The National Institute of Securities Markets (NISM) is an educational and certification body established by the Securities and Exchange Board of India (SEBI), the regulatory authority for the securities market in India. The NISM offers various certification programs designed to enhance the knowledge and skills of professionals working in the Indian securities markets.
One of the certification programs offered by NISM is the "NISM Series VIII: Equity Derivatives Certification Examination," commonly referred to as the "NISM Derivatives Market Module." This module is aimed at individuals who want to enhance their understanding of derivative products and the regulatory framework governing the derivatives market in India.
- Introduction to Derivatives: Basic concepts, types of derivatives, and their features.
- Market Participants: Roles and responsibilities of various entities in the derivatives market, including stock exchanges, clearing corporations, and brokers.
- Trading, Clearing, and Settlement Mechanism: Procedures for trading, clearing, and settlement of derivative contracts.
- Regulatory Framework: SEBI regulations governing the derivatives market, including eligibility criteria for trading, position limits, and margin requirements.
- Risk Management: Principles of risk management in derivatives trading, including margining systems and risk management techniques.
- Trading Strategies: Commonly used trading strategies in the derivatives market, such as hedging, speculation, and arbitrage.
- Taxation: Tax implications of derivative trading for investors and traders.
The NISM Derivatives Market Module exam typically consists of multiple-choice questions (MCQs) aimed at assessing candidates' knowledge and understanding of the topics covered in the module. Successful completion of the exam leads to the award of the NISM Series VIII certification, which is recognized by SEBI and is often a mandatory requirement for professionals working in the Indian derivatives market.
Individuals interested in pursuing a career in derivative trading or working in the Indian securities market can benefit from obtaining the NISM Derivatives Market Module certification as it demonstrates their knowledge and understanding of derivative products and the regulatory framework governing the derivatives market in India.
