Exchange Traded Currency Options RBI Directions for investment by Person Resident in India and SEBI norms 2010

As you are aware of Exchange Traded Currency Futures (ETCF) in Recognised Stock Exchanges for Person Resident in India (PRII) and What exam for approved users & sales personnel of trading members in currency derivatives segment and trading in interest rate derivatives, register for NISM now

Guidelines on trading of Currency Options on
Recognised Stock / New Exchanges

Attention of Authorised Dealers Category – I (AD Category – I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, 2000 [Notification No. FEMA/25/RB-2000 dated May 3, 2000], as amended from time to time and A.P. (DIR Series) Circular No. 05 dated August 6, 2008 in terms of which persons resident in India were permitted to participate in the currency futures market in India subject to directions contained in the Currency Futures (Reserve Bank) Directions, 2008.

2. In order to expand the existing menu of exchange traded hedging tools, it was announced in the Monetary Policy Statement 2010-11 (para 62) that recognised stock exchanges would be permitted to introduce plain vanilla currency options on spot US Dollar/ Rupee exchange rate for residents. Accordingly, it has been decided to permit trading of currency options on spot USD-INR rate in the currency derivatives segment of the stock exchanges, recognized by the Securities and Exchange Board of India (SEBI). The currency options market would function subject to the directions, guidelines, instructions, rules, etc issued by the Reserve Bank and the SEBI from time to time.

3. Persons resident in India are permitted to participate in the currency options market, subject to the directions contained in the Exchange Traded Currency Options (Reserve Bank) Directions, 2010, [Notification No.FED.01 / ED (HRK)-2010 dated July 30, 2010] (Directions) issued by the Reserve Bank of India, a copy of which is annexed (Annex-I).

4. Necessary amendments to Foreign Exchange Management (Foreign Exchange Derivatives Contracts) Regulations, 2000 (Notification No. FEMA.25/RB-2000 dated May 3, 2000) (Regulations) have been notified in the Official Gazette vide G.S.R. No. 635(E) dated July 27, 2010, a copy of which is annexed (Annex-II).

Source: A.P. (DIR Series) Circular No. 05 dated 30th July 2010

What exam for approved users & sales personnel of trading members in currency derivatives segment and trading in interest rate derivatives, register for NISM now

Notification No. LAD-NRO/GN/2010-11/12/10230 dated 29th June 2010 under regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007
WHEREAS the National Institute of Securities Markets (hereinafter referred to as NISM) has issued a communiqué no. NISM/Certification/Series-IV:IRD/2010/1 dated May 18, 2010, on “NISM-Series-IV: Interest Rate Derivatives Certification Examination” (hereinafter referred to as ‘the Series-IV: IRD’) for approved users and sales personnel of the trading members who are registered as such in the currency derivatives segment of a recognized stock exchange and trading in interest rate derivatives.

NOW THEREFORE the Securities and Exchange Board of India approves the Series-IV: IRD, as issued by NISM vide aforesaid communiqué, as the required certification for approved users and sales personnel of the abovementioned trading member for the purpose of sub-regulation (2) of regulation 16L of the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 read with Circular No. SEBI/DNPD/Cir-46/2009 dated August 28, 2009.

NOW THEREFORE such trading member shall ensure that all its existing approved users and sales personnel obtain Series-IV: IRD certification within 2 years from the date of this notification.

FURTHER such trading member shall ensure that every approved user and sales personnel employed by it after the date of this notification, obtains Series-IV: IRD certification within 1 year from the date of employment.

Registration:

• Register through NSE
• Register through BSE
• Register through MCX-SX

What exam for distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products by SEBI NISM?

Cir / IMD / DF / 5 / 2010 June 24 , 2010
All Mutual Funds, Asset Management Companies (AMCs)

Sub: Certification Programme for sale and/ or distribution of mutual fund products
In terms of SEBI Circulars dated September 25, 2001, November 28, 2002, April 03, 2003 and February 04, 2004 about, inter alia, the captioned subject, agents/distributors of mutual fund units were required to obtain certification from the Association of Mutual Funds in India (AMFI) by passing a certification examination, and to obtain registration with AMFI.

