Equity Sales Certification Examination

Equity Sales Certification Overview

This examination is a voluntary examination.

The examination seeks to create a common minimum knowledge benchmark for all persons involved in equity sales in order to enable a better understanding of equity markets, better quality investor service, operational process efficiency and risk controls.

It seeks to ensure a basic understanding of the various aspects of the equity products, the process flow involved in trading, clearing and settlement of these products and the regulatory environment under which the market operates.

  • Know the basics of the Indian equity market
  • Understand the characteristics of equity, associated risks and returns and taxation aspects
  • Understand the clearing, settlement and risk management as well as the operational mechanism related to equity market.

Equity Sales Certification Examination Fees Details

Name of Examination: NISM-Series-XI: Equity Sales Certification Examination

Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks* (%) Certificate # Validity (in years)
1770+ 120 100 100 50 3

Inclusive of Service Tax. Payment Gateway charges extra.

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

CHAPTER-1: Overview of Indian Securities Market

  • Introduction
  • Market Regulators
  • Market Segments
  • Market Participants
  • Types of Investors

CHAPTER-2: Regulatory Framework

  • Securities Contracts (Regulation) Act, 1956
  • Securities Contracts (Regulation) Rules, 1957
  • Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012
  • Securities and Exchange Board of India Act, 1992
  • The Depositories Act, 1996
  • The Companies Act, 1956
  • Prevention of Money Laundering Act, 2002
  • SEBI (Stock Brokers & Sub-brokers) Regulations, 1992
  • SEBI (Prohibition of Insider Trading) Regulations, 1992
  • SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulation, 2003

CHAPTER-3: Primary Market

  • Introduction to Primary Market
  • Issue of Shares
  • Public Issue

CHAPTER-4: Secondary Market

  • Introduction to Secondary Market
  • Functioning of the Secondary Market
  • Market Phases

CHAPTER-5: Understanding Market Indicators

  • Index and its Significance
  • Types of Indices based on Calculation Methodology
  • Major Indices in India
  • Impact cost – A Measure of Market Liquidity
  • Risk and Beta
  • Market Capitalization Ratio
  • Turnover Ratio
  • Fundamental Analysis
  • Technical Analysis

CHAPTER-6: Trading and Risk Management

  • Trading Systems in India
  • Orders
  • Trade Life Cycle
  • Mechanism of Circuit Breakers
  • Transaction Charges
  • Capital Adequacy Requirements of Trading Members
  • Risk Management System

CHAPTER-7: Clearing and Settlement

  • Types of Accounts
  • Clearing Process

CHAPTER-8: Market Surveillance

  • Introduction to Market Surveillance
  • Market Surveillance Mechanism (by Exchanges and by SEBI)

CHAPTER-9: Client Management

  • Introduction to Client Management
  • Types of Risks
  • Risk Profiling of Investors
  • Financial Planning
  • Product Suitability
  • Review of Client’s Portfolio
  • Client Account
  • Taxation
  • Investor Grievance Mechanism