What is NISM Exam?

The success of an economy totally depends on the smooth functioning of the financial markets. No economy can develop without the supports of the financial markets. Thus, financial markets can be referred to as an instrument that can help us gauge the soundness of an economy.


Thus, the role of capital markets and stock exchanges of any country is very important for the development of their economy. The National Institute of Securities Markets (NISM) was set up by the Stock Exchange Board
of India(SEBI) in 2006 to provide education about the securities market in India. SEBI is the regulator of the securities market in India. 

 

Some points about the NISM Examination:

 

1. NISM conducts certification examination for various Security Market Participants and Intermediaries as mandated by SEBI. Anyone can has interest in learning about the Indian Securities Market can take the exam. There is no age limit for taking the examination.
2. For taking up the exam, a person has to register himself and fill up Online Registration Form on the NISM Online Certification System.
3. After filling of the registration form, one needs to choose the exam which he wishes to take. The testing centre, Exam Date and time slot can be chosen by the person itself on the Online Certification System.
4. The next step is filling of the Enrolment Form. Once this is done, a candidate becomes eligible for the exam.
5. Once the enrolment is done, the exam details will be shared with the candidate. The NISM exam is of two hours. There shall be a negative marking of 25% for every wrong answer.
6. For the study material, after the enrolment the candidate receives a soft copy of the study material free of cost. If one wishes to buy a hard copy of the same, it can be done by buying it online from Taxman Publication Private Limited.

 

Clearing the exam can help an individual in many ways. The exam caters a lot many benefits to an individual and some of the benefits are listed below:

 

1. The exam has a nationwide acceptance:
Intermediaries like brokers, banks, investment banks, asset management companies and all other stock market related institutions nationwide. The reason behind this nationwide acceptance is that the exam is backed up by the stock market regulator, SEBI.
 

2. Clearing the exam adds value to the resume:
Any individual seeking to pursue a career in the capital market can go for this exam. The job qualification requirements for the capital market job of any asset management company or brokerage house includes the requirement of NISM certification.
 

3. Provides financial literacy:
Many educational institutions and colleges can also partner with NISM for providing financial literacy to the Indian students. This way it will help in spreading financial literacy to traders and investors who trade or invest in the stock market without any knowledge. These kinds of traders consider trading in the stock market as a game of gamble and eventually lose a big amount of their hard-earned money. By acquiring knowledge about the capital market one can reduce their losses which they incur in trading.

 

The NISM certification is very valuable as a core qualification for students and professionals looking for a career in the financial markets. It is open for people from any educational background, not only to those from commerce, management or economics.  Freshers with just a graduation degree and a NISM certification can make decent careers in the financial services industry. Passing the various certifications of NISM is the prerequisite for activating and operating the securities trading terminals in India. So, if you want to build a career as a stockbroker, or as the employee of a stockbroking firm, or as an investment advisor, you need to get certified by NISM compulsorily.