Equity Derivatives

  1. Basics of derivatives
  2. Evolution of derivatives market
  3. Indian derivatives Market
  4. Market participants
  5. Types of derivatives markets
  6. Significance of derivatives
  7. Various risk faced by the participants in derivatives
  1. Introduction to Index
  2. Significance and economic purpose of Index
  3. Types of Indices
  4. Attributes of an Index and concept of impact cost
  5. Index management
  6. Major Indices in India
  7. Applications of Index
  1. Introduction to Forwards and Futures contracts
    1. Payoff Charts for Futures contract
    2. Futures pricing
  1. Basics of options
  2. Payoff Charts for Options
  3. Basics of options pricing and option Greeks
  • Fundamentals of options pricing
  • Overview of Binomial and Black-Scholes option pricing models
  • Basics of Option Greeks
  1. Uses of Options
  1. Option spreads and their payoff charts
  2. Straddle: market view and payoff charts
  3. Strangle: market view and payoff charts
  4. Covered Call: market view and payoff charts
  5. Protective Put: market view and payoff charts
  6. Collar: market view and payoff charts
  7. Butterfly spread: market view and payoff charts
  1. Trading Systems, corporate hierarchy, order types and conditions
  2. Selection criteria of Stock for trading
  3. Selection criteria of Index for trading
  4. Adjustments for Corporate Actions
  5. Position Limits
  1. Clearing Members, their role and eligibility norms
  2. Clearing Mechanism and computation of open positions
  3. Settlement Mechanism for stock and index futures and options
  4. Understanding margining and mark to market under SPAN
  5. Risk Management features and position limits
  1. Securities Contract (Regulation) Act, 1956
  2. Securities and Exchange Board of India Act, 1992
  3. Important rules and regulations in derivatives trading
  4. Regulation in clearing & settlement and risk management
  5. Major recommendations of the L C Gupta Committee
  6. Major recommendations of the J R Verma Committee
  1. Accounting of Futures and Options contracts
  2. Taxation of Derivative transaction in securities
  1. Risk profile of the investors.
  2. Importance of profiling clients in sales process
  3. Importance of KYC
  4. Documents required by the investors to trade in Derivatives contract
  5. Best practices in derivatives sales
  6. Investors Grievance Mechanism

NISM-Series-VIII: Equity Derivatives Certification Examination

Revised Examination of NISM Series-VIII: Equity Derivatives Certification Examination w.e.f. May 8, 2018

The examination seeks to create a common minimum knowledge benchmark for associated persons functioning as approved users and sales personnel of the trading member of an equity derivatives exchange or equity derivative segment of a recognized stock exchange.
The examination aims to enable a better understanding of various derivatives products available in equity derivatives markets, regulations and risks associated with the products and the exchange mechanisms of clearing and settlement.
Equity Derivatives is mandatory in companies. If a broking house or sub-broker wants to start a terminal for derivatives or equity they require a candidate who had passed the SEBI certification for equity derivatives module.

Assessment Structure:

The NISM-Series-VIII: ED Examination will be a 100 marks examination to be completed in 2 hours. It will have 100 questions of 1 mark each. There will be negative marking of 25% of the marks assigned to a question. The passing score for the examination is 60%.

Test Details:

Name of Module: NISM-Series-VIII: Equity Derivatives Certification Examination

Fees (Rs.) Test Duration (In Minutes) No. of Questions Max. Marks Pass Marks* (%) Certificate Validity (In Years)
1500+
120
100
100
60
3

* Negative marking – 25% of the marks assigned to the question.
+ Payment gateway charges extra.
# Passing Certificate will be issued only to those candidates who have furnished/updated their Income Tax Permanent Account Number (PAN) in their registration details.

Weightage: 

NISM Currency Exam (CD) Syllabus Weightages (Syllabus wise question %)
Unit 1: Basics of Derivatives
8%
Unit 2: Understanding Index
2%
Unit 3: Introduction to Forwards and Futures
25%
Unit 4: Introduction to Options
25%
Unit 5: Option Trading Strategies
3%
Unit 6: Introduction to Trading Systems
4%
Unit 7: Introduction to Clearing and Settlement System
13%
Unit 8: Legal and Regulatory Environment
15%
Unit 9: Accounting and Taxation
3%
Unit 10: Sales Practices and Investor Protection Services
2%

Programme Fees: Rs.10000+GST

Note : Examination fee of SEBI certification exam is extra.

Course Duration: 1 Month

 

stock marketequity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately.

Shares is more specific, referring to how a company’s stock is divided. Owning stock in a corporation means you own a specific number of shares. Equity is also often used to describe ownership in a company. Equity can mean stock or shares, although it’s often used to refer to stock options as well.

Prices of Equity. The amount of money for which one may buy or sell a share of common stock. The price of equity changes throughout a trading day, especially in times of high trading volume.

Equity Share and its Types. Equity share is a main source of finance for any company giving investors rights to vote, share profits and claim on assets. Various types of equity share capital are authorized, issued, subscribed, paid up, rights, bonus, sweat equity etc.

In the Indian stock market, equities are available for trading at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). An equity market, also known as the stock market, is a platform for trading in company shares. It is the place where buyers and sellers meet to trade in listed companies.

SENSEX or Sensitivity Index is an index of Bombay Stock Exchange. It tells us about the movement in the stock price of the top 30 companies listed on BSE. SENSEX uses weighted average method for price movement calculation. That means each shares price has a weightage proportional to its market capitalization.

The NIFTY 50 index is National Stock Exchange of India’s benchmark broad based stock market index for the Indian equity market. Full form of NIFTY is National Stock Exchange Fifty.

  1. Decide whether to go through an online brokerage firm or through a face-to-face broker.
  2. After evaluating a stock, decide the prices you’d like to purchase at, so you know whether to make a “market” or “limited” order.
  3. To save on broker fees, you can buy some stocks directly from the company.
  1. Obtain a PAN card. Mostly everyone, irrespective of being an investor has a PAN card. …
  2. Hire a Stockbroker. The stock market is not a place where you can go directly and buy shares with cash.
  3. Open a Demat and a Trading account.
  4. Bank account.
  5. UIN (Unique Identification Number)
  6. Buying and selling shares.