Is NISM Certification Useful: Trade majorly involves an exchange of goods and services between 2 parties. A stock market is a place where the trading of shares of public companies occurs.

The performance of the stock market indicates the country’s economy. Since there has been strong growth in the trading industry in India, the number of people looking for employment opportunities in this domain continues to increase.

They hope to make a career in the stock market. Career opportunities in the stock market can range from working with a firm or employed with an investment firm to being entrepreneurial in nature and starting trading and investing through the stock market to make profits.

In India, before starting a career in the stock market, there are NISM certifications that an individual has to pass through. As the saying goes, it is impossible to be successful in a job without having the necessary information and education about it. NISM certifications help in bridging this gap.

This article will answer the question, “Is NISM certification useful?” Therefore, by the end of this article, you will be able to know what types of certifications are provided by NISM and how to start your career in the financial industry.

NISM – What Is It?

Before answering the question, “Is NISM certification useful,” it is important to know what NISM is. National Institute of Securities Markets provides certification programs for individuals looking to make a career in the financial industry.

It consists of training, research, certificates, and other professional education programs related to the financial market. The NISM refers to a public trust which was established in 2006 by SEBI, a regulator of the securities markets.

In financial education, NISM partners closely with financial sector regulators. The ultimate goal of obtaining NISM Certification is to raise the standing and standards of financial professionals who are working in several verticals of the financial industry.

Financial certifications and programs aim at providing an absolute minimum level of common financial knowledge which is required for numerous market functions.

The exams for NISM certification and other various programs are available for numerous intermediary divisions, focusing on several product lines and functional areas. NISM has established benchmarks in domains of equity, derivatives, mutual funds, compliance, etc.

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Benefits Of Passing NISM Exams

The best option is to get enrolled in NISM courses to start a finance career. The certification test can be passed with numerous benefits. Certifications offered by NISM have high value, and their holders can apply for various jobs related to stock market intermediaries.

Apart from gaining knowledge, an individual might have to clear specific NISM certifications if they want to trade in MFs or stocks. There are companies in India making NISM certifications mandatory. There are several advantages of completing NISM certifications.

1. Having A Grasp For Risk Management Practices

NISM courses provide an individual with all the information they need to understand and monitor security markets. Investors tend to gain knowledge on evaluating and managing risks. This evaluation and management of risks can help an individual handle investors’ complaints easier.

2. Solid Understanding Of The Securities Market

The stock market is quite complex. Therefore, before starting a career in this market, it is of utmost importance to get greater clarity. Undergoing NISM certifications provide an introduction to the market.

If an individual studies this in detail, it also helps in gaining knowledge about its legal aspects. Provided that sufficient resources are available, an individual can make wise selections that can help them in making profits.

3. More Employment Opportunities

NISM certifications are required in almost every company offering career opportunities in the field of finance. These requirements and needs are constant. Individuals who clear NISM certifications can have sound knowledge of financial markets and they can even start their own business which can help them get a generous income.

Courses Offered By NISM

We hope that the question is NISM certification useful, and has been answered. Yes! This examination is of utmost importance to people seeking a career in financial markets.

However, individuals need to decide on the course they want. NISM provides several themes which are divided into modules, and some have one or two sub-modules. Following are some of the important modules provided:

  • NISM-Series-I: Currency Derivatives Certification Examination

This exam is important for those learners who plan to develop knowledge in the field of currency markets. To be more precise, individuals who plan to build a career in exchange-traded currency derivatives markets should go for this course. This course is meant for currency derivatives traders, careers in forex, etc.

  • NISM-Series-II: Registrars to an Issue and Share Transfer Agents Certificate Examination

This module is suitable for individuals planning to work with Registrars and Transfer Agents (RTA) firms, or who want to start their own RTA business. Important for individuals who plan to start their career with CAMS, Karvy, etc.

