1. Newsletter National Institute of
Volume: 2,
July 2010, Issue: 7
Securities Markets
Foreword
NiSM “You have to know accounting. It’s the language of practical business life” -
Charlie Munger, Vice-Chairman, Berkshire Hathaway Corporation.
Accounting is one of the important tools to analyze and understand the
fundamentals of an entity. Good accounting has multi-layered ramifications. The
Inside this issue: four primary characteristics of good accounting are: relevance; reliability;
understandability; and comparability. With the objective of creating a global
Foreword 1 accounting standard fulfilling these characteristics, International Financial
Reporting Standards (IFRS) have been developed by International Accounting
Events at NISM 2-7 Standards Board (IASB). About 120 nations including Australia, New Zealand,
the UK, countries in the European Union and African countries in the world have
Team at NISM 8
adopted IFRS.
It is believed that adopting IFRS would lead to positive implications for
companies, investors as well as for regulators. On 22 January 2010, the Ministry
of Corporate Affairs (MCA) announced convergence of Indian GAAP with IFRS
in three phases starting from April 1, 2011. This paradigm shift in the reporting
standards necessitates understanding the significant measurement and
Editorial Committee: disclosure principles in financial reporting using IFRS. Hence, NISM in
Prof. G. Sethu collaboration with Deloitte is offering a series of two day training programmes on
IFRS for analysts and users of financial statements.
Rajnish Kumar
Shobana B In accordance with SEBI (CAPSM) Regulations 2007, NISM has launched a
series of mandatory examinations for certification of intermediaries in the
securities markets. Certificate examinations for Depository Operations, Security
Operations and Equity Derivatives are being developed.
The admissions for NISM’s executive programme “Certificate in Financial
Engineering and Risk Management (CFERM)”, have been in full swing. The
classes for Certified Securities Markets Professional (CSMP), full time post
Receiver’s Address:
graduate certificate programme, has commenced.
The next few pages provide details of the various activities undertaken during the
month.
Please send us your feedback at editor@nism.ac.in
For further communication please contact: National Institute of Securities Markets, Sixth Floor, Plot No. 82, Sector - 17, Vashi,
Navi Mumbai-400705, Phone No. 022-27883001. You can also visit nism website: www.nism.ac.in or write to us at
editor@nism.ac.in

2. Volume 2, Issue 7 National Institute of Securities Markets
Page 2
School for Certification of Intermediaries (SCI)
Monthly Update on Certificate Examinations
NISM currently offers the following examinations:
Examination Enrolments*
NISM-Series-I: Currency Derivatives Certification Examination: 17731
(From May 15, 2009)
NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents - Corporate: 310
(From August 3, 2009)
NISM-Series-II-B: Registrars to an Issue and Share Transfer Agents – Mutual Funds: 1099
(From August 3, 2009)
NISM-Series-IV-A: Interest Rate Derivatives Certification Examination: 25
(From May 20, 2010)
NISM-Series-V-A: Mutual Fund Distributors Certification Examination: 1663
(From May 5, 2010)
*Figures till 12 July, 2010
NISM has launched the NISM-Series-IV-A: Interest Rate Derivatives Certification
Examination:
SEBI has notified this examination as the requisite standard for the approved users and sales personnel of
the ‘Trading Members’ who are registered as such in the Currency Derivatives Segment of a recognized
stock exchange and trading in Interest Rate Derivatives.
The examination seeks to create a common minimum knowledge benchmark for persons working in the
Interest Rate Derivatives market segment, in order to enable a better understanding of fixed income
securities markets and interest rate derivative products, regulations and risks associated with the products
and the mechanisms of clearing and settlement.
Examination Objectives:
On successful completion of the examination the candidate should:
 Know the basics of fixed income securities markets, specifically interest rate derivative markets in Indian
and developed world.
 Understand the analytical framework required for Bond Futures market in India along with trading and
hedging strategies involved
 Understand the clearing, settlement and risk management as well as the operational mechanisms related
to interest rate derivatives markets
 Know the regulatory environment in which the interest rate derivatives markets operate in India.
Test objectives and workbook are available for downloading at www.nism.ac.in

