Unit 1: Introduction to the Financial System
1.1 Understand the Financial System
1.1.1 Describe the Financial System.
1.2 Know about the Financial Market Intermediaries
1.3 Define and Understand types of Financial Securities
Unit 2: Regulatory Framework – General View
2.1 Know the Regulatory System in India
2.2 List the Financial Market Regulators and understand their role
2.2.1 Discuss the role of SEBI in Financial Market Regulation
2.2.2 Describe the role of RBI in Financial Market Regulation.
2.2.3 Discuss the IRDA in Financial Market Regulation.
2.2.4 Describe the PFRDA in Financial Market Regulation
2.3 Discuss the role of other regulators in the financial market
2.3.1 Know the Registrar of companies (ROC)
2.3.2 Know the Economic Offences Wing (EOW)
2.3.3 Know the Financial Intelligence Unit ‐ India (FIU‐I)
2.3.4 Know the Police Authorities
2.4 Understand the role of Appellate Authority
2.4.1 Understand the Role of Appellate Authority ‐Securities Appellate Tribunal (SAT)
2.5 Discuss the Legislative Framework Governing the Financial market
2.5.1 Know the SEBI act 1992
2.5.2 Know the Securities Contracts (Regulation) Act, 1956
2.5.3 Know the Securities Contracts (Regulation) Rules, 1957
2.5.4 Know the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
2.5.5 Know the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
2.5.6 Know the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
2.5.7 Know the Companies Act, 1956/2013
2.5.8 Know the Indian Contract Act
2.5.9 Know the Public Debt Act, 1944
2.5.10 Know the Prevention of Money‐Laundering Act, 2002
2.5.11 Know the Foreign Exchange Management Act, 1999
2.5.12 Know the Bye‐Laws of Stock Exchanges
2.5.13 Know the Taxes on Securities
Unit 3: Introduction to Compliance
3.1 Understand the need for Compliance
3.1.1 Understand the meaning of Compliance
3.1.2 Understand the meaning of Compliance Officer.
3.1.3 Discuss the importance of appointment of compliance officer.
3.2 Know the Role and Reporting Structure
3.2.1 Understand the scope and role of a compliance officer.
3.2.2 Know the Reporting Structure pertaining to Compliance Officer.
3.2.3 Explain the need for independence for the Compliance Officer to perform his function.
3.2.4 Explain the reporting responsibility of the Compliance Officers.
3.4 Know the Compliance requirements under the SEBI (CAPSM) Regulations, 2007
3.4.1 Know the Obligation of Obtaining Certification
3.4.2 Know the Manner of Obtaining Certification
3.4.3 Know the Validity Period of Certificate
3.4.4 Understand the Continuing Professional Education Requirements
Unit 4: SEBI Act, 1992
4.1 Understand the Salient Feature of SEBI Act, 1992
4.1.1 Explain the powers & functions of the SEBI
4.1.2 Understand the Penalties and Adjudication
4.1.3 Explain the Appellate Tribunal
4.1.4 Know the Registration of Intermediaries
4.1.5 Know the Prohibition of Manipulative and Deceptive Devices, Insider Trading etc.
Unit 5: Securities Contracts (Regulation) Act, 1956 and Securities Contracts (Regulation) Rules, 1957
