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The NCFM Programme

Taking into account international experience and the needs of the Indian financial markets, National Stock Exchange introduced in 1998 a facility for testing and certification by launching NSE's Certification in Financial Markets (NCFM).

NCFM is an online testing and certification programme. It tests the practical knowledge and skills required to operate in the financial markets. Tests are conducted in a secure and unbiased manner and certificates awarded based on merit of the candidate to qualify the on-line test. 

The entire process of testing, assessing and scores reporting in the NCFM is fully automated. The system is operated through an intranet facility by using a central World Wide Web server with terminals located at each of the designated test centres to be used as an examination front end. Communication between the central server and the test centres is achieved through VSAT/leased line network. 

The Test is also offered through the Internet to enable candidates outside the designated test centres to take tests at their convenience. This allows flexibility in terms of testing centres, dates and timing and provides easy accessibility and convenience to candidates. 

The easy accessibility as well as flexibility involved in the NCFM programme has resulted in its wider acceptance among market intermediaries, students and regulators. 

Why NCFM?

The financial markets are going to be the turf of certified professionals very soon due to regulatory compulsions and/or initiatives of the industry. By imparting comprehensive knowledge and skill in the chosen field, NCFM enhances career opportunities for NCFM certified persons.

Some of these modules have regulatory sanctity. For example,

• It has been specified by SEBI that all brokers/dealers and sales persons in the derivatives market have to mandatorily obtain certification. Derivatives Market (Dealers) Module of the NCFM has been recognised by SEBI for the purpose.
• In order to improve the level of knowledge of market participants, only persons who have passed Capital Market (Dealers) Module of the NCFM are authorised to use the trading system of the National Stock Exchange.
• The National Securities Depository Limited has similarly prescribed that all the branches of the depository participants must have at least one person who has qualified the NCFM module on Depository Operations.
• SEBI recommends Surveillance Module for the officers working in surveillance departments of stock exchanges.

About NISM

In pursuance of the announcement made by the Finance Minister in his Budget Speech in February 2005, Securities and Exchange Board of India (SEBI) established the National Institute of Securities Markets (NISM) in Mumbai.

SEBI, by establishing NISM, has articulated the desire expressed by the Indian government to promote securities market education and research.

Towards accomplishing the desire of Government of India and vision of SEBI, NISM has launched an effort to deliver financial and securities education at various levels and across various segments in India and abroad. To implement its objectives, NISM has established six distinct schools to cater the educational needs of various constituencies such as investor, issuers, intermediaries, regulatory staff, policy makers, academia and future professionals of securities markets. 

NISM brings out various publications on securities markets with a view to enhance knowledge levels of participants in the securities industry.

NISM is mandated to develop and implement certification examinations for professionals employed in various segments of the Indian securities markets.

Click below to find out more about NISM examinations:
 

Module Series	Module Details	Module Material
NISM-Series-I	Currency Derivatives Certification Examination	Test Objectives | Workbook |Corrigendum | Trader Workstation Screens (For information purposes only)
NISM-Series-II-A	Registrars to an Issue and Share Transfer Agents - Corporate Certification Examination	Test Objectives | Workbook
NISM-Series-II-B	Registrars to an Issue and Share Transfer Agents – Mutual Fund Certification Examination	Test Objectives  | Workbook |Corrigendum (Revised examination available from January 15, 2011 onwards. Please check Corrigendum for revisions)
NISM-Series-IV	Interest Rate Derivatives Certification Examination	Test Objectives  | Workbook
NISM Series-V A	Mutual Fund Distributors Certification Examination	Test Objectives  | Workbook |Updates and Corrigendum(Downloadable workbooks for MFD Hindi and MFD Gujarati are not available. The workbooks for these examinations will be couriered within 7 working days from date of payment).
NISM Series-VI	Depository Operations Certification Examination	Test Objectives  | Workbook
NISM-Series-VII	Securities Operations and Risk Management Certification Examination	Test Objectives | Workbook
-	Certified Personal Financial Advisor (CPFA) Examination	Test Objectives | Workbook

To find out more about NISM click here

 

NISM-Series-I: Currency Derivatives Certification Examination (NISM-Series-I: CD Examination)

The examination seeks to create a common minimum knowledge benchmark for persons working in the Currency Derivatives market segment, in order to enable a better understanding of currency markets and exchange traded currency future products, better quality investor service, operational process efficiency and risk controls.

Examination Objectives
On successful completion of the examination the candidate should:

• Know the basics of currency markets and specifically Exchange Traded Currency Futures markets.
   

• Understand the trading, clearing and settlement mechanisms related to Currency Futures markets and basic investment strategies that use currency futures products.
   

• Know the regulatory environment in which the Currency Futures markets operate in India.

Assessment Structure
The NISM-Series-I: CD Examination is of 100 marks, has 60 questions, and should be completed in 2 hours. There is negative marking of 25% of the marks assigned to a question. The passing score for the examination is 60%.

Candidates who wish to appear for the Currency Derivatives Certification Examination can click here ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the NISM-Series-I: CD Examination click here.
 

