NISM conducted a customized two-day training program on IFRS for 24 officers and fund managers of Kotak Mahindra Asset Management Company. The objective was to provide insights into financial statements prepared under IFRS standards, which take effect in India in April 2011. NISM and its collaborating partner Deloitte covered major differences between IFRS and Indian GAAP standards and the key impacts of IFRS on sectors such as manufacturing and financial services. The program aimed to help analysts and fund managers understand and adapt to the new IFRS reporting framework.

1. INSIDE:
NISM's
Management
NISM
Development
Programmes
UPDATE
OCTOBER 2010
Volume 3 / Issue 3
ATION
CERTIFIC
Professionalizing the
Indian Securities Industry
India Investment NISM conducts customized programme
Management Conference on IFRS for Kotak Mahindra AMC

2. Foreword
I ndian securities markets have made impressive progress in the past fifteen
years in terms of new products, improved market regulations, technology,
access and efficiency. This has called for a cadre of securities markets
intermediaries who can serve the investors and issuers professionally.
The characteristics of a profession, among other things, include:
(a) skill based on theoretical knowledge;
(b) testing of competence; and
(c) institutional training
Given that the professionals in the securities industry deal with the assets of
the investors directly or indirectly, it has become essential that the staff of
intermediaries in the securities markets possess the requisite skill sets and
conceptual understanding of the functions they discharge. Consequently, it
becomes necessary that the competencies of the staff are tested and certified.
Also, they need continuous professional education to stay updated with the
latest developments. NISM has been working along these directions for over
three years. In this Issue of NISM Update, we share some information about
our efforts in launching certificate examinations and continuous professional
education programmes.
We also present a detailed story on the India Investment Management
Conference coming up on January 7th, 2011. The eminent speakers include
Mr. C. B. Bhave, Chairman, Securities and Exchange Board of India; Ms. Abby
Joseph Cohen, Senior Investment Strategist and President, Global Markets
Institute, Goldman Sachs; and Prof. Aswath Damodaran, Professor of Finance
at Leonard N. Stern School of Business, New York University.
We have also been conducting customized Management Development
Programs to our corporate clients. Apart from the list of topics mentioned, we
also create customized training programmes. If you have any specific training
needs in the securities markets domain, NISM would be able to provide a
tailor-made programme to cater to your needs.
We hope that you find the NISM Update useful and informative. Please send
your feedback and suggestions to editor@nism.ac.in
Editorial Team
NISM UPDATE
NiSM
NATIONAL INSTITUTE OF SECURITIES MARKETS
NISM Bhavan, Plot No. 82, Sector - 17,
Vashi, Navi Mumbai - 400 705
Phone: +91- 022-66735100-106 | Fax: 022-66735110
www.nism.ac.in
2 NiSM October 2010

3. ATION
CERTIFIC
Professionalizing
the Indian Securities Industry
Mr. Paritosh Sharma (Adviser, NISM)
The Need for Certification
T he securities industry is a dynamic entity.
Unprecedented and continuous changes take
place in the available products and their features;
Most International Regulatory
Jurisdictions mandate minimum
market systems, processes and procedures; and education and certification
rules and regulations governing the securities
markets. These changes are driven by the need to requirements for securities
make securities markets operationally efficient and
fair to all participants, particularly to the investing
market professionals.
public. The key drivers of change are the
technological advances, financial innovations, cross- Today, securities industry professionals in India
border transactions, regulatory imperatives, and represent various shades of professional
private participation in economic development. competence. In order to make the Indian securities
Additionally, with increasing cross border financial industry a truly professional market place where
flows across jurisdictions, there is a perceptible investors and issuers can participate with a sense of
preference towards harmonization of securities confidence and comfort, it is necessary to upgrade
industry practices globally. All these changes the competency levels of all intermediaries. This can
demand the development of a cadre of securities be achieved by evolving testing and certification
market professionals who are well-informed, requirements at the time of entry in the industry and
competent, up-to-date and conversant with Continuing Professional Education (CPE) throughout
markets, products and global trends, are a professional’s employment in the industry and
trustworthy, and able to swiftly adapt to changes. making them a pre-requisite.
October 2010 NiSM 3

