The NISM Series III-B Issuers Compliance Exam is a certification for people in the securities market who handle compliance for securities issuers. This test checks if candidates know the rules and requirements issuers have to follow. Passing this exam shows a strong understanding of compliance and rules, making them better job candidates in the securities market. Here are some technical skills needed for this exam:
- Understanding of Securities Laws and Regulations: The exam requires a thorough understanding of the securities laws and regulations in India. Candidates must be familiar with the regulatory framework governing the issuance and trading of securities in the country, including the SEBI Act, 1992, Companies Act, 2013, Securities Contract (Regulation) Act, 1956, and the various regulations and guidelines issued by SEBI.
- Knowledge of Corporate Governance: Candidates must have a good understanding of corporate governance practices and regulations. They must be familiar with the roles and responsibilities of board members, the audit committee, and the compliance officer. They should also have knowledge of the various disclosures required to be made by companies to comply with corporate governance norms.
- Understanding of Securities Market Intermediaries: Candidates must have knowledge of the role of various market intermediaries, such as stockbrokers, merchant bankers, underwriters, and registrars. They should know the regulations governing the functioning of these intermediaries and their responsibilities towards investors and the market.
- Compliance Management: Candidates need to understand how compliance management works, including monitoring systems, assessing compliance risks, and conducting compliance audits. They should also know how to create and apply policies and procedures to follow regulations.
In this blog, we’ll talk about getting ready for the NISM Series III-B Issuers Compliance Exam. These tips can help candidates improve their odds of passing the exam and moving ahead in their securities market careers.
Glossary of NISM Series III-B Issuers Compliance Terminology
The following glossary includes some of the key terms and concepts related to Issuers Compliance that professionals may come across while dealing with compliance requirements for listed companies.
- Audit Committee: A committee of the Board of Directors responsible for overseeing the financial reporting process, appointment of auditors, reviewing audit reports, and monitoring compliance with accounting standards and regulatory requirements.
- Board of Directors: A group of individuals elected by shareholders to oversee the management of a company and make strategic decisions.
- Compliance Officer: A designated person responsible for ensuring that a company complies with regulatory requirements and company policies.
- Corporate Governance: The set of rules, methods, and steps that guide and manage a company, emphasizing responsibility, openness, and ethical conduct.
- Insider Trading: The illegal practice of trading securities based on material non-public information.
- Listing Agreement: An agreement between a company and a stock exchange that sets out the conditions for listing and continuing to be listed on the exchange.
- Related Party Transactions: Transactions between a company and its related parties, such as its directors, key managerial personnel, and their relatives.
- Risk Management: The process of identifying, assessing, and managing risks to a company’s objectives.
- Secretarial Standards: Standards issued by the Institute of Company Secretaries of India that prescribe best practices for company secretaries in the discharge of their duties.
- Whistleblower Policy: A policy that enables employees to report any unethical or illegal activities without fear of retaliation.
- Insider Trading Regulations: Regulations issued by the Securities and Exchange Board of India (SEBI) prohibit insider trading and prescribe penalties for violations.
- Material Non-Public Information: Information that has not been disclosed to the public and could potentially affect the price of a company’s securities if it were to be disclosed.
- Nomination and Remuneration Committee: A committee of the Board of Directors responsible for making recommendations on the appointment and remuneration of directors and senior management.
- Registrar and Transfer Agent: A third-party service provider appointed by a company to maintain records of shareholders and transfer securities.
- Securities and Exchange Board of India (SEBI): The organization in charge of the securities market in India that supervises how stock exchanges, middlemen, and listed companies operate.
- Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015: The rules from SEBI that lay out what listed companies in India must do to get listed and share information.
- Shareholder Activism: The use of shareholder rights for influencing the policies and decisions of a company.
- Shareholder Resolution: A resolution passed by shareholders at a general meeting that requires the company to take a certain action or change a certain policy.
- Stewardship Code: A voluntary code of conduct for institutional investors that encourages responsible investment practices and active engagement with companies.
- Whistleblower: An individual who reports unethical or illegal activities within an organization.
- Corporate Social Responsibility (CSR): A concept that requires companies to consider the social, environmental, and economic impact of their activities and take responsibility for them.
- Dividend Distribution Policy: A policy that sets out the principles and criteria for the distribution of dividends by a company.
