NISM SECURITIES MARKET FOUNDATION COURSE

Introduction to the Financial System

• Understand the Indian Financial System
• Know about the Financial Market Intermediaries
• Know the various types of Financial Securities

Chapter 2 Regulatory Framework – General View

• Know the Regulatory System in India
• Know the role of the Financial Market Regulators
• Understand the role of regulators in the financial market: ROC, EOW, FIU-I,
• Know the role of Appellate Authority
• Know the Legislative Framework Governing the Financial market

Chapter 3 Introduction to Compliance

• Understand the need for Compliance
• Know the Role and Reporting Structure of Compliance Officers (CO)
• Understand the Responsibilities of COs towards Stakeholders
• Know the Compliance requirements under the SEBI (CAPSM) Regulations, 2007

Chapter 4 SEBI Act, 1992

• Understand the SEBI Act, 1992
• Know the SEBI Act from Compliance aspect

Chapter 5 Securities Contracts (Regulation) Act, 1956

• Understand the sections of the SC(R)A, 1956 pertaining to
• Understand the following Rules of the SC(R)R 1957
• Recognition of Stock Exchanges
• Contracts and options in securities
• Listing of securities
• Penalties and Procedures
• Audit of accounts of members
• Withdrawal of recognition
• Books of account and other documents to be preserved
• Submission of annual reports and periodical returns
• Requirements with respect to the listing of securities on a Stock Exchange

Chapter 6 SEBI (Intermediaries) Regulations, 1992

• Understand the SEBI (Intermediaries) Regulations.
• Know the General Obligations of the Intermediaries.
• Know the obligation of the intermediaries on inspection
• Understand the action in case of default
• Know the Code of Conduct for intermediaries.

 

Chapter 7 SEBI (Prohibition of Insider Trading) Regulations, 1992

• Understand the SEBI (Prohibition of Insider Trading) Regulations, 1992
• Discuss the Code of conduct for prevention of insider trading.

Chapter 8 SEBI Prohibition of Fraudulent and Unfair Trade Practices

• Understand the Regulation w.r.t. the prohibition of certain dealings in securities.
• Know the various prohibitions related to manipulative, fraudulent and unfair trade practices.
• Know the procedure for Investigation.

Chapter 9 Prevention of Money Laundering Act 2002

• Understand the significance of Anti-Money Laundering (AML) measures.
• Know the general obligations keeping in mind the AML guidelines issued by SEBI.
• Know the provisions as stated in the SEBI (Foreign Portfolio Investors) Regulations, 2014.

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

• Understand the registration process
• Know the obligations while surrendering the certificate of registration.
• Understand the Functions and Obligations of KRA and Intermediary.
• Know the obligations of the KRA on inspection by SEBI.

Part B – Understanding Intermediary Specific Regulations

 

Chapter 11 SEBI (Stock Brokers and Sub-brokers) Regulations, 1992,

• Listing Agreement and SEBI (Delisting of Securities) Guidelines, 2003
• Understand the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992,
• 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
• 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

 Chapter 12 SEBI (Merchant Bankers) Regulations, 1992

• SEBI Takeover Code and SEBI (BuyBack of Securities) Regulations, 2006
• Understand the SEBI (Merchant Bankers) Regulations, 1992 w.r.t.
• Know the general obligations and responsibilities of the merchant banker.
• Know the obligations of the Merchant Banker as per the SEBI Takeover Code.
• Know the main requirements under the Listing agreement of the Stock Exchanges
• Know the SEBI (Delisting of Securities) Guidelines, 2003
• Understand the obligations of the Intermediary under the SEBI (Buyback of Securities) Regulations, 2006
• Definition of a merchant banker.
• Procedure for registration as a merchant banker.
• Eligibility criteria for grant of certificate
• Capital adequacy requirement

Chapter 13 SEBI (Issue of Capital Disclosure and Requirements) Regulations, 2009

• Understand the ICDR Regulation from Merchant Banker aspect
• Know the role of merchant bankers as advisors to the issuer company.
• List out the key activities and related compliances undertaken by the merchant banker
• Know the Post Issue activities of the merchant banker.

Chapter 14 SEBI (Depositories) Regulations, 1996

• Understand the SEBI (Depositories) Regulations, 1996.
• Know the Rights and Obligations of the Depositories.
• Know the enquiry and inspection procedure followed by SEBI and the penalties.

Chapter 15 SEBI (Depositories and Participants) Regulations

• Understand the procedure of registration of a depository participant.
• Know the rights and obligations of the depository participant.
• List the documents related to records of services which need to be maintained.
• Know the investor grievance redressal mechanism.
• Know the Code of conduct for participants and the action in case of any default.

Chapter 16 SEBI (Bankers to an Issue) Regulations, 1994

• Know the procedure of application and registration as a Banker to an Issue.
• Understand the general obligations and responsibilities of Banker to an Issue.
• Know the Code of conduct for the Bankers to an Issue.
• List the obligations of a banker to an issue in case of inspection and the action taken by SEBI on the inspection and investigation report.

 

Chapter 17 SEBI (Underwriters) Regulations, 1993

• Know the role of an Underwriter
• Know the Capital Adequacy requirements as an Underwriter.
• Know the Code of conduct for the Underwriters.
• List the general obligations and responsibilities as an Underwriter.
• Know the Obligations of underwriter on Inspection by SEBI.

Chapter 18 SEBI (Debenture Trustees) Regulations, 1993

• Understand the procedure of application and registration as Debenture Trustees.
• Know the Capital Adequacy requirements as Debenture Trustees.
• Understand the following general obligations and responsibilities.
• Know the Code of conduct for the Debenture Trustees.
• Know the Obligations of the Debenture Trustees on Inspection by SEBI.
• List the various contents which should form a part of the trust deed.
• Understand the process of dissemination of Information by Debenture Trustees.

Chapter 19 SEBI (Credit Rating Agencies) Regulations, 1999

• Know the Registration process for Credit Rating Agencies.
• Know the General Obligations of Credit Rating Agencies.
• Understand the Restrictions on Rating w.r.t:
• Securities issued by Promoters
• Securities issued by entities connected with Promoter etc
• Securities already rated
• Know the obligations of credit rating agency on inspection or investigation by SEBI.
• Know Code of conduct of the Credit Rating Agencies.
• List out the Guidelines issued by SEBI for Credit Rating Agencies.

Chapter 20 SEBI (Custodian of Securities) Regulations, 1996

• Understand the different Custodial Services.
• Know the eligibility criteria and the registration process.
• Highlight the General Obligations and Responsibilities of Custodians.
• Know the Code of Conduct.
• Know the obligation of custodian on inspection conducted by SEBI