The core of an economy in each nation is thought to be its financial system. According to SEBI’s mission, NISM develops NISM certification.
Without that country’s capital market, the economy would struggle to survive, whether that country is emerging, like India, or developed, like the United States of America.
As a result, the stock market and stock exchanges play a significant part in every nation’s daily operations, which brings us to the significance of NISM certification.
One cannot fully focus on a job in a country’s stock market without the necessary information and education about the financial industry.
What is NISM?
The National Institute of Securities Markets offers a certification programme called NISM (NISM).
It includes training, research, certificates, and professional education in the financial markets.
In the area of financial education, NISM collaborates closely with the financial sector regulators.
The goal of NISM Certification programmes is to raise the standing and standards of professionals working in a variety of financial services industry verticals.
The program’s goal is to ensure that professionals have the absolute minimum level of common knowledge required for a variety of crucial market functions.
The NISM School for Certification of Intermediaries (SCI) develops and manages programmes for continuing professional education (CPE) and certification exams.
Exams for NISM certification and educational programmes are available for several intermediary divisions, focusing on various product lines and functional areas.
It has established benchmarks in the areas of equities, derivatives, mutual funds, compliance, operations, advisory, and research.
What are the Benefits of NISM exams?
One of the finest options is to enrol in NISM courses to begin a career in finance. The NISM certification test may be passed with several benefits. The certificate has a high value, and the holders of the certificate can have a big impact on the stock market. Additionally, only those who possess the NISM accreditation are permitted to trade in mutual funds. The following are the key advantages of NISM certification:
- Having a thorough grasp of risk management techniques
The course provides you with all the information you need to understand stock and security markets. You get knowledge on how to evaluate and manage risks, which are a significant component of the security industry. This makes managing investor complaints easier.i
- In-depth understanding of the Indian Securities Market
The stock market is complex and calls for greater clarity. It gives you an introduction to the market and goes on to explain its legal aspects of it. With the resources at hand, the person can make wise selections.
- Generous Income
In addition to imparting information, NISM certification also offers substantial incentives. There are businesses that provide persons with NISM certification with significant bundles. It provides you with a strong foundation for a career in business and finance.
- Expanded Employment Possibilities
The need for NISM certification is constant. Companies are always looking for individuals with NISM certification. You can start your own business and have excellent hiring opportunities.
- Respectable Social Status
Your professional worth rises when you have a NISM Certificate in hand, and the work is one of the respected ones. With NISM accreditation, you may set yourself apart from a typical broker who relies on gut feeling.
A NISM certification is strongly advised if you’re looking for a rewarding career in business and finance. Your abilities will gain a speciality as a result, providing further advantages.
What courses does NISM offer?
There are several themes divided into modules, some of which have one or two sub-modules.
On the official website, a complete list of subjects is given, where one may learn about the exam’s concentration and the knowledge that it requires of test-takers.
Let’s find out which module is ideal for you based on your purpose and goal:
1. NISM-Series-I: Currency Derivatives Certification Examination:
This exam is for those learners who wish to develop a base of knowledge in the basics of currency markets and specifically Exchange Traded Currency Derivatives markets.
Meant For – Currency Derivatives Traders, Career in Forex and International Trade related activities.
2. NISM-Series-II: Registrars to an Issue and Share Transfer Agents Certificate Examination:
This exam is for those who wish to work with Registrars and Transfer Agents (RTA) firms, or start an RTA business.
Meant For – Those who wish to pursue a career working for R&T agents such as CAMS, Karvy etc.
3. NISM-Series-III: Securities Intermediaries Compliance Certificate Examination:
While Exam III-A is compulsory as it deals with non-fund compliance for intermediaries, the Exam III-B is voluntary, and it aims to help learners understand the compliances required to be adhered to by those working as compliance officers.
4. NISM-Series-IV: Interest Rate Derivatives Certification Examination:
This exam is for those who wish to work in the stock market segment dealing in interest rate derivatives and fixed income securities.
Meant For – Traders of Fixed Income Securities such as bonds and government securities. Career in the Debt Markets.
