NISM Exam 2024: Eligibility, Syllabus, and Exam Pattern

The NISM exam offers various certifications in mutual funds, derivatives, investment advisory, securities markets, and merchant banking. Anyone aged 18 or above can take these exams to validate their financial knowledge of security markets. The NISM exam 2024 is essential for individuals aiming for a career in the securities market.

This blog will outline the eligibility requirements to determine who can take the exam, break down the syllabus to comprehend the topics covered, and explain the exam pattern, including format, question types, and marking scheme. By understanding these key areas, you can effectively prepare for the NISM exam and increase your chances of success in the securities industry.

What is the NISM Exam?

The National Institute of Securities Markets (NISM) Exam is a certification examination conducted by security market participants and intermediaries as mandated by the Securities and Exchange Board of India (SEBI).

The primary purpose of the NISM exam is to establish a common minimum knowledge standard for individuals in the securities market. By certifying individuals, NISM ensures that market participants possess the essential knowledge and skills to perform their roles effectively and ethically.

Types of NISM Certifications

NISM offers a range of certifications to cater to different roles within the securities industry. Some of the prominent certifications include:

Mutual Fund Distributor Certification
SEBI Investor Certification
Research Analyst Certification
Currency Derivatives Certification
Depository Operations Certification
Securities Operations and Risk Management Certification

NISM Certification Examinations

The NISM exam carries out two key responsibilities given by the Securities and Exchange Board of India (SEBI) under the SEBI (Certification of Associated Persons in Securities Markets) Regulations, 2007. These responsibilities include:

Conducting mandatory Certification Examinations for individuals associated with securities market intermediaries.
Providing Continuing Professional Education (CPE) Programs for these individuals.

When a certificate held by an associated person approaches its expiration, it must be renewed either by passing the relevant NISM Certification Examination before the current certificate expires or by completing a specified one-day Continuing Professional Education (CPE) program within the 12 months before the certificate’s expiration date.

The renewed certificate will remain valid for three years from when the previous certificate expires.

Relevance and Benefits of NISM Certification

NISM certification is highly valued in the financial sector for several reasons:

Professional Recognition: It validates your knowledge and expertise in the securities market.
Career Advancement: NISM certification can open doors to better job opportunities and career growth.
Enhanced Credibility: It improves your credibility as a financial professional.
Compliance Adherence: NISM certification ensures compliance with SEBI regulations.
Knowledge Upgradation: Preparing for and clearing NISM exams helps expand your financial knowledge.

Eligibility Criteria for NISM Exam 2024

Anyone interested in pursuing a securities market career can take up these certifications by taking the NISM exam. While the general eligibility is relaxed, specific NISM certifications might have additional requirements. For instance:

Educational Qualifications: Most NISM exams do not have mandatory educational qualifications. However, some specialized certifications require a specific educational background. It’s important to check the eligibility criteria for the specific NISM exam you’re targeting.
Age Restrictions: Individuals aged 18 or above can appear for this NISM exam, and there is no upper age limit.

NISM Exam Syllabus 2024

The NISM syllabus is designed to equip individuals with the necessary knowledge and skills to work in the securities market. It covers various topics, including financial markets, securities, regulations, trading, risk management, and ethics. The specific content varies depending on the NISM exam you are preparing for.

Key Topics Covered in the Syllabus

While the exact syllabus differs for each NISM exam, some common themes include:

Financial Markets: Understanding the structure, functions, and participants of various financial markets (equity, debt, derivatives, forex).
Securities: Knowledge of different types of securities (stocks, bonds, derivatives, mutual funds) and their characteristics.
Regulations and Compliance: Awareness of the legal and regulatory framework governing the securities industry, including SEBI regulations.
Trading and Settlement Processes: Understanding the mechanics of trading, clearing, and settlement of securities transactions.
Risk Management: Knowledge of risk management concepts and tools used in the securities industry.
Ethical Practices: Adherence to ethical standards and professional conduct in the securities market.