- Independent Director: A director who is not affiliated with the company or its management and is expected to provide an objective perspective and bring independent judgment to the Board.
- Insider Trading Policy: A policy that sets out the procedures and guidelines for preventing and detecting insider trading.
- Key Managerial Personnel (KMP): The top executives of a company, including the CEO, CFO, and Company Secretary, who are responsible for the day-to-day operations of the company.
- Memorandum of Understanding (MoU): An agreement between a company and a regulator or other organization that sets out the terms and conditions of their relationship.
- Minimum Public Shareholding: The minimum percentage of a company’s shares that must be held by the public, as prescribed by SEBI.
- Related Party Disclosures: Disclosures made by a company in its financial statements regarding transactions with related parties.
- Secretarial Audit: An audit of a company’s compliance with regulatory and statutory requirements conducted by a Company Secretary in Practice.
- Shareholder Meeting: A meeting of the shareholders of a company, typically held annually, to discuss and vote on matters related to the company’s management and governance.
The glossary above includes some of the key terms and concepts related to Issuers’ Compliance that professionals may come across while dealing with compliance requirements for listed companies. Understanding these terms and concepts is essential for professionals to perform their roles effectively and efficiently in ensuring compliance with regulatory requirements and maintaining corporate governance standards.
Study Guide for NISM Series III-B Issuers Compliance Exam
The NISM Series III-B Issuers Compliance Exam is a test for people in the securities market. It checks if you know the rules and can keep the market fair. People like compliance officers and legal professionals who work for securities issuers in India need to pass this exam. Let’s now look at the official training and study materials for the NISM Series III-B Issuers Compliance Exam.
- NISM Series III-B: Issuers Compliance Certification Examination Workbook: This workbook is the official training material provided by NISM for the Series III-B exam. It covers all the important topics that are part of the exam syllabus, including regulatory framework, disclosure requirements, and insider trading. The workbook also includes practice questions and case studies to help candidates prepare for the exam. The workbook can be purchased from the NISM website.
- NISM-Series-III-B: Issuers Compliance Certification Examination Online Course: NISM also offers an online course for the Series III-B exam. The course covers all the topics that are part of the exam syllabus and includes video lectures, quizzes, and practice tests. The course is self-paced, and candidates can access it from anywhere with an internet connection. The course can be purchased from the NISM website.
- Securities Laws and Compliances: This book by Dr. Sanjay Kumar Singh is a comprehensive guide to securities laws and compliances in India. It covers all the important topics that are part of the NISM Series III-B exam syllabus, including SEBI regulations, insider trading, and disclosure requirements. The book has real-life examples and cases to make it easier for candidates to grasp the concepts.
- SEBI Regulations: A Comprehensive Guide: This book by Dr. T. Ramakrishnan is a comprehensive guide to SEBI regulations in India. It covers all the important regulations related to issuers of securities, including insider trading, continuous disclosure requirements, and corporate governance. The book includes case studies and practical examples to help candidates prepare for the NISM Series III-B exam.
- SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018: This is the official document of SEBI that covers the regulations related to the issue of securities and disclosure requirements. It is an essential resource for candidates appearing for the NISM Series III-B exam. The document can be downloaded from the SEBI website.
- Corporate Laws: This book by Dr. Avtar Singh is a comprehensive guide to corporate laws in India. It covers all the important topics related to corporate governance, including board structure, shareholder rights, and legal compliance.
- NISM Mock Test Series for Series III-B Exam: NISM offers mock test series for the Series III-B exam. These practice tests are made to imitate the real exam, helping candidates become comfortable with how the exam looks and the kinds of questions in it. You can find these practice tests on the NISM website and buy them for a small cost.
- Securities Market Regulations and Legal Framework: This book by Dr. Jitendra Kumar Mishra is a comprehensive guide to securities market regulations and legal frameworks in India. It covers all the important topics related to the securities market, including SEBI regulations, insider trading, and corporate governance.
The official training courses and study resources listed above can help candidates prepare for the exam and improve their chances of passing. It is recommended that candidates refer to multiple resources and practice questions regularly to get a better understanding of the concepts and improve their exam performance.
