NISM Certifications: An Easy Explainer
When you talk to someone about investing in mutual funds, he or she may remark, “I know someone who knows about mutual funds.” This person can then advise you which funds are suitable for you to be invested in.
Is that correct? Can you invest based on the advice of anyone. No, things shouldn’t be that way. It is appropriate to inquire about the individual’s educational background and professional experience, whether they possess the required certificates issued by the authority and are qualified to offer financial advice.
We will discuss such authority and certifications in this blog.
Overview of NISM
The Securities and Exchange Board of India established the National Institute of Securities Markets (NISM) in 2006 as a public trust. The primary goals of NISM’s founding are to advance ethics, financial literacy, and education in the Indian security market.
NISM’s headquarters are located on a 72-acre facility in Mumbai. The student can choose between full-time and part-time courses offered by the institute.
The six colleges listed below are where NISM conducts its operations:
1. School for Securities Education (SSE)
2. School for Certification of Intermediaries (SCI)
3. School of Regulatory Studies and Supervisions (SRSS)
4. School of Investor Education and Financial Literacy (SIEFL)
5. School for Corporate Governance (SCG)
6. School for Securities Information and Research (SSIR)
Why NISM?
Obtaining an NISM Certification may boost your career aspects in the finance industry. Further, there are regulatory requirements for some of the jobs where you can’t work without getting NISM certification. Some of the benefits / features of NISM Certifications are:
Professionalism – Possessing a NISM Certificate will make you regarded as a professional with the required abilities.
Regulatory Requirement – In the Indian financial industry, there are numerous positions for which you must hold NISM Certification. Only with that specific certificate you can carry out your actions lawfully; otherwise, you are not permitted to provide those services.
Career Growth – Having a certificate in hand after passing the NISM tests would boost your chances of employment and promotions. It will also undoubtedly assist you in advancing in any financial company.
Knowledge Enhancement – The extensive and comprehensive variety of financial-related topics is covered in the NISM courses. Following your successful completion of the program, you will have a solid understanding of that particular subject.
Compliance and Risk – The SEBI has mandated that certain NISM Certificates be held by financial firms to comply with the regulatory framework and compliance standards.
Client Trust – Your client would think highly of you as a competent professional if you are a NISM Certified professional.
List of NISM Certifications
The NISM offers two types of assessments: Certification exams and CPE (Continuing Professional and Education) programs.
Certifications Exams
As of February 2024, NISM offers the following Certifications Exams:
| Sr. No. | NISM Exam | Test Duration | Fees (INR) | Maximum Marks | No. of Questions | Pass Marks (%) | Certificate Validity(in years) |
| 1 | NISM Series I: Currency Derivatives Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 2 | NISM Series II A: Registrars and Transfer Agents (Corporate) Certification Examination | 2hrs | 1500/- | 100 | 100 | 50 | 3 |
| 3 | NISM Series II B: Registrars and Transfer Agents (Mutual Fund) Certification Examination | 2hrs | 1500/- | 100 | 100 | 50 | 3 |
| 4 | NISM Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 5 | NISM Series IV: Interest Rates Derivatives Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 6 | NISM Series V A: Mutual Fund Distributors Certification Examination | 2hrs | 1500/- | 100 | 100 | 50 | 3 |
| 7 | NISM-SeriesV-B: Mutual Fund Foundation Certification Examination | 2hrs | 1200/- | 50 | 50 | 50 | 3 |
| 8 | NISM Series VI: Depository Operations Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 9 | NISM Series VII: Securities Operations and Risk Management Certification Examination | 2hrs | 1500/- | 100 | 100 | 50 | 3 |
| 10 | NISM-Series-VIII: Equity Derivatives Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 11 | NISM Series-IX: Merchant Banking Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 12 | NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination | 3 hrs | 3000/- | 150 | 135 | 60 | 3 |
| 13 | NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination | 3 hrs | 3000/- | 150 | 120 | 60 | 3 |
| 14 | NISM Series-XII: Securities Markets Foundation Certification Examination+ | 2hrs | 1770/- | 100 | 100 | 60 | 3 |
| 15 | NISM Series-XIII: Common Derivatives Certification Examination | 3hrs | 3000/- | 150 | 150 | 60 | 3 |
| 16 | NISM Series-XV: Research Analyst Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 17 | NISM-Series-XVI: Commodity Derivatives Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 18 | NISM-Series-XVII: Retirement Adviser Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 19 | NISM-Series-XVIII: Financial Education Certification Examination+ | 2hrs | 1416/- | 50 | 50 | 50 | 3 |
| 20 | NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors Certification Examination+ | 2hrs | 1770/- | 100 | 100 | 60 | 3 |
| 21 | NISM-Series-XIX-B: Alternative Investment Funds (Category III) Distributors Certification Examination+ | 2hrs | 1770/- | 100 | 100 | 60 | 3 |
| 22 | NISM-Series-XIX-C: Alternative Investment Fund Managers Certification Examination+ | 3hrs | 3540/- | 150 | 120 | 60 | 3 |
| 23 | NISM-Series-XX-Taxation in Securities Markets Certification Examination+ | 2 hrs | 1770/- | 100 | 75 | 60 | 3 |
| 24 | NISM Series XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination | 2hrs | 1500/- | 100 | 100 | 60 | 3 |
| 25 | NISM Series XXI-B: Portfolio Managers Certification Examination | 3 hrs | 3000/- | 150 | 120 | 60 | 3 |
| 26 | NISM Series XXII: Fixed Income Securities Certification Examination+ | 2hrs | 1770/- | 100 | 85 | 60 | 3 |
| 27 | NISM-Series-XXIII: Social Auditors Certification Examination+ | 2 hrs | 1770/- | 100 | 100 | 60 | 3 |
| 28 | IBBI- Valuation Examination in the Asset Class: Land and Building | 2hrs | 5900/- | 100 | 90 | 60 | N/A |
| 29 | IBBI- Valuation Examination in the Asset Class: Plant and Machinery | 2hrs | 5900/- | 100 | 90 | 60 | N/A |
| 30 | IBBI- Valuation Examination in the Asset Class: Securities or Financial Assets | 2hrs | 5900/- | 100 | 90 | 60 | N/A |
Each exam has its own set of requirements; some include negative grading; some not. Duration for exams may vary from two hours to three hours.
