NISM Equity Derivatives – Series VIII
About Course
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
Course Content
UNIT 1: BASICS OF DERIVATIVES
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Praxis 01
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UNIT I > MODULE 1: INTRODUCTION TO DERIVATIVES – 10 minutes
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UNIT I > MODULE 2: EVOLUTION OF DERIVATIVES – 8 minutes
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UNIT I > MODULE 3: INDIAN DERIVATIVES MARKET – 8 minutes
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UNIT I > MODULE 4: TYPES OF DERIVATIVES – 10 minutes
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UNIT I > MODULE 5: MARKET PARTICIPANTS – 15 minutes
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UNIT I > MODULE 6: TYPES OF DERIVATIVES MARKETS – 15 minutes
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UNIT I > MODULE 7: SIGNIFICANCE OF DERIVATIVES – 10 minutes
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UNIT I > MODULE 8: RISKS IN DERIVATIVES – 10 minutes
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UNIT I Quiz
UNIT 2: UNDERSTANDING INDEX
UNIT 3: INTRODUCTION TO FORWARDS AND FUTURES
UNIT 4: INTRODUCTION TO OPTIONS
UNIT 5: STRATEGIES USING EQUITY FUTURES & OPTIONS
UNIT 6: TRADING MECHANISM
UNIT 7: CLEARING, SETTLEMENT & RISK MANAGEMENT
UNIT 8: LEGAL & REGULATORY ENVIRONMENT
UNIT 9: ACCOUNTING & TAXATION
UNIT 10: SALES PRACTICES & INVESTOR PROTECTION MEASURES
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