STOCKOLOGY SECURITIES PRIVATE LIMITED
Policy for Certification of Associated Persons
Objective
To frame the guidelines for certification of associated persons in the securities markets based on notifications received from Exchanges and SEBI.
Brief About Exam Policy
- As per SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007, SEBI may require specified categories of associated persons to obtain requisite certification.
- SEBI considers whether the associated person interacts with investors or clients, handles investor assets or funds, handles investor grievances, is responsible for internal controls or risk management, is responsible for compliance, or performs activities having operational risk impact.
- Persons notified by SEBI from time to time are required to obtain certification within timelines specified by SEBI.
Definitions
- Associated Person: Principal, employee, agent, distributor or other natural person engaged in securities business, including an employee of an FII/FVCI working in India.
- Certificate: Certificate granted by NISM in accordance with applicable regulations.
- Distributor: Any person engaged by an intermediary or issuer for sale/distribution of securities.
- Intermediary: Entity registered under sections 11 or 12 of the Act, including persons requiring membership or approval from a stock exchange or SRO.
- NISM: National Institute of Securities Markets established by SEBI.
- Principal: Persons actively engaged in management of intermediary securities business, including sole proprietors, managing partners and whole-time directors.
Obligation to Obtain Certificate
- An associated person engaged on or after the notified date must obtain certification within one year from engagement.
- A person engaged prior to the notified date may continue, provided certification is obtained within two years from the notified date.
- If a valid certificate for a recognized category is already held, fresh certification for the same category is not required during validity.
Manner of Obtaining Certificate
- By passing a certification examination conducted by an organization/SRO approved or engaged by NISM.
- By obtaining prescribed classroom credits through classes on subjects specified by NISM.
- By delivering prescribed formal classroom sessions in continuing professional education programs specified by NISM.
- Principals may obtain certification through any of the above modes.
- Associated persons (other than principals) aged 50 years or with at least 10 years of relevant securities market experience may obtain certification through examination or classroom credits.
- All other associated persons must obtain certification through examination.
Validity and Continuing Professional Education
- Certification is valid for three years from date of grant or revalidation.
- On expiry, certification is revalidated for three years at a time after successful completion of NISM-specified continuing professional education.
- Intermediaries must ensure associated persons participate in approved continuing professional education programs.
- Associated persons must take reasonable steps to participate in required CPE programs.
Company Compliance Statement
- Compliance with these regulations is a factor considered for grant/renewal of intermediary registration.
- Stockology Securities Private Limited states that supervisory staff engaged in specified activities hold NISM certification and compliance will continue on an ongoing basis.
- Associated persons dealing with clients/funds, grievance redressal, internal control/risk management, compliance and operational-risk-linked activities must obtain valid NISM Series VII (SORM) certification within prescribed timelines.
Exemption (Clerical/Elementary Functions)
Associated persons handling only basic clerical/elementary functions in specified areas are exempt from NISM Series VII (SORM) certification, subject to supervision by a SORM-certified supervisor.
Internal Control or Risk Management
- Inwarding of collaterals/cheques
- Maker entries in systems
- Database entry support
- Photocopy, printing, scanning
- MIS preparation
- Sending letters/reports to clients, Exchanges, SEBI
- Attending calls
Redressal of Investor Grievances
- Inwarding of complaints
- Seeking documents from clients
- Maker entries and database support
- Photocopy, printing, scanning
- MIS preparation
- Sending letters/reports and SCORES data upload support
- Attending calls
Operational Risk / Dealing with Funds or Assets
- Maker entries in systems
- Database support
- MIS preparation
- Generating reports/files
- Photocopy, printing, scanning
- Dispatching documents to clients
- Sending letters/reports to clients, Exchanges, SEBI
- Attending calls
References
- SEBI Notifications under regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 dated 13-May-2009, 11-Aug-2009, 04-Sep-2009, 31-May-2010, 29-Jun-2010, 10-Dec-2010, 11-Jan-2013 and 11-Mar-2013.
- NSE Circular no. NSE/INSP/16536 dated 15-Dec-2010.
- NSE Circular no. NSE/INSP/27495 dated 02-Sep-2014.
- BSE Notice no. 20101215-19 dated 15-Dec-2010.
- BSE Notice no. 20140902-8 dated 02-Sep-2014.