3. Newsletter National Institute of Securities Markets
Page 3
Certification Examination for Financial Advisors by NISM and FPCIL
In pursuance of the MoU signed between Financial Planning Corporation (India) Private Limited (FPCIL) and
National Institute of Securities Markets, a joint certification examination for Financial Advisors is being
developed and will be launched soon. This will be a voluntary examination and will be open to all.
The certification was launched on July 8, 2010 in Mumbai. On this occasion Mr. C.B. Bhave, Chairman,
Securities and Exchange Board of India (SEBI) said, “Financial Planners should keep the investor interest as
their prime focus. This examination is the necessary first step to prepare them for rendering this service. This
should be followed by continuous education and training”.
Prof. G Sethu, Officer on Special Duty, National
Institute of Securities Markets (NISM) said,
“NISM believes that financial planners can add
considerable value to the investment decisions
of retail investors. If financial planners
demonstrate proficiency, investors would place
more confidence in them. The certification
examination for financial advisors is a step in
that process. It is a purely voluntary certification
and NISM hopes that the quality of the
certification would meet the market’s
expectations”
The certification will aim to enhance the quality
of financial advisory and related services in the
financial services industry. It seeks to create a Prof. G. Sethu (OSD, Incharge NISM) addressing the audience at the launch
common knowledge benchmark for all persons of Certification Examination for Financial Advisors, accompanied with Mr.
Ranjeet Mudholkar (Managing Director, FPCIL), Mr. C. B. Bhave (Chairman,
involved in financial advisory including
SEBI) and Mr. Shailesh Haribhakti (Chairman, Advisory Board, FPCIL)
Individual Financial Advisors, employees of
organizations engaged in financial advisory services and employees of asset management companies,
banks, wealth management companies.
The examination will cover competencies related to the basics of financial advisory services, evaluation of
financial products and customer profiling with implication on associated investment risk and expected return,
various strategies and planning for retirement, personal taxation, insurance and succession.
Objectives: The candidate at the end of the examination is expected to:
 Know the basics of financial advisory, steps in the advisory process, making and implementation of
financial plan
 Understand how to evaluate different products, understand the customer profile, the match between the
product and customer need, and how the recommendation of the product can impact investment risks,
returns and strategies in a personal finance environment for investors and prospective investors in the
market
 Get oriented to the income tax, wealth tax and legalities of estate planning in personal finance, and
regulatory aspects underlying advisory.
 Get acquainted with financial planning as an approach to investing, insurance, retirement planning and a
tool for advisors to develop long term relationships with their clients.

4. Volume 2, Issue 7 National Institute of Securities Markets
Page 4
IFRS Training Programme for Analysts
National Institute of Securities Markets has been mandated with the task of investor-empowerment through
training and education. It seeks to provide training for the various stakeholders, especially analysts from
brokerage firms, investment institutions and others in the BFSI analytics space.
Towards this end, NISM in collaboration with Deloitte, proposes to launch a series of two-day training
programmes on IFRS, covering a wide range of IFRS Standards.
Objective:
India has announced convergence of existing Accounting Standards (popularly known as Indian GAAP) with
International Financial Reporting Standards (IFRS) from April 1, 2011 for large companies.
The workshop on IFRS for analysts is designed to provide detailed understanding of the impact of moving to
globally accepted recognition and measurement principles and related disclosures.
Target Participants:
This two day IFRS workshop aims to provide understanding of the significant measurement and disclosure
principles in financial reporting using IFRS. It will enable the analysts to evaluate the impact of moving to the
new financial reporting standards. This workshop will be relevant for:
 Analysts who evaluate the financial statements
 Users of the financial statements who regularly evaluate the financial information for various purposes
such as investment/lending/credit rating
 Consulting firms in the Knowledge Process Outsourcing (KPO) sector especially with a presence in the
BFSI space
Sessions will focus on significant aspects of the following IFRS standards
 Overview of IFRS and impact on Financial Statements
 Major differences between Indian GAAP and IFRS
 IAS 1 - Presentation of Financial Statements
 IFRS 1 – First Time Adoption of IFRSs
 IAS 18 – Revenue along with applicable IFRICS
 IAS 11 - Construction Contracts
 IAS 16 – Property, Plant and Equipment
 IAS 36 – Impairment of Assets
 IAS 37 – Provisions, Contingent Liabilities and Contingent Assets
 IAS 27, 28 and 31 – Consolidation of Subsidiaries, Associates and Joint Ventures
 IAS 39, 32 and IFRS 7 and 9 – Financial Instruments
 IFRS 3 – Business Combinations Analysis of major impact on certain sectors

