Overview of 20 NISM Exam – Part 2
A Complete Guide includes Career Opportunities, Fee & Syllabus 2020
Are you looking for making career into the domain of securities market? This article is in continuation to our last article “Overview of 20 NISM Exam – Part 1”focused on helping you with just that. Through this article, we will take a look at NISM Mutual Fund, NISM Merchant Banking, NISM Equity Derivatives Exam and so on, Career Opportunities, Who can opt, Fee, Syllabus, Registration Process & How to clear NISM Exam?
It’s amazing to see how financial market or securities market has grown over the years and created multiple fascinating career opportunities for freshers as well as for working professionals.
As this sector continues to expand, deserving young aspirants will have diverse range of new job opportunities coming their way.
Before delving into the overview of 20 NISM Exam, let us take a look at some basics of it, so you can understand which NISM exam unlocks what career opportunities and who can be benefited by which NISM module.
Introduction to NISM
NISM (National Institute of Securities Market) was established in 2006 by SEBI (Securities & Exchange Board of India), the Regulator for Securities Market in India.
It conducts various NISM Certification examinations those are mandatory to get a job & making career in the respective industries like NISM – Series VA, VB & VC is required in mutual fund industry, NISM XA & XB is required in Investment Advisory industry, NISM –Research analyst is mandatory to become an analyst, NISM Equity Derivatives & Currency Derivatives are required to get into Broking Industry & various other certification examination are mandatory to get into the respective industry.
NISM Modules & its requirements
The NISM exam modules are categorized in different series and each of these series focuses on different – different subject areas based on their own specialization.
Objective of NISM Exam
The primary objective of each module is to test the practical knowledge and skills of the appearing candidates for financial market operations.
The test is conducted to ensure that candidates seeking career in this field possess high caliber and intellectual ability.
Let us have a look at overview of 20 NISM Exam modules with complete information including career opportunities, scope, salary package etc.
Top 20 NISM Exams that You Need to Know About
As of now, NISM conducts 26 NISM Certification Examinations in various segments of Indian Securities Market.
Here, we tried to incorporate the detailed Overview of remaining 15 NISM Certification Examinations.
MODULE 6 – NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination
About –
- Understand the salient features of Fund of Funds, Exchange Traded Funds, Real Estate Mutual Funds, Venture Capital Funds, Private Equity Funds and International Funds
- Know the legalities of real estate mutual funds, investment restrictions applicable to mutual fund schemes, and the processes for making changes in the structure of a mutual fund or any of its schemes
- Appreciate the working of newer channels of distribution viz. stock exchange and internet
- Get acquainted with the approaches fund managers take to manage investments and associated risks
- Understand how equities, debt, derivatives and real estate are valued in mutual fund schemes
- Get oriented to the accounting aspects of NAV determination, investor’s transactions with the fund and corporate actions by investee companies
- Know how taxation affects mutual fund schemes and investors
- Understand the processes underlying investment in NFO, open-end schemes, closed-end schemes and ETF as well as nomination and pledge processes relating to mutual funds
- Get a historical perspective on returns earned in different asset classes
- Get acquainted with the issues involved in selling alternate investment products
- Understand ethical requirements and measures to protect mutual fund investors
Who can Opt –
- Mutual fund distributors and agents
- Persons employed or engaged in the sale and/or distribution of mutual fund products
- Persons to be employed or engaged in the sale and/or distribution of mutual fund products
- Students interested in gaining advanced knowledge of mutual fund products, sales, distribution and related regulations
For whom is this examination mandated –
- NISM has specified the NISM-Series-V-A: Mutual Fund Distributors Certification Examination as the mandated certification examination for distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products vide NISM communiqué NISM/Certification/Series-V-A: MFD/2010/01 dated May 05, 2010. SEBI has further mandated the same vide notification No. LAD-NRO/GN/2010-11/09/6422 dated May 31, 2010.
Min Qualification & Eligibility Criteria –
- Should clear Level-1
Exam Duration – 120min
Negative Marking – 25% (68Q-8Caselets 4Q 2marks each)
Passing Score – 60%
Exam Fee – Rs.1770/-
Click here to download the NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination workbook for free.
MODULE 7 – NISM Series VI: Depository Operations Certification Examination
About –
- Know the basics of the Indian securities market and the depository system, the need for depository and the key features of the depository system in India.
- Understand the institutional structure of the depository system in India and the business partners of a depository.
- Understand the regulatory framework in which the depositories and its DPs function, their eligibility criteria, registration procedure, rights and obligations etc.
- Know the various functions of the Depository and its Depository Participants (DPs) such as dematerialization, trading and settlement, pledging and hypothecation.
- Understand how a demat account is opened, documents required to open an account and significance of Power of Attorney (POA).
Who can Opt –
- Associated persons engaged or employed by a registered depository participant in: dealing or interacting with clients; dealing with securities of clients; handling redressal of investor grievances; internal control or risk management; activities having a bearing on operational risk; or maintenance of books and records pertaining to the above activities.
- Interested students/professionals
- Any other individuals
For whom is this examination mandated –
- Please refer to NISM communiqué NISM/Certification/Series-VI: DOCE/2011/01 dated February 10, 2011 (in the ‘Circulars’ section). NISM has specified this examination to be the requisite standard for associated persons engaged or employed by a registered depository participant in: dealing or interacting with clients; dealing with securities of clients; handling redressal of investor grievances; internal control or risk management; activities having a bearing on operational risk; or maintenance of books and records pertaining to the above activities.
