Complete Guide to NISM Certifications

If you are interested in making a career in the stock market, derivatives, and mutual funds, NISM certifications could be the one for you to understand how all of it works. Also, if you want to know about the financial markets, in general, the curriculum is not only educational but could get you a job. So, does this interest you to know more about it? Here's a complete guide for you about the pattern and essentials of NISM certification.

The post has been articulated in the following manner;

National Institute of Securities Markets (NISM) is a public trust established by the Securities and Exchange Board of India (SEBI), a regulatory body of securities markets in India. NISM promotes standards for best practices in the financial industry and knowledge dissemination for market participants.

The School for Certification of Intermediaries (SCI) is one of the six schools of excellence at NISM that develops and conducts certification programs and Continuing Professional Education (CPE) programs to validate and enhance the capabilities of professionals working in the financial services sector.

These certifications are provided as mandated under SEBI (Certification of Associated Persons in the Securities Markets) regulation, 2007. During 2014-2015, 107,305 candidates appeared for NISM Certification examinations in 209 test centers located in 161 cities across India.

NISM offers several certification modules through SCI to meet the diverse learning needs of finance professionals. These certifications are designed to help them gain an in-depth understanding of financial principles applicable to their specific field of functionality. This, in turn, enables them to better help an average investor in making financial decisions of import.

There are 20 of these certifications offered by NISM, listed here for your convenience. Most of these certifications are mandated by SEBI for professionals in relevant job roles. However, some are voluntary certifications that benefit you by providing advanced knowledge in that area but are not mandatory for financial specialists.

We will try to briefly describe the content and objectives of these certification modules to help you understand them better.

• NISM Series I: Currency Derivatives Certification Examination

This certification offers fundamentals about the currency derivatives market and its operations, including trading, settlement mechanisms, and investment strategies. It is meant for professionals dealing with currency derivatives and exchange-traded This certification offers knowledge of fundamentals about the currency derivatives market and its operations, including trading and settlement mechanisms and investment strategies. It is meant for those professionally dealing with currency derivatives and exchange-traded currency futures.

• NISM Series II (A): Registrars to an Issue and Share Transfer Agents-Corporate Certification Examination

With this certification, those working with registrars to an issue and share transfer agents (R&T Agents or RTAs) can acquire a basic knowledge of securities markets and better understand the role of RTAs in corporate securities issuance and transaction processes.

• NISM Series II (B): Registrars and Transfer Agents (Mutual Fund) Certification Examination

This certification is relevant for those working with RTAs involved in the mutual fund R & R&T function. It offers a basic knowledge of securities markets apart from shedding light on the role of RTAs in the mutual fund issuance and transaction process.

• NISM Series III (A): Securities Intermediaries Compliance (Non-Fund) Certification Examination

This certification is meant for professionals working with stockbrokers, depository participants, and other financial intermediaries. The course is designed to help understand the role and function of financial intermediaries and the importance of compliance function in the securities market.

• NISM Series III (B): Issuers Compliance Certification Examination

This certification sheds light on the role and functionalities of compliance officers working with listed companies and helps understand the basics of domestic and international corporate fundraising along with corporate compliance requirements.

• NISM Series IV: Interest Rates Derivatives Certification Examination

It is meant for those working in the interest rates derivatives segment. It offers knowledge of fundamentals related to the fixed income securities market and the basics of market operations related to interest rate derivative products.

• NISM Series V (A): Mutual Fund Distributors Certification Examination

This certification is meant for those involved in the sales and distribution of mutual funds. It offers a broad idea of different mutual fund schemes and covers various evaluation and market distribution aspects.

• NISM Series­ V (B): Mutual Fund Foundation Certification Examination

This certification is for those involved in the sales and distribution of simple and performing mutual fund schemes. It offers a basic understanding of the composition of different types of mutual funds, rules related to their distribution, evaluation methods, and financial planning basics.