5. Newsletter National Institute of Securities Markets
Page 5
Salient details are as under:
Venue: Mumbai
Dates: Batch I : July 30 – 31, 2010 (Friday & Saturday)
Batch II : August 13 – 14, 2010 (Friday & Saturday)
Batch III : August 27 – 28, 2010 (Friday & Saturday)
Fees: Rs.9,800, inclusive of course material. This is a non-residential programme.
Certificate of participation will be awarded.
For further enquiries, email sunder.korivi@nism.ac.in, with the message caption: IFRS.
Certified Securities Market Professionals (CSMP)
With the aim of grooming talent to serve the securities markets, NISM is offering Certified Securities Market
Professional (CSMP), a one year full time post graduate certificate programme. 47 students were selected
after a rigorous selection procedure.
CSMP programme commenced on June 22, 2010.
Mr. S.T. Gerala, Director, Satco Securities and
Financial Services Ltd., Mr. M.L.Soneji, Registrar,
NISM and Prof. Sunder Ram Korivi, programme
Director-CSMP inaugurated the programme.
Mr. S.T.Gerela delivered the inaugural speech on
“New Horizons in Indian Stock Market – Prospects
and Challenges”. He gave a brief account of
evolution of Indian Stock Market– from days of open
outcry system to online trading, dematerialization,
risk management through setting up of clearing
corporation, introduction of derivatives trading, and
reduction of settlement period.
He noted that improvement in the efficiency and Mr. S. T. Gerela addressing CSMP students at the inaugural session
held on June 22, 2010
transparency in the operations of stock market
boosted investor confidence and also created a new channel of capital inflow in the form of foreign
institutional investments. However, he also felt there are some areas which could be developed further.
Higher compliance for brokers/ clients, increase in Direct Market Access (DMA) and improvement in retail
investor participation were some of these areas. With over 30 years of experience, Mr. Gerela gave a
practical insight to the working of Indian securities markets and its challenges and encouraged the CSMP
students to work towards these challenges.

6. Volume 2, Issue 7 National Institute of Securities Markets
Page 6
Empanelment of Resource Persons for financial literacy efforts of SEBI
NISM, on behalf of SEBI, is in the process of empanelling
resource persons across the country. These resource
persons would be responsible for conducting financial
literacy sessions to different categories of investors. The
first batch of 27 resource persons completed their training
in various modules related to financial literacy during
June 7-13, 2010. During the second batch of training of
resource persons, 16 participants were provided similar
training at NISM Bhavan during June 14-20, 2010. The
participants
Mr. G. P. Garg (CGM, SEBI) addressing the participants at the
training programme
included selected candidates from the western zone states of
Maharashtra, Madhya Pradesh, Rajasthan, Gujarat and Goa.
Currently applications are being invited from the states in the North,
South and East Zones of the country from where approximately
100 applications have already been received. Selected candidates
would be shortlisted and subsequently trained in Delhi, Kolkatta
and Chennai to impart financial literacy sessions to investors in
their respective geographical areas.
Mr. Paritosh Sharma addressing the participants.
Outbound Training Programme for NISM Staff
National Institute of Securities Markets (NISM) conducted an outbound training programme for its employees
at Kamshet, near Lonavala. The two-day programme was conducted by FlyNirvana, their motto being ‘thrills
& tranquility’. The focus of the programme was team
building which creatively involved nature in its background.
In the program, participants were made to go through
various outdoor activities where they faced challenging
situations as individuals and teams. The specialist
facilitators have extensive experience in conducting
adventure sports such flying fox, valley crossing,
construction of burma/ monkey bridges and other team
activities. This helped the group see the importance of
communication, leadership, teamwork, planning, problem
solving and delegation. Many considered the outbound
training as one of the best platforms for personality
development, confidence building, team building. There
was extensive interaction among employees and their
Group photograph of NISM family at the outbound training
families which was an icebreaker at various levels. programme at Kamshet.

