The NISM Series VIII- Equity Derivatives Certification Examination aims at creating a common minimum expertise standard for all persons who are involved in trading equity derivatives in a recognized stock exchange.
Exam Pattern: NISM Series VIII- Equity Derivatives
|
Fees |
Rs.1500 |
|
Test Duration (in Minutes) |
120 |
|
No. of Questions |
100 |
|
Maximum Marks |
100 |
|
Pass Marks*(%) |
60 |
|
Certificate Validity(in years)# |
3 |
Assessment Structure:
- The NISM-Series-VIII: Equity Derivatives Examination consists of 100 questions, each carrying 1 mark.
- Participants have 2 hours to complete the examination.
- There is negative marking (25% deduction) for incorrect answers.
- The passing score is 60%.
Syllabus:NISM Series VIII- Equity Derivatives
Chapter 1: Basics of Derivatives
- Basics of Derivatives
- Derivatives Market – History & Evolution
- Indian Derivatives Market
- Market Participants
- Types of Derivatives Market
- Significance of Derivatives
- Various risks faced by the participants in derivatives
Chapter 2: Understanding Index
- Introduction to Index
- Significance of Index
- Types of Stock Market Indices
- Attributes of an Index
- Index management
- Major Indices in India
- Application of Indices
Chapter 3: Introduction to Forwards and Futures
- Introduction to forward contracts
- Futures contracts
- Contract specifications of futures contracts
- Some important terminology associated with futures contracts
- Differences between Forwards and Futures
- Pay off Charts for Futures contract
- Futures pricing
- Price discovery and convergence of cash and futures prices on the expiry
- Uses of futures
Chapter 4: Introduction to Options
- Basics of options
- Contract specifications of exchange-traded options
- Moneyness of an option
- Intrinsic value and time value of an option
- Pay off Charts for Options
- Distinction between futures and options contracts
- Basics of Option Pricing and Option Greeks
- Option Pricing Models
- Implied volatility of an option
- Analysis of options from the perspectives of buyer and seller
Chapter 5: Strategies using Equity futures and Equity options
- Futures contracts for hedging, speculation and arbitrage
- Use of options for trading and hedging
- Arbitrage using options: Put-call parity
- Delta-hedging
- Interpreting open interest and put-call ratio for trading strategies
Chapter 6: Trading Mechanism
- Trading Mechanism
- Eligibility criteria for selection of stocks for derivatives trading
- Selection criteria of Index for trading
- Adjustments for Corporate Actions
- Trading costs
- Algorithmic trading
- Tracking Futures and Options data
Chapter 7: Introduction to Clearing and Settlement System
- Clearing Members
- Clearing Mechanism
- Interoperability of clearing corporations
- Settlement Mechanism
- Risk Management
- Margining and mark to market under SPAN
- Position limits
- Violations and Penalties
- Settlement Guarantee Fund and Investor Protection Fund:
Chapter 8: Legal and Regulatory Environment
- Securities Contracts (Regulation) Act, 1956
- Securities and Exchange Board of India Act, 1992
- Regulations in Trading
- Regulations in Clearing & Settlement and Risk Management
- Eligibility criteria for membership on derivatives segment
Chapter 9: Accounting and Taxation
- Accounting
- Taxation of derivative transaction in securities
Chapter 10: Sales Practices and Investors Protection Services
- Understanding risk profile of the client
- Risk Disclosure Document
- Written Anti Money Laundering Procedures
- Investors Grievance Mechanism
