I. Introduction to Securities

  • Categorization of securities into equity, debt and hybrid
  • Characteristics of securities

II. Characteristics of Equities

  • Rights of common shareholders
  • Par value, Face value and share premium
  • Dividend calculation and distribution
  • Authorized capital
  • Issued capital
  • Outstanding shares
  • Paid-up shares
  • Placement of preferred shares and features
  • Share buy-back
  • Rights issue

III. Characteristics of Other Securities

  • Warrants
  • Types of convertible bonds
  • Types of depository receipts
  • Fully convertible currency bonds (FCCBs)

IV. Characteristics of Debt Instruments

  • Payment terms
  • Face value
  • Coupon
  • Term to maturity
  • Market value
  • Current yield
  • Yield to maturity
  • Corporate debt securities
  • Government securities
  • Methods of corporate debt retirement
  • Types of fixed and floating rate instruments and relevant benchmarks
  • Standards and significance of credit rating of debt instruments
  • Types of money market instruments and features
  • Government debt securities and features
  • Company fixed deposits and features 

V. Basics of Mutual Funds

  • Structure and objective of a mutual fund
  • Units of a fund, face value and ongoing value.
  • Benefits of mutual funds to investors
  • Characteristics of open and closed end funds
  • Assets Under Management (AUM)
  • Net Asset Value (NAV)
  • Unit Capital
  • Types of mutual fund products and classification by investment category
  • Returns as dividends and capital gains

VI. SEBI’s Role and Relevant Regulations

  • Securities market regulatory environment
  • SEBI’s and role
  • SEBI’s powers
  • Investor Protection
  • SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
  • SEBI (Intermediaries) Regulations, 2008
  • SEBI (Depositories and Participants) Regulations, 1996

VII. Public Offer of Securities -Features

  • Types of public issue and private placements
  • Types and process of Initial Public Offer
  • Buyback process through tenders, stock exchanges and reverse book building

VIII. Private Placement of Shares

  • Qualified Institutional Placement
  • Rights Issues

IX. Public Offer of Securities -Processes

  • Concepts in Public Issue of Shares
  • Underwriting
  • Green Shoe Option
  • Sequence in IPO Process
  • Features of Fixed Price Offering
  • Features of Book Built Offering

X. Roles and Responsibilities in a Public Issue

  • Role of the Registrar and Transfer Agent (R&T) in dematerialization and rematerialization of securities
  • Role of the R&T agent in reconciliation of daily balances
  • Role of the R&T agent in transfer of ownership of physical securities
  • Role of the R&T agent in issue of duplicate certificates
  • Role of the R&T agent in stop transfer for certificates reported Lost/ Stolen
  • Role of the R&T agent in issue of new certificates in corporate reorganizations

XI. Depository Services

  • Registration as a Depository and its role
  • Registration as a DP
  • Role of DP in transfer, transmission and transposition
  • Delivery Instruction Slip (DIS)
  • Ownership of dematerialised securities
  • Rights of Beneficial Owners

XII. Process related to Depositories

  • Process for pledging and hypothecation
  • Dispatch of periodic statements of accounts
  • Role of R&T and DP in providing information to issuers
  • Role of DP in downloading beneficiary positions to R&T agents
  • Role of R&T and DP in reflecting corporate actions
  • Process of trading and settlement of market and off-market trades
  • Process of reconciliation of records between the Depository and R&T agent

XIII. Investor Servicing Processes

  • Processes related to recording changes of address, bank & Power of Attorney
  • Processes related to dividend / interest payments
  • Processes related to transfer of ownership of securities
  • Processes related to issue of duplicate certificates
  • Processes related to lost securities and Stop Transfer instructions
  • Processes related to transmissions and deletions
  • Processes related to handling shareholder inquiries and complaints

XIV. Role of stock exchanges and other participants in the secondary market

  • Role of the secondary market
  • Role of the stock exchanges
  • Role of various participants in the stock markets
  • Advantages of listing
  • Salient features of the listing agreement