5.1 Understand the Securities Contracts (Regulation) Act, 1956
5.1.1 Know the Call for Periodical Returns
5.1.2 Understand the Contracts and Options in Securities
5.1.3 Understand the Penalties and Procedures
5.2 Understand the Securities Contracts (Regulation) Rules, 1957
5.2.1 Understand the Eligibility criteria for membership of a recognized stock exchange
5.2.2 Know the Contracts between members
5.2.3 Know the Audit of accounts of members
5.2.4 Understand the Books of Account
5.3 Understand the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations 2012
5.3.1 Know the Obligation to seek recognition
5.3.2 Know the Consideration of grant of recognition
5.3.3 Know the Networth requirements
Unit 6: SEBI (Intermediaries) Regulations, 1992
6.1 Understand the SEBI (Intermediaries) Regulations.
6.2 Know the General Obligations of the Intermediaries.
6.2.1 Know the Appointment of Compliance Officer
6.3 Discuss the inspection and Disciplinary Proceedings
6.3.1 Understand the Obligation of the intermediary on Inspection
6.3.2 Appointment of Auditor
6.4 Understand the action in case of default and manner of suspension or cancellation of certificate.
6.4.1 Know the Action in case of Default
6.4.2 Understand the Procedure for action on receipt of the recommendation
6.4.3 Know about Common Order
6.4.4 know the Surrender of certificate of registration
6.4.5 Know the Effect of debarment, suspension, cancellation or surrender
6.4.6 Know the Directions
6.5 Know the Code of Conduct for intermediaries.
Unit 7: SEBI (Prohibition of Insider Trading) Regulations, 2015
7.1 Understand the SEBI (Prohibition of Insider Trading) Regulations, 2015
7.2 Discuss the Code of conduct for prevention of insider trading.
Unit 8: SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003
8.1 Understand the Regulation with respect to the prohibition of certain dealings in securities.
8.2 Know the various prohibitions related to manipulative, fraudulent and unfair trade practices.
8.2.1 Understand the Prohibition of Certain Dealings in Securities
8.2.2 Discuss the Prohibition of Manipulative, Fraudulent and Unfair Trade Practices
8.3 Describe the procedure for Investigation.
Unit 9: Prevention of Money Laundering Act 2002,
9.1 Understand the Prevention of Money Laundering Act 2002.
9.2 Highlights of PMLA, 2002
9.3 Highlights of SEBI Circular on AML/CFT
9.3.1 Understand the Obligation to establish policies and procedures
9.3.2 Understand the Policies and Procedures for Money Laundering Act 2002
9.3.3 Know Written Anti‐Money Laundering Procedures
9.3.4 Know the Client Due Diligence
9.3.5 Know the Client Identification Procedure (CIP)
9.3.6 Understand the Record Keeping
9.3.7 Understand the Retention of Records
9.3.8 Know the Monitoring of Transactions
9.3.9 Suspicious Transaction Monitoring & Reporting
9.3.10 Reporting to Financial Intelligence Unit‐India
9.4 Understand the concept of Foreign Portfolio Investors Regulations, 2014
9.4.1 Understand the Eligibility Criteria of FPI
9.4.2 Know the Categories of Foreign Portfolio Investor
9.4.3 Understand the procedure for approval to act as designated depository participant
9.4.4 Understand the Eligibility Criteria of designated Depository Participant
9.4.5 Know about the Investment Conditions and Restrictions for FPI’s
9.4.6 Know the Conditions for Issuance of Offshore Derivative Instruments
Unit 10: SEBI (KYC Registration Agency) Regulations, 2011
10.1 Introduction to the SEBI (KYC Registration Agency) Regulations, 2011
10.2 Understand the registration process, conditions of initial and permanent registration.
10.3 Understand the Obligations on Surrendering Certificate of Registration.
10.4 Understand the Functions and Obligations of KRA and Intermediary
10.4.1 Understand the Functions and Obligations of KRA
10.4.2 Understand the Functions and Obligations of the Intermediary
10.5 Discuss the Code of Conduct for KRA
10.6 Understand the Guidelines for Intermediaries, KRAs and In‐person Verification
Part B – Understanding Intermediary Specific Regulations
Unit 11: SEBI (Stock Brokers and Sub-brokers) Regulations, 1992
11.1 Discuss the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992,
11.1.1 Know the Registration of Stock Brokers and Sub-Brokers
11.1.2 Registration of trading and clearing member
11.1.3 Understand the General obligations and responsibilities
11.1.4 Understand the Procedure for Inspection
11.1.5 Procedure for action in case of default
· Action under SEBI (Intermediaries) Regulations including suspension or cancellation of certificate of registration
11.1.6 Know about Fees payable by Stock Brokers
11.1.7 Understand the Regulation of transactions between clients and brokers
11.1.8 Direct Market Access - operational specifications, risk management, broker to be liable for DMA trades
11.1.9 Understand the Margin Requirements
11.2 Discuss the SEBI (Alternative Investment Funds) Regulations, 2012
11.2.1 Know the Registration as Alternative Investment Funds (AIF)
11.2.2 Understand the Eligibility Criteria
11.2.3 Know the Certificate Renewal and Validity
11.2.4 Understand the Investment conditions and Restrictions
11.2.5 Know about the General Obligations of AIF
Unit 12: SEBI (Merchant Bankers) Regulations, 1992, Listing Agreement and SEBI (Delisting of Equity Shares) Regulations, 2009, SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 & SEBI (BuyBack of Securities) Regulations, 2018
