Mains Syllabus of SEBI Grade A Exam 2024
The Securities and Exchange Board of India (SEBI) Grade A exam is a highly competitive examination for recruitment to various posts in SEBI. The Mains exam is the second stage of the selection process, following the preliminary exam. It is a crucial step as it tests the candidates’ in-depth knowledge and understanding of the subjects covered in the syllabus.
Paper 1: General Studies
1. Indian Economy:
- Economic Growth and Development: Concepts of economic growth and development, measurement of national income, poverty, inequality, and unemployment, economic reforms in India, structural changes in the Indian economy, role of institutions in economic development.
- Financial System: Structure and functioning of the Indian financial system, financial markets (money market, capital market, foreign exchange market), financial institutions (banks, insurance companies, mutual funds, pension funds), financial regulation and supervision.
- Inflation and Monetary Policy: Concepts of inflation, causes and consequences of inflation, monetary policy tools and their effectiveness, role of the Reserve Bank of India (RBI) in managing inflation.
- Fiscal Policy: Concepts of fiscal policy, tools of fiscal policy, fiscal deficit, public debt, and their impact on the economy, role of the government in fiscal management.
- International Trade and Finance: Balance of payments, exchange rate determination, international trade policy, trade agreements, and their impact on the Indian economy.
2. Financial Markets:
- Capital Markets: Structure and functioning of the Indian capital market, primary and secondary markets, stock exchanges, market intermediaries, regulatory framework for capital markets.
- Money Markets: Structure and functioning of the Indian money market, instruments of money market, role of the RBI in managing liquidity.
- Derivatives Markets: Concepts of derivatives, types of derivatives (futures, options, swaps), applications of derivatives, regulatory framework for derivatives markets.
- Foreign Exchange Market: Structure and functioning of the foreign exchange market, exchange rate regimes, factors affecting exchange rates, role of the RBI in managing the exchange rate.
3. Securities Laws and Regulations:
- SEBI Act, 1992: Provisions of the SEBI Act, 1992, powers and functions of SEBI, SEBI regulations, enforcement mechanisms.
- Companies Act, 2013: Provisions of the Companies Act, 2013, corporate governance, disclosures, and compliance requirements.
- Securities Contracts (Regulation) Act, 1956: Provisions of the Securities Contracts (Regulation) Act, 1956, regulations for stock exchanges, trading practices, and investor protection.
- Depositories Act, 1996: Provisions of the Depositories Act, 1996, role of depositories and participants, electronic settlement and clearing systems.
- Other Relevant Laws: Foreign Exchange Management Act (FEMA), Prevention of Money Laundering Act (PMLA), Insider Trading Regulations, etc.
4. Financial Accounting and Reporting:
- Accounting Standards: Indian Accounting Standards (Ind AS), International Financial Reporting Standards (IFRS), accounting principles and concepts, financial reporting framework.
- Financial Statements Analysis: Analysis of financial statements (balance sheet, income statement, cash flow statement), ratio analysis, trend analysis, and other analytical tools.
- Corporate Governance: Principles of corporate governance, corporate social responsibility, ethical considerations in financial reporting.
5. Data Interpretation and Analysis:
- Data Interpretation: Interpretation of data presented in various forms (tables, charts, graphs), analysis of trends and patterns, drawing inferences from data.
- Statistical Methods: Basic statistical concepts, measures of central tendency, dispersion, correlation, and regression analysis.
6. General Awareness:
- Current Affairs: Knowledge of current events related to the Indian economy, financial markets, and SEBI.
- Banking and Finance: Knowledge of recent developments in the banking and finance sector, including new products and services, regulatory changes, and technological advancements.
- International Finance: Knowledge of global financial markets, international institutions, and key economic developments.
Paper 2: Specialization Subjects
1. Market Regulation:
- Market Integrity and Surveillance: Market manipulation, insider trading, fraud, and other market abuses, surveillance techniques, and enforcement actions.
- Investor Protection: Investor education, investor grievance redressal, investor awareness programs, and regulatory measures for investor protection.
- Market Infrastructure: Stock exchanges, clearing corporations, depositories, and other market infrastructure institutions, their role and regulation.
- Market Development: Initiatives for market development, promotion of financial literacy, and access to financial services.
2. Securities Market Operations:
- Trading and Settlement Systems: Trading mechanisms, order routing, clearing and settlement processes, risk management in trading operations.
- Market Data and Information: Market data collection, dissemination, and analysis, role of market data in regulatory oversight.
- Market Risk Management: Market risk identification, measurement, and management, regulatory framework for risk management.
3. Corporate Finance and Governance:
- Corporate Finance: Capital budgeting, working capital management, dividend policy, mergers and acquisitions, valuation of companies.
- Corporate Governance: Principles of corporate governance, corporate social responsibility, ethical considerations in corporate decision-making.
- Financial Reporting and Disclosure: Accounting standards, financial reporting requirements, disclosures, and transparency in corporate reporting.