Expert Tips to Pass the NISM Series III-B Issuers Compliance Exam
The NISM (National Institute of Securities Markets) Series III-B Issuers Compliance exam is conducted to test the knowledge and understanding of the regulatory framework and compliance requirements for issuers of securities in India. It is an important exam for individuals who wish to work in the securities market as compliance professionals. To succeed in this exam, you must really know the rules and how issuers need to follow them. Here, we’ll share some pro tips to help you pass the NISM Series III-B Issuers Compliance exam.
- Tip #1: Understand the Regulatory Framework: One of the most important tips for passing the NISM Series III-B Issuers Compliance exam is to have a thorough understanding of the regulatory framework. This includes knowledge of the SEBI (Securities and Exchange Board of India) regulations and guidelines related to issuers of securities. You should also have a good understanding of the Companies Act, 2013, and other relevant laws and regulations.
- Tip #2: Learn about Compliance Requirements: Another important tip is to learn about the compliance requirements for issuers of securities. This includes knowledge of the various disclosures, filings, and other requirements that issuers must comply with under SEBI regulations. You should also have a good understanding of the role of compliance professionals in ensuring that issuers comply with these requirements.
- Tip #3: Practice Mock Tests: Practicing mock tests is an effective way to prepare for the NISM Series III-B Issuers Compliance exam. This will give you an idea of how the exam works and the kinds of questions you might get. You can find practice tests on the internet or from coaching centers that help with NISM exam readiness.
- Tip #4: Stay Updated: Finally, it is important to stay updated with the latest developments in the securities market and regulatory framework. You should regularly read financial news and updates, and keep yourself informed about any changes in SEBI regulations or guidelines.
- Tip #5: Take Notes and Create Flashcards: Taking notes and creating flashcards is an effective way to retain important information and concepts. You can use these notes and flashcards to revise important topics and concepts before the exam.
- Tip #6: Understand the Role of Compliance Professionals: It is important to have a good understanding of the role of compliance professionals in the securities market. This includes knowledge of the responsibilities, skills, and qualifications required to work as a compliance professional. This understanding will help you answer questions related to the role of compliance professionals in the securities market.
- Tip #7: Time Management: Time management is an important aspect of the NISM Series III-B Issuers Compliance exam. You need to manage your time effectively to answer all the questions within the given time limit. Make sure you allocate sufficient time for each section of the exam and avoid spending too much time on a single question.
- Tip #8: Join a Coaching Center: Joining a coaching center that offers NISM exam preparation can be beneficial. They provide study material, mock tests, and guidance from experienced professionals, which can help you prepare for the exam.
- Tip #9: Understand the Types of Securities: You should have a good understanding of the different types of securities issued by companies. This includes equity shares, preference shares, debentures, bonds, and other types of securities. You should also understand the features and characteristics of each type of security.
- Tip #10: Know the Disclosure Requirements: You should be aware of the disclosure requirements for issuers of securities. This includes knowledge of the various disclosures that need to be made under SEBI regulations, such as financial statements, annual reports, and other disclosures. You should also be aware of the timelines for making these disclosures.
- Tip #11: Understand the Role of Stock Exchanges: It is important to understand the role of stock exchanges in the securities market. This means you need to know about various stock exchanges in India, like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). You also should get how companies become listed and how stock exchanges make sure they follow the rules for listing.
- Tip #12: Learn about Insider Trading: Insider trading is a key area of focus for compliance professionals in the securities market. You should have a good understanding of the SEBI regulations related to insider trading, and the penalties for non-compliance. You should also be aware of the role of compliance professionals in preventing insider trading.
- Tip #13: Understand the Role of Credit Rating Agencies: Credit rating agencies have a big job in the securities market – they give credit ratings to companies. You should know what credit rating agencies do, how they decide ratings, and how ratings affect the securities market.
Passing the NISM Series III-B Issuers Compliance exam requires a good understanding of the regulatory framework and compliance requirements for issuers of securities. By following these expert tips, you can increase your chances of passing the exam and starting a career as a compliance professional in the securities market. Remember to stay updated and keep practicing mock tests to improve your knowledge and confidence.
NISM Series III-B Issuers Compliance Exam Guide
The NISM Series III-B Issuers Compliance exam is a certification exam conducted by the National Institute of Securities Markets (NISM) in India. The exam aims to test the knowledge and understanding of individuals regarding the compliance requirements for issuers of securities in the Indian capital market. The exam is mandatory for professionals working in the securities market, including compliance officers, legal advisors, and company secretaries.
