NSE’s CERTIFICATION IN FINANCIAL MARKETS (NCFM)

NSE’s CERTIFICATION IN FINANCIAL

MARKETS (NCFM)

STOCK EXCHANGE…?

• A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.

STOCK EXCHANGES IN INDIA• Bombay Stock Exchange (BSE)• National Stock Exchange of India (NSE)• Indian Commodity Exchange (ICEX)• United Stock Exchange of India (USE)• Multi Commodity Exchange (MCX)• MCX Stock Exchange (MCX-SX)• Over the Counter Exchange of India (OTCEI)• Inter-connected Stock Exchange of India (ISE)• Madras Stock Exchange (MSE)• Ahmedabad Stock Exchange (ASE)• Bhubaneshwar Stock Exchange (BhSE)• Cochin Stock Exchange (CSE)• Hyderabad Stock Exchange (HSE)• Calcutta Stock Exchange (CSE)• Delhi Stock Exchange (DSE)• Bangalore Stock Exchange• Madhya Pradesh Stock Exchange, Indore• Jaipur Stock Exchange (JSE)• Magadh Stock Exchange, Patna• UP Stock Exchange (UPSE)• Vadodara Stock Exchange,Vadodara (VSE)

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India

http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India

http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1

http://en.wikipedia.org/wiki/United_Stock_Exchange_of_India

http://en.wikipedia.org/wiki/Multi_Commodity_Exchange

http://en.wikipedia.org/wiki/MCX_Stock_Exchange

http://en.wikipedia.org/wiki/OTC_Exchange_of_India

http://en.wikipedia.org/wiki/Inter-connected_Stock_Exchange_of_India

http://en.wikipedia.org/wiki/Madras_Stock_Exchange

http://en.wikipedia.org/wiki/Ahmedabad_Stock_Exchange

http://en.wikipedia.org/wiki/Bhubaneshwar_Stock_Exchange

http://en.wikipedia.org/wiki/Bhubaneshwar_Stock_Exchange

http://en.wikipedia.org/wiki/Cochin_Stock_Exchange

http://en.wikipedia.org/wiki/Hyderabad_Stock_Exchange

http://en.wikipedia.org/wiki/Calcutta_Stock_Exchange_Association_Limited

http://en.wikipedia.org/wiki/Delhi_Stock_Exchange_Association

http://en.wikipedia.org/wiki/Bangalore_Stock_Exchange

http://en.wikipedia.org/wiki/Madhya_Pradesh_Stock_Exchange

http://en.wikipedia.org/wiki/Jaipur_Stock_Exchange

http://en.wikipedia.org/wiki/Magadh_Stock_Exchange

http://en.wikipedia.org/wiki/Magadh_Stock_Exchange

http://en.wikipedia.org/wiki/UP_Stock_Exchange

http://en.wikipedia.org/wiki/Vadodara_Stock_Exchange

http://en.wikipedia.org/wiki/Vadodara_Stock_Exchange

NATIONAL STOCK EXCHANGE(NSE) Set up by Govt of India on the recommendation of

Pherwani Committee in 1991. Located at Mumbai. Incorporated in November 1992 as a tax-paying

company. It was in April 1993 that NSE was recognized as

stock exchange under the Securities Contract Act 1956.

16th largest stock exchange in the world by market capitalization.

Largest in India by daily turnover and number of trades, for both equities and derivative trading.

Contd……..In 2011, NSE was the third largest stock

exchange in the world in terms of the number of contracts (1221 million) traded in equity derivatives.

It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.

NSE has a market capitalization of around US$985 billion and over 1,646 listings as of December 2011

MAJOR INDICES OF NSE

1. S&P CNX Nifty.2. S&P CNX Defty.3. CNX Nifty Junior.4. CNX 100.5. S&P CNX 500.6. CNX Midcap.

NSE – CORPORATE STRUCTURE

• NSE is one of the first de-mutualised stock exchanges in the country, where the ownership and management of the Exchange is completely divorced from the right to trade on it.

• NSE is owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange.

Contd…………..

• Its Board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full time executive of the Exchange.

• The day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.

PROMOTERS• Industrial Development Bank of India Limited• Industrial Finance Corporation of India Limited• Life Insurance Corporation of India• State Bank of India• ICICI Bank Limited• IL & FS Trust Company Limited• Stock Holding Corporation of India Limited• SBI Capital Markets Limited• Bank of Baroda• Canara Bank• General Insurance Corporation of India• National Insurance Company Limited• The New India Assurance Company Limited• The Oriental Insurance Company Limited• United India Insurance Company Limited• Punjab National Bank• Oriental Bank of Commerce• Indian Bank• Union Bank of India • Infrastructure Development Finance Company Ltd.

NCFM• National Stock Exchange introduced NCFM in 1998.• NCFM is an online testing and certification

programme. • It tests the practical knowledge and skills required to

operate in the financial markets.• Certificates awarded based on merit of the candidate

to qualify the on-line test.