4. Professional sales people for the industry-
Testing and Certification
T he investors' interface to the markets is through
market intermediaries. It is important to create
regulatory structures that include minimum
A certification program including uniform entry level
and continuing professional education requirements
administered fairly across all participants establishes
knowledge criteria to professionalize this segment. A and improves professional standards among
regulatory structure helps good professionals to intermediaries that are critical to maintaining and
clearly understand what it takes to enter the raising investor confidence. Addressing the issue of
business of market intermediation. They also know making minimum competency levels a pre-requisite
and are comforted by the fact that everyone in the for all segments of the securities industry
industry has to follow those standards and the intermediaries is therefore a regulatory objective.
principle of level playing field will prevail. Most International Regulatory Jurisdictions
Professionals already in the business also prescribe minimum education and certification
understand the qualification standards they need to requirements for securities market professionals.
maintain to continue to survive in the industry.
National Institute of Securities Markets-
School for Certification of Intermediaries
I n keeping with the above objectives, the
“Securities and Exchange Board of India
(Certification of Associated Persons in the Securities
which explicitly state the ways in which the
attainment of the competencies will be measured.
The objectives lead directly to the creation of test
Markets) Regulations, 2007” (Certification questions and ultimately to the structure of the test
regulations) were notified in October 2007. itself.
In these regulations, SEBI has delegated NISM has collaborated with leading international
responsibility for developing certification and organizations to establish and to continuously
c o n t i n u i n g e d u c a t i o n r e q u i r e m e n t s fo r improve and upgrade its examination development
intermediaries in the Indian capital markets to NISM. and administrative processes. These organizations
The NISM School for Certification of Intermediaries is include the US Financial Regulatory Authority
focusing on implementing these objectives. (FINRA), the US securities market self regulatory
organization and the CFA Institute among others.
With respect to certification examinations, NISM
develops criterion referenced examinations using NISM is also in the process of establishing continuing
well established processes that meet international professional education requirements for various
educational measurement standards. Criterion intermediary segments and administering these
referenced tests are developed with the programs for the industry.
involvement of professionals having subject
expertise, and are based on the competencies
required for satisfactory, entry level performance on
the job. The starting point of this process is a
thorough job analysis from which the applicable
competencies are derived. These in turn provide the
basis for developing the test objectives,
4 NiSM October 2010

5. NISM Certification Examinations
NISM currently offers the following certification examinations:
Currency Derivatives Certification Examination
For persons working in the Currency Derivatives market segment, in order to enable a better
understanding of currency markets and exchange traded currency future products, better
quality investor service, operational process efficiency and risk controls
Registrars to an Issue and Share Transfer Agents – Corporate
Registrars to an Issue and Share Transfer Agents – Mutual Funds
For persons working in Registrars to an Issue and Share Transfer Agents (R&T agent)
organizations in the corporate and mutual fund R&T function, in order to enable better
quality investor service, operational process efficiency and risk controls.
Interest Rate Derivatives Certification Examination
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 exchange mechanisms
of clearing and settlement.
Mutual Fund Distributors Certification Examination
For all persons involved in selling and distributing mutual funds including:
? Individual Mutual Fund Distributors
? organizations engaged in sales and distribution of Mutual Funds
Employees of
? Asset Management Companies specially persons engaged in sales and
Employees of
distribution of Mutual Funds
The certification aims to enhance the quality of sales, distribution and related support
services in the mutual fund industry.
NISM had also introduced a CPE program for Mutual Fund Distributors in June, 2010.
Since then over 1800 candidates have cleared the NISM CPE program.
No. of candidates enrolled for various NISM certification programs as on October 15, 2010
369
8,785
1,370 22,101 90
Mutual Fund RTA - Currency RTA - Interest Rate
Distributors Mutual Funds Derivatives Corporate Derivatives
October 2010 NiSM 5

6. India Investment Management Conference
What's Next after the Recovery?
W hile the “unusually uncertain economic
outlook” in the United States is causing
investors to look to Asian markets for potentially
Professor of Finance at Leonard N. Stern School of
Business, New York University.
higher returns, India features as a fast growing It is a rare event where speakers of such caliber in
economy that may present attractive alternative one room will analyze and discuss what India means
investment opportunities. Foreign ownership of to global investors. A must-attend event if you want
stocks and foreign holding of debts in India have to stay ahead of the game. Limited seats available.
peaked in recent times, indicating a strong capital Register Now: http://nism.ac.in/cfa
inflow into the country. It is also predicted that by
2030 India will have the world’s largest middle class DATE
7 January 2011
population. 7
VENUE Grand Hyatt Mumbai
At this conference, globally acclaimed experts will
Mumbai, India
give their insight on global investment strategy and
contemporary valuation methods, followed by
FEES CFA Institute Members, IAIP Members,
domestic Gurus discussing the latest trends in
NISM Graduates (FERM/CSMP program)
performance reporting and disclosure, fixed income
Rate: INR 8,400
and alternative investments, and investment
CFA Institute Candidates /NISM
outlook in India.
Students Rate: INR 9,450
Non-member Rate: INR 10,500
International high profile speakers include Mr. C. B.
Bhave, Chairman, Securities and Exchange Board of
India; Ms. Abby Joseph Cohen, Senior Investment Register by 31 October, 2010 for a 20 percent discount.
Strategist and President, Global Markets Institute, Registrations are open: http://nism.ac.in/cfa
Goldman Sachs; and Prof. Aswath Damodaran, apevents@cfainstitute.org | +91 22 66735100-06
6 NiSM September 2010

