Certification Guide
NISM
National Institute of Securities Markets
NISM is a SEBI-established institute that runs certifications mandatory for many roles in the Indian securities industry — mutual fund distributors, research analysts, investment advisers, PMS managers, and more.
What it is, in detail
NISM certifications are issued under the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007. Any individual providing regulated services (mutual fund distribution, research reports, investment advice, PMS operations) MUST hold the relevant NISM certification. Each certification is a single computer-based online exam at NISM test centres or through a proctored remote setup. Renewal is required by either passing again or completing a CPE (Continuing Professional Education) programme before expiry.
Quick facts
- Eligibility
- No academic minimum for most modules. Some modules (Investment Adviser Level-2, PMS Distributor) require passing an earlier module first.
- Duration
- 1–3 months of self-study per module; exam is 2 hours (100–150 MCQs).
- Approximate Cost
- ₹1,500–₹3,000 per module (varies).
- Difficulty
- Beginner
Passing: Most modules: 50–60% cut-off, 25% negative marking on wrong answers. Exam duration 2 hours; 100–150 MCQs.
NISM series that matter
NISM offers 20+ certification series. These are the ones that unlock specific SEBI-regulated roles:
Mutual Fund Distributors
Mandatory to earn commission on mutual fund distribution (ARN).
Who needs it: Anyone selling / distributing mutual funds — IFAs, bank RMs, sub-brokers.
Securities Operations & Risk Management
Mandatory for back-office / operations staff of brokers, DPs, AMCs.
Who needs it: Operations, RMS, settlement, compliance staff.
Equity Derivatives
Mandatory for approved users / sales dealers on the F&O segment.
Who needs it: Broker dealers on NSE / BSE F&O segment.
Investment Adviser Level-1
Mandatory (with X-B) for SEBI-registered Investment Advisers (RIAs).
Who needs it: Anyone giving fee-based investment advice.
Investment Adviser Level-2
Mandatory second module for RIAs (after X-A).
Who needs it: Same as X-A — required to complete RIA eligibility.
Securities Markets Foundation
Entry-level primer for anyone new to Indian securities markets.
Who needs it: Students, beginners, career switchers.
Research Analyst
SEBI-mandatory for any individual issuing research reports on securities.
Who needs it: Sell-side & buy-side equity research, independent analysts.
Commodity Derivatives
Mandatory for approved users / sales dealers on commodity exchanges.
Who needs it: Commodity broker dealers (MCX / NCDEX).
Portfolio Managers
Mandatory for principal officers of SEBI-registered Portfolio Managers.
Who needs it: PMS principal officers, senior fund managers of PMS houses.
Portfolio Managers Distributors
Mandatory for individuals distributing PMS products.
Who needs it: Wealth managers, private bank RMs selling PMS.
Step-by-step roadmap
- 1
Step 1 — Choose your track
MF distribution → V-A. Research → XV. RIA → X-A + X-B. Back-office → VII. PMS → XXI-A/B.
- 2
Step 2 — Register on nism.ac.in
Create a candidate account; buy the workbook (free PDF is available for most modules).
- 3
Step 3 — Study 40–60 hours
Read the workbook end-to-end. Take 3+ mock tests.
- 4
Step 4 — Book the exam
Pick a NSDL / NSE test centre or remote-proctored slot.
- 5
Step 5 — Pass & register
For MFD: register on AMFI for an ARN. For RIA: apply on SEBI Intermediary Portal with all documents + net-worth proof.
- 6
Step 6 — Renew before expiry
Complete a CPE programme (usually 1 day) or re-take the exam within 3 years.
Careers this unlocks
- Mutual fund distributor (Series V-A mandatory)
- Research analyst (Series XV mandatory)
- Investment adviser (Series X-A and X-B mandatory)
- PMS manager / distributor (Series XXI-A / XXI-B)
- Equity derivatives dealer (Series VIII)