Understanding the Concept of NISM Certifications

Considering the rapid pace at which the Indian finance industry is growing, a large number of commerce students look forward to building their careers in the field of mutual funds, derivatives, and the stock market. Apart from regular professional courses like MBA, FRM, CFA, and CFP, you can also obtain NISM certification to work as a self-employed professional in the finance sector. It is easier to pursue and affordable. Here is a brief overview of NISM courses available in India.

Topics Covered

• What is NISM?
• List of NISM Certificates
• What are the Benefits of NISM exams?
• Eligibility for NISM Certification
• How do I find the best NISM certificate that suits my skills?
• Key Takeaways

What is NISM?

NISM, the National Institute of Securities Markets, is the educational segment of SEBI, the Securities and Exchange Board of India, responsible for regulating the Indian securities markets. SEBI established NISM in 2006 to perform two primary functions:

• To offer certification in the securities market intermediaries
• To offer Continuing Professional Education (CPE) programs in the securities market intermediaries

These include research, training, professional education, and certification in the financial market. With close collaboration with regulators in the financial sector, NISM online aims to impart financial education and raise the standards of intermediaries working in financial services. The entity develops programs for CPE and certification exams focusing on various functional areas and product lines.

NISM courses include merchant banking, investor advisor, currency derivatives, and other certification programs. The primary goal of its six schools is to provide credentials to the market players through its various types of certifications. You can give a NISM exam irrespective of your educational background, including students, employees, and professionals.

Recommended Read: What is demat account?

NISM has categorized its subjects into different modules, with sub-modules within them. You can choose one among them depending on your career goal and purpose:

• NISM-Series-I: Currency Derivatives Certification:

  This NISM certificate is mandatory for personnel working in firms operating in the equity derivatives segment. It is suitable if you wish to develop a basic knowledge of the currency markets.

• NISM-Series-II: Registrars to an Issue and Share Transfer Agents Certificate:

  Pursue this certification if you want to establish an RTA (Registrars and Transfer Agents) business or work with an RTA firm. It has two sub-modules: mutual fund transfer agents and corporate transfer agents.

• NISM-Series-III: Securities Intermediaries Compliance Certificate:

  This certificate creates a minimum knowledge in the field for stock brokers, depository participants, sub-brokers, underwriters, merchant bankers, debenture trustees, credit rating agencies, etc. Exam III-A is mandatory, while Exam III-B is optional for those who want to understand the necessary compliances for officers.

• NISM-Series-IV: Interest Rate Derivatives Certification:

  If you want to work in the stock market dealing with fixed-income securities and interest rate derivatives, pursuing this NISM mutual fund certification is mandatory.

• NISM-Series-V: Mutual-Funds-Related Certification:

  You will need this certification to work in the mutual fund industry as an agent, distributor, etc.

• NISM Series VI: Depository Operations Certification:

  It is mandatory for those working in the equity derivatives market as depository participants.

• NISM-Series-VII: Securities Operations and Risk Management Certification:

  This NISM exam helps you develop a basic knowledge of the stock exchange and related products. It is mandatory for those working with clearing and settlement or stock brokerage.

• NISM-Series-VIII: Equity Derivatives Certification:

  The basis of this certification is to provide basic knowledge and strategies of the equity derivatives segment. It will help develop a career as a technical analyst, derivatives trader, or prop-desk job.

• NISM Series-IX: Merchant Banking Certification:

  Pursue this exam to work in the merchant banking sector, open offers, launch IPOs, buybacks, etc.

• NISM-Series-X: Investment Advisor Certification:

  Those engaged in investment advisory as financial advisors and planners must pass this exam in two levels.

• NISM Series-XII: Securities Markets Foundation Certification:

  This voluntary certification is for entry-level personnel looking to build their career in the stock market.

• NISM-Series-XIII: Common Derivatives Certification:

  If you want to work in the derivatives segment of the Indian stock exchange, you must obtain this certification.

• NISM Series-XIV: Internal Auditors for Stock Brokers Certification:

  It is a voluntary certification for CAs, CSs, auditors, and others in the internal auditing departments of stock market firms.

• NISM-Series-XV: Research Analyst Certification:

  It is meant for personnel looking to work as research analysts in the financial sector.

• NISM-Series-XVI: Commodity Derivatives Certification:

  This program explores all rules, products, and regulations in the commodity derivatives segment.

• NISM-Series-XVII: Retirement Adviser Certification:

  Obtain this certificate if you want to work in retirement planning and advisory services.

• NISM-Series-XVIII: Financial Education Certification:

  It is a voluntary exam you can take to assess your current financial literacy level.

• NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors:

  This certification program equips you with the skills and knowledge of alternative investment segments of the market.

What are the Benefits of NISM exams?

NISM certification brings several benefits to the participants, including the following:

• Develop Techniques for Risk Management:

  With a complete understanding of the security and stock markets, you can gain awareness of how to identify and manage risks involved in the financial industry.

• Complete Understanding of the Securities Market:

  With proper education, you become aware of the market’s various aspects to make informed decisions.

• Decent Earnings:

  With a stronger foundation for your career in the stock market, you can earn a decent income than others.

• More Employment Opportunities:

  With NISM certification, you improve your chances of getting hired.

• Respectable Social Status:

  NISM education improves your professional value, making you better than typical brokers.

Eligibility for NISM Certification

NISM conducts examinations for various intermediaries and participants in the securities market as required by the SEBI. However, anyone who wants to learn about the securities markets of India can take the NISM exam. There are no eligibility requirements about education and age to appear for the exam.

How do I find the best NISM certificate that suits my skills?

The NISM certification program you pursue depends on your chosen career path, your skill level in the market, and the skills you want to develop. For instance, you will need the Series VI Depository Operations Certification to work as or with a depository participant. On the other hand, go for a Series-XVIII Financial Education Certification program if you want to assess your current financial literacy level.

Key Takeaways

As seen above, NISM conducts several types of exams to create awareness of the market and make it a safer place for investors. Are you looking to develop your career in the stock market? Obtain the required NISM certification and enjoy the range of benefits it offers.