The exam consists of 100 multiple-choice questions, which must be completed within two hours. The syllabus covers topics such as legal and regulatory framework for issuers, compliance requirements for public issues, disclosures and filings, corporate governance, and investor protection. The exam is conducted online and is available in both English and Hindi.
Passing the NISM Series III-B Issuers Compliance exam is a mandatory requirement for compliance officers and other professionals working in the Indian capital market. The certification is valid for three years, after which individuals must retake the exam to renew their certification. The exam is designed to ensure that professionals working in the securities market have a thorough understanding of the compliance requirements for issuers and can effectively carry out their roles in ensuring regulatory compliance.
Explore the Exam Topics
NISM Series-III-B: Issuers Compliance Exam covers the following topics –
- Introduction to Indian Capital Market
- Understand the Capital Market Regulations
- Discuss the role of the Compliance Officer
- Understand how to Raise Capital from the market
- Understand the Role of Compliance Officer in IPO
- Understand the Role of the Compliance Officer in other public Issues
- Know about the ways to Raise money from foreign market
- Know about the Ongoing Compliance Requirements
Why should you become a NISM Series III-B Issuers Compliance?
Passing this exam is essential for those who want to work in roles related to compliance and regulatory compliance in the securities industry. In this response, we will discuss some of the reasons why passing the NISM Series III-B Issuers Compliance Exam is important.
- Compliance requirements: One of the main reasons to pass the NISM Series III-B Issuers Compliance Exam is to understand the compliance requirements for issuers in the securities market. The exam covers various topics related to compliance, such as insider trading, market abuse, and the prevention of money laundering. Understanding these topics is crucial for compliance professionals, as non-compliance can lead to severe penalties and legal action.
- Corporate governance: The exam also covers topics related to corporate governance, such as board structure and composition, shareholder rights, and disclosure requirements. Understanding corporate governance principles is essential for individuals working in compliance, as it helps to ensure that companies operate in an ethical and transparent manner.
- Investor protection: The NISM Series III-B Issuers Compliance Exam also covers topics related to investor protection, such as disclosure requirements, investor grievance redressal mechanisms, and securities market regulations. Grasping these topics is super important for compliance experts. It makes sure investors are safe from fraud and cheating in the market.
- Career advancement: Passing the NISM Series III-B Issuers Compliance Exam can also lead to career advancement opportunities. Many companies in the securities industry require their employees to have this certification, and some may even require it for promotions or higher-level positions. Therefore, passing this exam can be a significant boost to an individual’s career prospects.
- Professional credibility: Holding the NISM Series III-B Issuers Compliance certification can also increase an individual’s professional credibility. It demonstrates that the individual has the knowledge and skills necessary to work in compliance and regulatory compliance roles in the securities industry. This can be particularly important for those who work with clients or investors, as it can help to build trust and confidence in their abilities.
- Enhanced job security: In the highly regulated securities industry, compliance is a critical function, and non-compliance can have severe consequences. Holding the NISM Series III-B Issuers Compliance certification can enhance an individual’s job security, as it demonstrates that they have the knowledge and skills necessary to help their employer remain compliant with the relevant laws and regulations.
Knowing these subjects can aid compliance experts in making sure companies act ethically and openly. This guards investors against fraud and market tricks.
Who should take the NISM Series III-B Issuers Compliance exam?
- Professionals who are involved in the management or administration of securities issuers, including board members, directors, and senior executives, should take the exam.
- Compliance officers and employees responsible for compliance with securities laws and regulations within the issuer’s organization should take the exam.
- The exam is also relevant for professionals working in stock exchanges, merchant bankers, underwriters, and other intermediaries involved in securities issuance and trading.
- Individuals who aspire to work in the securities industry and want to gain knowledge about issuers’ compliance requirements should consider taking the exam.
- Financial advisors and investment consultants who deal with securities and securities issuers should take the exam to enhance their knowledge of the regulatory framework.
- If you want to know about securities issuers’ laws and rules and how they follow them, you should consider taking this exam.
- As the NISM Series III-B exam is a mandatory requirement for certain roles in the securities industry, individuals who want to work in those roles should take the exam.
What skills will you gain from the NISM Series III-B Issuers Compliance certification?
