NISM/Certification/Securities Operations and Risk Management (SORM) CPE/2012/1 dated December 5, 2012

National Institute of Securities MarketsCommuniqué/Press ReleaseNISM-Series-VII: Securities Operations and Risk ManagementCertification ExaminationNISM/Certification/Securities Operations and Risk Management (SORM) CPE/2012/1 dated December 5, 2012Further to NISM/Certification/CPE General/2011/1 dated December 21, 2011 and NISM/Certification/ CPE General/2011/2 dated January 23, 2012, in exercise of the powers conferred by sub-regulation (1) of Regulation (9) of SEBI (Certification of Associated Persons in Securities Markets) Regulations, 2007, pursuant to Continuing Professional Education (CPE)  requirements for the associated persons i.e., persons associated with a registered stock-broker/trading member/clearing member in recognised stock exchanges, who are involved in, or deal with, any of the activities as mentioned in the SEBI Notification No. LAD-NRO/GN/2010-11/21/29390 –dated December 10, 2010;NISM now specifies the CPE Program for “NISM-Series-VII: Securities Operations and Risk Management Certification Examination”

Background

National Institute of Securities Markets (NISM) performs two functions delegated to it under the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) (SEBI CAPSM) Regulations, 2007. These are:1. Offering mandatory certification examinations for associated persons of securities market intermediaries.2. Offering Continuing Professional Education (CPE) programmes for associated persons of market intermediaries who are holding valid certificates. 

CPE Requirements

The CPE structure has been specified vide communiqué NISM/Certification/CPE General/2011/1 dated December 21, 2011

On or before expiry of a valid certificate possessed by an associated person, the associated person needs to either successfully complete the programme of continuing professional education specified by NISM during 12 months preceding the date of expiry of the certificate, or pass the relevant NISM Certification Examination before the expiry of the existing certificate, so as to have the certificate revalidated for a further period of three years.

To obtain a certificate for the first time, associated persons, who are Principals and Grandfathered Persons, will have the following options:(a)    Passing the relevant certificate examination, as specified by NISM.(b)   Successfully completing a related 2 day CPE Program, as specified by NISM.

The mandated two day NISM CPE Programme can be successfully completed by a candidate by either attending the relevant CPE Programme on two consecutive days or with a gap. However, both the days of CPE Programme must be completed during 12 months preceding the date of expiry of the certificate. Attending only one day of the relevant CPE Programme during 12 months preceding the date of expiry of the certificate shall not be considered as successful completion.

The fees for the program will be as below:

1. Rs. 1800/- (Rupees Eighteen Hundred only) per day/per candidate/per program in case candidate opts for a single day training (i.e. candidate chooses to complete training for only day at a time out of two days of CPE Program).
2. Rs. 1700/- (Rupees Seventeen Hundred only) per day/per candidate/per program in case candidate chooses to complete both days training on two consecutive days of two days CPE Program.

The certificate will be revalidated for a period of 3 years from the date of expiry of the existing certificate.

Launch Date:

The CPE Programme will be made available by NISM Accredited CPE Providers from December 7, 2012.

The Programme details will be made available at www.nism.ac.in–sd–G.P. GargRegistrarNational Institute of Securities Markets 

Copy to:

1. Executive Director, MIRSD, SEBI
2. CEO’s of BSE, MCX-SX, NSE and USE

Enclosures:

1. Annexure I
2. Annexure II

Annexure –ITHE GAZETTE OF INDIAEXTRAORDINARYPART – III – SECTION 4PUBLISHED BY AUTHORITYNEW DELHI, DECEMBER 10th , 2010SECURITIES AND EXCHANGE BOARD OF INDIANOTIFICATIONMumbai, the 10th December, 2010Notification under regulation 3 of the Securities and Exchange Board of India(Certification of Associated Persons in the Securities Markets) Regulations, 2007

No. LAD-NRO/GN/2010-11/21/29390 – In terms of sub-regulation (1) of regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (the Regulations), the Board is empowered to require, by notification, any category of associated persons as defined in the Regulations to obtain requisite certification(s).

2. Accordingly, it is notified that with effect from the date of this notification, the  following category of associated persons, i.e., persons associated with a registered stock-broker/trading member/clearing member in recognised stock exchanges, who are involved in, or deal with, any of the following, namely:-(a) assets or funds of investors or clients,(b) redressal of investor grievances,(c) internal control or risk management, and(d) activities having a bearing on operational risk,

shall be required to have a valid certification from the National Institute of Securities Markets (NISM) by passing the NISM-Series-VII: Securities Operations and Risk Management Certification Examination as mentioned in the NISM communiqué/Press Release NISM/Certification/Series-VII: SORM/2010/01 dated November 11, 2010, read with Annexures – I and II thereto.

Provided that the stock-broker/trading member/clearing member shall ensure that all persons associated with it and carrying on any activity specified in this paragraph as on the date of this notification obtain valid certification within two years from the said date of notification.

Provided further that a stock-broker/trading member/clearing member who employs any associated persons specified in this paragraph after the date of this notification shall ensure that the said associated persons obtain valid certification within one year from the date of their employment.C. B. BHAVECHAIRMANSECURITIES AND EXCHANGE BOARD OF INDIAAnnexure –IINational Institute of Securities MarketsCommuniqué/Press ReleaseNISM Continuing Professional Education RequirementsNISM/Certification/ CPE General/2011/1 dated December 21, 2011

NISM Continuing Professional Education Program

National Institute of Securities Markets (NISM) performs two functions delegated to it under the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) (SEBI CAPSM) Regulations, 2007. These are:

1. Offering mandatory certification examinations for associated persons of securities market intermediaries.
2. Offering Continuing Professional Education (CPE) programs for associated persons of market intermediaries who are holding valid certificates.

