Anyone hoping to succeed in the Indian securities market must complete certification courses offered by the National Institute of Securities Markets, or NISM. Aspects of the financial market such as mutual funds, investment advising, stock derivatives, and research analysis are all covered in these courses. They provide the useful information and abilities required for a job in finance. The Securities and Exchange Board of India (SEBI) recognises NISM courses, which are required for numerous positions in the sector. People may advance their knowledge, increase their chances of landing a job, and keep up with the most recent developments in the industry by earning these credentials.
What is NISM certification?
The National Institute of Securities Markets (NISM), a premier institution established by the Securities and Exchange Board of India (SEBI), is located in Navi Mumbai, India. NISM offers a comprehensive range of courses designed to cater to the needs of Indian students.
As a public trust under SEBI's aegis, NISM plays a pivotal role in regulating and developing the Indian securities market. One of its six schools of excellence is the School for Certification of Intermediaries (SCI).
The SCI focuses on developing certification exams and continuing professional education (CPE) programs in the field of Financial Markets. These initiatives aim to enhance the professional capabilities of intermediaries operating in the Indian securities market.
What is an NISM certificate for
Professionals and those seeking to work in the securities industry who want to improve their knowledge and skills can consider earning the NISM course certificate. It includes a wide range of industries, including stock markets, mutual funds, and financial advising. The certification guarantees that applicants satisfy the Securities and Exchange Board of India's (SEBI) regulatory standards. It is necessary for positions like compliance officers, research analysts, and distributors of mutual funds. A person may exhibit their knowledge and dedication to professional standards in the financial and securities business by earning a NISM certificate.
Benefits of taking the NISM certification exam
- Enhances professional credibility: NISM certification is a mark of excellence, recognised across the financial services industry. It demonstrates an individual's expertise in the mutual funds and securities market.
- Compliance with SEBI regulations: It is mandatory for individuals working in certain roles, such as mutual fund distributors, to hold NISM certification, ensuring compliance with regulatory standards.
- In-depth knowledge acquisition: The exam equips candidates with extensive knowledge of mutual funds, investment strategies, regulatory frameworks, and investor services, crucial for career growth in finance.
- Career advancement opportunities: NISM certification broadens career prospects in the financial services sector by making individuals eligible for various roles, including advisors, fund managers, and compliance officers.
- Affordable and accessible: The NISM certification exam is cost-effective and can be easily registered online, making it convenient for aspirants to enhance their skill set and advance their careers.
Eligibility for NISM certification
- Purpose: NISM certification exams are conducted to ensure that participants and intermediaries in the securities market meet SEBI's regulatory standards, promoting professionalism and competency.
- Eligibility: Open to everyone, including market professionals and enthusiasts, the certification has no restrictions on age or educational qualifications, making it accessible to all interested in the Indian securities market.
- Benefits: The certification highlights an individual’s expertise in securities markets, enhancing their career prospects and credibility in the financial services industry.
NISM certification courses list
A wide range of students are drawn to NISM Certification Courses as they are essential to the financial markets. The costs of these courses vary; they are usually reasonable and must be paid online. Candidates must get at least 60% on any given test to complete any NISM Certification Course. However, this may differ for certain examinations. Those who pass the test get their certificate within 15 days after the exam. The normal validity period for each NISM course is three years from the date of issue. In order to renew their certification and guarantee that their knowledge is still applicable and up to date, applicants have the option to repeat the test or enrol in an appropriate continuing education course after this time. Let us take a closer look at the course schedule, cost, length, and eligibility:
