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

Securities Intermediaries Compliance (Non-Fund) Mock test

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Examination Specifications

This is a computer-based examination with multiple choice questions.
The examination consists of 100 questions of 1 mark each adding to 100 marks.
The examination should be completed in 2 hours.
There shall be negative marking of 25% of the marks assigned to the question for each wrong answer.
The passing score for the examination is 60 marks.
Exam fee Rs. 1500/- + Payment gateway charges extra.
Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.
Link for NISM 3A - SIC Exam Schedule

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Syllabus Outline with Weights

Unit No.	Unit Name	Weightages%
Part A: Understanding the Financial and Regulatory Structure in India (60 marks)
Unit 1	Introduction to Financial System	5%
Unit 2	Regulatory Framework: General View	10%
Unit 3	Introduction to Compliance	4%
Unit 4	SEBI Act, 1992	7%
Unit 5	Securities Contracts (Regulation) Act, 1956 and Securities Contracts (Regulation) Rules, 1957	6%
Unit 6	SEBI (Intermediaries) Regulations, 2008	6%
Unit 7	SEBI (Prohibition of Insider Trading) Regulations, 1992	6%
Unit 8	SEBI (Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003	6%
Unit 9	The Prevention of Money Laundering Act, 2002	7%
Unit 10	SEBI (KYC Registration Agency) Regulations, 2011	3%
Part B: Understanding Intermediary Specific Regulations (40 marks)
Unit 11	SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992	8%
Unit 12	SEBI (Merchant Bankers) Regulations, 1992, Listing Agreement & SEBI (Delisting of Securities) Guidelines, 2003, SEBI Takeover Code & SEBI (Buyback of Securities) Regulations, 2006	6%
Unit 13	SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009	5%
Unit 14	Depositories Act, 1996	3%
Unit 15	SEBI (Depositories and Participants) Regulations, 1996	3%
Unit 16	SEBI (Bankers to an Issue) Regulations, 1994	3%
Unit 17	SEBI (Underwriters) Regulations, 1993	3%
Unit 18	SEBI (Debenture Trustees) Regulations, 1993	3%
Unit 19	SEBI (Credit Rating Agencies) Regulations, 1999	3%
Unit 20	SEBI (Custodian of Securities) Regulations, 1996	3%

Syllabus

Part A – Understanding the Financial and Regulatory Structure in India

1. Introduction to the Financial System

Understand the Indian Financial System
Know about the Financial Market Intermediaries
Know the various types of Financial Securities
Regulatory Framework - General View
Know the Regulatory System in India
Know the role of the Financial Market Regulators
Understand the role of other regulators in the financial market: ROC, EOW, FIU-I, Police Authorities
Know the role of Appellate Authority
Know the Legislative Framework Governing the Financial market
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
SEBI Act, 1992
Understand the SEBI Act, 1992
Securities Contracts (Regulation) Act, 1956 and Securities Contracts (Regulation) Rules, 1957
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

SEBI (Intermediaries) Regulations, 1992

Understand the SEBI (Intermediaries) Regulations.
Know the General Obligations of the Intermediaries.
Know the obligation of the intermediaries on Inspection and Disciplinary Proceedings
Understand the action in case of default and Manner of Suspension and Cancellation of Certificate
Know the Code of Conduct for intermediaries. SEBI (Prohibition of Insider Trading) Regulations, 1992
Understand the SEBI (Prohibition of Insider Trading) Regulations, 2015
Discuss the Code of conduct for prevention of insider trading.
SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2015
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.
Prevention of Money Laundering Act 2002
Understand the Prevention of Money Laundering Act, 2002.
Know the highlights of PMLA, 2002
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.
Unit 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

1. 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, 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

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

Introduction of the SEBI (Merchant Bankers) Regulations, 1992. 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

SEBI (Issue of Capital Disclosure and Requirements) Regulations, 2009
Introduction of SEBI ICDR Regulations, 2009
Know the Allocation of Responsibilities
Know the role of merchant bankers as advisors to the issuer company.
Know the Due Diligence and Compliances.
Understand the Role as an Underwriter.
Know the General Obligations of Merchant Bankers with respect to Public and Rights Issue.
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.
Know the Miscellaneous issues.
SEBI (Depositories and Participants) Regulations, 2018
Understand the procedure of registration of a depository participant.
Know the rights and obligations of the depository participant.
Know the Action in case of any Default.
Know the Code of conduct for participants.
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 by.
SEBI (Underwriters) Regulations, 1993
Know the procedure of application and registration as a Underwriter
List the general obligations and responsibilities as an Underwriter.
Know the Code of conduct for the Underwriters.
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.
Understand the process of dissemination of Information by Debenture Trustees.
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

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

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

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.