Insurance & its Concepts

The PRINCIPLES of Insurance include,

1. UGF – Utmost Good Faith: A duty to disclose accurately & fully ALL material facts whether requested or not. It is a Reciprocal Duty;

2. II – Insurable Interest arises out of LEGAL/FINANCIAL relationship; The striking feature being,

- BENEFIT (from existence) from safety, well being, freedom from liability;

- PREJUDICED (by loss) by damage or existence of liability;

LI: Uberrima Fidei i.e., Utmost Good Faith & Insurable Interest;

GI: UGF + II + Indemnity & Proximate clause.

TIME WHEN INSURABLE INTEREST SHOULD BE PRESENT:

I. FIRE & MISCELLANEOUS INSURANCE: EXIST @ the time of taking policy; CONTINUE during the currency (period) of policy; EXIST @ the time of loss for a valid claim;

II. MARINE CARGO INSURANCE: ONLY @ the time of loss.

III. MARINE HULL & MOTOR INSURANCE: EXIST @ the time of taking policy; EXIST @ time of loss.

INDEMNITY: To place the insured after a loss in the Same Financial Position as far as possible as he occupied immediately before loss, Neither better Nor worse. The measurement of Indemnity based on Intrinsic Market Value of property @ the time & place of damage/loss;

SUBROGATION – Corollary to Indemnity: "The transfer of rights & remedies of insured to insurer who has indemnified the insured in respect of loss". Insured does not receive more than actual amount of loss & any recovery effected from III-party goes to insurer.

CONTRIBUTION – Corollary to Indemnity: NOT for personal/accident insurance. Using "several insurance", to make profit out of loss. It is the right of insurers who have paid a loss under a policy, to recover a proportionate amount from other insurers, who are liable for the same loss. The pre-requisites include,

1. Common Peril (all policies) 2. Common interest & insured

3. Policy in force 4. Policy is legally enforceable.

PROXIMATE CAUSE: To provide indemnity for such losses as are caused by insured perils. The loss may be the result of two or more causes acting simultaneously or one after other; the most important, the most effective, the most powerful cause that has brought the loss. Otherwise, it will be a remote cause

POLICY CONTRACT:

A Policy Document as an evidence of contract. The policy document has,

1. Preamble: Proposal & declaration form part of policy.

WARRANTY = Truth of Statement.

2. Operative Clause: Mutual Obligation; Pay Premium & Pay Benefits.

3. Provisio: Subject to conditions (printed on back of the policy).

4. Schedule: Identifies the proposal referred in Preamble. Have contents like FPR.

5. Attestation: @ the end of first page – the signature & date.

6. Condition & Privileges: Explanatory/Restrictive/Privileges/Benefits.

RIDERS – Additional Covers: Helps to increase the clarity of policy; It defines the fate of policy in case of certain defined circumstance.

NOMINATION: (advisable)

1. Nominee does derive a right to sue only after Policy Proceeds become payable.

2. One can change nominee without consulting previous nominee/insurer.

3. Liable to legal heirs of deceased having proof of right to claim.

GUARANTEES:

1. Guarantee additions: Sum Assured get enhanced each year.
2. Guaranteed Surrender Value (SV): On payment of premium for 3 full years, Minimum SV = 30%[Premium paid (-) 1 ^st year Premium (+) Bonus additions].

ASSIGNMENT = Legal Transference – "passing interest in policy": Assignment cannot be altered; Assignee has the right to sue only after giving Notice to Insurer & receiving acknowledgement. It may be,

1. By endorsing Policy Document which is exempt from Stamp duty;
2. By separate Assignment Deed which is liable to be stamped.

ASSIGNMENT OF,

SNO.	ASSIGNMENT OF	CONDITION
1.	Fire & Marine Insurance	ONLY with the consent of Insurer & subject to conditions.
2.	Marine Cargo	Freely assignable.
3.	Marine Hill or Motor Policy	With the Consent of Insurers.

I think this will help Company Secretary, CS Final, friends when preparing for their Banking & Insurance paper (BILP).

THE MINIMUM WAGES ACT, 1948

Objective of the minimum wages act - To provide for fixing of minimum rates of wages

WAGES = all remuneration capable of being expressed in money & INCLUDES HRA but DOES NOT INCLUDE supply of light, amenity, etc… excluded by order, contribution to PF, expenditure in the nature of employment, & gratuity on discharge.

