NISM vs NCFM

The NCFM is the abbreviation for NSE Certification in Financial Market India. The students who pursue this course can gain expertise in mutual funds, financial markets, equity research, capital market, and currency derivatives. In contrast, NISM is the abbreviation for National Institute of Securities Market,a part of the Securities Exchange Board of India.

The NCFM Certification and NISM Certification offer courses for candidates interested in developing and shaping their careers in the stock market, the derivatives, the mutual funds industry, and the general public who want to know more about the financial market.

The article is articulated in this order:

It might sound scary to you; however, it is not as frightening as it sounds. The NSE has commenced NCFM as an institute to develop skilled human resources with proficiency in particular market segments and the industry to guide the audiences who participate in the market.

Many certifications are conducted under the NCFM title to educate people working in the financial sector to follow the code of conduct set by the regulator that is the SEBI (Stock Exchange Board of India) also to acquire the required skills and ability to know the working or the system and guide the audiences accordingly. The NCFM believes in human expertise more than technology, for they think that the person providing sales and service in the industry should possess the appropriate knowledge.

The NISM is an Indian public trust that provides financial markets education and maintains a financial literacy standard by developing and improving financial education for people working in the finance industry. This institute was set up by the regulator itself, the SEBI, in 2006.

The NISM adds quality by initiating educational programs for the participants of this industry. It is provided strategic guidance by an international advisory council. NISM consists of 6 different schools for different certifications. They are named below: -

1. School for Investor Education and Financial Literacy (SIEFL)
2. School for Certification of Intermediaries (SCI)
3. School for Securities Information and Research (SSIR)
4. School for Regulatory Studies and Supervision (SRSS)
5. School for Corporate Governance (SCG)
6. School for Securities Education (SSE)

These schools provide knowledge to people involved in buying and selling assets in the security market, people employed directly and indirectly through financial institutions, people engaged in research of the securities market, and supervising the market, including the ministers and officers.

It also conducts workshops and conferences for corporate governance. The motive of this institute is to provide education as per the framework, the mission, and vision of NISM to prepare competent professionals who are capable enough to serve the security markets.

NISM Requirement

1. To appear for any NISM certificate, you need to fill in the online registration form available on their website.
2. You need to enroll for the certification of your choice by filling in the enrollment form.
3. The examination needs to have appeared for 180 days of enrollment.
4. Next, you can choose the examination center and slot available online.
5. The students should prepare for the examination with the help of online study material. After that, an online exam needs to be given where the results are declared after you finish the exam

NCFM requirement

1. Register online for this course and book a slot for a suitable date and time.
2. You can download the course material online or order the same from the institute.
3. Different examinations have different passing percentages that need to be attained. Some tests also have negative markings.
4. If you clear the examination online with the required passing percentage, you will be a certified professional.

1. The National Stock Exchange or NSE created the NCFM course. The Securities Exchange Board of India SEBI created the NISM course.
2. The subjects focused in the case of the NCFM include currency derivatives, banking, interest rates, trading, and mutual funds. The topics focused on in the NISM are currency derivatives, mutual funds foundation, depository operations, and interest rate derivatives.
3. A candidate with an NCFM degree can apply for the trader,financial market consultant, stockbroker, dealer, analyst, and investor. In the case of a candidate holding a NISM degree, they can apply for the job roles of a banker, stockbroker, and securities market.
4. The main focus of the NCFM course is to enable professionals with knowledge, skills, and expertise in understanding the critical elements such as interest rates, currency derivatives, etc., of the financial sector. The NCFM course adds value to the careers of the professionals as currently, no formal training is provided concerning the ever-changing dynamics of the financial industry.

On the other hand, the main focus of the National Institute of Securities Market NISM course is to offer financial education and financial literacy to the participants of the financial sector. In other words, NISM focuses on guiding the professionals employed in the financial markets with a thorough knowledge of the dynamics of the ever-changing financial needs.

The NCFM certification focuses on critical elements of the financial sector; its main aim is to provide knowledge and expertise to professionals working in the financial industry. Since there is no formal education or training for financial markets in India, these certifications for various fields of the industry are very significant in adding value to a career.

NCFM has emerged with multiple qualifications, specializations, and orientations in all areas and parts of the industry. In addition, the entire process of testing and scoring for the assessments is automated. These tests are important as they test the candidate's ability, practical knowledge, and skill to operate and perform in the financial market.

The SEBI established the NISM institute in the best interest of the investors and guided the employees working in and throughout the industry in knowing and understanding the financial markets.

Providing financial literacy and financial education to the market participants is the main focus of this institute. SEBI seeks to add quality to the financial market by initiating quality financial education.

This article has been a guide to NISM vs. NCFM. Here, we have discussed the top differences between NISM and NCFM, along with infographics and a comparative table. You may also have a look at the following articles: -

• Guide to NCFM Certification Exam
• NCFM vs CPA
• NCFM vs CFP
• NCFM vs CFA - Comparison