NISM Series III-A (Compliance) case studies
NISM Series III-A (Compliance) · Put your knowledge to work in context.
The NISM Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination is one of the certification examinations offered by the National Institute of Securities Markets (NISM), a public trust established in 2006 by the Securities and Exchange Board of India (SEBI). NISM carries out capacity building activities aimed at enhancing quality standards in the securities markets. The NISM Series III-A (Compliance) case studies are 5 cases and about 3,791 words.
1Running Account Left Unsettled: Client Funds and Securities at a Stock Broker
Sundaram Securities is a SEBI-registered stock broker with 1,850 active clients. On 30 June the compliance officer reviews the client funding position and finds ₹6.4 crore of client funds parked in the firm's designated client bank account and ₹3.1 crore of client securities held as collateral.
796 words, about 4 min2Off-Market Transfers Below the EDD Trigger at a Depository Participant
Nivaas Depository Services is a SEBI-registered depository participant. Between March and April its branch processed off-market transfers of 2.4 million shares of a small-cap listed company, then valued at ₹18 crore, into a demat account opened six weeks earlier in the name of a company incorporated in January.
759 words, about 4 min3Proprietary Anchor Application and Premature RHP Sharing at a Merchant Banker
A SEBI-registered merchant banker is the lead manager to a ₹420 crore mainboard IPO. Its proprietary trading desk and an affiliated private equity fund together hold 9.8% of the issuer's pre-issue capital.
750 words, about 4 min4Performance Fee on Unrealised Gains and Cross-Client Collateral at a Portfolio Manager
A SEBI-registered portfolio manager manages ₹780 crore across 460 discretionary accounts. Its standard fee is 2% of assets plus a 20% performance fee calculated on the increase in portfolio value each quarter, including unrealised gains.
764 words, about 4 min5Missed Asset Cover, Late Charge Creation and a Silent Debenture Trustee
A SEBI-registered debenture trustee acts for ₹300 crore of listed non-convertible debentures issued by a manufacturing company. The trust deed requires the issuer to maintain asset cover of at least 1.25 times and to create a charge over specified plant and machinery within 30 days of allotment.
722 words, about 4 min