NISM Series VIII – Equity Derivatives Certification
About the Course
The NISM Series VIII – Equity Derivatives Certification is designed for professionals and aspiring market participants who want to build strong expertise in equity futures and options.
This certification establishes a minimum knowledge benchmark for individuals working in equity derivatives segments of stock exchanges, trading members, and brokerage firms.
The course helps you understand:
- How equity derivatives markets function in India
- Futures and Options contracts in depth
- Trading strategies using derivatives
- Clearing, settlement, and risk management systems
- Legal and regulatory framework governing derivatives
It is ideal for dealers, traders, sales personnel, relationship managers, and finance students aiming to build a career in derivatives.
Examination Details
- Mode: Computer-based exam
- Total Questions: 100 MCQs
- Total Marks: 100
- Duration: 2 Hours
- Negative Marking: 25% per wrong answer
- Passing Marks: 60%
The exam tests both conceptual clarity and practical understanding.
Detailed Syllabus (As per Official Outline )
Unit 1: Basics of Derivatives (8–10%)
- Meaning and types of derivatives
- History and evolution of derivatives
- Participants in derivatives markets
- Risks in derivatives trading
- Significance of derivatives
Unit 2: Understanding Index (2–5%)
- Meaning and importance of stock indices
- Types of indices (Market Cap, Free Float, Price Weighted, Equal Weighted)
- Index construction and maintenance
- Major Indian indices
- Applications of indices
Unit 3: Introduction to Forwards and Futures (20–25%)
- Forward contracts – features and limitations
- Futures contracts – features and benefits
- Contract specifications
- Payoff for futures
- Pricing of futures
- Hedging, speculation, and arbitrage using futures
Unit 4: Introduction to Options (20–25%)
- Call and Put options
- Moneyness of options
- Intrinsic value & time value
- Option payoffs
- Option Greeks
- Option pricing models
- Buyer vs Seller perspective
Unit 5: Strategies Using Equity Futures & Options (10%)
- Hedging strategies
- Speculation strategies
- Arbitrage opportunities
- Delta hedging
- Put-call parity
- Open interest analysis
Unit 6: Trading Mechanism (10%)
- Trading system structure
- Eligibility criteria for stocks
- Corporate action adjustments
- Trading costs
- Algorithmic trading basics
- Tracking F&O data
Unit 7: Clearing, Settlement & Risk Management (10–13%)
- Clearing mechanism
- Margin system (SPAN)
- Mark-to-market settlement
- Position limits
- Settlement guarantee fund
- Investor protection fund
Unit 8: Legal & Regulatory Environment (5–15%)
- SEBI Act
- SCRA
- Regulations governing derivatives
- Exchange compliance norms
Unit 9: Accounting & Taxation (3–5%)
- Accounting treatment of derivatives
- Taxation of F&O transactions
Unit 10: Sales Practices & Investor Protection (2–5%)
- Risk profiling
- Risk disclosure document
- AML procedures
- Grievance redressal mechanism
Who Should Take This Exam?
✔ Equity derivatives dealers
✔ Brokerage firm employees
✔ Finance students
✔ Traders & investors
✔ Relationship managers
✔ Anyone planning a career in F&O markets
Career Opportunities After Certification
- Equity Derivatives Dealer
- F&O Trader
- Risk Analyst
- Investment Advisor (with additional compliance)
- Sales & Distribution in Derivatives Segment
This certification improves credibility and employability in capital markets.
Why Prepare with FGyan?
At FGyan, we focus on:
✔ Exam-level practice questions
✔ Real market examples
✔ Concept clarity over memorization
✔ Structured preparation roadmap
✔ Mock tests with performance analysis
✔ Practical understanding of futures & options
We don’t just prepare you to pass.
We prepare you to understand.
Recommended Preparation Time
- Beginner: 4–6 weeks
- Intermediate: 3–4 weeks
- Experienced market participants: 2–3 weeks
Important Note
This course is purely educational. Certification is conducted by NISM. Candidates should refer to the latest official workbook for updates.