers) Regulations, 1992, SEBI (Delisting of Equity Shares) Regulations, 2009, SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 and SEBI Takeover Code and SEBI (BuyBack of Securities) Regulations, 2018
  1. Introduction of the SEBI (Merchant Bankers) Regulations, 1992.
  2. Understand the SEBI (Merchant Bankers) Regulations, 1992 w.r.t.
  • Definition of a merchant banker.
  • Procedure for registration as a merchant banker.
  • Eligibility criteria for grant of certificate.
  • Capital adequacy requirement.

  3. Understand the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011.

  4. Know the SEBI (Delisting of Equity Shares) Regulations, 2009.

  5. Understand the obligations of the Intermediary under the SEBI (Buyback of Securities) Regulations, 2018.

  1. SEBI (Issue of Capital Disclosure and Requirements) Regulations, 2009
    1. Introduction of SEBI ICDR Regulations, 2009
    2. Know the Allocation of Responsibilities
    3. Know the role of merchant bankers as advisors to the issuer company.
    4. Know the Due Diligence and Compliances.
    5. Understand the Role as an Underwriter.
    6. Know the General Obligations of Merchant Bankers with respect to Public and Rights Issue.
    1. SEBI (Depositories) Regulations, 1996
    1. Understand the SEBI (Depositories) Regulations, 1996.
    2. Know the Rights and Obligations of the Depositories.
    3. Know the enquiry and inspection procedure followed by SEBI and the penalties.
    4. Know the Miscellaneous issues.
    1. SEBI (Depositories and Participants) Regulations, 2018
    1. Understand the procedure of registration of a depository participant.
    2. Know the rights and obligations of the depository participant.
    3. Know the Action in case of any Default.
    4. Know the Code of conduct for participants.
    1. SEBI (Bankers to an Issue) Regulations, 1994
    1. Know the procedure of application and registration as a Banker to an Issue.
    2. Understand the general obligations and responsibilities of Banker to an Issue.
    3. Know the Code of conduct for the Bankers to an Issue.
    4. List the obligations of a banker to an issue in case of inspection by.
    1. SEBI (Underwriters) Regulations, 1993
    1. Know the procedure of application and registration as a Underwriter
    2. List the general obligations and responsibilities as an Underwriter.
    3. Know the Code of conduct for the Underwriters.
    1. SEBI (Debenture Trustees) Regulations, 1993
    1. Understand the procedure of application and registration as Debenture Trustees.
    2. Know the Capital Adequacy requirements as Debenture Trustees.
    3. Understand the following general obligations and responsibilities.
    4. Know the Code of conduct for the Debenture Trustees.
    5. Know the Obligations of the Debenture Trustees on Inspection by SEBI.
    6. Understand the process of dissemination of Information by Debenture Trustees.
    1. SEBI (Credit Rating Agencies) Regulations, 1999
    1. Know the Registration process for Credit Rating Agencies.
    2. Know the General Obligations of Credit Rating Agencies.
    3. Understand the Restrictions on Rating w.r.t:
  • Securities issued by Promoters
  • Securities issued by entities connected with Promoter etc
  • Securities already rated

  4. Know Code of conduct of the Credit Rating Agencies.

  5. List out the Guidelines issued by SEBI for Credit Rating Agencies.

  1. SEBI (Custodian of Securities) Regulations, 1996
    1. Understand the different Custodial Services.
    2. Know the eligibility criteria and the registration process.
    3. Highlight the General Obligations and Responsibilities of Custodians.
    4. Know the Code of Conduct.