This certification provides candidates with a comprehensive understanding of the compliance and regulatory requirements for issuers of securities, including corporate governance, disclosure, and reporting.
Skills gained from NISM Series III-B Issuers Compliance certification:
- Understanding of regulatory framework: The certification program provides candidates with a detailed understanding of the regulatory framework governing issuers of securities in India. This includes knowledge of various laws, regulations, and guidelines related to corporate governance, disclosure, and reporting.
- Compliance management: The certification program equips candidates with skills in compliance management, including how to identify, assess, and manage compliance risks. Candidates learn how to develop and implement compliance policies and procedures, and how to monitor and report on compliance activities.
- Corporate governance: The program provides candidates with a deep understanding of the principles of corporate governance, including the roles and responsibilities of directors and senior management. Candidates learn how to develop and implement effective corporate governance frameworks that ensure transparency, accountability, and ethical conduct.
- Disclosure and reporting: The certification program covers the requirements for disclosure and reporting by issuers of securities. Candidates learn how to prepare and file various regulatory reports and disclosures, such as annual reports, financial statements, and other disclosures mandated by regulatory authorities.
- Risk management: Candidates learn about various types of risks that issuers of securities may face, including market risk, credit risk, liquidity risk, and operational risk. They also learn how to develop risk management frameworks that help to identify, assess, and mitigate these risks.
- Investor protection: The certification program covers the regulatory requirements for protecting investors, including the rules and guidelines related to disclosure, transparency, and fair dealing. Candidates learn how to develop and implement effective investor protection frameworks that ensure that investors are treated fairly and are provided with accurate and timely information.
- Ethics and professionalism: The program emphasizes the importance of ethical behavior and professionalism in the securities industry. Candidates learn about the codes of conduct and ethical standards that apply to professionals in the securities industry, and how to maintain high standards of professionalism and integrity.
- Regulatory compliance: The certification program covers the regulatory compliance requirements for issuers of securities, including the rules and guidelines related to insider trading, market abuse, and other forms of misconduct. Candidates learn how to develop and implement effective compliance frameworks that ensure that issuers of securities comply with all applicable laws and regulations.
The program equips candidates with a comprehensive understanding of the regulatory framework governing issuers of securities, as well as skills in compliance management, corporate governance, and disclosure and reporting. By completing this program, candidates can enhance their knowledge and skills, and advance their careers in the securities industry.
Key Takeaways for the NISM Series III-B Issuers Compliance exam
The NISM Series III-B Issuers Compliance exam is one such certification that focuses on ensuring compliance by issuers of securities with various regulatory requirements. The exam covers a range of topics, including the legal framework for issuers, corporate governance, financial reporting, and disclosures. Here are some key takeaways from the NISM Series III-B Issuers Compliance exam:
- Issuers must comply with various regulatory requirements to ensure transparency and protect the interests of investors.
- The legal framework for issuers includes the Companies Act, of 2013, SEBI regulations, and other laws and regulations.
- Corporate governance is an essential aspect of compliance and involves the management of a company in a way that ensures accountability, transparency, and fairness.
- The board of directors is responsible for overseeing the affairs of the company, and independent directors play a crucial role in ensuring that the company operates in the best interests of all stakeholders.
- Issuers must comply with various financial reporting requirements, including preparing and filing financial statements and complying with accounting standards.
- Disclosures are an important aspect of compliance, and issuers must make timely and accurate disclosures to ensure transparency and avoid any potential misrepresentation or fraud.
- Issuers must also comply with various regulations related to securities offerings, including the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
- The compliance function plays a crucial role in ensuring that issuers comply with all regulatory requirements and identify and mitigate any potential risks.
It is essential for issuers to understand these requirements to protect the interests of investors and ensure the smooth functioning of the securities markets. By focusing on key takeaways such as compliance with the legal framework, corporate governance, financial reporting, and disclosures, issuers can better understand and navigate the regulatory landscape.
Experts’ Corner
The NISM Series III-B Issuers Compliance Exam is an essential certification program for professionals working in the securities market. By passing this exam, you demonstrate your deep understanding of compliance and regulatory aspects, which will increase your employability in the securities market. Preparing for the exam requires commitment, discipline, and dedication. Understanding the exam setup, studying the right stuff, and doing practice tests are important. With a good plan and steady work, you can pass the exam and move ahead in your securities market career.
