Financial decision-making is not easy as it requires years of investing experience. But the relatively easier way is to improve your financial literacy by enrolling for a course that imparts financial education. Thankfully, many such courses are available in India like the ones offered by the National Institute of Securities Markets (NISM), a public trust established in 2006 by the Securities and Exchange Board of India (SEBI). NISM has been implementing several initiatives aimed at enhancing quality, compliance, efficiency, and effectiveness of participants in the stock market. In fact, NISM certification intends to help practitioners acquire the expertise they need to operate in several segments of the financial market. NISM has initiated a series of certification programs ranging from basic to the advanced level to cater to the demands of those who are interested in exploring the growth opportunities offered by specific securities markets in India.
If you are planning to start your career in the financial industry as a retail investor, stock-broker, mutual fund distributor, or research analyst, it would be a good idea to get NISM certification. In this article, you will learn all about NISM certification.
What is NISM certification?
NISM certification is a standard program for professionals in the financial services industry offered by the National Institute of Securities Markets (NISM). It educates participants about different segments of securities markets including mutual funds, research analysis, investment advisory services, and derivatives. Besides, it improves your professional competencies and equips you to seek employment in different segments of the financial services sector.
The certificate exam is regulated by the SEBI and as of now, it is mandatory for some professionals in the financial markets. This ensures that these professionals are equipped with the right knowledge and ethics required to operate in financial services. It acts as a reference, and a measure of the professional capability and integrity of players within the securities market with a recommended best-practice, acceptable standard of professional ethical behavior.
Currently, NISM has many certification tests and each of them is aimed at different segments of the financial markets. Some of the most popular NISM certifications include:
NISM Series VA: The examination, which includes Mutual Fund Distributors Certification, is also recognized by the globally acclaimed CFA Institute.
NISM Series XV: RRAX: Registered Research Analysts Examination
NISM Series VII: Certification examination in securities operations and risks management
NISM Series VIII: Equity Derivative Certification Test
NISM Series X-A: This seeks to create a minimum knowledge benchmark for associated persons registered as investment advisers.
These certifications are relevant to those individuals who plan to work in areas of mutual funds sales, research, investment advisory, and broking.
Eligibility for NISM certification
For most of the NISM certification courses, there is no requirement that the candidate come with any academic background or experience. This makes it possible for employment seekers with various categories of qualification to try these examinations, including freshers in the job market or experienced individuals.
However, there are a few general guidelines that candidates should meet:
Age: The candidate must have attained 18 years of age to register for NISM certification exams.
Basic Education: However, there is no stipulation made for educational qualification for writing most of the NISM examinations, but a basic knowledge of finance, accounting, or economics is expected.
Work Experience: With regard to the work experience; it is preferred, but not mandatory while undertaking some of the advanced level tests such as Investment Advisers Level 2.
Perhaps it is worth noting that NISM certification is open to students and working professionals and even for people who want to change their jobs and get into financial services area. It is advantageous for those candidates who acquire these certifications since it offers thorough training.
How to register for the NISM certification exam?
It is easy to do NISM registration as we will see in the following steps. The entire registration and exam process is conducted online, and candidates can follow these steps to get started:
Create an account on NISM’s website:
Admission to NISM can be done online through the official web address of NISM, www.nism.ac.in and you need to create a user ID with basic information that includes name, phone number, and email address.
Choose the certification exam:
Once you have your account, search through the list of tests that are offered and choose one that will be most beneficial for you.
Fill out the application form:
Once you have chosen the relevant exam, fill in the application form which includes your education history, your work experience in case you have any, and any other information that might be needed.
Pay the exam fee:
Upon the submission of the form, the candidate is supposed to make the test fee payment. Costs vary for each certification exam, but the average cost is between Rs. 1,500 to Rs. 3,000. Payment can be done through credit/debit card/net banking/ Google/ Paytm/Phone pay etc.
Schedule the exam:
Once the payment is done, choices of date and time for the exam will be made available for selection. NISM Certification Examinations are also held, from time to time, at all the NISM-affiliated examination centers across the country.
Download the admit card:
After you have set your exam date, you will have to download your admit card from the NISM website.
Take the exam:
If you miss a date, you will have to take the exam on another date with another admit card or voucher number for the same test center. All exams are conducted online and they follow the multiple choice questions (MCQ) format.
Why take the NISM certification examination?
There are several advantages which make NISM certification useful and hence it is popular among candidates who seek employment in financial services firms. Here are some of the reasons to take the NISM certification exam:
1. Regulatory requirement
It is mandatory for several positions in the securities market, particularly for mutual fund distributors, research analysts, and stockbrokers to possess NISM certification. This implies that individuals who are interested in taking up these roles should clear the NISM certification exam. The certification vouches that one is fit to work in the financial sector.
2. Career advancement
If you wish to enhance your credentials for a financial services job, an NISM certification would definitely help. NISM certification courses are important and rated high among employers in securities and investment industries.
3. Enhanced skills and knowledge
The course offered by the NISM is intended to equip the candidate with knowledge of the securities marketplace, ethical standards, market regulations, and different financial products. When you begin preparing for the exam, you will learn about various aspects of the market like fairness, debt, derivatives, mutual funds, and risk assessment.
4. Improved credibility
An NISM certification also adds value to your professional profile. It also assures the clients and employers that you have the requisite skills to handle or offer financial products and advice. In a competitive marketplace such as the finance industry, customers are always particular about the level of credibility that accompanies any investment opportunity and having this certification will definitely give you an added advantage.
5. Flexibility and convenience
The NISM certification exams are flexible in terms of timing and location. Since the exams are conducted round the year at multiple facilities across India, applicants can select a suitable time and location to appear for the exam. Moreover, as the exams are computer-based, the results are declared promptly.
Conclusion
NISM certification is a valuable asset for anyone looking to build a career in the financial services industry. Whether you’re simply starting out or trying to sharpen your skills, obtaining this certification can improve expertise, capabilities, and employability. It prepares you for roles in domains such as mutual funds, research analysis, and investment advisory services.
The certification isn’t just a regulatory requirement for certain roles, but is also a testament to your competency and ethical requirements in the securities market.