In terms of SEBI notification No. LAD-NRO/GN/2010-11/09/6422 dated May 31, 2010, under regulation 3 (1) of the (Certification of Associated Persons in the Securities Markets) Regulations, 2007, (Certification Regulations) it has been decided that from June 01, 2010, the certification examination for distributors, agents or any other persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products, would be conducted by the National Institute of Securities Markets (NISM).  Accordingly, it was notified that with effect from June 01, 2010, the following category of associated persons, i.e., distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products, shall be required to have a valid certification from the National Institute of Securities Markets (NISM) by passing the certification examination as mentioned in the NISM communiqué NISM/Certification/Series-V-A: MFD/2010/01 dated May 05, 2010.
Provided that if the said associated person possesses a valid certificate by passing before June 01, 2010, the AMFI Mutual Fund (Advisors) Module, he shall be exempted from the requirement of the aforementioned NISM certification examination.

Under the existing instructions, the agent/ distributor was exempted from the AMFI certification examination if he had completed 50 years of age and had at least 5 years of experience in distribution of mutual fund units. As per regulation 4 (3) of the Certification Regulations, persons who have attained the age of fifty years or who have at least ten years experience in the securities markets in the sale and/ or distribution of mutual fund products as on May 31, 2010, will be given the option of obtaining the certification either by passing the NISM certification examination or qualifying for Continuing Professional Education (CPE) by obtaining such classroom credits as may be specified by NISM from time to time.

The Certification Regulations require the persons referred to in para 2 above to comply with the requirements for CPE as specified by NISM within the validity period of the certificate obtained by passing the certification examination.
However, to facilitate the transition process from AMFI to NISM, it has been decided that a person holding a valid AMFI certification whose validity expires between June 01, 2010 and December 31, 2010, would be required to comply with the CPE requirements as laid down by NISM under the relevant clauses of the Certification Regulations, by December 31, 2010.

An associated person holding a valid AMFI/NISM certification whose validity
expires anytime after December 31, 2010, would be required to comply with the CPE requirements as laid down by NISM under the relevant clauses of the Certification Regulations, prior to the expiry of the validity of the certification.

1 year Securities law course from SEBI by NISM is power packed and has good career prospects, may be even good placements, go for it

National Institute of Securities Market (NISM) – An Educational Institution by Securities & Exchange Board of India (SEBI).

NISM is established by SEBI which is entrusted with duties also under Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets), Regulations, 2007 and it is in the process of mandating few programmes for Market Intermediaries like SEBI NISM Currency Derivatives Exam through BSE/NSE/MCX for brokers made mandatory to operate in securities market.

NISM Schools on Securities Market in India:

1. School for Investor Education and Financial Literacy (SIEFL)
2. School for Certification of Intermediaries (SCI)
3. School for Securities Information and Research (SSIR)
4. School for Regulatory Studies and Supervision (SRSS)
5. School for Corporate Governance (SCG)
6. School for Securities Education (SSE)

The CSMP Programme:

1. CSMP stands for Certified Securities Markets Professional.
2. The CSMP programme is a 1-year full-time certificate programme offered by NISM.
3. It covers Security analysis and Equity Research, Investment Banking, Fund Management, Corporate Re-structuring and Consulting, Investment Advisory Services, Equity and Debt Market Broking and related fields.
4. Aimed at graduates, post graduates and Executives aspiring for careers in securities markets.

Programme Architecture:

The programme is a balanced blend of theory and practice, divided into four terms. The themes of the four terms are:

• Conceptual Phase
• Application Phase
• Industry- Interaction Phase
• Advanced Application Phase

1. 600 hours of teaching.
2. During the first two terms/phases and in the fourth term/phase students are expected to study a total of 24 courses.
3. In the third term/phase is the internship project with an organization in the securities industry.