Certification and Continuing Professional Education Requirements

Obtaining a certificate for the first time

Regulation 4 of SEBI (CAPSM) Regulations, 2007 specifies the manner of obtaining the certificate the first time. These are further detailed below:

Principal¹

A Principal may obtain the certificate by any of the following manners:-(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.(c)    Delivering at least four sessions in specific 2 day CPE program, as may be specified by NISM.

Grandfathered person

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.

Others

All other persons may obtain the certificate by the following method:

(a) Passing the relevant certificate examination, as may be specified by NISM.

According to Regulation 5 of SEBI (CAPSM) Regulations, 2007, the certificate granted is valid for three years from the date of the grant of the certificate or revalidation thereof, as the case may be. 

Continuing Professional Education Requirements for Revalidating the Certificate

Upon expiry of the validity of the certificate possessed by an associated person, the certificate may get revalidated, provided the associated person successfully completes a programme of continuing professional education, as may be specified by NISM during 12 months preceding the date of expiry of the certificate, or by passing the relevant NISM Certification Examination before the expiry of the existing certificate.

The certificate will be revalidated for a period of three years from the date of expiry of the existing certificate.

Different categories of persons may get their certificate revalidated through different methods as follows:

Principal

A Principal may get his/her certificate revalidated by any of the following ways:(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.(c)    Delivering at least four sessions in specific 2 day CPE program, as may be specified by NISM.

Grandfathered person

A person other than a Principal, who has attained 50 years of age or who has 10 years of experience, may get the certificate revalidated 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.

Other persons

All other persons may get their certificate revalidated 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.

Registration for CPE

Registration with NISM

• Candidate can do a onetime online/offline registration with NISM for attending CPE Program and obtain a unique identification number.
• NISM will specify details including effective date for each CPE Program specific to each Certification Examination from time to time.

Enrolment for attending CPE Program

• For each CPE program, candidate shall approach CPE Providers, as may be accredited by NISM.
• Candidate shall use the unique identification (registration) number obtained from NISM for enrolling for a CPE program with CPE Provider, as may be accredited by NISM.
• CPE Program can be successfully completed by a candidate by either attending the relevant CPE Program on two consecutive days or with a gap. However, both the days of CPE Program must be completed during 12 months preceding the date of expiry of the certificate. Attending only one day of the relevant CPE Program during 12 months preceding the date of expiry of the certificate shall not be considered as successful completion.
• NISM may fix appropriate cost for the candidate for CPE Program which shall not exceed Rs 2000/- per program, per day, per candidate.

Design of CPE programs

CPE programs will be developed specific to each NISM certification.

• NISM will issue broad guidelines for the conduct of NISM CPE programs.
• NISM will provide broad guidelines for development of each specific CPE program and also develop the program outline listing out the learning objectives in consultation with the industry and subject matter experts. CPE program content may include recap of knowledge tested in the certification examination; incremental changes in regulations, market procedures and products as well as other relevant issues.
• Accredited CPE Provider/s shall be required to obtain prior approval of NISM for each CPE program developed by accredited CPE provider/s which meet the guidelines and the structure as above.
• NISM may also develop its own CPE programs and may provide to CPE providers for delivery.
• The CPE programs conducted by CPE providers shall be approximately of 12-hour duration to be conducted over 2 training days or as may be specified by NISM.
• At the end of the second day of the CPE Program, a test shall be conducted by the CPE Provider. (The details related to the CPE programs content, duration and test shall be specified by NISM for each CPE program specific to each certification examination, from time to time).

Delivery of CPE programs

• CPE programs may be delivered in class room format.
• NISM has accredited CPE Providers for the delivery of NISM CPE Programs. The list of the accredited providers will be made available on www.nism.ac.in.
• In addition to the accredited CPE Providers, NISM may also provide class room delivery of CPE Program specific to each certification examination.
• After verifying that candidates have successfully completed the relevant CPE Program, the certificate will be revalidated by NISM.

—-sd—-M. L. SonejiRegistrarNational Institute of Securities MarketsAnnexure –IIINational Institute of Securities MarketsAddendumNISM Continuing Professional Education RequirementsNISM/Certification/ CPE General/2011/2 dated January 23, 2012

Further to NISM Communiqué/Press Release on “NISM Continuing Professional Education Requirements” – NISM/Certification/ CPE General/2011/1 dated December 21, 2011, NISM hereby issues the following clarification pertaining to the ‘experience’ as referred to in the section on Certification and Continuing Professional Education Requirements for grandfathered person for (a) obtaining a certificate for the first time and (b) for revalidating the certificate:

Certification and Continuing Professional Education Requirements for grandfathered person for obtaining a certificate for the first time

Grandfathered person

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. 

Certification and Continuing Professional Education Requirements for grandfathered person for revalidating the certificate

Grandfathered person

A person other than a Principal, who has attained 50 years of age or who has 10 years of experience, may get the certificate revalidated 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. 

In both of the above cases, the term “experience” will be construed as experience in the securities markets in the activities as specified in sub-regulation (4) of regulation 3 of SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007. [SEBI (CAPSM) Regulations, 2007 ]

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.—-sd—-M. L. SonejiRegistrarNational Institute of Securities Markets 

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¹ A Principal is a person who is actively engaged in the management of the intermediary’s securities business including supervision, solicitation, conduct of business, and includes: a) Sole Proprietors, b) Managing Partners and c) Whole Time Directors