NISM Exam Pattern 2024

Format of the Exam

Most NISM exams are conducted online in a computer-based test (CBT) format. This ensures efficiency and quick results.

Types of Questions

The majority of NISM exams primarily consist of multiple-choice questions (MCQs). These questions test your knowledge of various concepts and principles related to the securities market. However, some exams also include a few descriptive or short answer questions to assess your understanding and application of knowledge.

Number of Questions and Duration of the Exam

The number of questions and exam duration time vary depending on the specific NISM exam. Exams have 100 to 150 questions and a duration of 2 hours.

Marking Scheme and Negative Marking

Marking Scheme: Each right answer carries one mark.
Negative Marking: While most NISM exams have a negative marking system, there are exceptions. Some exams, like NISM Series V-A, V-B, and XII, do not have negative markings. For exams with negative markings, a quarter (1/4) or 25% of the marks assigned to a question is deducted for incorrect answers.

How to Prepare for the NISM Exam

Understanding the NISM Exam 2024

The NISM exam is crucial for individuals aspiring to work in the securities market. It tests your knowledge of financial markets, regulations, and related concepts. Effective preparation is key to clearing the exam in the first attempt.

Effective Study Strategies and Tips

Understand the Syllabus: Familiarize yourself with the NISM exam pattern, syllabus, and marking scheme. This will provide a clear roadmap for your preparation. Create a study plan based on the syllabus weightage to prioritize topics effectively.
Focus on Concepts: Grasp the underlying concepts rather than merely memorizing facts. This will enable you to apply knowledge to various exam questions. Develop a habit of explaining concepts in your own words to solidify understanding.
Practice Regularly: Solve questions to enhance speed and accuracy. Join online forums to discuss concepts and problem-solving approaches with peers.
Time Management: Assign time slots for each topic based on its difficulty and importance. Use timers during practice sessions to simulate exam conditions and improve time management skills.
Revision: Regularly revisit completed topics to reinforce learning. Create flashcards or summaries for quick revision.
Stay Updated: Keep yourself updated about the market trends and regulatory changes through financial newspapers, journals, and online resources. Participate in webinars or industry conferences to gain insights.

Creating a Study Schedule

Break Down the Syllabus: Divide the NISM exam syllabus into smaller, manageable sections. Create a detailed study schedule for each section, assigning specific time slots.
Allocate Time: Prioritize topics based on their weightage and difficulty level. Allocate more time to challenging areas while ensuring adequate coverage of all sections.
Set Realistic Goals: Establish achievable daily, weekly, and monthly goals to track progress and stay motivated. Reward yourself for accomplishing milestones.
Be Flexible: Be organised to adjust your schedule based on your learning pace and understanding. Incorporate short breaks into your study routine to prevent burnout.

Utilizing Online Resources and NISM Mock Tests

Online Study Materials: For additional study material, leverage online resources like the NISM official website, e-learning platforms, and educational blogs. Create a digital storage of important notes and formulas for easy access.
Mock Tests: Practice with mock tests to assess your preparation level and identify weak areas. Scrutinize your performance to understand your strengths and weaknesses.
Analyze Performance: Review mock test results in detail. Focus on areas where you made mistakes and rectify them through further study.

Joining Study Groups or Coaching Classes

Study Groups: Collaborate with fellow aspirants to discuss concepts, clarify doubts, and stay motivated. Share study materials and insights with group members.
Coaching Classes: Consider joining coaching classes for structured guidance and expert mentorship. You will benefit from interactive sessions and personalized attention.

Time Management During Preparation

Prioritize Tasks: Identify important topics and allocate more time to them. To stay focused, create a to-do list for each study session.
Avoid Distractions: Create a dedicated study space free from interruptions. Utilize time management methods, such as the Pomodoro Technique, to improve concentration.
Take Breaks: Incorporate breaks into your study schedule to rest and recharge. Engage in physical exercise or relaxation techniques during breaks.
Manage Stress: Practice stress management techniques like meditation or deep breathing exercises. Maintain a nourishing work-life balance to prevent burnout.

