Advantages of Clearing NISM-Series-X-A: Investment Adviser Certification Examination

Posted on 30 Nov 2016

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This examination aims to generate a benchmark of a certain level of common minimum knowledge for all the associated people who are registered as an investment adviser or partner or investment adviser’s representatives with SEBI (Investments advisers) regulations, 2013 and who offer services for investment advisory.

It is the level 1 examination and an associated person is required to complete both the levels to meet the eligibility criteria of regulation 7 (2) of the above mentioned regulation of SEBI. According to the market regulator (SEBI), this certification is necessary if one wants to practice as an investment adviser.

This course offers several advantages to the associated persons for their elevated career path. Some of them are being discussed below:

  • After completing both the levels of this examination, an associated person is eligible to provide the investment advice to the traders in the capital market. By the term, associated person, we mean a temporary or a permanent employee of any entity that is operating in the security space in India.
  • By completing NISM Investment Adviser level 1, an associated person gets oriented to the wealth tax, income tax and legal formalities of estate planning in the field of personal finance. He/she can also comprehend the regulatory aspects of the advisory.
  • On successfully completing the examination, the person gets to know the fundamentals of investment advisory, moves towards the advisory process and is able to make and implement various financial plans.
  • NISM Series XA also helps the associated person to get himself acquainted with the financial planning used as an investment approach, retirement planning, insurance etc. The person can also use them to develop good long term relationships with their customers.
  • This course helps the advisers to make out how to understand various products and their suitability. They can also understand how and why their recommendations can affect the risks on investment.
  • They can also understand how the various products can impact the strategies and returns of the investors or the other prospective investors in the capital market within their personal finance environment.
  • This course informs them about the basics of the Indian derivatives and equity markets. It helps them in understanding their functioning, systems and the risks that are involved in both the spot and the futures market.
  • In short, this certification course imparts the correct and complete knowledge to people who plan to work with the equity derivatives segment of any recognized stock exchange or even if they are associated with any product of these exchanges.

So, as is evident from our above, there are plenty of job opportunities after the successful completion of NISM Investment Adviser level 1. It gives you recognition in the job market where the other candidates try to compete with just the basic operating knowledge and a lack of a certification. It offers you an edge as NISM has a good brand value. After completing this course, you can apply for the jobs of sales representatives of banks, mutual funds or any other entity that sells derivatives and stocks.