5. NISM-Series-V: Mutual-Funds-Related Certification Examination:
This set of exams is necessary for those who want to work in the mutual fund industry, engaged as distributors, agents, etc.
Meant For – Mutual Fund Agents and Distributors. Those who wish to pursue a career in the mutual fund’s industry.
6. NISM Series VI: Depository Operations Certification Examination:
This exam, as per SEBI guidelines, is for those who are engaged in working with the depository participants (DPs) of India’s stock exchanges.
Meant For – Any person engaged in any work related to the DPs has to mandatorily have this certification.
7. NISM-Series-VII: Securities Operations and Risk Management Certification Examination:
This exam helps learners develop a base of knowledge of the stock exchange and its products.
Meant For – It is a mandatory requirement for anyone working with stock brokerage, clearing and settlement, etc., to take this certification exam.
8. NISM-Series-VIII: Equity Derivatives Certification Examination:
This certification is mandatorily for those who work as personnel in firms operating in the equity derivatives segment of the market.
Meant For – Career in stock trading related activities such as technical analyst, Prop-desk jobs and derivatives trader.
9. NISM Series-IX: Merchant Banking Certification Examination:
This exam is for those who are engaged in the merchant banking segment, and assist the launch of IPOs, open offers, buy backs, etc.
Meant For – Anyone working in the merchant banking domain to take this exam.
10. NISM-Series-X: Investment Adviser Certification Examination:
This exam is for those engaged in investment advisory, and has two mandatory levels to pass before one can hold this certification.
Meant For – Those who wish to become Financial Planners & Advisors.
11. NISM Series-XII: Securities Markets Foundation Certification Examination:
This voluntary exam is built for entry-level personnel who wish to make a career in the stock market.
Meant For – Beginners in the financial markets. It is the foundation for anyone who has no idea about finance but wishes to start a career in it.
12. NISM-Series-XIII: Common Derivatives Certification Examination:
This exam is built for those who plan to be engaged in the derivatives segment of the Indian stock exchanges.
Meant For – This is a beginner course for those looking to start a career in Derivatives.
13. NISM Series-XIV: Internal Auditors for Stock Brokers Certification Examination:
This is a voluntary exam for auditors, CAs, Company secretaries, and others engaged in internal auditing in the various firms of the stock market.
14. NISM-Series-XV: Research Analyst Certification Examination:
This is a mandatory examination for those looking to join the financial sector as research analysts.
Meant For – Those looking to get involved in equity research oriented fields such as equity analysts, mutual fund’s industry,financial advisor etc.
15. NISM-Series-XVI: Commodity Derivatives Certification Examination:
This mandatory exam explores all the rules, regulations and the various products available under the commodity derivatives segment.
16. NISM-Series-XVII: Retirement Adviser Certification Examination:
This exam is for those who wish to work in the stock market, pertaining to retirement advisory and planning services, as a retirement adviser registered under PFRDA (Retirement Adviser) Regulations, 2016.
17. NISM-Series-XVIII: Financial Education Certification Examination:
This voluntary exam is made for those who wish to assess the current state of their financial literacy.
It tests on the basics of financial planning and literacy, and its practical aspects.
18. NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors:
This voluntary exam is created to equip learners with the knowledge and skills related to working in the alternative investment segment of the market.
How do I find the best NISM certificate that suits my skills?
The exam takers will determine the response to this question.
With NISM modules, one may simply start off as a mutual fund selling agent or an equity dealer if they want to start a career path in the stock market.
For instance, the Mutual Fund Distributors Certification Examination, or NISM Series V-A, is a requirement for anybody who wishes to advance in their profession and sell and distribute mutual funds.
However, one can choose NISM courses in conjunction with other professional courses to gain an advantage of knowledge in the market and prepare for higher and more sophisticated responsibilities in the financial industry. An MBA in Finance, CFA, and other programmes are among these courses.
As we’ve seen throughout this piece, NISM provides a wide range of tests that may all be used to learn about the market and develop a professional path in the stock market.
A successful career in the markets requires NISM certificates, which have many advantages to offer.