III-A Compliance (Non-Fund)
Compliance officers for non-fund securities intermediaries — SEBI Act, SCRA, insider trading, money laundering, and proxy advisors.
Exam Pattern & Marking
Detailed Syllabus
10 chapters · 100 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | SEBI Act, 1992 | 12 | 60 |
| 2 | Custodians Compliance | 10 | 50 |
| 3 | Financial System Overview | 10 | 50 |
| 4 | Foreign Portfolio Investors | 10 | 50 |
| 5 | Fraudulent and Unfair Trade Practices | 10 | 50 |
| 6 | Insider Trading Regulations | 10 | 50 |
| 7 | Proxy Advisors | 10 | 50 |
| 8 | Securities Contracts (Regulation) Act | 10 | 50 |
| 9 | Stock Brokers Regulations | 10 | 50 |
| 10 | Prevention of Money Laundering Act | 8 | 40 |
| Total | 100 | 500 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series III-A is the compliance-officer certification for “non-fund” SEBI intermediaries — stock brokers, custodians, FPIs, KRAs, proxy advisors, and credit rating agencies. It’s heavy on regulations.
At a glance: 100 questions · 2 hours · 60% pass mark · 0.25 negative marking · ₹1,500 + GST.
Who should take III-A
- Compliance officers at SEBI-registered brokers
- Compliance officers at custodians (HDFC, Standard Chartered, Citi)
- KRA / KYC compliance staff
- FPI custodian compliance teams
Key Knowledge Areas
Foundational acts
| Act | Year | Coverage |
|---|---|---|
| SEBI Act | 1992 | SEBI’s powers, intermediary registration |
| SCRA | 1956 | Stock exchange recognition, securities definition |
| Depositories Act | 1996 | NSDL/CDSL framework |
| Companies Act | 2013 | Corporate governance |
| PMLA | 2002 | Anti-money laundering obligations |
| FEMA | 1999 | Foreign exchange transactions |
Insider Trading Regulations 2015
Tested heavily. Key concepts:
- UPSI (Unpublished Price Sensitive Information) — must not be traded on
- Designated persons — directors, KMP, immediate relatives barred from trading in trading window closure
- Trading window — closed when financial results approach
- Pre-clearance — designated persons must pre-clear trades > threshold
Key Fact: Code of Conduct for Insider Trading (Schedule B) is the operational blueprint. Compliance officer maintains the structured digital database (SDD) of UPSI access.
Fraudulent and Unfair Trade Practices Regulations 2003
Bans front-running, circular trading, market manipulation, false statements. Compliance officer’s job is surveillance and reporting.
Stock Broker Regulations 1992
- Net worth, capital adequacy, deposit requirements
- Code of conduct
- Risk management, segregation of client funds
- Investor grievance, arbitration
PMLA / AML
- Customer Due Diligence (CDD) tiered by risk profile
- Suspicious Transaction Reports (STR) within 7 days
- Cash Transaction Reports (CTR) above threshold
- Record retention 5 years post-relationship
Exam Tips
Tip 1: SEBI Act sections (11, 11A, 11B, 12, 15) are tested directly. Know what each section empowers SEBI to do.
Tip 2: Insider Trading Regulations 2015 carry the heaviest weight. Memorise UPSI definition, trading window logic, pre-clearance thresholds.
Tip 3: PMLA / AML obligations — KYC categories, STR/CTR thresholds, record retention — recur in every cycle.
Tip 4: Recent SEBI circulars on stock brokers (segregation of funds, online dispute resolution) appear. Stay current.
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