National Institute of Securities Markets or NISM is a public trust which was established by the Securities and Exchange Board of India (SEBI) in 2006.
NISM performs two functions under the SEBI (Certification of Associated Persons in Securities Markets) regulations, 2007 which are:
- Offers mandatory certification exams for associated individuals in the securities market intermediaries.
- Offers Continuing Professional Education (CPE) programs for associated individuals in the securities market intermediaries.
The certificate shall be re-validated upon the expiry by passing the relevant NISM certification examination before the expiry or by completing a Continuing Professional Education (CPE) program as specified by the NISM before the 12 months of the date of expiry.
The certificate will be re-validated for 3 years from the date of expiry.
How to Register for an NISM Certification Examination ?
You can register for any NISM Certification Exam on the official NISM website. Simply, visit the website and register to create an account. Remember to fill in all your details carefully while signing up. In addition, it can take up to three days for your details to verify and account to get approval. Post receiving this approval, you can log in to your NISM account and book certification exam.
How to Prepare for NISM remote proctored exam?
Here is a checklist for NISM remote proctored exam:
- Ensure a clean desk that is void of any books, gadgets, study material, or any other stuff that may raise objections.
- The light source should be above you and not behind you. This way, your face will be clearly visible through the webcam.
- Sit with a plain background without any objects or designs.
- Learn about the examination process through the video tutorial.
- Use a fast and secure browser to take the exam.
- Make sure that you have a fast internet connection.
- Make sure that your laptop or UPS have enough power supply to deal with any power cut issues that may arise.
- Keep your identity proof handy before the start of the exam.
Benefits of NISM Certification Examinations
The certification opens many job opportunities for individuals as there are many roles and companies which mandatory prefers the National Institute of Securities Markets certifications.
The examinations give the certification to the individuals upon successful completion of the exam. The certificate has a validity of 3 years.
NISM exams give the basics and deep knowledge to the individuals which can benefit the individuals at the personal as well as professional level.
NISM certifications are industry-recognized and have their own value in the industry. Many companies and jobs require mandatory NISM certifications.
Upon the registration of the NISM exams, it provides free study material from which the individuals can study and prepare for the exam. The study material is in PDF format which can be downloaded. The applicants can study from the PDF or can get the printout of the PDF if required.
Also Read : Free NISM Mock Test Series
Watch the video to get detailed information about NISM Certification :
Popular NISM Certification Examinations
NISM-Series-V-A: Mutual Fund Distributors Certification Examination
This exam is good for individuals involved in selling and distributing mutual funds. The objective of the exam is to give the knowledge of the:
- Basics of mutual funds
- How mutual funds are distributed
- How schemes are evaluated
- Valuations, taxation, and legalities
- Develop long term relationship with clients
NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination
This exam is good for individual investment advisors or non-individual investment advisors and the person who is associated with the investment advice. The exam gives the understanding of the:
- Basics of investment advisory
- Implementation of the financial plan
- Evaluation of different products
- Income tax, wealth tax, and legalities of personal finance and estate planning
- Develop long term relationship with clients
NISM-Series-XV: Research Analyst Certification Examination
This exam is good for individuals employed as a research analyst, or individuals engaged in the preparation and publication of research reports. The exam gives the understanding of the:
- Indian securities market
- Terminologies used in equity and debt markets
- Basic principles of micro and macroeconomics analysis
- Qualitative and Quantitative dimensions
- Fundamentals of Risk and Return
- Valuation principles
NISM-Series-II-B: Registrars to an Issue and Share Transfer Agents – Mutual Fund Certification Examination
This exam is good for individuals working in registrars to an issue or the share transfer agents. The objective of the exam is to give the knowledge of the:
- Basics of securities and securities markets
- Understand the role and functions of the RTAs
- Regulatory environment
List of NISM Certification Examinations
- NISM Series I: Currency Derivatives Certification Examination
- NISM Series II A: Registrars and Transfer Agents (Corporate) Certification Examination
- NISM Series II B: Registrars and Transfer Agents (Mutual Fund) Certification Examination
- NISM Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination
- NISM Series-III-B: Issuers Compliance Certification Examination
- NISM Series IV: Interest Rates Derivatives Certification Examination
- NISM Series V A: Mutual Fund Distributors Certification Examination
- NISM-SeriesV-B: Mutual Fund Foundation Certification Examination
- NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination+
- NISM Series VI: Depository Operations Certification Examination
- NISM Series VII: Securities Operations and Risk Management Certification Examination
- NISM-Series-VIII: Equity Derivatives Certification Examination
- NISM Series-IX: Merchant Banking Certification Examination
- NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination
- NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination
- NISM-Series-XI: Equity Sales Certification Examination
- NISM Series-XII: Securities Markets Foundation Certification Examination
- NISM Series-XIII: Common Derivatives Certification Examination
- NISM Series-XIV: Internal Auditors for Stock Brokers Certification Examination
- NISM Series-XV: Research Analyst Certification Examination
- NISM-Series-XVI: Commodity Derivatives Certification Examination
- NISM-Series-XVII: Retirement Adviser Certification Examination
- NISM-Series-XVIII: Financial Education Certification Examination
- NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors
- NISM Series XXI-A: Portfolio Management Services (PMS) Distributors
NISM Certification Exam Pattern
The exam pattern for NISM Certification varies across different certificate examinations. Below we have discussed the exam pattern for NISM VA Certification Exam for Mutual Fund Distributor. As discussed, the NISM VA Exam is for applicants who want to become a mutual fund distributor and will be offering mutual fund investments to their clients. The exam aims to offer basic mutual fund knowledge so that the advisors can offer right financial advice to the investors after analyzing their investment requirements.
