Updates for Capital, Commodity and Money Market

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    (Relevant for students appearing in December, 2016 examination)

    MODULE 3- PAPER 9.2

    Disclaimer- This document has been prepared purely for academic purposes only and it does not necessarily reflect the views of ICSI. Any person wishing to act on the basis of this document should do so only after cross checking with the original source.

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    Students appearing in December 2016 Examination shall note the following:

    Students are also required to update themselves on all the relevant Notifications, Circulars, Clarifications, etc. issued by the SEBI, RBI & Central Government on or before six months prior to the date of the examination.

    These Updates are to facilitate the students to acquaint themselves with the amendments in securities laws and commodity and money market upto June, 2016, applicable for December, 2016 Examination. The students are advised to read their Study Material along with these Updates.

    In the event of any doubt, students may write to the Institute for clarifications at academics@icsi.edu


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    Lesson 3 - Framework of Market Infrastructure Institutions

    Special Provisions related to Commodity Derivatives

    Lesson 4 - Financial Intermediaries Framework

    SEBI (Research Analyst) Regulations, 2014

    Single Registration for Depository Participants

    SARAL Account Opening Form for Resident Individuals

    Investor Protection Fund of Depositories

    Lesson 5 -Primary Market

    Listing on Institutional Trading Platform

    Listing of Securities on Stock Exchanges

    Offer For Sale (OFS) Process

    Lesson 6 Secondary Market

    Rule 19 (2) (b)

    SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

    Corporate Governance under SEBI(LODR) Regulations, 2015

    Corporate Governance - Listing Regulations vis-a-vis Companies Act 2013

    Lesson 9- Resource Mobilization in International Capital Market

    External Commercial Borrowings (ECB)

    Depository Receipts Scheme, 2014

    Lesson 10 - Economics of Commodities Marketing

    Revision in Position Limits for Agricultural Commodities

    Lesson 11- Commodities Market Operations

    Merger of FMC with SEBI

    Timelines for Compliance with various provisions of Securities Laws by Commodity Derivatives Exchanges

    Mandatory requirements / Exit Policy for Commodity Derivatives Exchanges

    Comprehensive Risk Management Framework for National Commodity Derivatives Exchanges

    Registration of Members of Commodity Derivatives Exchanges

    Pro account Trading Terminal

    Lesson 13- Insider Trading

    SEBI (Prohibition of Insider Trading) Regulation, 2015

    Lesson 14- Substantial Acquisition of Shares and Takeovers

    Delisting Offer

    Voluntary Open Offer


    Foreign Portfolio Investors

    Issue and Listing of Non-Convertible Redeemable Preference Shares

    Real Estate Investment Trusts

    Infrastructure Investment Trusts

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    LESSON 3



    Section 30A deals with following special provisions relating to commodity derivatives:-

    (1) This Act shall not apply to non-transferable specific delivery contracts.

    However, no person shall organise or assist in organising or be a member of any association in

    any area to which the provisions of section 13 have been made applicable (other than a stock

    exchange) which provides facilities for the performance of any non-transferable specific

    delivery contract by any party thereto without having to make or receive actual delivery to or

    from the other party to the contract or to or from any other party named in the contract.

    (2) Where in respect of any area, the provisions of section 13 have been made applicable in relation to commodity derivatives for the sale or purchase of any goods or class of goods, the

    Central Government may, by notification, declare that in the said area or any part thereof as may

    be specified in the notification all or any of the provisions of this Act shall not apply to

    transferable specific delivery contracts for the sale or purchase of the said goods or class of

    goods either generally, or to any class of such contracts in particular.

    (3) If the Central Government is of the opinion that in the interest of the trade or in the public

    interest it is expedient to regulate and control non-transferable specific delivery contracts in any

    area, it may, by notification in the Official Gazette, declare that all or any of the provisions of

    this Act shall apply to such class or classes of non-transferable specific delivery contracts in

    such area in respect of such goods or class of goods as may be specified in the notification, and

    may also specify the manner in which and the extent to which all or any of the said provisions

    shall so apply.


    "Associate" in relation to a person shall include another person:

    (i) who, directly or indirectly, by himself, or in combination with other persons, exercises

    control over the first person;

    (ii) who holds more than fifteen per cent shares in the paid up equity capital of the first person;

    (iii) who is a holding company or a subsidiary company of the first person;

    (iv) who is a relative of the first person;

    (v) who is a member of a Hindu Undivided Family wherein the first person is also a member;

    (vi) such other cases where SEBI is of the view that a person shall be considered as an associate

    based on the facts and factors including the extent of control, independence, conflict of interest.

    Commodity derivatives exchange means a recognized stock exchange which assists,

    regulates or controls the business of buying, selling or dealing only in commodity derivatives.

    National commodity derivatives exchange means a commodity derivatives exchange that is

    demutualized, has an electronic trading platform and is permitted to assist, regulate or control

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    the business of buying, selling or dealing in derivatives on all commodities as notified by the

    Central Government from time to time.

    "Netting" means the determination by Clearing Corporation of net payment or delivery

    obligations of the clearing members of a recognised clearing corporation by setting off or

    adjustment of the inter se obligations or claims arising out of buying and selling of securities

    including the claims and obligations arising out of the termination by the Clearing Corporation

    or Stock Exchange, in such circumstances as the Clearing Corporation may specify in bye-laws,

    of the transactions admitted for settlement at a future date, so that only a net claim be demanded,

    or a net obligation be owed."

    "Public" includes any member or section of the public but does not include any trading member

    or clearing member or their associates and agents.

    However, a public sector bank, public financial institution, an insurance company, mutual fund

    and alternative investment fund in public sector, that has associate(s) as trading members or

    clearing members, shall be deemed as public for the purposes of these regulations.

    "Public interest director" means an independent director, representing the interests of investors

    in securities market and who is not having any association, directly or indirectly, which in the

    opinion of SEBI, is in conflict with his role.

    "Shareholder director" means a director who represents the interest of shareholders, and

    elected or nominated by such shareholders who are not trading members or clearing members,

    as the case may be, or their associates and agents.


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    LESSON 4



    SEBI (Research Analyst) Regulations, 2014, were notified by SEBI on 1st September, 2014 in

    exercise of the powers conferred by section 30 of SEBI Act, 1992, SEBI made these regulations.


    Regulation 3(1) provides that any person shall not act as a research analyst or research entity or

    hold itself out as a research analyst unless he has obtained a certificate of registration from SEBI

    under these regulations. Any person acting as research analyst or research entity before the

    commencement of these regulations may continue to do so for a period of six months from such

    commencement or, if it has made an application for a certificate of registration within the period

    of six months, till the disposal of such application.

    Further that an investment adviser, credit rating agency, asset management company or fund

    manager, who issues research report or circulates/distributes research report to the public or its

    director or employee who makes public appearance, shall not be required to seek registration

    under regulation 3, subject to compliance of Chapter III of these regulations.

    An application for grant of certificate of registration shall be made in Form A as specified in the

    First Schedule to these regulati