Test Details

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

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NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents - Corporate Certification Examination

The examination seeks to create a common minimum knowledge benchmark for persons working in Registrars to an Issue and Share Transfer Agents (R&T Agent) organizations in the corporate R&T function, in order to enable better quality investor service, operational process efficiency and risk controls.

Examination Objectives
On successful completion of the examination the candidate should:

• Know the basics of securities and securities markets
   

• Understand broadly the role and functions of the R&T Agents in the corporate securities issuance and transaction process.
   

• Know the regulatory environment in which the R&T Agents operate in India.

Assessment Structure
The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. There is negative marking of 25% of the marks assigned to a question. The passing score on the examination is 50%.

Candidates who wish to appear for the Registrars to an Issue and Share Transfer Agents – Corporate Certification Examination can click here ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the NISM-Series-II-A: RTA (Corporate) Examinationclick here.
 

Test Details

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

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NISM-Series-II-B: Registrars to an Issue and Share Transfer Agents – Mutual Fund Certification Examination

The examination seeks to create a common minimum knowledge benchmark for persons working in Registrars to an Issue and Share Transfer Agents (R&T Agent) organizations in the mutual fund R&T function, in order to enable better quality investor service, operational process efficiency and risk controls.

Examination Objectives
On successful completion of the examination the candidate should:

• Know the basics of securities and securities markets
   

• Understand broadly the role and functions of the R&T Agents in the mutual fund issuance and transaction process.
   

• Know the regulatory environment in which the R&T Agents operate in India.

Assessment Structure
The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. There is negative marking of 25% of the marks assigned to a question. The passing score on the examination is 50%.

Candidates who wish to appear for the Registrars to an Issue and Share Transfer Agents – Mutual Fund Certification Examination can click here ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the NISM-Series-II-B: RTA (MF) Examination click here.
 

Test Details

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

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NISM-Series-IV: Interest Rate Derivatives Certification Examination

The examination seeks to create a common minimum knowledge benchmark for persons working in the Interest Rate Derivatives market segment, in order to enable a better understanding of fixed income securities markets and exchange traded interest rate derivative products, regulations and risks associated with the products and the exchange mechanisms of clearing and settlement.


Examination Objectives
On successful completion of the examination the candidate should:

• Know the basics of fixed income securities markets and specifically interest rate derivative markets in India and other markets.
   

• Understand the analytical framework required for Bond Futures market in India along with trading and hedging strategies involved.
   

• Understand the clearing, settlement and risk management as well as the operational mechanism related to exchange traded interest rate derivatives.
   

• Know the regulatory environment in which the interest rate derivatives markets operate in India.

Assessment Structure
The NISM-Series-IV: Interest Rate Derivatives Examination will be of 100 marks, will have 100 questions, and should be completed in 2 hours. There will be negative marking of 25% of the marks assigned to a question. The passing score for the examination is 60%.

Candidates who wish to appear for the Interest Rate Derivatives Certification Examination can click here ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the NISM-Series-IV: Interest Rate Derivatives Certification Examination click here.
 

Test Details

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

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NISM-Series-V-A: Mutual Fund Distributors Certification Examination

The examination seeks to create a common minimum knowledge benchmark for all persons involved in selling and distributing mutual funds including:

• Individual Mutual Fund Distributors
   

• Employees of organizations engaged in sales and distribution of Mutual Funds
   

• Employees of Asset Management Companies specially persons engaged in sales and distribution of Mutual Funds

The certification aims to enhance the quality of sales, distribution and related support services in the mutual fund industry.

Examination Objectives
On successful completion of the examination the candidate should:

• Know the basics of mutual funds, their role and structure, different kinds of mutual fund schemes and their features
   

• Understand how mutual funds are distributed in the market-place, how schemes are to be evaluated, and how suitable products and services can be recommended to investors and prospective investors in the market.
   

• Get oriented to the legalities, accounting, valuation and taxation aspects underlying mutual funds and their distribution.
   

• Get acquainted with financial planning as an approach to investing in mutual funds, as an aid for mutual fund distributors to develop long term relationships with their clients.

Assessment Structure
The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score for the examination is 50%. There shall be negative marking of 25% of the marks assigned to a question. 

Candidates who wish to appear for the Mutual Fund Distributors Certification Examination can click here ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the NISM-Series-V-A: Mutual Fund Distributors Certification Examination click here.

Test Details

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

NISM-Series-VI: Depository Operations Certification Examination

The examination seeks to create a common minimum knowledge benchmark for associated persons engaged or employed by a registered depository participant in:

1. dealing or interacting with clients;
    

2. dealing with securities of clients;,
    

3. handling redressal of investor grievances;
    

4. internal control or risk management;
    

5. activities having a bearing on operational risk; or 
    

6. maintenance of books and records pertaining to the above activities

The certification aims to enhance the quality of services as rendered by the Depository Participants.

Examination Objectives
On successful completion of the examination the candidate should:

• Know the basics of the Indian securities market and the depository system, the need for depository and the key features of the depository system in India.
   

