NISM-Series-XVI: Commodity Derivatives Certification 

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

Duration: 24 Hours 

Study Materials: 

• Recording available of online live sessions (for 90 days)
• PPTs (500+ Slides)
• 700+ MCQs
• Quick revision summary notes.
• Career Guidance/Counseling

The NISM-Series-XVI: Commodity Derivatives Certification Examination establishes a standardized knowledge benchmark for individuals functioning as approved users and sales personnel of trading members in the commodity derivatives segment of recognized stock exchanges.

This certification is designed to enhance understanding of derivatives products, market regulations, associated risks, and operational mechanisms within the commodity derivatives markets.

Upon successful completion of the training, candidates will:

·  Understand the Basics of Indian Commodity Markets:
Learn about the history, participants, trading dynamics, and major commodities in derivatives exchanges.

·  Analyze Trading Strategies:
Explore hedging, speculation, arbitrage, and other strategies using commodity derivatives.

·  Master Market Operations:
Understand the mechanisms of trading, clearing, settlement, and risk management in the commodity derivatives markets.

·  Grasp the Regulatory Framework:
Learn about the regulatory environment governing the commodity derivatives markets, including SEBI’s regulations and client protection mechanisms.

Assessment Details:

• 100 Multiple Choice Questions: 1 mark each
• Total Marks: 100
• 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 Indian Commodity Markets:
Learn about the history, participants, trading dynamics, and major commodities in derivatives exchanges.

·  Analyze Trading Strategies:
Explore hedging, speculation, arbitrage, and other strategies using commodity derivatives.

·  Master Market Operations:
Understand the mechanisms of trading, clearing, settlement, and risk management in the commodity derivatives markets.

·  Grasp the Regulatory Framework:
Learn about the regulatory environment governing the commodity derivatives markets, including SEBI’s regulations and client protection mechanisms.

Course Details:

• NISM exam registration fees not included in the above mention Course Fee.
• PPTs (500+ Slides), 700+ MCQs and PDFs 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-XVI: Commodity Derivatives Certification Examination is suitable for:

• Associated Professionals:
  • Approved users and sales personnel working with trading members in the commodity derivatives segment of recognized stock exchanges.
  • Employees of SEBI-registered entities involved in commodity derivatives operations, trading, and compliance-related functions.
  • Risk management professionals and operations staff engaged in clearing and settlement activities in commodity derivatives markets.

• Aspiring Individuals:
• Candidates from diverse academic backgrounds (10th, 12th, Undergraduate, Postgraduate) aspiring for careers in commodity markets or financial trading.
• Traders, portfolio managers, and financial advisors seeking specialization in commodity derivatives trading and risk management.
• Individuals aiming to understand the regulatory environment and market mechanisms governing commodity derivatives in India.

Curriculum Overview: NISM-Series-XVI: Commodity Derivatives Certification

Module I: Introduction to Commodity Markets

Study the history of commodity trading, spot vs. derivatives trading, ecosystem, and factors impacting commodity prices.

Module II: Commodity Futures

Understand concepts like cost-of-carry, convergence, convenience yield, and pay-off profiles of futures contracts.

Module III: Commodity Options

Learn option terminology, pay-off profiles, determinants of option premiums, and trading options on commodity futures and goods.

Module IV: Commodity Indices

Explore index construction, constituents, trading in index futures, and their practical applications.

Module V: Uses of Commodity Derivatives

Examine the strategies of hedging, speculation, arbitrage, spread trading, and the disclosure norms associated with them.

Module VI: Trading Mechanism

Understand exchange memberships, contract specifications, trading systems, order types, and participants in the commodity derivatives segment.

Module VII: Clearing, Settlement, and Risk Management

Study clearing corporations, settlement processes, physical delivery, penalties, risk containment measures, and margining mechanisms.

Module VIII: Accounting and Taxation

Explore accounting aspects, tax implications, and guidance for derivative transactions issued by ICAI.

Module IX: Legal & Regulatory Environment

Understand SEBI regulations, rights and obligations of members and clients, and investor grievance redress mechanisms.