NISM Series VIII: Equity Derivatives exam is a certification offered by the National Institute of Securities Markets (NISM) that covers field of derivatives in depth. This exam is meant for people who either already work in this field or want to move into it. In the next few sections, we’ll look at what the certification involves, why it matters in real world scenarios and how to prepare for it.
What is the National Institute of Securities Markets (NISM)?
The National Institute of Securities Markets, more commonly called NISM, was set up by the Securities and Exchange Board of India (SEBI) in 2006. Its goal is to ensure people working in the securities markets are properly trained & certified. NISM runs several certification exams, workshops and programs that help build knowledge and professionalism in the financial sector. These certifications are not optional in many cases; for example, if you want to sell mutual funds, give investment advice or trade in derivatives, SEBI expects you to hold the right NISM certificate.
What is NISM Series VIII: Equity Derivatives Certification?
The Equity Derivatives Certification is designed for anyone who wants to work in the equity derivatives segment whether that’s as a trader, sales executive or an approved user at a brokerage firm.
The exam pattern is fairly standard but rigorous:
- 100 multiple-choice questions worth 1 mark each.
- 120 minutes of total time.
- 25 percent negative marking for wrong answers.
- Passing score: 60 percent.
- Exam fee: ₹1,500
Syllabus
The curriculum is designed to cover both the theoretical and practical aspects of equity derivatives. According to NISM’s syllabus listing, the major topics include:
1. Basics of Derivatives
- What are derivatives, their history, the Indian derivatives market, participants, types, and risk taxonomy
2. Understanding Index
- Construction of indices, their economic significance, types of indices, impact cost, index management
3. Forward & Futures Contracts
- Mechanics, pricing models (arbitrage / cost of carry), convergence, payoff profiles, uses
4. Options
- Terminology (calls, puts), moneyness, payoff, pricing basics, Greeks
5. Option Strategies
- Spreads, straddles, strangles, covered calls, protective puts, butterflies, collars, etc.
6. Trading Systems & Order Types
- How derivatives are traded, order conditions, selection of stocks/index, corporate actions
7. Clearing & Settlement
- Post-trade processes, margin requirements, settlement cycles, adjustment mechanisms
The exam’s weightage tends to emphasize derivatives fundamentals, forward/futures, options and strategies.
You have to take the test at a designated NISM exam center since the “exam-from-anywhere” online option was discontinued in 2021. NISM periodically publishes a list of exam centers across India (in cities) along with test calendars. It’s advisable to book early especially during recruitment seasons. Rescheduling is allowed, but only up to 15 calendar days before the exam, and only once.
NISM certification courses
Given the breadth of the syllabus and the negative marking, many aspirants opt to enroll for a NISM Certification Courses (especially courses tailored to Series VIII: Equity Derivatives). A good course typically offers:
- Video lectures or live classes covering all chapters
- Concept explanations, illustrations, and numerical examples
- Practice tests / mock exams (with similar structure)
- Question banks, quizzes, revision modules
- Doubt-clearing sessions or mentorship support
When choosing a course, ensure it aligns with the latest syllabus and exam pattern (NISM sometimes revises test objectives). Also, check whether the course helps you practice under timed conditions with negative marking, so that you get used to exam stress.
Job roles & career benefits
Here are some job opportunities that open up once you successfully pass the NISM Series VIII: Equity Derivatives Certification
- Approved Trader in a brokerage’s derivatives desk (handling equity options and futures)
- Derivatives Advisor who can suggest strategies and execute trades in equity derivatives
- Risk Management roles in investment firms or hedge funds dealing with equity derivatives
- Proprietary Trading roles that require certified operators to take positions in F&O
- Operation functions overseeing settlements, margin checks, and compliance in derivative segments
Many brokerage houses and financial institutions may make this certificate mandatory for specific designations in their equity derivatives divisions.
Final thoughts
The NISM Series VIII: Equity Derivatives Certification is more than just another exam. It shows that you truly understand how India’s equity derivatives market works , not only in theory, but also in real world situations. If you’re planning to build a serious career around stocks, options, or risk management, this certification gives you a solid starting point.
