National Institute of Securities Markets (NISM) is an educational institute and Indian public trust regulated by the Securities and Exchange Board of India (SEBI).
NISM established in the year 2006 after the proposal of Finance Minister P Chidambaram in the Budget Speech of February 2006 and it offers academic programs, training programs, capacity building, and skill development programs in securities markets. Intending to enhance the quality standards in securities markets, the NISM performs its various activities under the six schools which are as follows:
- School for Securities Education (SSE)
- School for Certification of Intermediaries (SCI)
- School for Regulatory Studies and Supervision (SRSS)
- School for Investor Education and Financial Literacy (SIEFL)
- School for Corporate Governance (SCG)
- School for Securities Information and Research (SSIR)
NISM is engaged in developing certification examinations for professionals involved in various segments of the Indian securities markets under the School for Certification of Intermediaries (SCI).
These are the mandatory certificates under SEBI Certification of Associated Persons in the Securities Markets (CAPSM) Regulation, 2007 and developed & conducted by NISM.
It’s currently offering 23 certifications examination on various segments of the securities market and some of the important NISM Certifications segments are as follow:
- Mutual Fund Distributors Certification Examinations
- Securities Operations and Risk Management Certification Examination
- Investment Adviser Certification Examinations
- Research Analyst Certification Examination
- Registrars and Transfer Agents Certification Examination
- Issuers Compliance Certification Examination
- Derivatives Certification Examination
NISM Certifications work as the entry barrier for most of the segments of securities markets and one can create ample opportunities by clearing it. Following are important know-how about the NISM certification examinations:
All of the NISM certifications come with the validity of 3 years and one can renew it either through the Continuing Professional Education (CPE) or by reappearing in the examination.
The Maximum marks for all of the NISM Certification examinations are 100 except NISM-Series-V-B: Mutual Fund Foundation Certification Examination, NISM Series-XIII: Common Derivatives Certification Examination & NISM-Series-XVIII: Financial Education Certification Examination.
The test duration for all of the NISM certification examinations is 2 hours except NISM Series-XIII: Common Derivatives Certification Examination which is for 3 hours.
The number of questions varies from certification to certification in the range of 50 to 150.
Negative marking of 25% is there for almost all of the certificates examinations except NISM Series V A: Mutual Fund Distributors Certification Examination, NISM-Series-V-B: Mutual Fund Foundation Certification Examination, NISM Series-XII: Securities Markets Foundation Certification Examination & NISM-Series-XVIII: Financial Education Certification Examination with no negative marking.
The fee for examination varies from certification to certification in the range of Rs.1200 to Rs.1770 (excluding payment gateway charges).
Passing percentages are either 50 or 60 depends upon the certification examination.
PAN card is compulsory for appearing in the NISM certification examination coupled with the address proof for registration.
To meet the regulatory requirement
Most of the NISM Certifications are compulsory under SEBI Certification of Associated Persons in the Securities Markets (CAPSM) Regulation, 2007 like Investment Adviser (Level 1) Certification Examination & Investment Adviser (Level 2) Certification Examination for investment advisers, Mutual Fund Distributors Certification Examination for mutual fund distributors, Research Analyst Certification Examination for Research Analysts, etc. Clearing those NISM certifications helps in meeting the regulatory requirement.
- Develops the required skill set for the role
NISM certificates help in developing the required skill sets to perform the role and sets a quality benchmark for the person engaged with the securities market. Its well-developed study material builds the understanding of the various segments of the securities market with the particle aspect.
- Provide leading-edge in the industry
A person with the NSIM Certifications will always get a leading-edge in the industry and thus creates better job opportunities as compared to non-NISM certified candidates.
- Keeps updated with the recent changes
As per the renewal process of NISM certificates, one can renew it either through the Continuing Professional Education (CPE) or by reappearing in the examination. In this way, the person has to go through the updated syllabus again which helps them to track the recent changes in the industry.
- Nationwide acceptance
The acceptance of NISM certification nationwide increases its credibility and importance manifold. One can pass the NISM certification for a bright career in the securities market all over India.
Freshers with a graduation degree coupled with the NISM certification can easily get entry-level jobs in the securities market.
Passing the various NISM certifications develops the skill set required to perform different roles and simultaneously works as skill additions for your resume.
So, if you want to explore the glorious industry of the securities market, these NISM certificates can provide a boost to you. You can also join online/ offline NISM certifications training program developed by FinBricks Financial Educations for better success.