• Understand the institutional structure of the depository system in India and the business partners of a depository.
   

• Understand the regulatory framework in which the depositories and its DPs function, their eligibility criteria, registration procedure, rights and obligations etc.
   

• Know the various functions of the Depository and its Depository Participants (DPs) such as dematerialisation, trading and settlement, pledging and hypothecation.
   

• Understand how a demat account is opened, documents required to open an account and significance of Power of Attorney (POA).

Assessment Structure
The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score for the examination is 60%. There shall be negative marking of 25% of the marks assigned to a question.

Candidates who wish to appear for the Depository Operations Certification Examination can click here  ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the NISM-Series-VI: Depository Operations Certification  Examination  click here.

Test Details

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.


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NISM-Series-VII: Securities Operations and Risk Management Certification Examination

The examination seeks to create a common minimum knowledge benchmark as the requisite standard for associated persons of a registered stock-broker / trading member / clearing member in recognized stock exchanges, involved in

1. assets or funds of investor or clients 
    

2. redressal of investor grievances,
    

3. internal control or risk management and 
    

4. activities having a bearing on operational risk.

Examination Objectives
On successful completion of the examination the candidate should:

• Know the basics of the Indian securities market, the different products traded and the various market participants and the respective roles they play in the Indian securities market.
   

• Understand the regulatory framework and the role of the Securities Exchange Board of India. 
   

• Know the various functions of the Front Office, Middle Office and Back Office in a Securities Broking Firm.
   

• Understand the trade life cycle, the steps and participants involved in the trade life cycle and the role of the back office in a securities broking firm. 
   

• Understand how the risks are managed in a securities broking firm, the clearing and settlement process.

Assessment Structure
The examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score for the examination is 50%. There shall be negative marking of 25% of the marks assigned to a question.

Candidates who wish to appear for the Securities Operations and Risk Management Certification Examination can click here ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the NISM-Series-VII: Securities Operations and Risk Management Certification Examination  click here.

Test Details

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

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Certified Personal Financial Advisor (CPFA) Examination

About Certified Personal Financial Advisor (CPFA) Examination 

This examination has been jointly developed by NISM and FPCIL and is a voluntary examination.

The examination seeks to create a common minimum knowledge benchmark for all persons involved in financial advisory including:

• Individual Financial Advisors

• Employees of organizations engaged in financial advisory services, including Stock Broking and Distribution Houses, Banks, Wealth Management Companies, Asset Management Companies, Insurance Companies, Consumer Credit Companies etc.

The certification aims to enhance the quality of financial advisory and related services in the financial services industry. It is also ideal for students who wish to pursue a career in investment advisory and financial planning.

Examination Objectives

On successful completion of the examination, the candidate should:

• Know the basics of financial advisory, steps in the advisory process, making and implementation of financial plan

• Understand how to evaluate different products, their suitability and how the recommendation of the same can impact investment risks, returns and strategies in a personal finance environment for investors and prospective investors in the market.

• Get oriented to the Income tax, Wealth tax and legalities of Estate planning in personal finance, and regulatory aspects underlying advisory.

• Get acquainted with financial planning as an approach to investing, insurance, retirement planning and an aid for advisors to develop long term relationships with their clients.

Assessment Structure 

The examination consists of 60 questions each of 1 mark and 20 questions each of 2 marks, and should be completed in 2 hours. The passing score on the examination is 60%. There shall be no negative marking.

Candidates who wish to appear for the Certified Personal Financial Advisor (CPFA) Examination can click here ONLINE Registration. They can register/pay fees/enroll for the test online.

For more information on NISM and the Certified Personal Financial Advisor (CPFA) Examination click here.

Test Details

* Negative marking – Nil. 
# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details. 

* Registration is one time activity (should be done only once) and Regn. No. is valid for life time. Thus, candidates may carefully maintain 'user id', 'pass word' (set by them during registration) and NCFM registration no. generated by NCFM system. Candidate may access his/her NCFM account online anytime by putting such 'user id' & 'pass word' on Login page (under nseindia.com > NCFM> Online Register / Enroll).

** All payments made are valid for a period of 180 days from date of receipt of payment.

*** Enrollment implies booking a seat for specific module, test date, test centre.

Points to be noted :

• Certificates shall be issued only to those successful candidates who have provided their Permanent Account Number (PAN) details at the time of registration. The original PAN card needs to be produced as a means of identification for the test.
  
  

• In case candidates do not furnish the Permanent Account Number (PAN) details at the time of registration, they can still take the test. Candidates not providing Permanent Account Number (PAN) details, will be given score card only. In case such candidates wish to obtain a certificate, the same will be issued only after receipt of Permanent Account Number (PAN) number information and verification.
  
  

• In case a candidate is already registered with NCFM and wishes to take any of the above NISM certification examinations and obtain a certificate for the same, he needs to update his registration details before making payment or enrolling for the test. The additional registration details and Permanent Account Number (PAN) number related information can be updated either
  - ONLINE by accessing the link 'Edit Profile' or
  - OFFLINE by furnishing the said details in the registration form which can be downloaded from the NSE website.