The professional marketplace is proliferated with people who want to make a mark for themselves. With the increased granularity of the profession and evolution of financial markets comes the need for greater specialisation. How useful a credential is to its holder and his employer depends upon your area of focus and the rigour and scope of your designation.
There has been a paradigm shift in the way financial markets operate now — there are a variety of new functions that need different levels and a completely new way of specialisation and orientation has emerged. Taking into account international experience and the needs of the Indian financial markets, with a view for protecting interests of investors in financial markets and more importantly, for minimising risks of losses arising out of deficient understanding of markets and instruments, National Stock Exchange has introduced a facility for testing and certification by launching NSE’s Certification in Financial Markets (NCFM).
Here are some certifications that will hone your skills in Finance and give you a ‘hands on’ of the working of the financial markets — both money and capital.
The duration of the tests varies from 105-120 minutes and the number of questions is 60. The maximum marks for tests varies from 100-120 and the passing marks are 50 to 60 per cent depending on which test you have gone in for. There is negative marking for incorrect answers.
For successful candidates, certificates are valid for five years from the test date.
NSE Certified Market Professional (NCMP)
These certificates are in levels 1-5 and are issued to those candidates who have cleared NCFM modules. In case you have cleared 3-4 modules, you will be given Level 1, 5-6 modules will give you level 2. 7-8 would get you level 3, 9-10 modules will make you eligible for level 4, clearing of more than 11 modules will get you level 5. The NCMP certificate itself has no validity period.
NSE Certified Derivatives Pro (NCDP)
On passing NCFM Equity Derivatives: A Beginners' Module + Derivatives Market (Dealers) Module + Options Trading Strategies Module.
NSE Certified Derivatives Champion (NCDC)
On passing NCFM Equity Derivatives: A Beginners' Module + Derivatives Market (Dealers) Module + Options Trading Strategies Module + Option Trading (Advanced) Module.
NSE Certified Investment Analyst Pro (NCIAP)
On passing NCFM Investment Analysis and Portfolio Management Module + Technical Analysis Module + Fundamental Analysis Module.
NSE Certified Investment Analyst Champion (NCIAC)
On passing NCFM Investment Analysis and Portfolio Management Module + Technical Analysis Module + Fundamental Analysis Module + Wealth Management Module.
NSE’s Capital Market Aptitude Test (NCMAT)
If you wish to hone your skills in the area of capital markets and investment, this test is for you. In order to assess the aptitude, knowledge and skills in the capital markets. The duration of the test is 120 minutes and the number of questions is 100. The passing marks is 60 per cent with no negative marking. You would be asked questions on Equity and Debt Markets, Derivatives, Portfolio Theory, Risk and Return etc. The certification accelerates your job opportunities in the capital market and in the banking sector.
National Institute Of Securities Markets (NISM)
NISM is a public trust, established by the Securities and Exchange Board of India (SEBI), the regulator for securities markets in India. NISM has launched an effort to deliver financial and securities education at various levels and across various segments in India and abroad. It develops and implements certification examinations for professionals employed in various segments of the Indian securities markets. The School for Certification of Intermediaries (SCI) at NISM is engaged in developing certification examinations for professionals employed in various segments of the Indian securities markets.
The NISM exams are in series:
So, in case you wish to cut the clutter and make a mark for yourself, these certifications would not only add some meat to your resume but also hold you in good stead in the financial job market.
NCFM modules
NCFM currently tests expertise in different modules. It offers a comprehensive range of modules covering many different areas in Finance. The modules are in three categories - Basic, Intermediate and Advanced.
Basic Modules
There are basic modules on Financial Markets, Mutual Funds, Currency Derivatives, Equity Derivatives, Interest Rate Derivatives, Commercial Banking in India, Debt market and Securities Market.
Intermediate Modules
Once you are done with the basic certifications in any/each of these modules, you can graduate to Intermediate modules that cover certifications in the same topics like Capital Markets, Mutual Funds, Currency Derivatives, and the like.
Advanced modules
These modules have been prepared with a view to provide candidates with a comprehensive and in depth knowledge about the financial markets. The modules are on Financial Markets, Securities Markets, Derivatives, Mutual Funds, Options Trading, Equity Research, Issue Management, Market Risk, Financial Modeling, Credit Risk Analysis Certification and the like
Proficiency Certificate
Depending upon the NCFM modules successfully cleared by you, you would also be eligible for Proficiency Certifications.
Eligibility
The qualifying criteria for the various certifications are as given below:- NISM Series I: Currency Derivatives Certification Examination
- NISM Series II A: Registrars and Transfer Agents (Corporate) Certification Examination
- NISM Series II B: Registrars and Transfer Agents (Mutual Fund) Certification Examination
- NISM Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification
- ISM Series-III-B: Issuers Compliance Certification Examination
- NISM Series IV: Interest Rates Derivatives Certification Examination
- NISM Series V A: Mutual Fund Distributors Certification Examination
- NISM-Series V-B: Mutual Fund Foundation Certification Examination
- NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination+
- NISM Series VI: Depository Operations Certification Examination
- NISM Series VII: Securities Operations and Risk Management Certification Examination
- NISM-Series-VIII: Equity Derivatives Certification Examination
- NISM Series-IX: Merchant Banking Certification Examination
- NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination
- NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination
- NISM-Series-XI: Equity Sales Certification Examination+
- NISM Series-XII: Securities Markets Foundation Certification Examination
- NISM Series-XIII: Common Derivative Certification Examination
- ISM Series-XV: Research Analyst Certification Examination
Summing up
The certifications mentioned above would make you assess your own aptitude and hone your skills for the area you wish to make your career or are pursuing your career. Far reaching reforms during the past few decades have transformed the Indian capital markets into a transparent, liquid and vibrant market place and also made it imperative for those seeking a career in the financial sector to stay abreast with the latest trends in both the primary and secondary markets.