7. Newsletter National Institute of Securities Markets
Page 7
Training of Trainers Programme for Corporate Governance
NISM in collaboration with Global Corporate Governance Forum (GCGF), Confederation of Indian Industry
(CII) and Indian Institute of Management - Calcutta is organizing Training of Trainers Program (TOT) on
Corporate Governance at Fortune Select Exotica in Vashi (Navi Mumbai) from 22nd to 25th January 2010.
The TOT Program is intended to build capacity of existing corporate governance trainers to further enhance
their knowledge, understanding and teaching techniques. Participants will develop the knowledge base and
skill sets needed to lead director education programs that reflect international best practices adapted to
regional and in-country needs. This four day interactive workshop trains the trainers of directors in adult
learning skills and techniques, in the familiarization and use of the GCGF’s resources kit, help other trainers
and in global developments in corporate governance.
Eminent faculty in the area of corporate governance from all over the world will be taking the sessions.
Faculty will be led by Mr. Eugene Spiro, senior projects officer, Global Corporate Governance Forum and will
include Dr. Mary Jo Larson PhD., an experienced trainer and co-author of the kit and expert in adult
education, Prof. Chris Pierce, chief executive and founder of Global Governance Services Ltd., an UK based
firm providing a variety of governance related services to a wide range of clients worldwide and Mr. Pratip
Kar, former executive director Securities and Exchange Board of India and member advisory council, Forum.
We received overwhelming response from across the country and from overseas. However, keeping in view
the optimal batch size for the effective delivery of the programme, the batch size was limited to 20 for the July
2010 version of the programme. This clearly indicates the growing importance of corporate governance in
both academia as well as industry circles in India.
NISM had organized a similar programme at The Retreat, Madh Island (Mumbai) in January 2010. To obtain
feedback on how they were able to use the knowledge gained in that programme and to share the
experiences of our earlier TOT participants, we have invited them for an Alumni meet on July 22nd at Fortune
Select Exotica, Vashi (Navi Mumbai). This helps us in taking stock of the current direction of our corporate
governance training activities, to decide on future course of action, and to improvise our future offerings.
Workshop for MF trustees and independent directors of Asset Management Companies in the
MF industry
The School for Regulatory Studies and Supervision (SRSS) of NISM proposes to organize a workshop for
members of board of directors of trustee companies and independent directors of Asset Management Com-
panies in the MF industry on September 15, 2010 in Mumbai. A similar event was conducted in August 2008
in Mumbai. During the proposed workshop, there would be presentations on the debt market and perform-
ance evaluation. The event is a forum for the participants to interact with each other to develop a shared un-
derstanding of the manner in which the industry should develop.
Securitization Summit 2010
The School for Regulatory Studies and Supervision (SRSS) of NISM has proposed the second edition of
Securitization Summit, to be held on August 10, 2010 in Mumbai. The Summit would discuss regulatory
issues and the current status of the securitization industry in India. About 100 market participants are
expected to attend. Senior officers from regulatory organizations and market participants would deliberate on
the pertinent issues.

8. Volume 2, Issue 7 National Institute of Securities Markets
Page 8
Team at NISM
Prof . G Sethu
Officer on Special Duty & In Charge of NISM
B.Tech (IIT-Kharagpur), M.Tech (IIT- Madras), PhD (Finance, IIM-A)
Mr. Mahesh Liladhar Soneji
Registrar
FCS (ICSI - New Delhi), LL.M. (Commercial Laws), PGDFM, DTL&P, B.A. (Economics)
Academic Staff
Prof. Sunder Ram Korivi Ms. Kavitha Ranganathan
Professor, Academic Associate,
Phd (Mumbai), Fellow (ICAI) M.Phil. ( Commerce, MKU)
Dr. Kiran Kumar, Mr. Rajnish Kumar
Assistant Professor, Academic Associate,
PhD (Finance, IISC- Bangalore) M.Sc (Economics, IGIDR)
Dr. Poonam Mehra Ms. Shobana Balasubramaniam
Assistant Professor, Academic Associate,
PhD (Economics, IGIDR) M.Sc (Economics, IGIDR)
Managerial Staff
Mr. Paritosh Sharma Mr. Chaitanya Nemalli
Advisor Project Manager
MBA (XLRI- Jamshedpur) MBA (Finance-NMIMS
Mr. Vikas Chaturvedi Ms. Devvya Sharma
OSD, SEBI Project Manager
Chartered Accountant MBA (Finance-NMIMS)
Mr. Jitender Aggarwal Ms. Gargi Datta
Vice President ( Estate & Administration) Project Manager
MFM (JBIMS) MBA (Finance -NMIMS)
Mr. S. Venkatesh Mr. Naresh Sabbani
Vice-President (Human Resources) Project Manager
MBA (HR– Osmania University) MMS (Finance - JBIMS)
Mr. A. V. Sankar Mr. Nikhil Shinde
Assistant Vice President (F&A) Project Manager
Certified Financial Planner MMS (Finance - JBIMS)
Mr. A. S. Ramayya Mr. Suneel Sarswat
Assistant Vice President (Administration) Head, Analytics
SAS, Masters in Human Resource Development
M.Sc. (Statistics and Informatics, IIT Bombay)
Ms. Mitu Bhardwaj
Programme Manager
MBE (Finance- School of Economics D.A.V.V, Indore)