The exam pattern for NISM Certification is as follows:
- There will be 100 Questions in MCQ Format (Multiple Choice Questions)
- There will be 4 options for each question
- Each question will carry 1 mark
- No Negative marking
- The examination time will be 2 hours
- Passing score is 50% i.e you need to score 50 marks out of 100 to pass the exam
Frequently Asked Questions
Q. Who can give the NISM VA Exam?
Individuals who want to become Mutual Fund Distributors
- Employees of companies engaged in the sales and distribution of Mutual Funds
- Employees of AMCs engaged in sales and distribution of Mutual Funds
- For the syllabus of this exam, refer above in the same page.
Q. What is the full form of NISM?
A. The full form of NISM is the National Institute of Securities Markets.
Q. Do the NISM certifications have validity?
A. Yes, NISM certifications have a validity of the 3 years. The certificate can be re-validated by giving the CPE exams before the expiry of the certificate.
Q. What are the fees of the NISM certifications?
A. The fees for the NISM certifications are different for every exam. But, the fee is between Rs. 1,500 to Rs. 3,000, exclusive of GST.
Q. Do NISM certifications have negative markings?
A. Some of the NISM certifications have a negative marking of 25% but some of the exams do not have any negative marking.
Q. Are the NISM certifications held online?
A. Yes, NISM exams are held online but at the NISM certified centers.
Q. What is the duration of the NISM certifications?
A. The duration of all the NISM certifications is of 2 hours except for one exam. NISM Series-XIII: Common Derivatives Certification Examination is of 3 hours duration.
Q. How can we check the results of the NISM certifications?
A. The result appears on the screen instantly after submitting the exam. Afterward, it can be checked from the NISM website. Individuals have to log in to the website and then in the “My certification” sections, they can check the results for their exams.
Q. How can we download the NISM certificates?
A. NISM certificates can be downloaded from the NISM website. An individual has to log in to the NISM website and then in the “My examinations” sections, individuals can download the certificate.
Q. Which NISM certification examinations have negative marking ?
A. NISM Series XII: Securities Markets Foundation Certification Examination, NISM Series-VA: Mutual Fund Distributors Certification Examination, and NISM Series-VB: Mutual Fund Foundation Certification Examination have no negative marking. Apart from these, all other NISM Certification Examinations have a negative marking of 25% of the marks assigned to a question for each wrong answer.
Q. I want to be a mutual fund distributor. Which NISM exam should I take ?
A. People who want to become a mutual fund advisor, agent or distributor must take the NISM Series V A: Mutual Fund Distributors Certification Examination. This certification is mandatory for anyone applying for an ARN number with the Association of Mutual Funds in India – the regulatory body that oversees the functioning of the mutual funds industry in India.
Q. What are the guidelines for NISM Remote Proctored Examinations ?
A. Candidates can attempt NISM remote proctored exam from the convenience of their homes. They must have a Windows-based laptop or desktop along with a stable internet connection with a minimum bandwidth of 512 kbps. Webcam and microphone are also mandatory for candidates taking the exam. It is important to note that NISM is offering this remote proctored exam facility in light of the ongoing pandemic, and the organization may choose to end this option at any time, without any prior notice.