Benefits of Clearing NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination

Posted on 26 Dec 2016

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The NISM Series X B: Investment Adviser (Level 2) examination when completed along with its level 1 course aims to create a benchmark for a common minimum knowledge for all the associated persons who are registered as investment advisors or partners or any representatives of investment advisers who work under SEBI (Investment Advisers) regulations, 2013 and offer the investment advisory services.

It is the level 2 examination and for becoming eligible to practice as an investment adviser, the associated person is required to clear both the levels. This is the regulation 7 (2) of the market regulator SEBI’s investment adviser regulations, 2013.

The examination paper contains 8 case lets which in turn contains four multiple choice questions bearing two marks each. In addition, there are 36 other multiple choice questions also. Total marks are 100 and the time given is 2 hours. Negative marking is equal to the).25 of the total marks assigned to the question. The candidates need to secure at least 60 marks to pass the examination.

There are several advantages of completing this course along with the level 1 as it may make the trajectory of your career path high and smooth. The few advantages are listed below:

  • When both the levels are completed, an associated person (a person who is a permanent or temporary employee of an entity which is operating in the Indian security space), becomes eligible to offer the investment advice to the customers trading in the capital market.
  • NISM Series XB examination, the associated person gets to know the complete financial planning in the household context so that he can apply the elements of planning that were learned in level 1 examination.
  • NISM Investment Adviser level 2, when completed, an associated person comes to know the operations, service and the compliance elements in the field of investment advice.
  • After this course, they get to know the practical aspects of selection of products, construction of portfolio, reviewing and rebalancing according to the needs of the clients.
  • After completing the NISM Series XB examination, an associated person can comprehend the structure and the performance of securities market. He can also understand the importance of allocation of assets and the effect of the movement of the market on the performance of the assets.
  • An associated person can connect with the companies that provide financial services and can offer their assistance in exchange related issues. With the recent boom in India, many companies like ICICI, HDFC, Reliance Mutual, ShareKhan etc. have got into this business and are always on a lookout for suitable candidates.
  • The brand name of NISM and the gained knowledge give you a clear edge over above candidates who try to make their career in the same field but lack the necessary requirements.