Exam Duration – 120min
Negative Marking – 25% (100Q-1mark each)
Passing Score – 60%
Exam Fee – Rs.1500/-
Click here to download the NISM Series VI: Depository Operations Certification Examination workbook for free.
MODULE 8 – NISM Series VII: Securities Operations and Risk Management Certification Examination
About –
- Know the basics of the Indian securities market, the different products traded and the various market participants and the respective roles they play in the Indian securities market.
- Understand the regulatory framework and the role of the Securities Exchange Board of India.
- Know the various functions of the Front Office, Middle Office and Back Office in a Securities Broking Firm.
- Understand the trade life cycle, the steps and participants involved in the trade life cycle and the role of the back office in a securities broking firm.
- Understand how the risks are managed in a securities broking firm, the clearing and settlement process.
- Understand the process of investor grievances redressal.
Who can Opt –
- Associated persons of a registered stock-broker/ trading member / clearing member in recognized stock exchanges, involved in: assets or funds of investor or clients; redressal of investor grievances; internal control or risk management; activities having a bearing on operational risk.
- Interested students/professionals
- Any other individuals
For whom is this examination mandated –
- Please refer to NISM/Certification/Series-VII: SORM/2010/01 dated November 11, 2010 (in the ‘Circulars’ section). NISM has specified this examination to be the requisite standard for associated persons of a registered stock-broker / trading member / clearing member in recognized stock exchanges, involved in: assets or funds of investor or clients; redressal of investor grievances; internal control or risk management; activities having a bearing on operational risk.
Exam Duration – 120min
Negative Marking – 25% (100Q-1marks each)
Passing Score – 50%
Exam Fee – Rs.1500/-
Click here to download the NISM Series VII: Securities Operations and Risk Management Certification Examination workbook for free.
MODULE 9 – NISM-Series-VIII: Equity Derivatives Certification Examination
About –
- Know the basics of the Indian equity derivatives market.
- Understand the various trading strategies that can be built using futures and options on both stocks and stock indices.
- Understand the clearing, settlement and risk management as well as the operational mechanism related to equity derivatives markets.
- Know the regulatory environment in which the equity derivatives markets operate in India.
Who can Opt –
- All associated persons functioning as approved users and sales personnel of the trading member of an equity derivatives exchange or equity derivative segment of a recognized stock exchange
- Interested students/professionals
- Any other individuals
For whom is this examination mandated –
- Please refer to NISM Notification NISM/Certification/Series-VIII: ED/2012/1 dated September 20, 2012 (in the ‘Circulars’ section). NISM has specified this examination to be the requisite standard for associated persons functioning as approved users and sales personnel of the trading member of an equity derivatives exchange or equity derivative segment of a recognized stock exchange.
Exam Duration – 120mins
Negative Marking – 25% (100Q-1mark each)
Passing Score – 60%
Exam Fee – Rs.1500/-
Click here to download the NISM-Series-VIII: Equity Derivatives Certification Examination workbook for free.
MODULE 10 – NISM Series-IX: Merchant Banking Certification Examination
About –
- Know the basics of the Merchant Banking (International Trades-J.P.Morgan) in India.
- Understand the functioning of Merchant Bankers related to Issue Management Process, Substantial Acquisition of Equity Shares, Buyback of Equity Shares and Delisting of Shares.
- Know the regulatory environment in which the Merchant Bankers operates in India.
Who can Opt –
- The employees working with SEBI registered Merchant Bankers and performing various SEBI regulated functions such as those relating to IPO, FPO, Open Offer, Buy-Back, Delisting etc, who
- perform SEBI regulated activities such as initial public offer, further public offer, Open Offer, Buy-back, Delisting;
- deal with the issuers in connection with activities mentioned in (a) above;
- deal with intermediaries associated with activities mentioned in (a) above;
- act as designated Compliance Officer dealing with the activities mentioned in (a) above;
- submit Due Diligence Certificates to SEBI in connection with the activities mentioned in (a) above;
- Anyone interested in making a career in the Merchant Banking
- Any other individuals
For whom is this examination mandated –
- SEBI notification dated August 2, 2013, Ref. No. LAD-NRO/GN/2013-14/15/6319 (in the ‘Circulars’ section) has specified this examination to be the requisite standard for atleast two associated persons designated as Key Management Personnel who,-
- perform SEBI regulated activities such as initial public offer, further public offer, Open Offer, Buy-back, Delisting;
- deal with the issuers in connection with activities mentioned in (a) above;
- deal with intermediaries associated with activities mentioned in (a) above;
- act as designated Compliance Officer dealing with the activities mentioned in (a) above;
- submit Due Diligence Certificates to SEBI in connection with the activities mentioned in (a) above;
Exam Duration – 120mins
Negative Marking – 25% (100Q-1mark each)
Passing Score – 60%
Exam Fee – Rs.1500/-
Click here to download the NISM Series-IX: Merchant Banking Certification Examination workbook for free.
Note – Remaining 10 Modules will be covered in our next post series.
To elevate your career into the domain of Indian Securities Market, you should enrol in the NISM Certification Online Course today.
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