S-3 à Fixing Minimum Wages (an administrative act) by the Appropriate Government following prescribed procedure & revised periodically based on time/piece work and ensures a guaranteed rate; also gives overtime rates;

It may be based on hour/day/month/larger period; It will be different for different scheduled employment or class of work or adults/adolescents/child/apprentice.

S-4 à RATE: Consist of Basic Wages +/- Allowances based on ‘cost of living index number’ or an all-inclusive rate can be fixed.

S-5 à PROCEDURE:
STEP1: Appoint Committee;
STEP2: Publish proposals as by means of Notification;
STEP3: Give opportunity of being HEARD;
STEP4: Notify Minimum Wages > 3 months.
MAY NOT be in Scheduled Employment, if < wage =" mean">They can't ask anything more than this in IR. Be thorough with everything in this. Prepare the Notes this way for all subjects of Company Secretary exam study, u can win easily. See, this is the only act in Industrial Relations, that u r studying new, the rest is all what u did in CS Inter.
Enjoy Passin...

DGFT Toll Free

Yes, Government Departments are doing great, eager to see 2020 India now...

Director General of Foreign Trade (DGFT) & its Toll-Free facility.

While filing applications and making payments online, it has been observed that exporters/ importers face technical problems on account of non-availability of relevant documents, malfunctioning of system etc. For attending to these technical problems, DGFT has set up a Helpdesk. The trading community can access the Help Desk by dialing the toll free number 1800 111 550 or by e-mail at http://us.f505.mail.yahoo.com/ym/Compose?To=dgftedi@nic.in.
The help desk will be available between 10.00 AM to 7.00 PM on all working days. A complaint number may be provided by helpdesk if issues remain unresolved. The complaint number may be quoted for all future reference. For e-mails complaint Numbers may be conveyed on next working day if complaint is unresolved.

Direct Receipt of Import Bills / Documents - Liberalisation

RBI/2007-08/181 A.P. (DIR Series) Circular No.18

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to item i.a. of A.P. (DIR Series) Circular No.66 dated February 6, 2004 in terms of which AD Category - I banks are permitted to make remittances for imports, where the import bills / documents have been received directly by the importer from the overseas supplier and the value of import bill does not exceed USD 100,000. Further, in terms of i.c. of the Annex to the aforementioned circular, status holder exporters, as defined under the Foreign Trade Policy are permitted to receive import bills / documents directly from the overseas supplier irrespective of the value of the import.

Continued in http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=3927

Fit and proper criteria for elected directors on the boards of nationalised banks

Fit and proper criteria for elected directors on the boards of nationalised banks
RBI/2007-08/178DBOD. No. BC.No.47/29.39.001/2007-08

'Fit and proper' criteria for elected directorson the boards of nationalised banks
It has been decided to lay down specific 'fit and proper' criteria to be fulfilled by the persons being elected as directors on the Boards of the nationalised banks under the provisions of Section 9(3)(i) of Banking Companies (Acquisition and Transfer of undertakings) Act 1970/80. The authority, manner/procedure and criteria for deciding the 'fit and proper' status etc. are as under http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3916&Mode=0

Thanks & Regards
-- Alagar

Labour Laws

Credits to the author. It can be viewed in http://thisisvj.googlepages.com/LabourLaws.pdf
This PLUS http://www.dateyvs.com/ (Labour Primer) can make you the master of Labour Laws.

Enjoy referring...

Stamp Duty, QIP,

Ready Referencer Series... Credit to the Authors...
1. Stamp Duty Chart
http://thisisvj.googlepages.com/STAMPDUTYCHART.pdf
2. QIP... from Chartered Secretary
http://thisisvj.googlepages.com/Qualified20Institutions20Placement20.pdf

Enjoy referring...

