NISM-Series-VIII: Equity Derivatives Certification 

Mode of Delivery: Online Live Interactive + Online Self-paced*

Duration: 30 Hours 

Study Materials: 

• Recording available of online live sessions
• PPTs (700+ Slides)
• 800+ MCQs
• Quick revision summary notes.
• Career Guidance/Counseling

The revised NISM-Series-VIII: Equity Derivatives Certification Examination aims to establish a minimum knowledge benchmark for associated persons functioning as approved users and sales personnel of trading members in equity derivatives exchanges or segments of recognized stock exchanges. This certification helps candidates understand various equity derivatives products, associated regulations, risks, and clearing and settlement mechanisms.

Upon successful completion of the examination, candidates will:

• Understand the Basics of Equity Derivatives Markets: Gain foundational knowledge about derivatives markets, their evolution, and the types of participants involved.
• Master Trading Strategies: Learn how to build trading strategies using stock and index futures and options.
• Comprehend Operational Mechanisms: Understand the clearing, settlement, and risk management processes in equity derivatives markets.
• Familiarize with the Regulatory Framework: Acquire knowledge of the rules and regulations governing equity derivatives markets in India.

Assessment Details:

· 100 MCQs of 1 mark each

· Duration: 2 hours

· Passing score: 60%

·Negative Marking: 25% of marks assigned per incorrect answer

· Certificate Validity: 3 years

* Online Self-paced contents access will be provided for 90 days to the user only.

Test Objectives:

Upon passing the examination, candidates will:

• Understand the Basics of Equity Derivatives Markets: Gain foundational knowledge about derivatives markets, their evolution, and the types of participants involved.
• Master Trading Strategies: Learn how to build trading strategies using stock and index futures and options.
• Comprehend Operational Mechanisms: Understand the clearing, settlement, and risk management processes in equity derivatives markets.
• Familiarize with the Regulatory Framework: Acquire knowledge of the rules and regulations governing equity derivatives markets in India.

Course Details:

• NISM exam registration fees not included in the above mention Course Fee.
• PDFs, PPTs (700+ Slides) and 800+ MCQ for practice (mock exams & mock paper shared for self-practice).
• Sessions would cover doubt solving from the Mock Exams.
• Online Interactive Session for the practice on software’s required in particular module

Eligibility:

The NISM-Series-VIII: Equity Derivatives Certification Examination is suitable for:

• Associated Persons:
  • Approved users and sales personnel of trading members in equity derivatives exchanges or segments.
  • Individuals managing trading activities, client risk, and compliance in derivatives markets.
• Interested Individuals:
  • Students (10th, 12th, undergraduate, postgraduate) aspiring to build a career in equity derivatives markets.
  • Financial professionals aiming to enhance their expertise in equity derivatives trading and risk management.
  • Investors and traders seeking to understand equity derivatives products and trading strategies.

Curriculum Overview: NISM-Series-VIII: Equity Derivatives Certification 

I. Basics of Derivatives
Introduction to derivatives, their history and evolution, the structure of the Indian derivatives market, types of market participants, types of derivatives, significance, and associated risks.

II. Understanding Index
Learn about stock market indices, their types, significance, attributes, management, major Indian indices, and their applications.

III. Introduction to Forwards and Futures
Understand forward and futures contracts, key terminologies, contract specifications, pay-off charts, pricing, and the convergence of cash and futures prices.

IV. Introduction to Options
Explore the basics of options, moneyness, intrinsic and time values, pay-off charts, option pricing models, option Greeks, implied volatility, and perspectives of buyers and sellers.

V. Strategies Using Equity Futures and Options
Learn to use futures for hedging, speculation, and arbitrage. Understand trading and hedging with options, put-call parity, delta-hedging, and interpreting open interest and put-call ratios.

VI. Trading Mechanism
Understand the eligibility criteria for stocks and indices for derivatives trading, trading costs, adjustments for corporate actions, algorithmic trading, and tracking derivatives data.

VII. Clearing and Settlement System
Gain insights into clearing members’ roles, clearing and settlement mechanisms, interoperability, risk management, margins, position limits, and investor protection funds.

VIII. Legal and Regulatory Environment
Learn about the Securities Contracts (Regulation) Act, SEBI Act, and regulations governing trading, clearing, settlement, and membership eligibility in derivatives segments.

IX. Accounting and Taxation
Understand accounting principles and taxation implications for derivative transactions in securities.

X. Sales Practices and Investor Protection Services
Focus on client risk profiling, risk disclosure, anti-money laundering procedures, and investor grievance redressal mechanisms.