SEBI Grade A Exam: Pattern, Streams, Eligibility and Preparation

SEBI does not hold one common exam for all posts. It recruits Grade A officers in separate streams, and each has its own eligibility and specialised paper.

Not every stream is advertised in every cycle. The streams on offer and the vacancies are given in each notification. This page focuses on the General stream, which has the most posts.

Phase I is held online. It has had two papers of 100 marks each:

• Paper 1 - multiple-choice questions on General Awareness (including the financial sector), English Language, Quantitative Aptitude and Test of Reasoning.
• Paper 2 - multiple-choice questions on the specialised subjects of the stream. For the General stream these have been commerce, accountancy, management, finance, costing, company law and economics.

Negative marking of one-fourth mark per wrong answer has applied. Each paper has its own cut-off, and there is an aggregate cut-off too.

Phase I marks are used only to short-list candidates for Phase II. The time per paper and the cut-off rules are given in the notification.

Phase II is also held online. It has had two papers:

• Paper 1 - English (descriptive): precis writing, comprehension and a short essay. Answers are typed on the computer.
• Paper 2 - Specialised subject: objective questions on the same subjects as Phase I Paper 2, at a deeper level.

In recent cycles, Paper 2 has carried more weight than Paper 1 in the Phase II score. This means the specialised subject decides most of the rank.

Both papers have their own cut-off. The weightage, time and cut-offs are stated in the notification for each cycle.

Candidates who clear Phase II are called for an interview. The panel asks about the securities market, SEBI's role, recent regulations, the candidate's academic subject and current affairs.

The final merit has been drawn from Phase II and interview marks together, with Phase II carrying the larger share. Phase I marks are not counted.

Selected officers are placed on probation and posted to SEBI's head office in Mumbai or to its regional and local offices.

The exact weightage of Phase II and the interview is printed in the notification.

After training, Assistant Managers join one of SEBI's departments. Common areas of work are:

• Market regulation - rules for stock exchanges, depositories and clearing corporations.
• Corporation finance - public issues, listing rules and takeovers.
• Investment management - mutual funds, portfolio managers and alternative investment funds.
• Investigation and enforcement - insider trading, market manipulation and penalties.
• Investor assistance - complaints, awareness and education.

Officers move across departments and offices over their career. Promotion to higher grades follows SEBI's internal rules.

For the General stream, the academic requirement has been one of these:

• A master's degree in any discipline, or a two-year PG diploma from a recognised institute.
• A bachelor's degree in law or engineering from a recognised university.
• A professional qualification such as Chartered Accountant, CFA, Company Secretary or Cost Accountant.

The upper age limit has been 30 years on a date stated in the notification, with relaxation for reserved categories, persons with disabilities and ex-servicemen under government rules.

The qualification per stream, age band and relaxations are set in each notification. Check them before applying.

The specialised paper is where the exam is won or lost. Build a strong base in:

• Commerce and accountancy - accounting standards, final accounts, ratio analysis and cash flow.
• Management - planning, organising, leadership, motivation and communication.
• Finance - financial markets, instruments, derivatives, capital budgeting and the time value of money.
• Costing - cost sheets, marginal costing and standard costing.
• Company law - the Companies Act, 2013 and corporate governance.
• Economics - demand and supply, national income, inflation, money and banking, and the external sector.

Alongside these, know SEBI's own work: its powers under the SEBI Act, 1992, the primary and secondary markets, mutual funds, and investor protection.

Prepare for both phases from the start. The specialised subjects carry most of the marks.

Specialised subjects first. Use standard textbooks for accountancy, finance and economics. Solve objective questions topic by topic.

SEBI and the market. Read SEBI's press releases and the main regulations in simple summaries. Learn how IPOs, mutual funds and stock exchanges work.

English writing. Type one essay and one precis every week. Keep answers short, clear and within the word limit.

Paper 1 speed. Practise reasoning and quant at the bank PO level, and follow financial news daily for general awareness.

For other regulator and officer exams, see the RBI Grade B, NABARD Grade A and LIC AAO guides.

1. Applying in the wrong stream. Each stream has its own eligibility; check yours carefully.
2. Ignoring the specialised paper. It decides most of the Phase II score.
3. Not typing answers. The English paper is typed online; slow typing costs marks.
4. Guessing freely. Negative marking turns guesses into lost marks.
5. Using an old pattern. SEBI has revised its scheme; work only from the current notification.