• NISM Series V (C): Mutual Fund Distributors (Level 2) Certification Examination

This is a voluntary certification meant to impart knowledge of advanced mutual fund products, fund valuation, measuring fund performance, and regulatory requirements.

• NISM Series VI: Depository Operations Certification Examination

This certification is designed for those working with registered depository participants to impart fundamentals of institutional structure and regulatory framework within which depository participants operate and function.

• NISM Series VII: Securities Operations and Risk Management Certification Examination

It is meant for those working with registered stockbrokers, clearing members, or trading members in a stock exchange. Professionals learn the fundamentals of the securities market in India, along with the regulatory role of the Securities and Exchange Board of India (SEBI) and the role and functionalities of a stockbroking firm.

• NISM Series VIII: Equity Derivatives Certification Examination

Professionals associated with the equity derivative segment can learn about the fundamentals of the equity derivative market in India, along with the regulatory environment context in which it operates. In addition, the content helps build an understanding of the operational mechanism of the market, along with useful trading strategies relevant to this market segment.

• NISM Series IX: Merchant Banking Certification Examination

This certification is relevant for those working with SEBI registered merchant bankers in a compliance-related role. Professionals can acquire a working knowledge of merchant banking in India and various roles and functionalities of merchant bankers related to the initial public offer, further public offer, buy-back, and delisting, among other things.

• NISM Series X (A): Investment Adviser (Level 1) Certification Examination

Registered investment advisers and those associated with them as partners and representatives must earn this certification. It offers knowledge of basics related to investment advisory. This includes evaluating and recommending financial products to investors, along with an in-depth understanding of personal financial planning to help investors achieve the best results possible.

• NISM Series X (B): Investment Adviser (Level 2) Certification Examination

Relevant for investment advisers and associated people, this certification deals with advanced aspects of investment advisory, focusing on detailed personal financial planning, asset allocation, product selection, portfolio construction, management, compliance, and other aspects.

• NISM Series XI: Equity Sales Certification Examination

This is a voluntary certification offering a detailed understanding of equity markets in India, including, but not limited to, an understanding of its operational mechanism along with clearing, settlement, and risk management.

• NISM Series XII: Securities Markets Foundation Certification Examination

This is a voluntary certification aimed at entry-level finance professionals or individuals interested in understanding Indian securities markets, functioning of primary and secondary markets, different financial products, and the process of financial planning.

• NISM Series XIII: Common Derivative Certification Examination

This certification holds relevance for those working with registered trading members of equity derivatives, interest rate derivatives, or currency derivatives. It offers a broad-based knowledge of all three sections of derivatives markets in India, along with its operational mechanism. It also deals with trading and hedging strategies employed in this market segment.

• NISM Series XIV: Internal Auditors for Stock Brokers Certification Examination

This certification is meant for chartered accountants, company secretaries, cost management accountants, or any other associated individuals or partners signing the internal audit report of the operations of stockbrokers or clearing members. It offers knowledge of basics related to operations and compliance requirements of stockbrokers, along with the regulatory framework within which they operate.

• NISM Series XV: Research Analyst Certification Examination

This certification is designed for registered research analysts and associated persons engaged in any research analysis. It offers a comprehensive view of equity and debt markets, varied approaches to fundamental analysis, micro and macro-economic analysis knowledge, and other aspects related to financial research and analysis.

Most of these certifications are mandated by SEBI to be obtained by finance professionals in relevant roles to ensure a higher quality of services in the financial sector. There are no special eligibility criteria to pursue these certifications. Those working in professional roles associated with the stock exchange or interested individuals with little knowledge or experience in finance can sit for the certification exams. Passing marks in individual exams are 50% or 60%. There is also a negative marking of 25% in most of these exams.

Each certification covers a specialized knowledge area in the financial domain and is highly relevant to professionals working in such specific domains. All certification exams are computer-based and can be taken from the nearest exam centre at individual convenience. Interested individuals can enrol for a certification exam valid for 180 days. No refund would be made on the expiry of this period, and neither is any rescheduling possible.

