10 Major Advantages of NISM Certification

Posted on 20 Dec 2022

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A NISM Certificate is an entry level certification in capital markets. This must not be construed that they are simple-to-clear kind of certifications. Entire NISM Examination needs in-depth study of the subject and practice of mock tests to clear the exam in the first attempt.

NISM Certification Advantages / Uses:

Following are some advantages of NISM Certificate which I could collect working in the securities markets:

  1. To Meet Regulatory Necessities: NISM Certifications are necessary (made compulsory by SEBI) before you can work in the capital markets. The mandate comes from SEBI Certification of Associated Persons in Securities Market (CAPSM) Regulations, 2007. As per this regulation, an entire individual/professional is required to pass respective certification by NISM before employment. For instance, a derivatives market dealer is needed to clear NISM Series VIII: Equity Derivatives Certification before he/she can operate the derivatives terminal. This is one of the key NISM Certification advantages.
  2. Improves Product and Process Knowledge: Entire NISM Certifications come with NISM Workbooks that is the designated study material for preparing for such exams. The study material offers detailed product knowledge, process information, rules and regulations with detailed illustrations and examples. Usually, a professional working in a specific area in an organisation, e.g., compliance or dealer or sales person lacks knowledge related to other functions. NISM Certifications, therefore help bridge the knowledge gaps amongst professionals.
  3. Helps in Seeking Jobs in Capital Market: Apart from industry experts, NISM Certifications can also be obtained by students of finance, management, economics and marketing. This helps them increase their domain proficiency as well as prepares them better to join the industry.
  4. Good Value Addition on Resume: These certifications also increase the value of your resume to a huge extent. Basically these certifications are seen as a guarantee for the employer that the individual possesses the requisite knowledge needed on the job. These certifications can also be seen as a starting step towards international certifications such as CFA, CFP etc.
  5. Nation-wide Acceptance: NISM Certifications are accepted by entire intermediaries in the securities market comprising banks, brokerage firms, asset management companies, investment banks, RTAs and many more. Most significantly, these certifications are backed by the regulator itself (SEBI).
  6. Genuine Source of Information: The knowledge obtained through NISM Certifications is completely authentic, unbiased and current. Whenever I am in a dilemma regarding a specific topic, I would most of the time refer to the NISM Workbook as it is also seen as a dictionary of capital market knowledge.
  7. Low Fees: Fees for these certifications are very less. Most certifications can be obtained at a reasonable fee of Rs. 1500/- (as of April 2018). This makes them the most affordable certifications available in the financial domain.
  8. Simple Availability of NISM Mock Tests: The availability of Free and Paid Mock Tests makes clearing these exams relatively simple. Several practice tests, questions and answers are available at PASS4SURE.
  9. Free Download of NISM Study Material: While NISM offers its workbook only after paying the exam fees, PASS4SURE has a collection of these workbooks that can be downloaded free of cost online.
  10. Partnership with NISM: While above are the advantages for individuals, NISM Certifications are also advantageous for colleges and educational institutions who can partner with NISM and increase their brand value. The details of the partnership programme is available on NISM website.

Hope the above advantages helped you know about NISM Certifications. If you require NISM study material / NISM Mock Test for clearing NISM exam with flying colours then opt for PASS4SURE.