7. Agenda – 7th January 2011 Our Partners
Keynote:
Mr. C. B. Bhave, Securities and Exchange Board of India
Global Investment Strategy & Outlook:
Ms. Abby Joseph Cohen, CFA, Goldman Sachs
Moderator: Mr. Uday Kotak, Kotak Mahindra Bank
Valuation Inferno: Dante Meets DCF – Avoiding Common
Mistakes in Valuation Analysis
Prof. Aswath Damodaran, New York University
Moderator: Dr. K. M. Abraham, Securities and Exchange Board of India
Panel: Performance Measurement & Reporting
Mr. K. N. Vaidyanathan, Securities and Exchange Board of India
Mr. Milind Barve (invited)
Moderator: Mr. Trevor Persaud, Prudential Asset Management (Singapore)
Ltd
Panel: IFRS Update
Mr. Jayesh Gandhi (invited)
Mr. Jamil Khatri, KPMG
Ms. Usha Narayanan (invited), Securities and Exchange Board of India,
Moderator: Mr. Tom Robinson, CFA, CFA Institute
Panel: Fixed Income
Mr. Anjan Barua (invited)
Mr. Nilesh Shah, ICICI Prudential Asset Management Company Limited
Moderator: Mr. Jayesh Mehta
Panel: Real Estate, Venture Capital & Private Equity
Mr. Kishore Gotely (invited), Government of Singapore Investment
Corporation
Mr. Rajeev Gupta, Carlyle India Advisors Private Limited
Mr. Tuhin Parikh (invited), Blackstone
Moderator: Ms. Jenny Blinch (invited), PEI Asia
Power Panel: India Investment Outlook
Mr. Vallabh Bhansali
Mr. Madhusudan Kela
Mr. Akash Prakash
Moderator: Mr. Venkatraman Anantha-Nageswaran, Bank Julius Baer
September 2010 NiSM 7

8. Management Development Programs (MDP)
Customised Training Programs for Companies
NISM School of Securities Education (SSE) offers short-duration programmes of 1 to 5 days duration
on various topics for meeting the in-house training requirements of corporates at their respective
premises.
Some of the important topics where training programmes are available include:
1. IFRS for Analysts 6. Portfolio Management
2. Financial Planning & Wealth Management 7. Mergers & Acquisitions
3. Financial Statement Analysis 8. Financial Derivatives
4. Forensic Accounting 9. Risk Management
5. Securities Analysis 10. Behavioural Finance
The above represents an indicative list. Customization is possible, depending upon the specific needs
of each organization. Interested organization may send in their enquiries to Prof. Sunder Ram Korivi
on sunder.korivi@nism.ac.in or dial 022-66735163
NISM conducts customized programme
on IFRS for Kotak Mahindra AMC
NISM conducted a Management Development The first half of the two day programme was
Programme titled ‘IFRS for Analysts’ customized to conducted on 9th October 2010 at the Kotak training
meet the training requirements of Kotak Mahindra facility in Mumbai. Mr Rehan Farias and Mr Alroy
Asset Management Company. The objective of the Lobo of Kotak Mahindra AMC gave the opening
programme was to provide a perspective and remarks. Dr Sunder Ram Korivi, Professor, NISM has
technical insights into the form and content of provided the perspective about IFRS. Deloitte, the
financial statements which would be prepared Collaborating Partner with NISM, was represented
based on IFRS standards with effect from April 1, by CA Sekkizhar Balasubramanian (Director) and CA
2011. A team of 24 officers, including the senior G K Subramaniam (Senior Manager). The two day
analysts and fund managers, were nominated for programme covers the important aspects of IFRS like
the programme. major differences between IFRS and Indian GAAP,
key impact on various sectors like manufacturing
and financial service, etc. The programme
concluded with the final phase of training on
8 NiSM October 2010 October 23, 2010.