The Payment of Bonus (Amendment) ordinance, 2007

Credits to Mr. Dattari, CS Mysore

On 27th October, 2007 the President has promulgated the Payment of Bonus (Amendment) ordinance, 2007 containing the following amendments:-i) Amendment to clause (13) of Section 2 of the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purpose from the salary or wage of Rs. 2500/- per month to Rs. 3500/- per month;iii) Deletion of clause (vi) of section 32 of the Payment of Bonus Act, 1965 so as to cover the employees employed through contractors on building operations.Thus the employees, including those employed through contractors on building operations will be entitled to receive bonus as per the revised ceilings, for the year 2006-07 and onwards.
The Ordinance shall be deemed to have come into force on 1st April, 2006.
For further details, kindly refer http://labour.nic.in/

The Online Companies Act

V will always make things more & more easier.

Access Companies Act (& also many more files too - soon) just by the click of your mouse from here, http://spreadsheets.google.com/pub?key=pJv0NBbfYdGAiQNUFtuTPVg

Enjoy referring...

RBI - Mid term review of Annual Policy - Hike in CRR to 7.5%

The RBI Governor, YV Reddy announced the credit policy in Mumbai today.
RBI has hiked the CRR by 50 bps to to 7.5% from 5%. However, the other key rates including the repo and reverse repo rates have remained unchanged. CRR hike may impact in the Indian Capital market.
The RBI's has raised the cash reserve ratio given the persistent rise in capital flows, but has otherwise left other policy rates unchanged. The central bank's main message is that the economy is in fine shape – agriculture is above trend, industry and services may slacken just a bit. So the GDP target remains at 8.5% and inflation at 5%

But the main threat is from global capital flows, which may only increase given easing by global central banks. Inflation, which has been successfully controlled so far, is also under threat from oil and food tightness. But the biggest threat is from capital flows, especially from unregulated private entities who invest in equities and real estate. These, with a lag, can increase aggregate demand and impact inflation.

The central bank's thrust therefore is to control and sterilise flows. Hence the hike in CRR.

Is it more hawkish? It is certainly more alarmist.
The bank rate remains unchanged at 6% while the RBI has kept its inflation target for FY08 at 5%. RBI's GDP forecast too remains unchanged at 8.5%.

The RBI has said that the surplus liquidity needs priority attention. It needs to check bank credit risk from faulty derivative record, it added. Oil companies can hedge forex exposure up to 50% of inventory, it added.

The central bank said that money supply is expanding well above 17-17.5%. There is evidence of stability in real estate prices, it revealed. However, it informed that there are irregularities seen in banks' real-estate exposure.

The RBI has said that 10 banks have high exposure to real estate and stocks, adding that it will continue to manage liquidity through reins like CRR, MSS and LAF (liquidity adjustment facility). RBI said that credit growth is in line with 24-25% target. It confirmed that the credit policy stance has been more hawkish than July; the emphasis being on capital flows.
The Reserve Bank said that that authorised dealers have been allowed to run cross currency options. The total credit growth of 23.3% as on October12 stood at Rs 3.81 lakhs crore, it informed. Managing liquidity arising from forex flows posed a key challenge, it said. The Consumer Price Index (CPI) inflation has been up at 7.3% in August 2007 Vs 6.3% (YoY). The deposit growth is ahead of FY08 target of Rs 4.9 lakhs, the central bank informed.

Companies with forex need can write covered call and puts, the RBI said, adding that excess money supply needs 'intensified monitoring.' It has concerns on strong growth in lending to real estate. Asset prices remain at elevated levels, RBI feels. It finds that currency markets have seen a tentative return to stability.

The global economy is still strong and inflation environment is benign, the RBI has observed. The high oil prices are a concern and food and metal prices will feed inflation, the RBI senses.

Press Release: 2007-2008/589 can be accessed from http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=17429

-- Alagar
Asst Manager - Merchant BankingKarvy Investor Services Limited G-1 Swathi Court22, Vijayaraghava RoadT.Nagar, Chennai - 600 017Tel: 044-28151034/3445/3658 Moble: 919884731993e-mail: alagar.muthu@karvy.comwebsite: karvy.com

Updates on RBi Circular & investment by NRI, FII & PIO

Dear All,

Updates on RBI circular and FEMA;

1. Guidelines for issuing preference shares as part of regulatory capital by the banks

All of you may be aware of that the RBI vide its circular no. DBOD.No.BP.BC.57/21.01.002/2005-06 dated January 25, 2006 enhanced banks' capital raising options for capital adequacy purposes. With a view to providing a wider choice of instruments to Indian banks for raising Tier I and Upper Tier II capital.

