2023-08-12
Invest Wisely: NISM's Expertise Unveiled
NISM
NISM – What Is It?
Before answering the question, “Is NISM certification
useful,” it is important to know what NISM is? NISM stands for “National Institute of Securities Markets”.
NISM is an educational arm of Securities and Exchange Board of India. The
institute offers students certification courses in the field of securities
market who are looking to make a career in the financial industry. There are around
30 certification courses offered by NISM.
It consists of training, research, certificates, and
other professional education programs related to the financial market. The NISM
refers to a public trust which was established in 2006 by SEBI, a regulator of
the securities markets. NISM has six schools of excellence namely School for
Securities Education (SSE), School for Certification of Intermediaries (SCI),
School for Regulatory Studies and Supervision (SRSS).
Benefits of NISM
Certifications offered by NISM have high value, and
their holders can apply for various jobs related to stock market
intermediaries. Apart from gaining knowledge, an individual might have to clear
specific NISM certifications to trade in MFs or stocks.
Employment Opportunities: There are many companies in the financial services
industry that look for qualified professionals with knowledge of the
functioning of the financial sector. For example, there are various mutual fund
companies or distributors that look for individuals who have cleared NISM
Series V A: Mutual Fund Distributors Certification Examination or NISM
Series-XV: Research Analyst Certification Examination.
Become an independent professional entrepreneur: With an accredited NISM certification, you
can be your own boss. For example, NISM Series V A: Mutual Fund Distributors
Certification Examination certificate gives an opportunity to become AMFI
registered mutual fund distributor where you can distribute schemes of mutual
funds and earn healthy regular income. Since the fee for these certifications
is very low, you can start with very low investment and gradually build your
business.
Improve knowledge: NISM certification is designed in a way that you
gain vast knowledge about the securities market. The process also ensures that
an individual has the highest standards of knowledge, attitude and ethics.
Meet regulatory requirements for certain jobs: Many
regulations require that persons working on certain kinds of roles possess
particular NISM certifications. For example, any person working in sales role
in a mutual funds distribution company must have passed NISM Series V A: Mutual
Fund Distributors Certification Examination. So the certification becomes
mandatory to take up these kind of jobs.
Career Advancement: NISM certifications also help in advancement of
careers for those who are already in the financial services sector. Usually,
one can self-study and clear the NISM exam in 6-8 weeks along with the ongoing
job. After you have booked the exam, download the study material for self-study
purpose and clear as many mock tests as possible before you appear for the main
exam. Any financial services company will give preference to the candidates
with NISM certifications.
Nationwide Acceptance: This certification is accepted by all the
intermediaries like the brokers, banks, investment banks, asset management
companies, and all other stock market-related institutions nationwide. The main
reason behind the nationwide acceptance of NISM certification is that it is
backed up by the stock market regulator, SEBI.
Requires less fees: The examination fees for NISM certification is also
very low. The examination fee is mainly between the range of 1500 – 3000
depending upon the subject.
Provides correct information: The information contained in the NISM
workbook is the most reliable, authentic and correct information. NISM
workbooks act as the dictionary for students who have any query on any topic
related to the capital market.
It adds good value to your resume: If you mainly want to pursue a career in
the capital market, then this certificate will add value to your resume. The
job qualification requirements for the capital market job of any asset
management company or brokerage house includes the requirement of NISM certification.
It also gives assurance to the companies that the candidate possesses the
knowledge of the stock market.
6 Important NISM courses
NISM- Series VA: Mutual Fund Distribution:
NISM Mutual fund distributor course is done for that
students who want to become Mutual Fund Distributor. The aspiring candidate has
to take training in and then register for the NISM Series VA Mutual Fund
Distributors Certification Examination by logging into the official website of
NISM (National Institute of Securities Market). The registration fee for the exam
is Rs.1500 excluding GST and the test is conducted at the NISM centers.
The exam consists of 100 Marks questions carrying 1
mark each, and there will not be any negative marking for wrong answers. The
candidate needs to obtain at least 50% or 50 marks to pass the examination. The
candidates can study the content from the study material provided by the NISM
training centre, and for practice they can prepare through the various mock or
practice tests available on NISM & third party websites.
NISM- Series VIII: Equity & Derivatives:
NISM Series VIII Equity & Derivatives Certification
Examination is an entry level exam for professionals working in the equity
derivatives segment. E.g. dealers, brokers, etc. The exam is one of the most difficult
exams of NISM nation-wide pass rate of less than 50%.
NISM-Series-X-A: Investment Advisor (Level1):
The examination seeks to create a common minimum
knowledge benchmark for an individual investment adviser or principal officer
of a non-individual investment adviser, under SEBI (Investment Advisers)
Regulations, 2013 and persons associated with investment advice.
An Individual investment adviser or principal officer
of a non-individual investment adviser, registered under SEBI (Investment
Advisers) Regulations, 2013 and persons associated with investment advice are
required to pass both the levels (i.e. NISM-Series-X-A: Investment Adviser
(Level 1) Certification Examination and NISM-Series-X-B: Investment Adviser (Level
2) Certification Examination to fulfill the requirements under SEBI (Investment
Advisers) Regulations, 2013. The certification aims to enhance the quality of
investment advisory and related services in the financial services industry.
NISM-Series-X-B: Investment Advisor (Level 2):
The Investment Adviser (level 2) certification
examination consists of 6 caselets with 5 multiple-choice questions of 2 marks
each per caselet and 90 multiple-choice questions of 1 mark each adding up to
150 marks. The examination should be completed in 3 hours. There is a negative
marking of 25% of the marks assigned to a question. The passing score for the
examination is 60%.
NISM-Series-XV: Research Analyst :
Overall, the NISM Research Analyst certification is a
valuable asset for individuals working in the securities market in the research
analyst role as it provides them with the knowledge and skills needed to be
successful in the field.
NISM-Series-XXI-A: Portfolio Management Services (PMS):
NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination is a mandatory examination. The examination seeks to create a common minimum knowledge benchmark for distributors of PMS. The certification aims to enhance the quality distribution and related support services in the PMS. The exam needs pass rate of 60%.