  • NISM-Series-III: Securities Intermediaries Compliance Certificate Examination

In this, exam III-A is mandatory as it gives information about non-fund compliance for intermediaries. However, exam III-B is voluntary. It targets to help learners understand the compliances required.

  • NISM-Series-IV: Interest Rate Derivatives Certification Examination

This exam is suitable for individuals planning to work in the stock market segment which deals in interest-rate derivatives and fixed-income securities.

  • NISM-Series-V: Mutual-Funds-Related Certification Examination

This exam is critical for people wanting to work in the mutual fund industry, engaged as distributors, agents, etc. It is meant for mutual fund agents and distributors.

  • NISM Series VI: Depository Operations Certification Examination

According to SEBI guidelines, people who work with depository participants (DPs) of India’s stock exchanges should attempt this exam.

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

Individuals who want to develop their knowledge base of the stock exchange and its products should appear for this exam. It is a compulsory requirement for people employed with stock brokerage, clearing, settlement, etc.

  • NISM-Series-VIII: Equity Derivatives Certification Examination

This examination is compulsory for those wanting to work in firms operating in the equity derivatives segment. It is a mandatory requirement for the derivatives trader.

  • NISM Series-IX: Merchant Banking Certification Examination

People who are engaged in the merchant banking segment should give this exam. Such individuals assist in IPOs, open offers, buybacks, etc.

  • NISM-Series-X: Investment Adviser Certification Examination

Individuals who are in the business of investment advisory should attempt this exam. It has 2 mandatory levels that individuals should pass before they can hold this certification.

  • NISM Series-XII: Securities Markets Foundation Certification Examination

This is a voluntary exam and is for individuals who want entry-level jobs and plan to pursue a career in the stock market.

  • NISM-Series-XIII: Common Derivatives Certification Examination

This exam is for individuals who plan to work in the derivatives segment of the stock exchanges.

  • NISM Series-XIV: Internal Auditors for Stock Brokers Certification Examination

This exam is voluntary for auditors, CAs, Company secretaries, and others who are engaged in internal auditing in several firms of the stock market.

  • NISM-Series-XV: Research Analyst Certification Examination

Individuals who plan to pursue a career in the financial sector as research analysts must give this exam mandatorily.

  • NISM-Series-XVI: Commodity Derivatives Certification Examination

This exam is mandatory as it helps individuals get a fair idea about the rules, regulations, and various products which are available under the commodity derivatives segment.

  • NISM-Series-XVII: Retirement Adviser Certification Examination

Individuals who plan to work in the stock market related to retirement advisory and planning services. Important for those who want to work as retirement advisers registered under PFRDA (Retirement Adviser) Regulations, 2016.

  • NISM-Series-XVIII: Financial Education Certification Examination

This is a voluntary exam that is made for individuals planning to examine the current state of their financial literacy.

  • NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors

As the name dictates, this exam is for individuals who want to equip themselves with the knowledge and skills of working in the alternative investment segment of the market. This exam is voluntary.

What Is Minimum Qualification For NISM Exam?

SEBI requires various Securities Market Participants and Intermediaries to provide exam certifications conducted by NISM. However, the examination is open to anyone who is keen on learning about the Indian Securities Market. Also, there is no minimum qualification or even age required to answer the NISM exam.

Also Read: 5 Must-have Investment Instruments for Everyone!

To Sum Up

Clearing NISM modules can help an individual start as a mutual fund selling agent or an equity dealer. Therefore, anyone who is planning to start a career path in the stock market, should NOT ask the question, “Is NISM certification useful?”

They should know that these certifications will help them in one way or the other. For instance, the Mutual Fund Distributors Certification Examination is a basic requirement for individuals who plan to sell and distribute mutual funds.

However, you can choose NISM courses in conjunction with some other renowned and professional courses to gain an advantage of knowledge. For example, you can pursue CFA, CA, or any other course apart from these basic NISM courses. This will provide you with an added advantage while applying for job opportunities.

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