Admission Process:

1. Nationwide online Test and
2. Personal Interview.

Eligibility Criteria:

• A Post- Graduation (PG) course for 2 years or in the final year of PG course OR
• A Graduate (UG), with 2 years post qualification experience.
• NISM reserves the right to relax any of the above criteria in deserving cases and also accept or reject any application without assigning any reason.
• Should have a personal laptop.

Selection Criteria/Weightage:

1. Profile – 20% ( consists of Academic Qualification / Performance – 10% and Work Experience – 10%)
2. Online Test – 40%
3. Personal Interview – 40%

Course Fees:

1. Tuition fee: Rs.1,50,000/-
2. Examination fee: Rs.10,000/-
3. Library deposit fee: Rs.6,000/-
4. Library fee: Rs.10,000/-
5. Total = Rs.1,76,000/-
6. Plus Hostel/Stay fees.

For further details, contact:

National Institute of Securities Markets, Navi Mumbai.

E: csmp@nism.ac.in

W: www.nism.ac.in

Prospectus: Click Here to download

Registration: Click Here to Register Online [Rs.525/-]

Important Cut off or Due Dates: <><><></></></> Event Date Last date for Online Registration April 15 Online test April 25 Announcement online test results April 28 Personal interviews May 7 - 10 Announcement of first list of selected candidates for admission May 12 Payment of commitment fees for first list May 12 - 24 Announcement of second list of selected candidates for admission May 25 Receipt of First Installment Fee for all admitted candidates May 26 – June 14 Last date of completing all formalities and payment of first installment fee June 14 Inauguration of the programme June 22 Commencement of the programme June 23

Feel free to catch me up for clarifications… Trust me, if you are passionate about or wish to make a career in Securities Market, this is the right time to take a decision, go for it!!!

SEBI NISM Currency Derivatives Exam through BSE/NSE/MCX for brokers made mandatory to operate in securities market

Notification under Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007

SEBI Notification No. LAD/NRO/GN/2009-10/04/163097 dated 13th May 2009

 

Yes, now Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets), Regulations, 2007 is made mandatory for approved users and sales personnel of trading members of the Currency Derivatives Segment of recognized stock exchanges vide SEBI (stock broker & sub broker) Regulations, 1992 to have a certification as per Notification NISM/Certification/Series-I: CD/2009/1 dated May 11, 2009 as conducted by National Institute of Securities Markets (NISM) of SEBI (Read FAQ) and anyone can register for this certification through Bombay Stock Exchange (BSE) or National Stock Exchange (NSE) or Multi Commodity Exchange (MCX).

 

FURTHER from the date of this notification a trading member of the Currency Derivatives Segment of a recognised stock exchange shall not engage or employ any approved user or sales personnel who does not have valid Series-I: CD certification by 10th August 2009.

 

The exams can be give in most of cities, refer relevant notification of stock exchange, for instance, click here for BSE.  For detailed Test Objectives for the NISM-Series-I: CD Examination click here or Annexure I and II.

Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets), Regulations, 2007

NOTIFICATION NO. F. NO. 11/LC/GN/2007/ 4567, DATED 17-10-2007
In exercise of the powers conferred by Section 30 read with Sections 11, 12 and 19 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations, namely :—
CHAPTER I
PRELIMINARY
Short title and commencement
1. (1) These regulations may be called the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007.
(2) They shall come into force on the date of their publication in the Official Gazette.
Definitions
2. (1) In these regulations, unless the context otherwise requires :—
(a) (a) “Act” means the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b) (b) “agent” means any person who is engaged in the activity of sale or distribution of securities on behalf of an issuer or a distributor for a commission or any other consideration;
“associated person” means a principal or employee of intermediary or an agent or distributor or other natural person engaged in the securities business and includes an employee of a foreign institutional investor or a foreign venture capital investor working in India;
(d) (d) “Board” means the Securities and Exchange Board of India established under section 3 of the Act;
(e) (e) “certificate” means the certificate granted by NISM in accordance with these regulations;
(f) (f) “Continuing Professional Education” (CPE) means any course, programme, training programme, activity, conference, seminar that has been accredited or approved by NISM to enhance the knowledge, skills and professional competency of associated persons in the areas of securities, governance and ethics;
(g) (g) “distributor” means any person engaged by an intermediary or an issuer for the purpose of sale or distribution of securities;
(h) “intermediary” means an entity registered under sections 11 or 12 of the Act and includes any person required to obtain any membership or approval from a stock exchange or a self-regulatory organization;
(i) “issuer” means a company or a mutual fund or a collective investment scheme which has issued or proposes to issue securities to the public in accordance with the relevant regulations or guidelines made by the Board and also includes a venture capital fund registered under the relevant regulations or guidelines made by the Board;
(j) “NISM” means the National Institute of Securities Markets established by the Board;
(k) “principal” means persons who are actively engaged in the management of the intermediary’ s securities business including supervision, solicitation, conduct of business, and includes:
(1) (1) Sole Proprietors
(2) (2) Managing Partners’ and
(3) (3) Whole Time Directors
(1) “securities” means securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).
(2) Words and expressions used and not defined in these regulations shall have the meanings, if any, respectively assigned to them by or under the Act or the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Companies Act, 1956 (1 of 1956) or the Depositories Act, 1996 (22 of 1996) or rules and regulations made thereunder or any amendment thereto or re-enactment thereof.
CHAPTER II
CERTIFICATION OF ASSOCIATED PERSONS
Obligation to obtain certificate
3. (1) The Board may by notification in the Official Gazette require such categories of associated persons to obtain requisite certificate for engagement or employment with such classes of intermediaries and from such date as may be specified in the notification:
Provided that an associated person employed or engaged by an intermediary prior to the date specified by the Board may continue to be employed or engaged by the intermediary if he obtains the certificate within two years from the said date.
(2) (2) An associated person on being employed or engaged by an intermediary on or after the date specified by the Board shall obtain the certificate within one year from the date of being employed or engaged by the intermediary.
(3) (3) An associated person who, as on the date specified by the Board, holds a certificate for a category as recognized by the Board shall not be required to obtain a fresh certificate for the same category during the validity of such certificate.
(4) (4) The Board for the purpose of issuing notification under sub-regulations (1) and (2) shall take into consideration :
(a) (a) whether the associated person as part of his work or operation deals or interacts with the investors, issuers or clients of intermediaries;
(b) (b) whether the associated person deals with assets or funds of investor or clients;
(c) (c) whether the associated person handles redressal of investor grievances;
(d) (d) whether the associated person is responsible for internal control or risk management;
(e) (e) whether the associated person is responsible for compliance of any rules or regulations;
(f) (f) whether the associated person is engaged in activities that have a bearing on operational risk of the intermediary.
Manner of obtaining certificate
4. (1) Subject to the provisions of this regulation, an associated person may obtain the certificate in any of the following manners, namely:—
(a) (a) by passing a certification examination conducted by any organization or self regulatory organization approved or engaged as may be specified by NISM from time-to-time; or
(b) (b) by obtaining such number of classroom credits accumulated through attending classes on such subjects as may be specified by NISM from time-to-time; or