Further vide DBOD.No. BP. BC. 42 /21.01.002/2007-2008 dated 29^th October 2007, it has been decided to allow the banks to issue the following types of preference shares in Indian Rupees, subject to extant legal provisions as per guidelines herewith enclosed.

i) Tier I capital

Perpetual Non-Cumulative Preference Shares (PNCPS)

ii) Upper Tier II capital

a) Perpetual Cumulative Preference Shares (PCPS)
b) Redeemable Non-Cumulative Preference Shares (RNCPS)
c) Redeemable Cumulative Preference Shares (RCPS)

2. The Perpetual Non-Cumulative Preference Shares will be treated on par with equity, and hence, the coupon payable on these instruments will be treated as dividend (an appropriation of Profit & Loss Account). All other types of preference shares mentioned above will be treated as liabilities and the coupon payable thereon will be treated as interest (charged to Profit and Loss Account).

3. The addition of above instruments is expected to significantly enhance the range of eligible instruments available to the banks for capital adequacy purposes. Hence, it is not considered necessary to allow the banks to issue preference shares in foreign currency in overseas markets at this stage.

2. Investment in Indian Companies by FIIs/NRIs/PIOs

Regulations

As per Foreign Exchange Management (Transfer Or Issue Of Security By A Person Resident Outside India) Regulations, 2000 amended till date,foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.

The ceiling for overall investment for FIIs is 24 per cent of the paid up capital of the Indian company and 10 per centfor NRIs/PIOs. The limit is 20 per cent of the paid up capital in the case of public sector banks, including the State Bank of India.

The ceiling of 24 per cent for FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect. And the ceiling of 10 per cent for NRIs/PIOs can be raised to 24 per cent subject to the approval of the general body of the company passing a resolution to that effect.

The ceiling for FIIs is independent of the ceiling of 10/24 per cent for NRIs/PIOs.

The equity shares and convertible debentures of the companies within the prescribed ceilings are available for purchase under PIS subject to:

- the total purchase of all NRIs/PIOs both, on repatriation and non-repatriation basis, being within an overall ceiling limit of (a) 24 per cent of the company's total paid up equity capital and (b) 24 per cent of the total paid up value of each series of convertible debenture; and

- the investment made on repatriation basis by any single NRI/PIO in the equity shares and convertible debentures not exceeding five per cent of the paid up equity capital of the company or five per cent of the total paid up value of each series of convertible debentures issued by the company.

Monitoring Foreign Investments

The Reserve Bank of India monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. For effective monitoring of foreign investment ceiling limits, the Reserve Bank has fixed cut-off points that are two percentage points lower than the actual ceilings. The cut-off point, for instance, is fixed at 8 per cent for companies in which NRIs/ PIOs can invest up to 10 per cent of the company's paid up capital. The cut-off limit for companies with 24 per cent ceiling is 22 per cent and for companies with 30 per cent ceiling, is 28 per cent and so on. Similarly, the cut-off limit for public sector banks (including State Bank of India) is 18 per cent.

Once the aggregate net purchases of equity shares of the company by FIIs/NRIs/PIOs reach the cut-off point, which is 2% below the overall limit, the Reserve Bank cautions all designated bank branches so as not to purchase any more equity shares of the respective company on behalf of FIIs/NRIs/PIOs without prior approval of the Reserve Bank. The link offices are then required to intimate the Reserve Bank about the total number and value of equity shares/convertible debentures of the company they propose to buy on behalf of FIIs/NRIs/PIOs. On receipt of such proposals, the Reserve Bank gives clearances on a first-come-first served basis till such investments in companies reach 10 / 24 / 30 / 40/ 49 per cent limit or the sectoral caps/statutory ceilings as applicable. On reaching the aggregate ceiling limit, the Reserve Bank advises all designated bank branches to stop purchases on behalf of their FIIs/NRIs/PIOs clients. The Reserve Bank also informs the general public about the `caution' and the `stop purchase' in these companies through a press release.