| Sr. No. | NISM Certification Course Name | Test Duration (minutes) | Total Marks | Passing Marks (%) | Penalty for Incorrect Answers | Validity of Certificate (Years) | Course Fee (Rs.) |
| 1 | NISM-Series-I: Currency Derivatives | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 2 | NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents - Corporate | 120 | 100 | 50 | 25% | 3 | 1,500 |
| 3 | NISM-Series-II-B: Registrars to an Issue and Share Transfer Agents - Mutual Fund | 120 | 100 | 50 | 25% | 3 | 1,500 |
| 4 | NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 5 | NISM-Series-III-B: Issuers Compliance | 120 | 100 | 60 | 25% | 3 | 1,770 |
| 6 | NISM-Series-IV: Interest Rate Derivatives | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 7 | NISM-Series-V-A: Mutual Fund Distributors | 120 | 100 | 50 | - | 3 | 1,500 |
| 8 | NISM-Series-V-B: Mutual Fund Foundation | 120 | 50 | 50 | - | 3 | 1,200 |
| 9 | NISM-Series-V-C: Mutual Fund Distributors (Level 2) | 120 | 100 | 60 | 25% | 3 | 1,770 |
| 10 | NISM-Series-VI: Depository Operations | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 11 | NISM-Series-VII: Securities Operations and Risk Management | 120 | 100 | 50 | 25% | 3 | 1,500 |
| 12 | NISM-Series-VIII: Equity Derivatives | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 13 | NISM-Series-IX: Merchant Banking | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 14 | NISM-Series-X-A: Investment Adviser (Level 1) | 180 | 150 | 60 | 25% | 3 | 3,000 |
| 15 | NISM-Series-X-B: Investment Adviser (Level 2) | 180 | 150 | 60 | 25% | 3 | 3,000 |
| 16 | NISM-Series-XII: Securities Markets Foundation | 120 | 100 | 60 | - | 3 | 1,770 |
| 17 | NISM-Series-XIII: Common Derivatives | 180 | 150 | 60 | 25% | 3 | 3,000 |
| 18 | NISM-Series-XV: Research Analyst | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 19 | NISM-Series-XVI: Commodity Derivatives | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 20 | NISM-Series-XVII: Retirement Adviser | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 21 | NISM-Series-XVIII: Financial Education | 120 | 50 | 50 | - | 3 | 1,416 |
| 22 | NISM-Series-XIX-A: Alternative Investment Funds (Category I and II) Distributors | 120 | 100 | 60 | 25% | 3 | 1,770 |
| 23 | NISM-Series-XIX-B: Alternative Investment Funds (Category III) Distributors | 120 | 100 | 60 | 25% | 3 | 1,770 |
| 24 | NISM-Series-XX: Taxation in Securities Markets | 120 | 100 | 60 | 25% | 3 | 1,770 |
| 25 | NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors | 120 | 100 | 60 | 25% | 3 | 1,500 |
| 26 | NISM-Series-XXI-B: Portfolio Managers | 180 | 150 | 60 | 25% | 3 | 3,000 |
| 27 | NISM-Series-XXII: Fixed Income Securities | 120 | 100 | 60 | 25% | 3 | 1,770 |
| 28 | IBBI: Valuation Examination in the Asset class: Land and Building | 120 | 100 | 60 | 25% | - | 5,900 |
| 29 | IBBI: Valuation Examination in the Asset class: Plant and Machinery | 120 | 100 | 60 | 25% | - | 5,900 |
| 30 | IBBI: Valuation Examination in the Asset class: Securities or Financial Assets | 120 | 100 | 60 | 25% | - | 5,900 |
NISM exam syllabus
I. Investment Landscape
This module introduces the financial market structure in India, detailing the roles of SEBI, RBI, and other regulators. It explains market instruments like equities, debt, derivatives, and commodities. Additionally, it highlights the significance of mutual funds in the broader investment landscape.
II. Concept & Role of a Mutual Fund
This section covers the basics of mutual funds, including their definition, advantages, and mechanisms. It emphasises how mutual funds pool resources to provide small investors with diversified and professionally managed portfolios.
III. Legal Structure of Mutual Funds in India
Candidates learn about the three-tier structure of mutual funds: sponsors, trustees, and asset management companies (AMCs). It explains their responsibilities and how they work together to manage funds effectively.
IV. Legal and Regulatory Framework
This module highlights SEBI’s guidelines governing mutual funds. Topics include compliance requirements, investor protection norms, and the roles of the Association of Mutual Funds in India (AMFI).
V. Scheme Related Information
Understanding scheme documents is crucial. This section details how to interpret the Key Information Memorandum (KIM), Scheme Information Document (SID), and Statement of Additional Information (SAI).
VI. Fund Distribution and Channel Management Practices
This module focuses on the distribution network for mutual funds, including direct and intermediary sales. It discusses channel management, distributor commissions, and the AMFI Code of Conduct.
