NISM Certifications

SEBI-mandated certifications for financial market professionals:

Certificate	Who needs it	Cost

|-------------|-------------|------|

NISM-VA: Mutual Fund Distributors	MF distributors, ARN holders	₹1,500
NISM-VIIIA: Equity Derivatives	Persons dealing in F&O	₹1,500
NISM-VIIIB: Currency Derivatives	Currency F&O dealers	₹1,500
NISM-X-A: Investment Adviser Level 1	SEBI-registered advisers	₹3,000
NISM-X-B: Investment Adviser Level 2	Senior advisers	₹3,000
NISM-VII: Securities Operations	Back-office, clearing	₹1,500
NISM-III-A: Securities Intermediaries Compliance	Compliance officers	₹1,500

NISM exam format: 100 MCQs, 2 hours, 50% passing marks, negative marking (-25%). Valid for 3 years.

Stock Market Analysis

Fundamental Analysis

•P/E Ratio: Price/EPS. Higher = expensive relative to earnings

•P/B Ratio: Price/Book Value. < 1 = trading below book value

•EV/EBITDA: Enterprise value multiple. Used for comparison across leverage levels

•ROE (Return on Equity): Net profit / Shareholders equity. > 15% is generally good

•Debt/Equity ratio: Higher = more leveraged. Depends on industry

Technical Analysis

•Support: Price level where buying pressure arrests fall

•Resistance: Price level where selling pressure arrests rise

•Moving Averages: 50-DMA (short term), 200-DMA (long term). Golden cross: 50 crosses above 200 (bullish)

•RSI (Relative Strength Index): 0–100. > 70 = overbought, < 30 = oversold

•MACD: Trend-following momentum indicator. Signal line crossovers generate buy/sell signals

Investor Protection

SEBI Grievance Portal: SEBI SCORES (sebi.gov.in/sebiscores) — online complaint redressal

Investor compensation: IEPF (Investor Education and Protection Fund) — unclaimed dividends, shares transferred to IEPF. Can be claimed by investors.

Insider trading: Trading on UPSI (Unpublished Price Sensitive Information) is a criminal offence. Penalty: ₹25 crore or 3x profit, whichever higher. Imprisonment up to 10 years.

Quick Reference — Sebi Nism

Key Points for Revision

•Review the overview section for core architecture and fundamentals

•Practice commands/configurations from the cheatsheet section

•Use interview Q&A for active recall before exams or interviews

•Cross-reference with related tools in the finance academy

Practice Approach

1.Read the overview to understand what and why

2.Work through fundamentals for how

3.Attempt hands-on labs or configurations

4.Test yourself with interview questions

5.Keep cheatsheet accessible for quick reference during work

Further Learning

Connect this topic to the broader finance ecosystem.

Each tool in this academy is designed to work with others —

understanding the integration points is what separates intermediate from senior practitioners.

SEBI & Financial Markets — Intermediate