The current list of companies allowed to attract investments from FIIs/NRIs/PIOs with their respective ceilings you can find in below link:

http://www.rbi.org.in/scripts/BS_FiiUSer.aspx#provogue_49

Thanks & Regards

--
Alagar

Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets), Regulations, 2007

NOTIFICATION NO. F. NO. 11/LC/GN/2007/ 4567, DATED 17-10-2007
In exercise of the powers conferred by Section 30 read with Sections 11, 12 and 19 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations, namely :—
CHAPTER I
PRELIMINARY
Short title and commencement
1. (1) These regulations may be called the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007.
(2) They shall come into force on the date of their publication in the Official Gazette.
Definitions
2. (1) In these regulations, unless the context otherwise requires :—
(a) (a) “Act” means the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b) (b) “agent” means any person who is engaged in the activity of sale or distribution of securities on behalf of an issuer or a distributor for a commission or any other consideration;
“associated person” means a principal or employee of intermediary or an agent or distributor or other natural person engaged in the securities business and includes an employee of a foreign institutional investor or a foreign venture capital investor working in India;
(d) (d) “Board” means the Securities and Exchange Board of India established under section 3 of the Act;
(e) (e) “certificate” means the certificate granted by NISM in accordance with these regulations;
(f) (f) “Continuing Professional Education” (CPE) means any course, programme, training programme, activity, conference, seminar that has been accredited or approved by NISM to enhance the knowledge, skills and professional competency of associated persons in the areas of securities, governance and ethics;
(g) (g) “distributor” means any person engaged by an intermediary or an issuer for the purpose of sale or distribution of securities;
(h) “intermediary” means an entity registered under sections 11 or 12 of the Act and includes any person required to obtain any membership or approval from a stock exchange or a self-regulatory organization;
(i) “issuer” means a company or a mutual fund or a collective investment scheme which has issued or proposes to issue securities to the public in accordance with the relevant regulations or guidelines made by the Board and also includes a venture capital fund registered under the relevant regulations or guidelines made by the Board;
(j) “NISM” means the National Institute of Securities Markets established by the Board;
(k) “principal” means persons who are actively engaged in the management of the intermediary’ s securities business including supervision, solicitation, conduct of business, and includes:
(1) (1) Sole Proprietors
(2) (2) Managing Partners’ and
(3) (3) Whole Time Directors
(1) “securities” means securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).
(2) Words and expressions used and not defined in these regulations shall have the meanings, if any, respectively assigned to them by or under the Act or the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Companies Act, 1956 (1 of 1956) or the Depositories Act, 1996 (22 of 1996) or rules and regulations made thereunder or any amendment thereto or re-enactment thereof.
CHAPTER II
CERTIFICATION OF ASSOCIATED PERSONS
Obligation to obtain certificate
3. (1) The Board may by notification in the Official Gazette require such categories of associated persons to obtain requisite certificate for engagement or employment with such classes of intermediaries and from such date as may be specified in the notification:
Provided that an associated person employed or engaged by an intermediary prior to the date specified by the Board may continue to be employed or engaged by the intermediary if he obtains the certificate within two years from the said date.
(2) (2) An associated person on being employed or engaged by an intermediary on or after the date specified by the Board shall obtain the certificate within one year from the date of being employed or engaged by the intermediary.
(3) (3) An associated person who, as on the date specified by the Board, holds a certificate for a category as recognized by the Board shall not be required to obtain a fresh certificate for the same category during the validity of such certificate.
(4) (4) The Board for the purpose of issuing notification under sub-regulations (1) and (2) shall take into consideration :
(a) (a) whether the associated person as part of his work or operation deals or interacts with the investors, issuers or clients of intermediaries;
(b) (b) whether the associated person deals with assets or funds of investor or clients;
(c) (c) whether the associated person handles redressal of investor grievances;
(d) (d) whether the associated person is responsible for internal control or risk management;
(e) (e) whether the associated person is responsible for compliance of any rules or regulations;
(f) (f) whether the associated person is engaged in activities that have a bearing on operational risk of the intermediary.
Manner of obtaining certificate
4. (1) Subject to the provisions of this regulation, an associated person may obtain the certificate in any of the following manners, namely:—
(a) (a) by passing a certification examination conducted by any organization or self regulatory organization approved or engaged as may be specified by NISM from time-to-time; or
(b) (b) by obtaining such number of classroom credits accumulated through attending classes on such subjects as may be specified by NISM from time-to-time; or