Moreover, each exam has a unique significance in its subject. For example, NISM VA is required for distributors of mutual funds, and NISM XA and XB are required for investment advisors.
CPE Exams
NISM Institute also offers the Continuing Professional Education (CPE) exams, which is for holders of current certificates. If the current certificate expires, it can be revalidated by completing the appropriate NISM exam before it expires.
Revalidation of the certificate is possible through online CPE (eCPE) or a one-day session called “Continuing Professional Education.”
You can give exam after the six-hour training session, and upon passing it, you will receive a new certification with updated validity. The NISM-certified instructors conducts the offline CPE program.
You can participate in the online CPE session from the comfort of your home with just a laptop and an internet connection. Following your attendance for the entire session, you will receive a fresh certificate after completing the feedback form and submitting the test.
CPE Exams
Not every exam is offered through the CPE or eCPE program. Have a look at the table below to know the exams offered via CPE:
| Sr | Module Name | CPE Duration | CPE Fees (INR) | ECPE Duration | ECPE Fees (INR) | Certificate Validity |
| 1 | NISM Series – I: Currency Derivatives | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 2 | NISM Series – II-A: RTA Corporate | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 3 | NISM Series – II-B: RTA Mutual Fund | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 4 | NISM Series – III-A: Securities Intermediaries Compliance (Non-Fund) | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 5 | NISM Series – IV: Interest Rate Derivatives | 6-hrs appx | 2500/- | N/A | N/A | 3 years |
| 6 | NISM Series – V-A: Mutual Fund Distributors | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 7 | NISM Series – V-B: Mutual Fund Foundation | 6-hrs appx | 2500/- | N/A | N/A | 3 years |
| 8 | NISM Series – VI: Depository Operations | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 9 | NISM Series – VII: Securities Operations and Risk Management | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 10 | NISM Series – VIII: Equity Derivatives | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 11 | NISM Series – IX: Merchant Banking | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 12 | NISM Series – XIII: Common Derivatives | 6-hrs appx | 2500/- | N/A | N/A | 3 years |
| 13 | NISM Series – XV: Research Analyst | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 14 | NISM Series – XVI: Commodity Derivatives | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 15 | NISM Series – XVII: Retirement Advisor | 6-hrs appx | 2500/- | N/A | N/A | 3 years |
| 16 | NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
| 17 | NISM-Series-XXI-B: Portfolio Managers | 6-hrs appx | 2500/- | 3 – 5 hrs appx | 2500/- | 3 years |
How to register for NISM Exams
1. First, you need to visit – https://certifications.nism.ac.in/
2. You must register your profile if you are visiting for the first time.
3. You must use your login credentials to access the website after registering.
4. The exam, day, time, and test center must be chosen.
5. You will next be prompted to pay the examination fees.
6. The study materials are available for download in PDF format following a successful payment.
7. You must appear at the testing location on the scheduled exam day with the necessary documentation, such as your original admit card and identity evidence.
Conclusion
A certificate from NISM facilitates your entry into the finance industry. It is important to note that passing the NISM exam does not grant you complete freedom in the profession; you should follow the regulations and guidelines. There is usually a three-year validity limit on all certificates, after which you must retake the exam or enrol in a CPE program if you want to continue.
Possessing these certificates identifies a person with extensive and professional expertise in the finance industry. However, keep in mind that holding NISM certifications may give you a competitive advantage over others, but in no manner it can guarantee you a job or make you superior to others.
To conclude, to gain professional status and pursue a career in finance, you can obtain the NISM Certifications.
Frequently Asked Questions (FAQs)
Q1. Who is the regulator of NISM?
Ans. NISM is regulated by the SEBI (Securities Exchange Board of India).
Q2. Are NISM exams costly?
Ans. NISM examinations are not extremely expensive; the typical range of exam costs is INR 1,500 – 3,000.
Q3. Can I reschedule my exam once I’ve reserved a time slot?
Ans. You are allowed to change your exam date as long as it’s fifteen days away.
Q4. When will the NISM exam results be available?
Ans. After completing the exam, you will be prompted to fill out a survey form. Once the exam is submitted, your results or scorecard will be shown on the screen, and after 15 days, you can download the certificate from the NISM website.
Q5. What is the validity period of NISM Certificate?
Ans. The validity is three years, after which you must retake the exam or simply present for the CPE exam to have your certificate re-validated.
Disclaimer: The securities, funds, strategies, and opinions mentioned in this blog are purely for informational purposes and are not recommendations.
