NISM/Certification/RTACPE/2012/2, dated June 14, 2012

National Institute of Securities MarketsCommuniqué/Press ReleaseNISM Continuing Professional Education RequirementsNISM/Certification/RTACPE/2012/2, dated June 14, 2012

Dear Participant,

To facilitate operational convenience, the process that is to be followed in certification / CPE of An associated person, other than a principal, who has attained the age of fifty years or who has at least ten years experience in the securities markets in the activities mentioned in sub regulation (4) of regulation 3, is explained below: 

1. Process to be followed

The eligibility criteria for obtaining certificate by such person are defined in Regulation 4 of SEBI (CAPSM) Regulations, 2007. The Regulation defines such person as:

4. (3) An associated person, other than a principal, who has attained the age of fifty years or who has at least ten years experience in the securities markets in the activities mentioned in sub regulation (4) of regulation 3 on the date specified in the notification issued under sub regulation (1) of regulation 3, shall obtain the certificate in the relevant category in the manner specified in clause (a) or clause (b) of sub regulation (1).

Based on the above the NISM Communiqué NISM Continuing Professional Education Requirements NISM/Certification/ CPE General/2011/1 dated December 21, 2011 states the following:

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.”

Similarly, the term “experience” as per sub-regulation 4 of regulation 3 of SEBI (CAPSM) Regulations 2007 states the following activities:

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.

For operational convenience and to help CPE providers and persons seeking certificate, the following processes may be followed:

1. For CPE Registrars to an Issue and Share Transfer Agents-Corporate or Registrars to an Issue and Share Transfer Agents-Mutual Fund programme the term “experience” will mean “experience” in any one or more of the activities mentioned in SEBI notification No. LAD-NRO/GN/ 2009-10/18/175577 dated 4 September, 2009.
2. Further, the Compliance Officer of the current employer of the candidate OR a Practising Chartered Accountant / Company Secretary, (only  in the absence of  the Compliance officer) shall issue a certificate to NISM, stating that

“____________ (Name of person) has experience of ____ years (atleast 10 years) in functions listed in SEBI Notification Number LAD-NRO/GN/ 2009-10/18/175577 as on 4th September 2009, supported by documentary evidence, and is eligible to obtain CPE certificate by attending the NISM-Series-II-A: RTA-Corporate CPE Program, as per sub-regulation (4) of regulation 3 of SEBI (CAPSM) Regulations, 2007”

OR

“____________ (Name of person) has experience of ____ years (atleast 10 years) in functions listed in SEBI Notification Number LAD-NRO/GN/ 2009-10/18/175577 as on 4th September 2009, supported by documentary evidence, and is eligible to obtain CPE certificate by attending the NISM-Series-II-B: RTA-Mutual Fund CPE Program, as per sub-regulation (4) of regulation 3 of SEBI (CAPSM) Regulations, 2007”

1. Further, there shall be pre-verification of Compliance Officer’s 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.
2. NISM after verification of the required certificates submitted by the candidate will satisfy themselves that the required certificates constitute requisite experience. On the basis of the above, NISM will give ‘No objection letter’ to the candidate and to enable him to seek certification by appearing for NISM CPE programme, by submitting ‘No objection letter’ at the registration desk of the CPE programme.
3. Further, for a person seeking certificate, having 50 years of age on specified date in the NISM communiqué for the specific examination, there shall not be pre-verification process. CPE provider, conducting the programme shall verify the age of person based on PAN card.
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.

NITIN TIKESr. V.P. (CPE Administration)