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)