NISM CERTIFICATION EXAMINATION
Equity Derivatives
Prepare for NISM-Series-VIII Equity Derivatives with structured learning covering futures, options, option Greeks, trading strategies, hedging, clearing and settlement, risk management, regulations, taxation and investor protection.
Prepare for the NISM-Series-VIII: Equity Derivatives Certification Examination with structured classroom training at Chart Education. Learn equity futures and options, index concepts, option pricing and Greeks, trading strategies, hedging, clearing and settlement, risk management, regulatory requirements, accounting, taxation and investor protection through concept-based learning, practical examples, question practice and mock tests.
EXAM DURATION
2 Hours
MAXIMUM MARKS
100
PASSING MARKS
60%
NEGATIVE MARKING
25%
QUESTIONS
100
Detailed Syllabus
NISM-Series-VIII: Equity Derivatives — Detailed Syllabus
The NISM-Series-VIII: Equity Derivatives Certification Examination covers the fundamentals of derivatives, equity indices, futures and options, trading strategies, trading mechanisms, clearing and settlement, risk management, regulatory requirements, accounting, taxation and investor-protection practices.
The current NISM curriculum contains 10 chapters.
Chapter 1 — Basics of Derivatives
Basics of derivatives
History and evolution of derivatives markets
Indian derivatives market
Market participants
Types of derivatives markets
Significance of derivatives
Risks faced by participants in derivatives markets
Exchange-traded and other derivatives-market concepts
Chapter 2 — Understanding Index
Introduction to stock-market indices
Significance and economic purpose of indices
Types of stock-market indices
Attributes of an index
Index management
Major indices in India
Applications of indices
Understanding index construction and maintenance
Chapter 3 — Introduction to Forwards and Futures
Forward contracts
Futures contracts
Contract specifications of futures
Important futures terminology
Differences between forwards and futures
Futures payoff charts
Futures pricing
Price discovery
Convergence of cash and futures prices at expiry
Uses of futures
Chapter 4 — Introduction to Options
Basics of options
Exchange-traded option specifications
Moneyness of options
Intrinsic value
Time value
Option payoff charts
Futures versus options
Option pricing
Option Greeks
Option pricing models
Implied volatility
Analysis from the perspective of option buyers and sellers
Chapter 5 — Strategies Using Equity Futures and Equity Options
Futures for hedging
Futures for speculation
Futures for arbitrage
Options for trading
Options for hedging
Put-call parity
Arbitrage using options
Delta hedging
Open Interest interpretation
Put-Call Ratio and its use in trading strategies
Chapter 6 — Trading Mechanism
Trading mechanism in equity derivatives
Entities involved in derivatives trading
Eligibility criteria for stocks selected for derivatives trading
Selection criteria for indices
Adjustments for corporate actions
Brokerage and other trading costs
Exchange transaction charges
Applicable market charges
Introduction to algorithmic trading
Sources for tracking futures and options data
Investor Risk Reduction Access (IRRA) platform
Chapter 7 — Introduction to Clearing and Settlement System
Clearing members
Clearing mechanism
Interoperability of clearing corporations
Settlement mechanism
Risk-management systems
Margining and mark-to-market under SPAN
Position limits
Violations and penalties
Settlement Guarantee Fund
Investor Protection Fund
Settlement of running account of client funds with trading members
Cyber Security and Cyber Resilience Framework (CSCRF) for stock brokers and depository participants
Chapter 8 — Legal and Regulatory Environment
Securities Contracts (Regulation) Act, 1956
Securities and Exchange Board of India Act, 1992
Regulations governing derivatives trading
Regulations relating to clearing and settlement
Risk-management regulations
Eligibility criteria for derivatives-segment membership
Standard Operating Procedure in case of default by Trading Member or Clearing Member
Standard Operating Procedure for handling stock-exchange outages
Chapter 9 — Accounting and Taxation
Accounting treatment of derivatives
Accounting considerations for futures and options
Taxation of derivative transactions in securities
Important taxation concepts applicable to derivative transactions
Chapter 10 — Sales Practices and Investor Protection Services
Understanding the risk profile of clients
Risk Disclosure Document
Written Anti-Money Laundering procedures
Investor grievance mechanisms
Investor-protection practices
Responsible sales practices
The chapter structure above follows NISM's current published curriculum.
