NISM-Series-XI: Equity Sales
National Institute of Securities Markets (NISM) offers Certification Examinations for associated persons in the securities market. And, NISM-Series-XI: Equity Sales Certification is one of its voluntary examinations. This exam provides a common minimum knowledge benchmark for all persons involved in equity sales. This is basically to enable a better understanding of equity markets, better quality investor service, operational process efficiency, and risk controls.
Further, this exam ensures to give a basic understanding of the various aspects of the equity products, the process flow involved in trading, clearing, and settlement of these products including the regulatory environment under which the market operates.
Exam Objectives
After successfully completing the NISM Series XI Equity Sales Certification Examination, the candidate should:
- Firstly, have an understanding of the Indian equity market.
- Secondly, understand the characteristics of equity, associated risks and returns, and taxation aspects.
- Thirdly, understand the clearing, settlement, and risk management as well as the operational mechanism related to the equity market.
- Lastly, know the regulatory environment in which the equity market operates in India.
Exam Details
NISM-Series-XI: Equity Sales Certification exam is a voluntary type examination that consists of 100 questions of 1 mark each adding to 100 marks. To complete this exam, there is a time duration of 2 hours. However, there shall be a negative marking of 25% of the marks assigned to a question. Further, to pass the exam, you need to score at least 50 marks in the NISM Series-XI Equity Sales Exam Questions. Talking about the certificate validity, this is valid for 3 years and the cost of the exam is Rs. 1770+ (+ Inclusive of Service Tax. Payment Gateway charges extra).
You must know that the passing Certificate will be issued only to those candidates who have updated their Income Tax Permanent Account Number (PAN) in their Equity Sales Certification registration details.
Exam Registration
You can register for the exam at NISM Certifications Registration Portal. There you can click on “Register” for fresh one-time registration. And, for those who have already registered with NISM Portal. They can log in by using the Email address and Password. Further, after logging in, you can access the following:
- Firstly, check Seat Availability
- Secondly, schedule a Test / Enroll Online
- Thirdly, make Payment using Credit Card / Debit Card/ Net Banking
- Next, Download Admit Card / Study Material (after enrollment)
- Lastly, access Exam Results and Verify Skills
NISM Series-XI: Equity Sales Course Outline
NISM-Series-XI: Equity Sales Certification exam contains nine units that includes sections. This will help you to understand things better and have a good preparation for the exam.
Unit 1: Overview of Indian Securities Markets
1.1 Know about the Indian Securities Markets
1.1.1 Discussing the structure of the Indian Securities Market
1.1.2 Discuss the role of the securities markets in the Indian economy
1.2 Listing the Market Regulators and understand their roles
1.3 Know the Products offered in the Indian Securities Markets
1.4 Knowing the Market Participants in the Indian Securities Market
1.5 List the Types of Investors
Unit 2: Regulatory Framework
2.1 Knowing the Securities Contracts (Regulation) Act, 1956 and explain how SC(R)A aims at preventing undesirable transactions in securities
2.2 Knowing the Securities Contracts (Regulation) Rules, 1957 and explaining the rules for a contract in equity market between two members of recognised stock exchange
2.3 Understanding the Securities and Exchange Board of India Act, 1992 and explain the Role of SEBI as a regulator
2.4 Understanding the SEBI (Stock Brokers) Regulations, 1992 and knowing the rules and regulations to be followed by Stock Brokers and Sub-brokers
2.5 Understand the SEBI (Prohibition of Insider Trading) Regulations, 2015
2.6 Understand the SEBI (Prohibition of Fraudulent and unfair trade practices relating to Securities Markets) Regulation, 2003
2.7 Understanding the Depositories Act, 1996 and knowing various regulations on depositories of securities
2.8 Understand the Companies Act and know various features followed by a listed company
2.9 Understanding the Prevention of Money Laundering Act, 2002 and knowing the regulations designed for preventing money laundering activities in the equity market
2.10 Listing and illustrating the various code of ethics followed by stock exchanges and SEBI’s code of conduct for brokers/sub-brokers
Unit 3: Primary Markets
3.1 Defining the role of the primary market
3.2 Listing and describing various methods of issue of shares
3.2.1 Describe the IPO Process
3.2.2 Understand the intermediaries involved in IPO
3.2.3 Describe the FPO Process
3.2.4 Describe the Rights and preferential issues Process
3.2.5 Know about the QIP Process
3.2.6 Know about the private placement process
3.2.7 Defining ADRS, GDRs, IDRs and FCCBs and know the process of their issue
3.3 Understanding the process of a public issue
3.4 Explain the various terminologies used in the primary market
Unit 4: Secondary Markets
4.1 Define the role of secondary market
4.2 Explaining the role of stock exchanges in the trading mechanism
4.3 Describing the various phases in equity market (bull and bear phase) and related investment strategies
Unit 5: Understanding Market Indicators
5.1 Explain the term index
5.1.1 Understanding the importance of index while investing
5.1.2 Understanding the economic significance of index movement
5.1.3 Know Attributes of an index
5.1.4 Calculate Total Returns Index
5.2 List various types of indices
5.3 List Major Indices in India
5.4 Define and Calculate Beta
5.5 Define Impact Cost
5.6 Understand market capitalization
5.6.1 Define Market Capitalization
5.6.2 Define and Calculate Market Capitalization Ratio
5.6.3 Explaining the significance of Market Capitalization Ratio as a market indicator
5.7 Understand Turnover and Turnover Ratio
5.7.1 Define Turnover
5.7.2 Define and Calculate Turnover Ratio
5.7.3 Explaining the significance of Turnover Ratio as a market indicator
5.8 Know the basics of fundamental analysis