(c) (c) by delivering such number of formal classroom sessions in all or specific programmes of continuing professional education as may be specified by NISM from time-to-time.
(2) (2) An associated person being principal shall obtain the certificate in any of the manners specified in clause (a) or clause (b) or clause (c) of sub-regulation (1).
(3) (3) An associated person, other than a principal, who has attained the age of fifty years or who has at least ten years experience in the securities markets in the activities mentioned in sub-regulation (4) of regulation 3 on the date specified in the notification issued under sub-regulation (1) of regulation 3, shall obtain the certificate in the relevant category in the manner specified in clause (a) or clause (b) of sub-regulation (1).
(4) (4) An associated person other than those mentioned in sub-regulation (2) or sub-regulation (3) shall obtain the certificate in the manner specified in clause (a) of sub-regulation (1).
Validity period of certificate
5. (1) The certificate granted under regulation 3 shall be valid for a period of three years from the date of the grant of the certificate or revalidation thereof as the case may be.
(2) Upon expiry of the validity of certificate possessed by an associated person, the certificate shall be revalidated for a period of three years at a time, provided the associated person successfully completes a programme of continuing professional education specified by NISM in accordance with Chapter IV of these regulations.
Associated person not to undertake certain activities without a valid certificate
6. No associated person engaged in any of the activities mentioned in clauses (a) to (f) of sub-regulation (4) of regulation 3 shall continue to be so engaged after the date specified in sub regulation (1) or sub-regulation (2) of regulation 3, as the case may be, unless such associated person holds a valid certificate.
CHAPTER III
POWERS AND FUNCTIONS OF NISM
Powers and functions of NISM
7. (1) NISM would perform the functions delegated to it under these regulations or as may be delegated by the Board.
(2) (2) Without prejudice to the generality of the foregoing provisions and the activities of NISM .under its articles, the functions of NISM in respect of certification for associated persons in the securities market shall include putting in place and implementing the certification process, procedure and policies.
(3) (3) NISM in consultation with the Board may lay down standards which may-
(a) specify that all or any portion of such standards shall be applicable to all or any category of associated persons working or associated with all or any class of intermediaries in securities market;
(b) specify that no associated person in any such class may be qualified to be employed or engaged or continued to be employed or engaged by an intermediary unless he is in compliance with such standards of examination, continuing professional education requirements and such other qualifications as NISM in consultation with the Board may specify.
Conduct of certification examination and programmes of continuing professional education
8. For conducting certification examination and programme of continuing professional education, NISM may:
(1) (1) accredit, approve or engage any organization or self regulatory; organisation to administer certification examinations.
(2) (2) accredit, approve or engage any organization or self regulatory organization to conduct all or any programme of continuing professional education as may be specified from time to time.
(3) require all associated persons appearing for certification examinations or undergoing programme of continuing professional education to pay reasonable fees or charges to defray the costs incurred in conducting such certification examinations and programmes of continuing’ professional education.
CHAPTER IV
CONTINUING PROFESSIONAL EDUCATION REQUIREMENTS
Continuing Professional Education requirements for associated persons
9. (1) NISM may specify the requirements’ for continuing professional education (CPE) for associated persons holding certificate and approve the programmes of CPE that may be conducted by entities accredited and engaged in accordance with regulation 8.
(2) (2) No intermediary shall permit any associated person to continue and no associated person shall continue to perform duties as an associated person unless such person has complied with the requirements specified by NISM under sub-regulation (1) within 3 years from the date of obtaining the certificate or revalidation thereof.
(3) (3) The requirements of sub-regulations (1) and (2) shall apply to associated persons who are engaged in any of the activities mentioned in clauses (a) to (f) of sub-regulation (4) of regulation 3.
Intermediary to ensure participation in •continuing professional education
10. (1) Each intermediary shall be responsible to ensure that its associated persons participate in a programme of continuing professional education approved by NISM under sub-regulation (1) of regulation 9.
(2) Associated persons shall take all appropriate and reasonable steps to participate in a programme of continuing professional education as requited by the intermediary.
CHAPTER V
MISCELLANEOUS
Certification of associated persons to be pre-condition for registration of intermediaries11. Compliance with the provisions of these regulations shall be one of the factors to be taken into consideration by the Board for the purpose of determining eligibility criteria for grant or renewal of certificate of registration to an intermediary under the relevant regulations.