4. Investment Management and Portfolio Analysis:
- Investment Management: Investment strategies, portfolio construction, asset allocation, performance measurement, and risk management.
- Portfolio Analysis: Modern portfolio theory, capital asset pricing model (CAPM), efficient frontier, and other portfolio optimization techniques.
- Mutual Funds and Alternative Investments: Structure and functioning of mutual funds, alternative investment strategies, and regulatory framework.
5. Financial Technology (FinTech):
- FinTech Innovations: Blockchain technology, artificial intelligence, big data analytics, and other FinTech innovations in the financial services industry.
- Regulatory Implications of FinTech: Impact of FinTech on financial markets, regulatory challenges, and opportunities.
- Digital Financial Services: Mobile banking, digital payments, online lending, and other digital financial services, their impact on financial inclusion and market efficiency.
Sample Tables
Table 1: SEBI Grade A Exam Pattern (Mains)
| Paper | Subject | Duration | Marks |
|---|---|---|---|
| Paper 1 | General Studies | 3 hours | 200 |
| Paper 2 | Specialization Subjects | 3 hours | 200 |
Table 2: Weightage of Topics in Paper 1 (General Studies)
| Topic | Weightage |
|---|---|
| Indian Economy | 25% |
| Financial Markets | 20% |
| Securities Laws and Regulations | 20% |
| Financial Accounting and Reporting | 15% |
| Data Interpretation and Analysis | 10% |
| General Awareness | 10% |
Table 3: Weightage of Topics in Paper 2 (Specialization Subjects)
| Specialization Subject | Weightage |
|---|---|
| Market Regulation | 25% |
| Securities Market Operations | 20% |
| Corporate Finance and Governance | 20% |
| Investment Management and Portfolio Analysis | 20% |
| Financial Technology (FinTech) | 15% |
Note: The syllabus and weightage of topics may vary slightly from year to year. Candidates are advised to refer to the official SEBI notification for the latest syllabus and exam pattern.
Frequently Asked Questions (FAQs) and Short Answers for SEBI Grade A Mains Exam 2024
1. What are the key differences between the SEBI Act, 1992 and the Securities Contracts (Regulation) Act, 1956?
Answer: The SEBI Act, 1992 establishes SEBI as the regulator of the securities market and outlines its powers and functions. The Securities Contracts (Regulation) Act, 1956 focuses on regulating the trading of securities and the functioning of stock exchanges.
2. Explain the concept of “insider trading” and its implications.
Answer: Insider trading involves trading securities based on non-public information that could affect the price of the security. It is illegal and can lead to severe penalties.
3. What are the main objectives of monetary policy in India?
Answer: The main objectives of monetary policy in India are to control inflation, maintain price stability, and promote economic growth.
4. What are the key components of the Indian financial system?
Answer: The Indian financial system comprises various institutions and markets, including banks, insurance companies, mutual funds, stock exchanges, and the money market.
5. How does the Reserve Bank of India (RBI) manage liquidity in the money market?
Answer: The RBI uses various tools to manage liquidity, including repo rate, reverse repo rate, and open market operations.
6. What are the different types of derivatives and their applications?
Answer: Derivatives are financial instruments whose value is derived from an underlying asset. Common types include futures, options, and swaps. They are used for hedging, speculation, and arbitrage.
7. What are the key principles of corporate governance?
Answer: Key principles of corporate governance include transparency, accountability, responsibility, and fairness.
8. Explain the concept of “financial inclusion” and its importance in India.
Answer: Financial inclusion refers to providing access to financial services to all segments of society. It is crucial for economic growth and poverty reduction.
9. What are the key challenges and opportunities presented by FinTech in the financial services industry?
Answer: FinTech presents opportunities for innovation and efficiency but also poses challenges related to cybersecurity, data privacy, and regulatory oversight.
10. What are the main functions of a clearing corporation in the securities market?
Answer: A clearing corporation acts as a central counterparty, guaranteeing the settlement of trades and reducing counterparty risk.
11. What are the key factors to consider when analyzing financial statements?
Answer: Key factors include profitability, liquidity, solvency, and efficiency ratios.
12. What are the different types of investment strategies?
Answer: Investment strategies can be categorized as passive, active, or value-oriented, depending on the approach to portfolio management.
13. Explain the concept of “modern portfolio theory” and its application in investment management.
Answer: Modern portfolio theory emphasizes diversification and risk-return trade-offs to optimize portfolio performance.
14. What are the key differences between primary and secondary markets in the capital market?
Answer: Primary markets involve the issuance of new securities, while secondary markets facilitate the trading of existing securities.
15. What are the main regulatory measures taken by SEBI to protect investors?
Answer: SEBI implements various measures, including investor education, grievance redressal mechanisms, and regulations against market manipulation and insider trading.
Note: These are just a few examples of frequently asked questions. The actual questions asked in the SEBI Grade A Mains exam may vary depending on the specific specialization subject chosen. Candidates are advised to refer to the official syllabus and previous years’ papers for a comprehensive understanding of the exam pattern and content.