5.9 Know the basics of technical analysis
Unit 6: Trading and Risk Management
6.1 Knowing the role of a Trading Member
6.2 Understand the trading systems in India
6.3 Explain various types of orders
6.4 Understand the Trade Life cycle
6.5 Understanding the mechanism of market wide circuit breakers and also Price Band
6.6 Knowing the transaction charges for securities transactions
6.7 Understanding the capital adequacy requirements of trading members
6.8 Discuss the Risk Management mechanisms
Unit 7: Clearing and Settlement
7.1 List and explain different types of accounts
7.2 Explaining the clearing process and describe the role of different agencies involved in the clearing and settlement process
7.3 Describe the netting of obligation
Unit 8: Surveillance, Investigation and Inspection
8.1 Explain the Importance of surveillance
8.2 Understanding the market surveillance mechanism adopted by the equity exchanges and regulators
Unit 9: Client Management
9.1 Explain Risk versus Return
9.2 Understand various types of risks
9.3 Understanding the importance of assessing the risk profile of investors
9.4 Understand basics of financial planning
9.5 Explaining how to suggest suitable products to investors based on their risk appetite
9.6 Describing the process of review of customer’s portfolio from time to time
9.7 Knowing the process of Opening of Client Account for trading
9.8 Impact of taxation on equity investments
9.9 Knowing the investors’ grievance redressal mechanism and the SEBI’s SCORES system
NISM Exam Policies
NISM helps candidates to understand the exam more accurately by using the exam policies. In the next section, we will talk about some of the policies for the NISM certifications.
Refund Policy
This policy states that fees once paid through the payment gateway shall not be refunded.But, for other reason, this can be done if:
- Firstly, multiple times debiting from a Candidate Card/Bank Account due to technical error. Or the Candidate’s account being debited with excess amount in a single transaction due to technical error.
- Secondly, due to technical error, payment being charged on the Candidate Card/Bank Account but the enrolment for the examination is unsuccessful.
Special Accommodation
In any case if the candidates require special accommodation for appearing for NISM Certification Examinations. Then, such candidates may inform NISM regarding the same. Further,to assist candidates requiring special accommodations, it is necessary to send the form to NISM at least 30 days in advance. Then, approval for Special Accommodation will be provided to the requesting candidate/s by NISM after assessing its need at its sole discretion.
Re-schedulement Policy
Candidates can reschedule an enrolled examination by directly logging into the NISM Certification Portal to a later date. This should be done at least 15 calendar days prior to the examination date, subject to the availability of examination dates and exam slots. However, candidates can avail themselves of the facility of rescheduling an enrolled examination only once after enrollment.
For More Information visit: NISM-Series-XI: Equity Sales Certification exam FAQs
Preparation Guide for NISM-Series-XI: Equity Sales Certification
NISM Series-XI: Equity Sales Training
NISM provides advanced training programs for securities market participants, including regulators, focusing on policy creation and implementation. These training programs help securities professionals to stay up to date with the latest market legal framework, products, processes, and technologies. This includes institutions that provide capacity building support for the initiative of SEBI in promoting financial and investor education. However, for this, individuals and organizations are being identified and trained as per the criteria laid out by SEBI.
Further, NISM conducts Investor Education programs for different Government Institutions/ Law enforcement agencies / Private and Public organizations and colleges across the country. Moreover, NISM provides training programs in various formats like classroom lectures, workshops, role-playing, and interaction with experts.
Exam Objectives
To get a good understanding of the concepts, exam objectives prove to be beneficial. Using the exam objectives, you can start preparing for the exam in a sequential manner as they are provided with sections and subsections. However, for NISM-Series-XI: Equity Sales Certification exam the objectives include:
- Firstly, Indian Securities Market Overview
- Secondly, Regulatory Framework
- Thirdly, Primary Market
- Fourthly, Secondary Market
- Then, Understanding Market Indicators
- After that, Trading and Risk Management
- Next, Clearing and Settlement
- Then, Market Surveillance
- Lastly, Client Management
Reference Books
Those who are dedicated enough to pass the exam, should know the importance of NISM Series-XI: Equity Sales Books during the time of preparation. However, while studying for the exam books can be really helpful to understand the core of the topics. Candidates can take the books available in the market that will help in studying for the NISM-Series-XI: Equity Sales Certification exam.
- Book Equity Sales: National Institute of Securities Markets
Online Study Groups
While preparing for the exam, online study groups can provide benefits to candidates. These groups help you to stay connected with the other people who are on the same pathway as you. Moreover, you can start discussing your query or the issue you are facing related to the exam in this group to get the best possible answer to your query.
Practice Tests
NISM Series-XI: Equity Sales Practice Tests are important to have better preparation. However, one advantage of assessing yourself is that you will be able to improve your time-management and answering skills as well as learn about your weak areas. As with having good answering skills, you will be able to save a lot of time during the exam. And, the best way to start taking NISM Series-XI: Equity Sales Mock Tests is after completing one full topic as this will work as a revision part for you. So, make sure to find the best practice sources. Boost your confidence with NISM Series-XI: Equity Sales Free Test now!