Important Note
The examination syllabus, regulatory provisions, taxation provisions and operational requirements may be updated from time to time. Candidates should verify the latest information published by NISM before appearing for the examination.
Examination Pattern
NISM-Series-VIII Equity Derivatives — Examination Pattern
Total Questions: 100
Total Marks: 100
Duration: 2 Hours
Passing Score: 60%
Negative Marking: 25% of the marks assigned to the question for each incorrect answer
Question Structure
The examination consists of:
100 Multiple Choice Questions
100 questions
1 mark per question
Total 100 marks
2-hour examination duration
Preparation Focus
Candidates should develop an understanding of:
Futures and options
Option pricing and Greeks
Payoff calculations
Hedging and trading strategies
Open Interest and Put-Call Ratio
Trading mechanisms
Clearing and settlement
Margins and risk management
Regulatory requirements
Accounting and taxation
Investor protection
NISM's current examination page confirms the 100-question, 100-mark, 2-hour structure with a 60% passing score and 25% negative marking.
Important: Candidates should verify the latest examination information directly with NISM before appearing for the examination.
Preparation Approach & Career Relevance
Equity Derivatives — Preparation & Career Relevance
Why Prepare for NISM-Series-VIII?
The NISM-Series-VIII Equity Derivatives examination develops knowledge of equity futures and options, derivatives trading strategies, risk management, clearing and settlement, regulations and investor-protection practices.
The examination is particularly relevant to learners interested in understanding the structure and functioning of the Indian equity derivatives market.
Chart Education Preparation Approach
Our preparation approach follows:
Learn → Understand → Practise → Analyse → Revise → Mock Test → Improve
Preparation can include:
Chapter-wise concept learning
Futures and options examples
Payoff-chart practice
Option Greeks and pricing concepts
Hedging and trading-strategy examples
Open Interest and PCR interpretation
Clearing and settlement concepts
Risk-management concepts
Regulatory and compliance topics
Chapter-wise question practice
Numerical and application-based questions
Detailed answer explanations
Full-length mock tests
Final revision
Chapter-Wise Practice
Chart Education's preparation system includes:
40 practice questions per chapter
Answers with explanations
Chapter-wise performance review
Application-based practice
20 full-length mock tests
Final revision
Practice questions created by Chart Education are original educational material and are not represented as actual NISM examination questions.
Career Relevance
Knowledge covered by this examination can be relevant to learners and professionals interested in:
Equity Derivatives
Futures and Options
Trading Operations
Derivatives Sales
Trading and Market Operations
Clearing and Settlement
Risk Management
Capital Markets
Securities-Market Operations
NISM describes Series VIII as a common minimum knowledge benchmark for certain associated persons functioning as approved users and sales personnel of trading members in the equity derivatives segment. Specific regulatory requirements depend on the role and applicable regulations.
Preparation for Organisations
Structured NISM examination preparation can also be discussed for organisations and institutions with relevant securities-market teams or participants.
Potential organisational audiences include:
Stock brokers and trading organisations
Equity derivatives teams
Financial-services companies
Capital-market organisations
Fintech companies
Colleges and educational institutions
Organisations can contact Chart Education regarding team-based NISM examination preparation and customised training requirements.
Important Note
The NISM examination is conducted by NISM, and the NISM certification is issued by NISM to candidates who successfully meet the applicable examination requirements.
Candidates should verify the latest examination pattern, syllabus, eligibility and regulatory requirements directly with NISM before appearing for the examination.