NISM X Taxmann's Securities Intermediaries Compliance (Non-Fund) – Compendium of Important Regulations for the Compliance Officers working with various Intermediaries in the Securities Markets
About this ebook
It seeks to create a common minimum knowledge benchmark for persons engaged in the compliance function with any intermediary registered with SEBI, such as:
• Stock Broker
• Depository Participant
• Merchant Bankers
• Underwriters
• Bankers to the Issue
• Debenture Trustee
• Credit Rating Agencies
This book is an invaluable resource for anyone involved in the compliance sector of the securities markets, offering in-depth knowledge and a comprehensive overview of the regulatory landscape.
The Present Publication is the January 2023 workbook version, published exclusively by Taxmann for NISM Certification Examination III-A [Securities Intermediaries Compliance (Non-Fund)]. This book is divided into two parts:
• [Financial and Regulatory Structure in India] is dealt with in Part A
• [Specific Rules & Regulations] governing the intermediaries registered with SEBI are dealt with in Part B
The noteworthy features of this book are as follows:
• [Understand the Financial Structure in India] including:
o Knowledge of the Financial Intermediaries
o Types of Products available in the Indian markets
• [Understand the Regulatory Framework] and the role of various Regulators in the Financial System
• [Importance of Compliance Activity] and the scope and role of Compliance Officers
• [Understand the various Rules & Regulations] of the Indian Securities Market
• [Understand the Penal Actions] that are initiated in case of default or failure
The detailed contents of the book are as follows:
• Part A – Understanding Financial Structure in India
o Introduction to the Financial System – Explores the essential elements of the financial system, including financial intermediaries, securities, and their roles
o Regulatory Framework | General View – Discusses the overall regulatory system governing the financial markets in India, including the role of financial market regulators, other financial agencies, appellate authorities, the legislative framework, and the International Financial Services Centre (IFSC)
o Introduction to Compliance – Covers the basics of compliance, specifically focusing on compliance requirements under the SEBI (CAPSM) Regulations, 2007
o Securities and Exchange Board of India Act, 1992 – Details the salient features of the SEBI Act, 1992
o Securities Contracts Regulation – Examines the Securities Contracts (Regulation) Act, 1956, and the Securities Contracts (Regulation) Rules, 1957
o SEBI (Intermediaries) Regulations, 2008 – Provides insights into the general obligations of intermediaries, inspection and disciplinary proceedings, actions in case of default, and the code of conduct
o SEBI (Prohibition of Insider Trading) Regulations, 2015 – Focuses on insider trading regulations, including the role of the compliance officer and the code of conduct
o Prevention of Fraudulent and Unfair Trade Practices – Discusses regulations related to preventing fraudulent and unfair practices in the securities market and includes topics on investigation methods
o Prevention of Money Laundering Act, 2002 – Highlights the main points of the PMLA, 2002, and SEBI's circular on Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT)
o SEBI (KYC Registration Agency) Regulations, 2011 – Discusses the registration and obligations of KYC Registration Agencies (KRAs), including guidelines for intermediaries and in-person verification
• Part B – Understanding Intermediary-Specific Regulations
o SEBI (Foreign Portfolio Investors) Regulations, 2019 – Details regulations pertaining to foreign portfolio investors, including eligibility criteria, investment conditions, and code of conduct
o SEBI (Stock Brokers) Regulations, 1992 – Covers various aspects of stock brokerage regulations, including direct market access, algorithmic trading, margin trading, and underwriting activities
o SEBI (Merchant Bankers) Regulations, 1992 – Focuses on merchant banking regulations, substantial acquisition of shares, and takeovers
o SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 – Discusses the applicability of ICDR regulations, IPOs, rights issues, and the roles and responsibilities of merchant bankers
o Depositories Act, 1996 – Covers the introduction, rights and obligations of depositories, enquiry and inspection procedures, and miscellaneous issues
o SEBI (Depositories and Participants) Regulations, 2018 – Details registration, rights, obligations, and the code of conduct for depository participants
o SEBI (Registrar to an Issue and Share Transfer Agents) Regulations, 1993 – Focuses on the roles, general obligations, and code of conduct for registrars to an issue and share transfer agents
o SEBI (Research Analyst) Regulations, 2014 – Highlights the responsibilities, record maintenance, and role of the compliance officer for research analysts
o SEBI (Investment Advisers) Regulations, 2013 – Discusses the general responsibilities, risk profiling, client-level segregation, and code of conduct for investment advisers
o SEBI (Debenture Trustees) Regulations, 1993 – Details registration, responsibilities, code of conduct, and monitoring requirements for debenture trustees
o SEBI (Credit Rating Agencies) Regulations, 1999 – Covers the registration, general obligations, appointment of compliance officers, and code of conduct for credit rating agencies
o SEBI (Custodian) Regulations, 1996 – Discusses custodian services, registration, obligations, and the code of conduct for custodians.
o Proxy Advisors – Provides an overview of the impact of proxy advisors on corporate governance, internal controls, procedural guidelines, and grievance redressal mechanisms
About the author
NISM is a leading provider of high-end professional education, certifications, training and research in financial markets. NISM Certification programs aim to enhance the quality and standards of professionals employees in various segments of the financial services sector. NISM's School of Certification of Intermediaries (SCI) develops and conducts certification examinations and Continuous Professional Education (CPE) programs that aim to ensure that professionals meet the defined minimum common knowledge benchmark for various critical market functions like:
• Mutual Funds
• Equities
• Derivatives
• Securities Operations
• Compliance
• Research Analysis
• Investment Advice
These Certifications and CPE Programs are being developed and administered by NISM as mandated under 'Securities and Exchange Board of India (Certification of Associated Persons in the Securities Market) Regulations, 2007'. The Certifications create quality market professionals and catalyse greater investor participation in the markets. Certifications also provide structured career paths to students and job aspirants in the securities market.