How to Register for the NISM Exam 2024

To register for the NISM exam, you need to follow these steps:

Visit the NISM Website: To participate in the NISM exam, visit the official NISM website.
Create an Account: You must first register via an online portal. Select ‘Register for Certification Exam’. You will need to enter the required details. If you don’t have an account, create one.
Choose the Exam: Once registration is complete, you can select your desired exam. On the NISM Online Certification System, choose the testing center, exam date, and time slot.
Submit the Application Form: Complete and submit the enrollment form. Remember, enrollment is valid for only 180 days.

Note: Once you log in, you will have access to a variety of services, including:

Viewing seat availability
Scheduling a test or enrolling online
Making online payments via credit card, debit card, or net banking
Taking practice exams
Downloading your admit card or study materials (post-enrollment)
Accessing exam results and verifying skills
Submitting feedback

Registration Fees and Payment Methods

The registration fee for NISM exams varies depending on the exam type. NISM offers multiple payment options, including:

Online Payment: Credit card, debit card, net banking
Demand Draft: Payable to “National Institute of Securities Markets”
Other Payment Modes: As specified by NISM

Important Note: It’s advisable to register well in advance to secure your preferred exam slot.

NISM Certification Exams Calendar

Click here to download the Test Calendar for September 2024.

Click here to download the Test Calendar for August 2024.

Tips for NISM Exam Day

What to Bring on the Exam Day

Admit Card: Carry your admit card safely to avoid any last-minute hassle. Ensure all details are correct and legible.
Valid ID Proof: Bring the original ID proof as mentioned on the admit card. Keep a photocopy of your ID for added security.
Passport-sized Photograph: Carry a recent passport-sized photograph as a backup, in case it’s required.
Exam Essentials: Bring necessary stationery like pencils, erasers, and a sharpener if permitted.
Watch: A simple watch can be helpful for time management. Avoid smartwatches or devices with extra features.
Light Snack: Carry a small energy bar or a chocolate to maintain concentration levels during the exam.

Guidelines for the NISM Exam Day

Reach Early: Plan your journey to reach the exam center well in advance. Allow additional time for unexpected traffic or delays.
Follow Instructions: Pay close attention to the exam invigilator’s instructions. Clarify any doubts before the exam starts.
Read Questions Carefully: Understand the question thoroughly before marking the answer. Avoid rushing through questions.
Manage Time Wisely: Allocate time for each section based on the number of questions and their weightage. Keep track of time throughout the exam.
Review Answers: If time permits, review your answers carefully to rectify any mistakes. Focus on questions you were unsure about.

Time Management During the NISM Exam

Prioritize Questions: Begin with questions you are confident about to build momentum and confidence.
Mark Difficult Questions: Flag challenging questions to revisit later if time allows. Focus on questions you can answer accurately first.
Avoid Guesswork: If unsure about an answer, eliminate options and make an educated guess as a last resort.
Time Allocation: Create a rough time allocation for each section based on the number of questions. Adjust the plan as needed.

Dealing with Exam Stress and Anxiety

Deep Breathing: Practice deep breathing exercise to relax your nerves before and during the exam.
Positive Affirmations: Remind yourself of your preparation and capabilities. Visualize success.
Focus on the Present: Avoid dwelling on past mistakes or worrying about future outcomes. Concentrate on the current question.
Visualize Success: Imagine yourself successfully completing the exam. This can help reduce stress and increase morale.

Final Words

Preparing for the NISM exam 2024 can be challenging, but success is within reach with dedication and the right approach. Remember, every aspirant starts at the same point. Consistent action, effective time management, and a positive mindset are key to clearing the exam.

Believe in your capabilities and stay motivated throughout the preparation journey. Seek support from fellow aspirants, mentors, or online communities to overcome challenges and stay inspired.