VII. Net Asset Value, Total Expense Ratio, and Pricing of Units
Key operational aspects such as calculating NAV, determining total expense ratio (TER), and pricing of mutual fund units are elaborated in this section.
VIII. Taxation
The syllabus covers the tax implications of investing in mutual funds, including short-term and long-term capital gains tax, dividend distribution tax, and indexation benefits.
IX. Investor Services
Investor-centric services, such as account statements, grievance redressal, and online transaction facilities, are explained here to provide a complete understanding of client support mechanisms.
X. Risk, Return, and Performance of Funds
This module analyses the risk-return trade-off and factors influencing mutual fund performance. Metrics like standard deviation, beta, and alpha are introduced for performance evaluation.
XI. Mutual Fund Scheme Performance
Candidates are taught how to assess mutual fund scheme performance using benchmarks, portfolio analysis, and comparative returns.
XII. Mutual Fund Scheme Selection
The final section offers guidelines on selecting schemes based on investor objectives, risk tolerance, and time horizons. It emphasises aligning fund selection with financial goals.
Scope of NISM certifications
NISM serves as the educational wing of SEBI, dedicated to imparting financial education to individuals aspiring to work in the securities market. By completing NISM certification examinations, advisors can enhance their ability to guide investors toward making informed decisions.
NISM certification courses are not only sought after by professionals but also by students keen on advancing their knowledge in the Indian securities sector. These certifications open doors to various lucrative career opportunities within the securities industry, including self-employment and entrepreneurship.
Can I get a job with an NISM certificate
With an NISM certificate, you can get employment. In the Indian securities industry, this qualification is highly valued and often required for numerous positions. Opportunities arise in a number of industries, such as research analysis, stockbroking, investing in mutual funds, and investment advising. An NISM certification is often needed for jobs as financial advisers, compliance officials, equities analysts, and distributors of mutual funds.
Candidates with NISM certification are highly valued by employers as it guarantees their compliance with SEBI regulations and demonstrates their understanding of the industry. An NISM certificate may also improve your portfolio, enhancing your competitiveness as a candidate and raising your chances of landing a job in the financial services sector.
NISM certification courses study material
It is highly advisable that candidates studying for NISM certification tests make use of the approved study materials that have been selected and supplied by NISM. This content is specifically created to match the curriculum and format of the test, giving applicants a thorough and targeted study tool.
Candidates are granted access to the pertinent study materials by NISM after their successful registration for the test. Experts in the field have carefully examined and assembled this study material to guarantee that it covers every topic on the syllabus and provides an in-depth understanding needed to ace the tests.
Moreover, NISM provides practice questions for a range of tests on its own website. These practice tests are invaluable that replicate the real exam setting, including the same degree of difficulty, question types, and marking system.
It is recommended that candidates try these practice papers on a regular basis as they help students measure their comprehension of the material and monitor their progress in preparation in addition to becoming familiar with the structure of the test. Students may determine their strengths and shortcomings and modify their study plan by consistently completing these papers.
NISM certification exam admit card
As soon as the NISM Certification registration procedure is successfully completed, the admission cards are made accessible for download by the issuing authorities. The candidates may see their individual NISM admit cards through the official NISM webpage.
To make things easier, follow these steps:
- Go to the official NISM website and use your registration information to log into your account
- After logging in, locate the "my enrolments" option and click on it
- There is a link labelled "NISM admit card". Click on this link to view your admit card.
You can also find a download option when you go to your admission card to get a digital certificate. It is highly advised that candidates print it out. It might be useful to have a hard copy of the NISM 2023 admission card for future reference.
Career opportunities after NISM certification courses
The financial services industry offers a wide range of fulfilling job prospects for those with NISM courses Among the many careers, one may think of working as a stock broker or dealer, managing customers' finances and advising them on investment plans. A merchant banker might be a good match for you if you like strategy and financial planning. They help businesses raise cash and provide advice on mergers and acquisitions.
A job as a mutual fund distributor is another option. In this role, you would be in charge of monitoring clients' money and pitching consumers on mutual fund schemes. After earning your NISM certification, you may pursue a rewarding career as a research analyst, which entails analysing market patterns and making investment recommendations after doing thorough research. Moreover, candidates may seek positions as wealth managers. Working closely with customers to efficiently manage their money, a wealth manager would take care of everything from retirement and tax preparation to financial planning. Whatever route you decide to take, earning your NISM certification guarantees that you have a firm grasp of financial markets, investing techniques, and financial goods. This opens up interesting employment options in the finance industry.