(c) (c) by delivering such number of formal classroom sessions in all or specific programmes of continuing professional education as may be specified by NISM from time-to-time.
(2) (2) An associated person being principal shall obtain the certificate in any of the manners specified in clause (a) or clause (b) or clause (c) of sub-regulation (1).
(3) (3) An associated person, other than a principal, who has attained the age of fifty years or who has at least ten years experience in the securities markets in the activities mentioned in sub-regulation (4) of regulation 3 on the date specified in the notification issued under sub-regulation (1) of regulation 3, shall obtain the certificate in the relevant category in the manner specified in clause (a) or clause (b) of sub-regulation (1).
(4) (4) An associated person other than those mentioned in sub-regulation (2) or sub-regulation (3) shall obtain the certificate in the manner specified in clause (a) of sub-regulation (1).
Validity period of certificate
5. (1) The certificate granted under regulation 3 shall be valid for a period of three years from the date of the grant of the certificate or revalidation thereof as the case may be.
(2) Upon expiry of the validity of certificate possessed by an associated person, the certificate shall be revalidated for a period of three years at a time, provided the associated person successfully completes a programme of continuing professional education specified by NISM in accordance with Chapter IV of these regulations.
Associated person not to undertake certain activities without a valid certificate
6. No associated person engaged in any of the activities mentioned in clauses (a) to (f) of sub-regulation (4) of regulation 3 shall continue to be so engaged after the date specified in sub regulation (1) or sub-regulation (2) of regulation 3, as the case may be, unless such associated person holds a valid certificate.
CHAPTER III
POWERS AND FUNCTIONS OF NISM
Powers and functions of NISM
7. (1) NISM would perform the functions delegated to it under these regulations or as may be delegated by the Board.
(2) (2) Without prejudice to the generality of the foregoing provisions and the activities of NISM .under its articles, the functions of NISM in respect of certification for associated persons in the securities market shall include putting in place and implementing the certification process, procedure and policies.
(3) (3) NISM in consultation with the Board may lay down standards which may-
(a) specify that all or any portion of such standards shall be applicable to all or any category of associated persons working or associated with all or any class of intermediaries in securities market;
(b) specify that no associated person in any such class may be qualified to be employed or engaged or continued to be employed or engaged by an intermediary unless he is in compliance with such standards of examination, continuing professional education requirements and such other qualifications as NISM in consultation with the Board may specify.
Conduct of certification examination and programmes of continuing professional education
8. For conducting certification examination and programme of continuing professional education, NISM may:
(1) (1) accredit, approve or engage any organization or self regulatory; organisation to administer certification examinations.
(2) (2) accredit, approve or engage any organization or self regulatory organization to conduct all or any programme of continuing professional education as may be specified from time to time.
(3) require all associated persons appearing for certification examinations or undergoing programme of continuing professional education to pay reasonable fees or charges to defray the costs incurred in conducting such certification examinations and programmes of continuing’ professional education.
CHAPTER IV
CONTINUING PROFESSIONAL EDUCATION REQUIREMENTS
Continuing Professional Education requirements for associated persons
9. (1) NISM may specify the requirements’ for continuing professional education (CPE) for associated persons holding certificate and approve the programmes of CPE that may be conducted by entities accredited and engaged in accordance with regulation 8.
(2) (2) No intermediary shall permit any associated person to continue and no associated person shall continue to perform duties as an associated person unless such person has complied with the requirements specified by NISM under sub-regulation (1) within 3 years from the date of obtaining the certificate or revalidation thereof.
(3) (3) The requirements of sub-regulations (1) and (2) shall apply to associated persons who are engaged in any of the activities mentioned in clauses (a) to (f) of sub-regulation (4) of regulation 3.
Intermediary to ensure participation in •continuing professional education
10. (1) Each intermediary shall be responsible to ensure that its associated persons participate in a programme of continuing professional education approved by NISM under sub-regulation (1) of regulation 9.
(2) Associated persons shall take all appropriate and reasonable steps to participate in a programme of continuing professional education as requited by the intermediary.
CHAPTER V
MISCELLANEOUS
Certification of associated persons to be pre-condition for registration of intermediaries11. Compliance with the provisions of these regulations shall be one of the factors to be taken into consideration by the Board for the purpose of determining eligibility criteria for grant or renewal of certificate of registration to an intermediary under the relevant regulations.