NISM Series III-C cheat sheet

SEBI (Intermediaries) Regulations, 2008 govern registration, code of conduct, and general obligations of intermediaries including compliance with SEBI Act, 1992 and rules made thereunder.

Registration is mandatory before commencing intermediary business; application is made to SEBI in the prescribed Form A with the applicable non-refundable application fee, and registration is granted in Form B, valid for five years unless renewed.

An intermediary must maintain a minimum net worth as specified for its category, computed as aggregate of paid-up capital and free reserves less accumulated losses and intangible assets, and must submit net worth certificates periodically.

SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 require specified associated persons (e.g., sales, dealing, compliance) to hold NISM certifications; failure to comply attracts action against the intermediary.

A compliance officer must be appointed where prescribed by the applicable intermediary regulations, and is responsible for monitoring compliance, redressing investor grievances, and reporting material violations to SEBI.

Code of conduct obligations include acting in fiduciary capacity, avoiding conflicts of interest, maintaining confidentiality, making full disclosure to clients, and not indulging in manipulative or fraudulent practices.

Record-keeping: prescribed books, records, and documents must be maintained for a minimum period (generally five years) and made available to SEBI on demand; agreements with clients must be in writing and preserved.

Intermediaries must submit periodic reports and returns as prescribed, and must report any change in control, material change in business, or change in directors/management to SEBI as specified.

SEBI (Intermediaries) Regulations, 2008 govern registration, code of conduct, and general obligations of intermediaries including compliance with SEBI Act, 1992 and rules made thereunder.

Registration is mandatory before commencing intermediary business; application is made to SEBI in the prescribed Form A with the applicable non-refundable application fee, and registration is granted in Form B, valid for five years unless renewed.

An intermediary must maintain a minimum net worth as specified for its category, computed as aggregate of paid-up capital and free reserves less accumulated losses and intangible assets, and must submit net worth certificates periodically.

SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 require specified associated persons (e.g., sales, dealing, compliance) to hold NISM certifications; failure to comply attracts action against the intermediary.

A compliance officer must be appointed where prescribed by the applicable intermediary regulations, and is responsible for monitoring compliance, redressing investor grievances, and reporting material violations to SEBI.

Code of conduct obligations include acting in fiduciary capacity, avoiding conflicts of interest, maintaining confidentiality, making full disclosure to clients, and not indulging in manipulative or fraudulent practices.

Record-keeping: prescribed books, records, and documents must be maintained for a minimum period (generally five years) and made available to SEBI on demand; agreements with clients must be in writing and preserved.

Intermediaries must submit periodic reports and returns as prescribed, and must report any change in control, material change in business, or change in directors/management to SEBI as specified.