INTERNAL POLICY w.r.t NISM SERIES VII-SECURITIES OPERATION & RISK
MANAGEMENT(SORM)
REFERENCE
1.SEBI Notification No.LAD-NRO/GN/2010-11/21/29390published in
the Gazette of India on December 10, 2010
2.NSE Circular no. NSE/INSP/16536 December 15, 2010
3.NSE Circular no. NSE/INSP/27495 September 02, 2014
BRIEF
SEBI issued Notification no. LAD-NRO/GN/2010-11/21/29390 dated
December 10, 2010 according to which, following categories of
associated persons associated with a registered stock
broker/trading member/clearing member in any recognized stock
exchanges, who are involved in, or deal with any of the
following:
a.Assets or Funds of investors or clients
b.Redressal of investor grievances
c.Internal control or risk management
d.Activities having a bearing on operational risk
Shall be required to have a valid certificate of NISM Series VII
– Securities Operation & Risk Management (SORM) from National
Institute of Securities Market(NISM). NSE and BSE has also
issued circulars requesting the members to comply with the
requirement of said SEBI Notification.
NEED FOR POLICY
The Company being a stock broker of National Stock
Exchange of India (NSE), provisions of the aforesaid requirement
is applicable to all its employees involved in the activities as
mentioned above.
DEFINITION OF ASSOCIATED PERSON
“Associated Person” means a principal or employee of an
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.
INTERNAL POLICY w.r.t NISM SERIES VII-SECURITIES
OPERATION & RISK MANAGEMENT (SORM)
As required in the aforesaid notification of SEBI, All
existing persons associated with the Company as on date of
publication and engaged in deal with
(a) Assets of funds of investors or clients
(b) Redressal of investor grievances
(c) Internal control or risk management
(d) Activities having a bearing on operational risk
Shall obtain the valid certification of NISM Series VII -
Securities Operation and Risk Management (SORM) within two years
from the date of such notification. Simultaneously, whenever the
company employs any associated person specified as mentioned
above, the said associated person shall obtain valid
certification of NISM Series VII – Securities Operation and Risk
Management (SORM) within one year from the date of his /her
employment.
EXEMPTION
Associated persons handling the basic clerical / elementary
functions in the aforesaid specified areas shall be exempted
from obtaining the certification of NISM Series VII - Securities
Operation and Risk Management (SORM). For this purpose, the
company considers following activities as basic elementary lever
/ clerical level.
Internal Control or Risk Management
1. Inwarding or collateral’s / Cheques
2. Person performing market entries
3. Maker entry in the database
4. Photocopying, printouts, scanning of documents
5. Preparing of MIS
6. Sending of letters / reports to clients, Exchanges, SEBI
7. Attending Calls, etc.
Redressal of Investor Grievances
1. Inwarding of complaints
2. Seeking documents from clients
3. Person performing maker entries
4. Maker entry in the database
5. Photocopying, printouts, scanning of documents
6. Preparing of MIS
7. Sending of letters / reports to clients, Exchanges, SEBI
updation, data entry, uploading on SCORES
8. Attending calls, etc
Activities having a being on operational risk and dealing with
assets of funds of investors of clients
1. Person performing maker entries
2. Maker entry in the database
3. Preparing of MIS
4. Generating of reports, Files
5. Photocopying, printouts, scanning of documents
6. Dispatching documents to clients
7. Sending of letters / reports to clients, Exchanges, SEBI
8. Attending calls, etc
However, any of the work (as stated herein above) being
performed by such persons, obtaining, NISM-SORM Certification
shall be optional provided that they are supervised by his / her
supervisor who shall have to obtain / continue to have NISM –
SORM Certification or such other prescribed certification at all
times.
In case of any query, employees are requested to obtain
clarification from the Compliance Officer of the Company.
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