What is NISM Certification? Check its Definition, Courses and Examination Eligibility

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What is NISM Certification? Check its Definition, Courses and Examination Eligibility

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NISM is the educational division of the Securities and Exchange Board of India (SEBI). NISM full form is the National Institute of Securities Markets. It offers a wide range of courses designed to improve and strengthen the knowledge and skills of financial professionals. 

In this blog post, we’ll explain what is NISM certification.

What is NISM? 

The National Institute of Securities Market, abbreviated as NISM, is the educational arm of SEBI. NISM is registered as a public trust which was founded by SEBI in 2006. NISM offers a wide range of NISM certification courses including courses for currency derivatives, investment advisor, merchant banking certification, etc.

NISM has six schools through which it educates the people on the professionalism and standardization of securities markets in India. It provides credentials to the market players. 

Any individual with any educational background, including students, professionals and employees can get enrolled in NISM certification courses. Anyone with interest in learning about the share market can get access to NISM certification. It doesn’t matter what their age is or what their educational qualification is.

What are the certification courses offered by NISM?

NISM offers various certification courses out of which some consist of one or two sub-modules. Let’s take a look at the certification courses offered by NISM.

1. NISM Series I: Currency Derivatives Certification Examination

This certification course is intended for students who want to get a basic understanding of currency markets, with a focus on exchange-traded currency derivatives. It is intended for traders of currency derivatives and those who want to build a career in international trade related activities and foreign exchange.

2. NISM Series II: Registrars to an Issue and Share Transfer Agents Certificate Examination

This certification course is intended for those who wish to work with Registrars and Transfer Agents (RTA) firms or wish to start an RTA firm of their own. This course is appropriate for those who want to work for R&T agents like CAMS and SAG RTA.

3. NISM Series III: Securities Intermediaries Compliance Certificate Examination

Under this certification course, Exam III-A is mandatory as it deals with non-fund compliance for intermediaries. However, Exam III-B is completely optional and it aims to assist learners to understand the compliance requirements which must be strictly followed by those working as compliance officers.

4. NISM Series IV: Interest Rate Derivatives Certification Examination

This NISM certification course is meant for those individuals who want to work in the stock market segment which deals in interest rate derivatives and fixed income securities. Traders of fixed income securities like bonds and government securities can benefit from this course.

5. NISM Series V: Mutual-Funds-Related Certification Examination

For those who want to work in the mutual funds industry or are engaged as mutual fund agents, distributors, etc, this course is necessary. 

6. Nism Series VI: Depository Operations Certification Examination

In accordance with SEBI standards, the test under this NISM certification course is intended for those who work with the depository participants (DPs) of the stock exchanges in India. This certification course is a requirement for anyone involved in work related to DP.

7. NISM Series VII: Securities Operations and Risk Management Certification Examination

This NISM certification course enables individuals to develop a basic understanding of the stock exchange and its products. Anyone working with stock, clearing and settlement, etc. must take up this course as a mandatory requirement.

8. NISM Series VIII: Equity Derivatives Certification Examination

For those who work as personnel in firms which operate in the equity derivatives segment of the market, this certification course is a mandatory requirement. It is meant for individuals who want to build a career in stock trading related activities like derivatives trader, technical analyst and prop-desk jobs.

9. NISM Series IX: Merchant Banking Certification Examination

This certification course is for individuals who deal with the merchant banking segment and assist the launch of buy backs, IPOs and open offers. This certification course is meant for any individual working in the merchant banking segment.

10. NISM Series X: Investment Adviser Certification Examination

NISM Series X certification course is meant for individuals who deal in investment advisory services. This NISM certification has two mandatory levels to pass before an individual is granted the certification. Aspiring financial planners and advisors can get enrolled in this course.

11. NISM Series XII: Securities Markets Foundation Certification Examination

Entry level personnel desirous of making a career in the stock market can take up this voluntary certification course offered by NISM. NISM Series XII is appropriate for beginners who want a career in the financial market as it helps them to understand this market’s basics. 

12. NISM-Series XIII: Common Derivatives Certification Examination

This certification course offered by NISM is specifically designed for those individuals who plan to be engaged in the Indian stock exchanges’ derivatives segment. It is a beginner course for anyone desirous of starting a career in the derivatives field.

13. NISM Series XIV: Internal Auditors for Stock Brokers Certification Examination

Chartered Accountants, Company Secretaries, auditors and others engaged in internal auditing in various firms of stock market can take up this NISM certification course. It is a voluntary exam. 

14. NISM Series XV: Research Analyst Certification Examination

For those who wish to join the financial sector as a SEBI registered research analysts, this is a mandatory course. It is intended for those who want to get involved in equity research oriented fields like equity analysts, financial advisors and the mutual funds industry.