12.1 Introduction to the Merchant Bankers
12.2 Discuss the SEBI (Merchant Bankers) Regulations, 1992.
12.2.1 Definition of a Merchant Banker
12.2.2 Know the Registration as a Merchant Banker
12.2.3 Understand the Eligibility Criteria for Grant of Certificate
· Consideration of Application
· Capital Adequacy Requirements
· Furnishing of Information, Clarification and Personal Representation
12.2.4 Understand the process of Registration, Renewal Fees & Validity
12.2.5 Know the Conditions of Registration
12.2.6 Know about Refusal to Grant Certificate
12.2.7 Know about Suspension of Certificate
12.2.8 Understand the general obligations and responsibilities of the merchant banker.
12.2.9 Know the Responsibilities of the Merchant Banker
12.2.10 Discuss the Disclosure to SEBI
12.2.11 Understand the Obligations of merchant banker on inspection by SEBI
12.2.12 Know about the Compliance Officer
12.3 Introduction to SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011
12.3.1 Understand the General Obligations of the Merchant Banker
12.4 Discuss briefly the SEBI (Delisting of Equity Shares) Regulations, 2009
12.5 Understand the obligations of the Intermediary under the SEBI (Buyback of Securities) Regulations, 2018
Unit 13: SEBI (Issue of Capital Disclosure and Requirements) Regulations, 2009
13.1 Understand the ICDR Regulation from Merchant Banker aspect
13.2 Discuss the Allocation of Responsibilities of merchant bankers as advisors to the issuer company.
13.3 Discuss the Role of merchant bankers as advisors to the issuer company.
13.4 Describe the Due Diligence and Compliances
13.4.1 Know the procedure of Documents to be submitted before the opening of the issue
13.4.2 Know the Draft offer document to be made public
13.4.3 Know the Dispatch of Issue Material
13.5 Discuss the Role as an Underwriter
13.5.1 Know the Minimum Subscription
13.6 Understand the General Obligations of Merchant Bankers with respect to Public and Rights Issue
Unit 14: SEBI (Depositories) Regulations, 1996
14.1 Understand the SEBI (Depositories) Regulations, 1996.
14.2 Discuss the Rights and Obligations of the Depositories.
14.3 Know the enquiry and inspection procedure followed by SEBI and the penalties.
14.4 Discuss the Miscellaneous Issues
14.4.1 Know Composition of Certain Offences
14.4.2 Know Power to Grant Immunity
14.4.3 Know Appeals
Unit 15: SEBI (Depositories and Participants) Regulations, 2018
15.1 Understand the procedure of registration of a depository participant.
15.2 Know the rights and obligations of the depository participant.
15.2.1 List the documents related to records of services which need to be maintained.
15.2.2 Describe the investor grievance redressal mechanism.
15.2.3 Know the Investment Advice
15.2.4 Know the procedure of Appointment of Compliance Officer
15.2.5 Know about Inspection
15.3 Know the action in case of any default.
15.4 Know the Code of Conduct for Participants
Unit 16: SEBI (Bankers to an Issue) Regulations, 1994
16.1 Describe the procedure of application and registration as a Banker to an Issue.
16.2 Understand the general obligations and responsibilities of Banker to an Issue.
16.2.1 Know the Maintenance of books of account, records and the documents
16.2.2 Know about Furnishing of Information to SEBI
16.2.3 Know the Agreement with body corporate
16.3 Know the Code of conduct for the Bankers to an Issue.
16.4 Highlight the obligations of a banker to an issue in case of inspection by RBI
Unit 17: SEBI (Underwriters) Regulations, 1993
17.1 Understand the procedure of registration as an Underwriter.
17.1.1 Know the Capital Adequacy requirements as an Underwriter.
17.2 Highlight the general obligations and responsibilities as an Underwriter.
17.2.1 Know about the agreement with the clients.
17.2.2 List various books of account and records which need to be maintained.
17.3 Understand the Code of Conduct
Unit 18: SEBI (Debenture Trustees) Regulations, 1993
18.1 Understand the procedure of application and registration as Debenture Trustees.
18.2 Know the Capital Adequacy requirements as Debenture Trustees.
18.3 Understand the following general obligations and responsibilities.
18.3.1 Know the Obligations before appointment as Debenture Trustees
18.3.2 Know the Debenture Trustee not to act for an associate
18.3.3 Know the Obligation of the Debenture Trustees towards content of the trust deed
18.3.4 Know the Maintenance of books of account, records, documents etc.
18.4 Know the Code of conduct for the Debenture Trustees.
18.5 Understand the process of dissemination of Information by Debenture Trustees.
Unit 19: SEBI (Credit Rating Agencies) Regulations, 1999
19.1 Describe the Registration process for Credit Rating Agencies.
19.1.1 Know the eligibility criteria for application
19.1.2 Know about the Certificate Renewal and Validity
19.2 Highlight the General Obligations of Credit Rating Agencies.
19.2.1 Know the Agreement with client
19.2.2 Know about Monitoring of Ratings
19.2.3 Understand the Procedure for review of Rating
19.2.4 Understand the Internal procedures to be framed
19.2.5 Know the Disclosure of Rating Definitions and Rationale
19.2.6 Know the Submission of information to SEBI
19.2.7 Know the Maintenance of Books of Accounts, records, etc.
19.2.8 Know the Steps on auditor’s report
19.2.9 Know about the Confidentiality
19.2.10 Understand the Rating process
19.2.11 Know the Shareholding in a credit rating agency
19.3 Discuss about the Restrictions on Rating issued by Promoters
19.4 Know Code of conduct of the Credit Rating Agencies
19.5 Discuss the Guidelines issued by SEBI for Credit Rating Agencies.
Unit 20: SEBI (Custodian of Securities) Regulations, 1996
20.1 Understand the custodian and Custodial Services.
20.2 Describe the eligibility criteria and the registration process.
20.3 Highlight the General Obligations and Responsibilities of Custodians.
20.3.1 Know the Segregation of Activities
20.3.2 Know about Monitoring, Review evaluating and inspecting systems and controls
20.3.3 Discuss Prohibition of assignment
20.3.4 Know the Separate custody account
20.3.5 know the Agreement with the client
20.3.6 Know the Internal controls
20.3.7 Know the Maintenance of records and documents and furnishing of information
20.4 Know the Code of Conduct.