The Securities and Exchange Board of India (SEBI) is the top regulatory body that governs and manages the Indian securities market. It sets guidelines and frameworks that companies must follow before and after their shares are listed on various stock exchanges, such as the NSE and BSE. Governance and management are the priorities for SEBI, but it also increases financial literacy by offering various courses on equity and other asset classes.
It offers courses under its educational arm, NISM, and individuals consider its certificate, the NISM certification, to be of high value. This article will help you learn what is NISM certification and how you can get one to boost your personal and professional growth.
What is NISM certification?
The National Institute of Securities Market (NISM) is the educational subsidiary or arm of the Securities and Exchange Board of India, and the certificate provided by the arm is called the NISM certificate. Individuals have to pass the NISM certification examination to get the NISM certificate.
NISM is a public trust that SEBI founded in 2006 to provide education on a wide range of courses. Some of the courses individuals can get NISM certification for are merchant banking, investment advisors, derivatives market, trading on equity, etc. The NISM institution contains six schools and aims to educate people on the standardisation and professionalism of the securities market. SEBI governs NISM under the Securities and Exchange Board of India (Certification of Associated Persons in Securities Markets), SEBI (CAPSM) Regulations, 2007.
The two main aims of NISM and NISM certification are
- Educate people (associated persons) through mandatory certification examinations in the securities market intermediaries.
- Offer associated persons continuing professional education (CPE) programs in the securities market intermediaries.
Any individual, irrespective of educational background and profession (including employees, self-employed, and students), can apply for the test for any of the NISM certification courses.
Eligibility for NISM certification
Understanding what is NISM certification is only the first step; learning about its eligibility is the next. The NISM institute is responsible for conducting numerous exams and providing NISM certification to the associated persons who pass the exams. However, SEBI, along with NISM, feels that there should be no restrictions for individuals wanting to learn about the securities market.
For example, suppose an individual wants to trade in equity delivery. In that case, it is important to understand financial ratios such as debt to equity ratio, earnings per share, PE ratio, etc, to ensure the investments are successful.
Hence, NISM has not set any eligibility criteria for taking any of its courses and getting the NISM certification. Associate persons of any age, financial background, or educational qualifications can apply to the NISM certification test. There are numerous courses available on the NISM website. The details for every test include the test duration, fee, maximum marks, number of questions, pass mark percentage, negative mark percentage, and certification validity.
If associate persons who already received the NISM certificate want to increase its validity, they have to re-validate the certificate. They can re-validate the NISM certification by choosing one of the following ways:
- Passing the same or relevant exam before the previous NISM certificate expires.
- Completing a one-day continuing professional education (CPE) program specified by NISM 12 months before the date of NISM certificate expiry.
How to register for NISM certification?
Now that you have a basic understanding of what is NISM certification, you must understand how to get one. If you are looking to earn an NISM certification, you can follow the below process:
Step 1: Visit the NISM website at https://certifications.nism.ac.in/nismaol/ and create an account by entering details such as your email address, name, and date of birth and submitting ID proof copies such as PAN and Aadhaar card.
Step 2: Once all the details are submitted, you will receive an activation link over mail. Click on the link, and your account will be verified within the next 72 hours.
Step 3: Once your account is verified, visit the NISM portal again and log in with your registered email ID and password. Click on ‘Enrolment’ and then ‘Enrol For Examination.’
Step 4: Select the exam you want to take, the test centre, the preferred city, the preferred date, and the exam slot. Pay the required test fee to receive your admit card.
Step 5: To take the test, you must bring the original copies of your submitted ID proofs to the test centre.
Why take the NISM certification exam?
Here are some benefits of taking the NISM certification exam:
- The courses are backed by SEBI, India's top regulatory body.
- The NISM certification can boost your CV, increasing your chances of getting a better job.
- The NISM certification exams can hugely assist in analysing stocks and other securities for personal investing.
- The fee is affordable and ranges from Rs. 1,500 to Rs. 3,000.
- There are no restrictions based on eligibility criteria for any individual to take the test. You can take the test at your convenience and for any relevant course.
Conclusion
The NISM certification is provided by NISM, an educational arm of SEBI, to any individual who passes any of the NISM certification exams. The exams have no eligibility, and anyone can take them by paying a small, affordable fee. The exams have the potential to boost your CV for getting a better job or provide financial knowledge to make informed investment decisions. Now that you know what is NISM certification, all you have to do is register and pass the test.