In accordance with the SEBI (Research Analyst) Regulations, 2014, this certification exam aims to establish a common minimum knowledge benchmark for all associated persons registered as research analysts under SEBI, as well as for those who work as partners with research analysts, involved in the preparation and/or publication of research reports or research analyses.

In order to satisfy the requirements outlined in Regulation 7(2) of the SEBI (Research Analysts) Regulations, 2014, an associated person must pass the NISM Series XV: Research Analyst Certification Examination. The goal of the certification is to enhance the caliber of services rendered by research analysts in the financial services sector. 

15. NISM Series XVI: Commodity Derivatives Certification Examination

This certification course helps individuals to understand all the rules, regulations and a wide range of products available in the commodity derivatives segment. It is a mandatory course.

16. NISM Series XVII: Retirement Adviser Certification Examination

This course is for those who are desirous of working in the share market, pertaining to retirement planning and retirement advisory services, as a retirement advisor registered under PFRDA regulations 2016.

17. NISM Series XVIII: Financial Education Certification Examination

NISM Series XVII is a voluntary certification course meant for those who want to evaluate the present state of their financial knowledge. Examination under this course tests individuals regarding the basics of financial literacy and planning and its practical application.

18. NISM Series XIX A: Alternative Investment Funds (Category I and II) Distributors

It is a voluntary course which is designed to enable learners to gain knowledge and skills pertaining to working in the alternative investment segment.

What is the eligibility criteria for NISM certification?

NISM offers various certification programmes which improve skill sets and enhance educational credentials of individuals. There is no minimum qualification or minimum age requirement for taking up a NISM certification course.

NISM certification courses can be accessed by any individual regardless of whether they’re working or are students. This inclusivity showcases the dedication of NISM SEBI when it comes to ensuring that financial education is available to various individuals.

What are Benefits of NISM Certification for Research Analyst?

NISM certification for research analyst comes with numerous benefits such as the following:

Boosts an individual’s professional recognition: NISM research analyst certification helps to enhance your professional recognition as a research analyst in the financial sector in India. It is a well-regarded certification which, once obtained, can showcase your proficiency when it comes to research analysis.

Provides Opportunities for Career Advancement: NISM certification for research analyst opens doors to individuals for career advancement opportunities related to the research analyst profession. Many employers value individuals who have specialized certification in research analysis, so having NISM certification for research analyst can help your career move forward in the research analysis field.

Helps individuals to gain expertise in research methodologies: NISM research analyst certification equips individuals with an in-depth understanding of research methodologies and helps them to polish their skills in analyzing the financial markets. Research analyst certification examination provides invaluable knowledge which is crucial for making informed investment decisions. 

Builds Market Trust and Credibility: Having the NISM Research Analyst Certification makes you more credible and trustworthy as a professional. Employers and clients value NISM-certified research analysts because they understand their dedication to their professional excellence.

Provides access to Exclusive Opportunities: In the financial industry, certified persons have access to special opportunities. To ensure that you are qualified for a wider range of employment, the NISM Research Analyst Certification is frequently required for specific roles.

Professional Development and Ongoing Education: The certification highlights a commitment to enhancing professional competence and continuing education. It is essential to stay updated regarding the most recent laws and developments pertaining to research analysis as you advance in your career. 

Ensures compliance with the regulatory standards and guidelines: NISM certification for research analysts ensures compliance with the financial sector’s regulatory standards and guidelines. By obtaining this certification, a research analyst can maintain ethical practices and meet the expectations of SEBI.

NISM Research Analyst Certification is an invaluable asset for the budding research analysts as it allows them to ace the research analysis field.

How to access NISM Study Material?

You can access NISM Study Material on the official website of API NISM. You can view NISM certification course workbooks online and download them free of cost. 

To access the study material, visit the official website of API NISM and enter basic details such as your name, email address, mobile number, city and state. Once done, click on the ‘proceed’ button. Now, you can view NISM study material and also download it if you want.

Conclusion

NISM’s main objective is to improve the financial understanding and skills of players in the Indian financial market. By enrolling themselves in NISM courses, individuals can offer high end services to individuals that are looking forward to entering the financial market as investors. NISM certification examination helps the individuals to brush up their skills and gain the expertise required for making wise investment decisions. 

NISM courses are affordable and cover a wide range of subjects and ensure that market professionals have the required set of skills and knowledge to negotiate the intricacies of the financial market. NISM certification is a mandatory requirement for becoming a research analyst. However, there are also other mandatory requirements to become a research analyst. To find out more, you can consult with Registrationwala’s Research Analyst Consultants for guidance.

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