NISM vs NCFM: To start running, we all need to learn how to walk. And even before we can start walking, we learn how to crawl. Learning, in any field, is a step-up process, where you cannot proceed to the next level without covering the basics. 

The Securities Exchange Board of India launched a learning platform for stocks, derivatives, mutual funds, and investing in general, which is what we know today as NISM – The National Institute Of Securities Market. 

Founded in 2006, the platform provides education, certification for all sorts of skills, and knowledge-based tests for the certificates they provide.  

Seeking to get ahead of the curve before private institutions, the National Stock Exchange of India also launched its educational platform – the NCFM (National Certification Of Financial Markets). 

To a beginner, this might sound confusing. Which of these institutions is better? How credible are they? What makes them different? We will answer these questions and compare both of them – NISM vs NCFM. 

What Is NISM?

NISM stands for National Institute of Securities Market. It was created by SEBI as an educational institution in 2006. NISM is one the most trusted and reputed institutes for stock market-based certifications.

They have six schools under their banner, including one 72-acre campus at Patalganga. Anyone who wants to involve themselves in the market, either professionally or personally for their investments, can opt for any of their courses based on complexity levels.

Not only that, but the institute also provides full-time in-house programs for people who want to take up a serious career in the stock market. The six schools of NISM are:

  1. School For Investor Education and Financial Literacy (SIEFL)
  2. School For Securities Education (SSE)
  3. School For Certification Of Intermediaries (SCI)
  4. School For Regulatory Studies And Supervision (SRSS)
  5. School For Corporate Governance (SCG)
  6. School For Securities Information and Research (SSIR)

What Is NCFM?

The NCFM was created by the National Stock Exchange of India. It is also known as the NSE Academy. NCFM is the certification program under the NSE Academy, which tests the skills required by the individual to apply their knowledge in the financial markets. 

The NCFM certifications are perfect for different professionals working in the finance sector, and it is one of the best alternatives to the NISM certification by SEBI while following the same regulations as the stock market regulator. 

NISM Vs NCFM – A Comparison

Number of modules15+ modules and courses50+ modules
Test ModeAll Online TestsOnline testing is available
Exam WindowAt the convenience of the studentsAt the convenience of the students
SyllabusNISM certifications cover mutual funds, derivatives, depository operationsNCFM covers trading, mutual funds, banking, and more.
FeesCertifications are priced in the range of Rs. 2000 to Rs. 10,000NCFM modules usually start from Rs. 1,700
Career OpportunitiesDepends on the certification and levelDepends on the certification and level
Pass PercentagePass rates are usually between 50 to 60 percent, along with negative markings on the test.Pass rates are usually between 50 to 60 percent, along with negative markings on the test.

NISM Vs NCFM – Exam Eligibility

NISM and NCFM are two popular financial certification exams in India, with different eligibility requirements. NISM is designed for individuals who want to specialize in specific sectors of the finance industry, while NCFM is more general and suited for individuals seeking a career in finance or looking to enhance their existing knowledge.

NISM Eligibility

  1. To sit for an exam under the NISM, you need to register online at the official NISM website. This involves creating an account on their portal. 
  2. After registering, you need to enroll for the certification of your choice. 
  3. The exam of your choice should have appeared for at least 180 days of enrollment.
  4. After enrolling, you need to choose an exam center and date slot for the test. 
  5. Don’t worry about the study material. It will be provided to you after registration for the exams, free of cost. The hard copies will have to be purchased but the online version is free. 

NCFM Eligibility

  1. Similar to the NISM test, you need to register online and book a slot to write the exam. 
  2. The material for the course can be downloaded online or taken from the institute itself.  
  3. Not all exams have the same passing percentage, so check the minimum requirements to clear the test.
  4. Upon clearing the exam, you get a certification, confirming that you are a certified professional. 

Also Read: 10 Best YouTube Channels To Learn Share Market in India 2023!

In Closing

NISM and NCFM are great platforms to start learning about finance. It is not limited to the stock market alone, as they have courses in mutual funds and research as well. We hope you get to understand the comparative study of NISM Vs NCFM. Happy Learning!

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