Online NISM Certified Equity Derivatives Course

The National Institute of Securities Market (NISM) is a public trust established by SEBI, whose objective is to promote securities market education and research. The NISM (National Institute of Securities Markets) Equity Derivative Certification Exam VIII is a specialized exam that evaluates individuals' knowledge and skills in equity derivatives in the Indian financial industry.

It is now the standard benchmark examination for Approved users and sales personnel in the derivatives segment.

As NISM is mandated to implement certification examinations for professionals employed in various segments of the Indian securities markets, Elearnmarkets has curated this program to help you become a certified NISM Analyst in the Derivatives Segment.

This is a comprehensive, self-paced program that will help you prepare for the NISM Series VIII EXAM. Our objective is not only to help you clear the examination but also to give you an in-depth understanding of equity derivatives, including concepts, strategies, regulations, and market dynamics. 

Apart from theory, we have also curated an Online Mock Test of 500+ questions for the NISM Series VIII: Equity Derivatives Certification Examination, collating all the reference questions to help you prepare for the examination.

In case of any further queries, you can post your doubts in the discussion forum & our experts will get back with answers.

To know more about NISM, and register for the examination, click on www.nism.ac.in

Please find below the topics covered in the course - Online NISM Certified Equity Derivatives Course:

Topic 1: Basics of Derivatives

• Understand the derivatives & know the brief history of financial derivatives in India
  Explore different types of market & market participants and their roles
• Differentiate between OTC and exchange-traded markets
• Learn the significance of derivatives & various risks faced by the participants in derivatives markets

Topic 2: Understanding Index

• Understand the various types of Indices and their computation
• Key important attributes for the construction of an Index and how the index is constructed, maintained and revised
• Explore various applications of indices

Topic 3: Introduction to Equity Futures and Forwards

• Explore Forward contracts and the major drawbacks of forward contracts
• Understand Futures contract, list salient features and limitations of Futures contract
• Contract Specification of Exchange Traded Equity Futures
• Understand the payoff chart for Long and Short Futures
• Explore the various futures pricing method
• Learn the applications of equity futures

Topic 4: Introduction to Equity Options

• Understand the options & the contract specifications of exchange-traded equity Options contracts
• Learn the concept of the Moneyness of an option and the intrinsic value and time value of Options
• Explore the payoff diagrams of the call and put options for the buyer and writer of these options
• Know the factors that affect the value of calls and puts and understand option greeks
• Understand the concept of implied volatility and its importance
• Analyse the profitability of the call and put options of different strikes from the perspectives of the buyer and seller of these options

Topic 5: Strategies using Equity Futures and Equity Options

• Discuss different strategies for hedging, trading and arbitrage using equity futures
• Explore various option trading strategies for hedging, trading and arbitrage purposes

Topic 6: Trading Mechanism

• Understand the workings of derivative trading & eligibility criteria for the selection of an index & stock for derivative trading
• Know various trading costs such as brokerage, exchange transaction charges, SEBI turnover fees, and other costs like stamp duty, GST, STT, etc.
• Delve into the algorithmic trading

Topic 7: Clearing, Settlement and Risk Management

• Understand the clearing and settlement mechanisms & know the various entities involved in the clearing and settlement process and their roles
• Explore the responsibilities of a clearing corporation and discuss the Interoperability among clearing corporations
• Deep dive into the settlement Mechanism, Daily Settlement Price and Final Settlement Price
• Understand margining and mark-to-market (MTM) and the effects of non-payment of margin.
• Discuss margin collection processes of clearing corporations. Understand the importance of client margin reporting and the new framework for verifying upfront margin collection from clients (including the segregation and monitoring of collateral at the client level).
• Explore the Settlement Guarantee Fund (SGF) and Investor Protection Fund (IPF)

Topic 8: Legal and Regulatory Environment

• Know important provisions of the Securities Contract (Regulation) Act, 1956 and know the definition of securities and derivatives under this act
• Understand the role of SEBI in regulating the exchange-traded equity derivatives market & important rules and regulations pertaining to trading in the equity derivatives market
• Explore the important rules and regulations related to clearing, settlement and risk management & eligibility criteria for different members in the derivative segment

Topic 9: Accounting and Taxation

• Learn the accounting treatment of futures and options contracts
• Understand the taxation of derivative transactions and describe the applicability of STT on derivative contracts

Topic 10: Sales Practices and Investor Protection Measures

• Learn the importance of understanding the risk profile of the clients & importance of the risk disclosure to clients, KYC and Suspicious Transaction Reporting (STR)
• Know about the anti-money laundering procedures
• Understand the investor grievance redressal mechanism