Taxmann’s Internal Auditors for Stock Brokers by National Institute of Securities Markets (NISM) – Edition August 2021

Internal Auditors for Stock Brokers seeks to create a common minimum knowledge benchmark for the following persons and/or its employees or partners, who carry out Internal Audit of the Operations of Stock Brokers/Clearing Members or Sign the Internal Audit Report (as per SEBI Circular No. MRD/DMS/Cir-29/2008 dated October 21, 2008)

• Chartered Accountants
• Company Secretaries
• Cost and Management Accountants

This book covers knowledge competencies that are related to audit functions of stockbrokers, including:

• Regulatory Structure & Operational Knowledge
• The Risk Management Practices
• The Clearing and Settlement Process for a trade executed in the secondary market

The Present Publication is the June 2020 workbook version, published exclusively by Taxmann for NISM Certification Examination XIV [Internal Auditors for Stock Brokers], with the following noteworthy features:

• [Know Regulatory Framework] under which the stock brokers perform their various activities
• [Understand the Various Operations] performed by the Stockbrokers
• [Understand the Various Compliances] and reporting requirements from an audit perspective

The detailed contents of the book are as follows:

• Introduction to Internal Audit
• Financial System and Regulatory Framework
• SEBI Act, 1992; SCRA, 1956; SCRR, 1956
• SEBI (Prohibition of Insider Trading) Regulations, 2015
• SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003
• The Prevention of Money Laundering Act, 2002 (PMLA)
• SEBI (Stock Brokers) Regulations, 1992
• Introduction to Stock Broking Operations
• Risk Management
• Clearing and Settlement Process
• Investor Grievance Redressal
• Forensic Audit

NISM is a leading provider of high-end professional education, certifications, training and research in financial markets. NISM Certification programs aim to enhance the quality and standards of professionals employees in various segments of financial services sector. NISM’s School of Certification of Intermediaries (SCI) develops and conducts certification examinations and Continuous Professional Education (CPE) programs that aim to ensure that professional meet the defined minimum common knowledge benchmark for various critical market functions like:

• Mutual Funds
• Equities
• Derivatives
• Securities Operations
• Compliance
• Research Analysis
• Investment Advice

These Certifications and CPE Programs are being developed and administered by NISM as mandated under ‘Securities and Exchange Board of India (Certification of Associated Persons in the Securities Market) Regulations, 2007’. The Certifications creates quality market professionals and catalyzes greater investor participating in the markets. Certifications also provides structured career paths to students and job aspirants in the securities market.