Candidates can log in on the exam portal at least 30 days before the examination date to reschedule an exam. Students can avail the rescheduling facility only once. NISM issues the exam certification for successful candidates within 15 days of completing the exam. The certificate exam is valid for three years, and in the 12 months before expiry, candidates can appear for the Continuing Professional Education exam to earn a 3-year extension.

NISM Exams:

Each certification module is designed for professionals working in a pre-defined area of the financial services sector to equip them with relevant knowledge and help improve their quality of services in the finance industry. Most of the exams include a basic overview of the related areas, concepts, and methodologies, focusing on their professional role and functionalities to be of practical assistance.

Exam dates:

Certification exams are available round the year on-demand, and candidates can enrol and schedule an exam on the NISM portal.

Eligibility:

There are no special eligibility criteria for these certification exams except for computer literacy, which is a must as these exams are computer-based. Professionals for whom SEBI or any other interested individuals mandate a certification can sit for these exams to gain a working knowledge in a certain area of the finance domain.

Job Roles:

People working as Investment Advisers, Mutual Fund Distributors, Marketing/Sales Personnel in Currency Markets, employees of Registrar and Transfer Agents (RTA), Stock Broker's employees, employees in Investment Banking or Merchant Banking companies, among other finance professionals, can gain relevant certifications to bring an added value to their career profile for better career growth.

Most of the NISM certifications are mandated by SEBI for professionals working in different roles within the financial industry to equip them with the necessary knowledge and skills to enhance their professional competence. This is supposed to help improve the financial industry's quality of services and performance levels.

As per SEBI's direction, investment advisors and their associated persons are compulsorily required to obtain NISM Series X (A): Investment Adviser (Level 1) Certification examination or another relevant certification from a NISM-accredited institution.

There are several voluntary certifications offered under this scheme, meant to enhance the expertise of professionals in their specific knowledge area.

Below is the snapshot of NISM certification details on their site. To get information on all their products, please refer to NISM Certification details.

NISM most of the certifications are below INR 2,000; however, a few do cost higher, however within INR 10,000.

During 2014-2015, 107,305 candidates appeared for NISM certification examinations in 209 test centers in 161 cities across India.

Candidates can download the study material from the exam portal on enrolment for a certain certification program.

Cover the concepts in their entirety:

Cover the broader concepts at length instead of studying selectively to understand the topics better.

Learn better with the analytical approach:

Adopt an analytical approach to application-oriented sections of the curriculum will always help.

Do Not Forget to Practice:

Make it a point to write your notes and practice enough after completing a study of a certain section instead of waiting to cover the entire course.

Take as many practice exams as possible. Several mock tests are available online, which can help a candidate become acquainted with the exam format. The exam portal also offers several practice exams.

Study each question and start with the easy ones:

Study the questions carefully before attempting them to make sure you understand what is asked. It is always better to start with the questions you are comfortable with and leave the tougher ones for the latter half of the exam.

Avoid negative marking:

Remember, there is negative marking, and although a couple of incorrect responses may not affect your scores greatly, quite a few of them can spoil your hard work. So be careful while attempting questions you are not sure about.

Have a plan in place:

It is best to have a rough plan to tackle the exam and follow it to cover the questions systematically, thus reducing the chances of error or oversight.

The study, attempt, and review:

Remember the golden rule of study, attempt, and review during the exam. Be sure to study the questions in their entirety, attempting them and sparing time to review your answers to improve your score.

A single-time rescheduling is available at least 30 days before the examination. Later than that, no rescheduling is possible, and the exam fee cannot be refunded either.

This has been a guide to NISM Certifications. Here we discuss what certifications NISM offers, why you should pursue it, its fees, exam structure, passing rate, etc. You may also have a look at the following articles –

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