Job Profile – Broker / dealer
One important employment path after completing NISM Certification courses successfully is becoming a broker or dealer. In your capacity as a licenced broker or dealer, you would represent customers by acting as a middleman in the purchase and sale of assets including stocks, bonds, and mutual funds. In addition, you would provide customers investment strategy advice, forecasts and market insights, and assistance in making defensible judgements. Strong financial market knowledge, superior analytical abilities, and top-notch customer service are prerequisites for this position. You may get work in banks, brokerage houses, investment firms, as well as other financial institutions if you have your NISM Certification.
Job profile – Merchant banker
In the financial services industry, a merchant banker is an important individual. They provide strategic advice on financial concerns, help firms raise funds, and counsel them on mergers and acquisitions. An NISM certification helps gain the information and abilities needed for this position. In addition, you would be responsible for project financing, assisting with the issuance of bonds and shares, and making sure that relevant regulatory standards are met. Strong analytical abilities, solid financial knowledge, outstanding people skills, and familiarity with market trends and financial laws are requirements for this function.
Job profile – Mutual fund distributor
The position of mutual fund distributor is one of the fantastic employment opportunities that arises with a NISM Certification. Selling different mutual fund schemes to clients, advising them on the best kind of funds depending on their financial objectives, and maintaining their assets would be your responsibilities in this position. Understanding various mutual fund types, their performances, risk considerations, and market trends is necessary for this position. Good interpersonal skills are essential for this work since you will be interacting with customers one-on-one, getting to know their requirements, and giving them sound advice.
Job profile – Research analyst
A job as a research analyst is also made possible by earning the NISM Certification. As part of this position, you will be expected to do research on market trends, statistical data, and financial information before making investment recommendations. To assist customers in making wise investment choices, you would compile studies on financial projections, market trends, and business profiles. Strong analytical talents, meticulous attention to detail, mathematical prowess, and a thorough grasp of financial markets are requirements for this position.
Job profile – Wealth manager
Another profitable job option after earning your NISM Certification is becoming a wealth manager. You would collaborate closely with customers in this position to efficiently manage their money. Financial planning, portfolio management, tax preparation, retirement planning, and estate planning would all fall within your purview. Strong customer connections are essential, as is an understanding of your clients' financial goals and risk tolerance before offering specialised financial solutions. Strong knowledge of financial products, tax legislation, and investment strategies are necessary for this position, in addition to having exceptional interpersonal and communication abilities.
How much does it cost to get NISM certified
The registration price for NISM Certification is rather affordable, with a range of Rs. 1,200 to 3,000. Depending on the test or certification you choose, this cost will change.
You must pay the test price each time you try to pass a certain NISM credential exam.
How to register for the NISM certification exam?
- Visit the NISM certification portal: Navigate to the official NISM website and click on the “Certification” section to explore available exams.
- Create an account: Register as a new user by providing details like name, contact information, and professional background. An account activation link is sent via email.
- Choose your exam: Log in to your account and select the desired certification exam from the list. Review the exam syllabus and fee details.
- Make payment: Pay the examination fee through online modes such as net banking, credit/debit card, or UPI.
- Schedule the exam: Pick a convenient date, time, and location for the exam from the available slots. Confirm your booking to receive the hall ticket.
- Prepare for the exam: Download study material from the NISM portal or purchase it separately to begin preparation.
Conclusion
Those who are committed to becoming mutual fund distributors should research all the attributes of the role. The NISM exam would help one get closer to this role. You can achieve a better future in finance by passing NISM course and putting in the necessary preparation and effort.
So, be prepared with your admit card and identity proof documents, like a driver's licence before your NISM course exam date. Find the testing location if at all possible so that you can easily get there on the designated date. Additionally, you can download study materials for the exam by logging into the NISM portal. It will help you comprehend the format and nature of the test questions. However, you must keep an eye out for circular NISM posts occasionally regarding the exams. It is important to keep these points handy to know all about the NISM course and certification and make an informed decision.
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