e
•F&O lot sizes determined by NSE/BSE
•Weekly (Thursday expiry) and monthly (last Thursday) contracts
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Insider trading: Trading on UPSI (Unpublished Price Sensitive Information) is a criminal offence.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.