HOW TESTS ARE CONDUCTED• The entire process of testing, assessing and scores

reporting in the NCFM is fully automated. • The system is operated through an intranet facility by

using a central World Wide Web server with terminals located at each of the designated test centres to be used as an examination front end.

• The Test is also offered through the Internet to enable candidates outside the designated test centres to take tests at their convenience.

1.Financial Markets: A Beginner's Module

Objective :• To get a basic understanding of the products,

players and functioning of financial markets, particularly the capital market.

• To understand the terms and jargons used in the financial newspapers and periodicals.

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100, Passing marks: 50 (50%);

There is no negative marking in this module.

• Certificate validity: For successful candidates, certificates are valid for 5 years from the test date

• Fees Rs. 1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

2. Mutual Funds: A Beginner's ModuleObjectives :• To understand the concept of mutual funds.• To know about the roles of different players viz.,

custodians, asset management companies, sponsor etc. in the mutual fund industry.

• To learn about the tax and regulatory issues related to mutual funds.

• To understand the fundamentals of net asset value (NAV) computation and various investment plans.

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100 • Passing marks: 50 (50%); There is no negative marking

in this module.

• Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.

• Fees 1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

3. Currency Derivatives: A Beginner's Module

Objectives : • To understand the fundamentals of the

currency market.• To understand the currency futures as a risk

management tool.• To learn about the trading platform of the

currency derivatives segment of a stock exchange.

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100 • Passing marks: 50 (50%); There is no negative marking

in this module.


• Fees 1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

4. Equity Derivatives: A Beginner's Module

Objectives : • To understand the concept of derivative.• To learn the types of derivative products and

their application.• To learn about the the trading of derivatives

on the stock exchanges.

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100• Passing marks: 50 (50%); There is no negative

marking in this module.• Certificate validity: For successful candidates,

certificates are valid for 5 years from the test date.• Fees 1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

5. Interest Rate Derivatives: A Beginner's Module

Objectives :• To understand the concept of money market• To understand the interest rate derivatives as

a risk management tool



certificates are valid for 5 years from the test date.• Fees Rs.1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

6. Commercial Banking in India: A Beginner's Module

Objectives : • To learn the fundamentals of banking.• To improve one's awareness of the policies

and practices in the Indian banking sector.• To be familiar with banking services available

in India.



certificates are valid for 5 years from the test date. • Fees Rs 1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

7. Securities Market (Basic) Module

Objectives :• To understand the various products,

participants and the functions of the securities market.

• To understand the market design of Primary Market & Secondary Market.

• To understand the government securities market.

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100• Passing marks: 60 (60%). There is negative

marking for incorrect answers."• Certificate validity: For successful candidates


8. Capital Market (Dealers) Module (CMDM)

Objectives :• To understand the capital market trading

operations of NSE.• To understand the clearing, settlement and risk

management processes.• To know about the eligibility criteria for seeking

membership at NSE.• To learn the other important regulatory aspects.

• Test details Duration:105 minutes No. of questions: 60• Maximum marks: 100• Passing marks: 50 (50%); There is negative

marking for incorrect answers.• Certificate validity: For successful candidates,

certificates are valid for 5 years from the test date.

• Fees : Rs.1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only

9. Derivatives Market (Dealers) Module (DMDM)

Objectives : • To learn the basics of the derivatives market• To understand the use of derivative products

in speculating, hedging and arbitraging• To learn the trading, clearing, settlement and

risk management in equity derivatives• To learn the regulatory, accounting and

taxation issues relating to equity derivatives.

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100• Passing marks: 60 (60%); There is negative marking

for incorrect answers.• Certificate validity: For successful candidates,


10. FIMMDA-NSE Debt Market (Basic) Module

Objectives :• To understand the fundamental features of

debt instruments.• To understand the trading of the debt

instruments on the NSE-WDM Segment.• To know the regulatory and procedural

aspects related to debt market.• To learn the concepts of bond valuation, yield

curve, bootstrapping and duration

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100, Passing marks: 60

(60%); There is negative marking for incorrect answers.


• Fees - 1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

11. NSDL-Depository Operations Module

Objectives : • To understand the rationale for a depository.• To know about the services provided by a

depository.• To understand the processes involved in a

depository's functioning.• To understand the NSDL application software.

• Test details Duration: 75 minutes No. of questions: 60• Maximum marks: 100• Passing marks: 60 (60%). There is negative marking

for incorrect answers. Candidates securing 80% or more marks in NSDL-Depository operations module only will be certified as 'TRAINERS'.


• Fees : 1,686/- (Rupees One Thousand Six Hundred and Eighty Six Only).

12. Investment Analysis and Portfolio Management

• To have a practical orientation towards the principles of investment, pricing and valuation"

• To learn the various methodologies of financial analysis "

• Test details Duration: 120 minutes No. of questions: 60• Maximum marks: 100• Passing marks: 60 (60%); There is negative

marking for incorrect answers."• Certificate validity: For successful candidates,

certificates are valid for 5 years from the test date."


13. Fundamental Analysis Module

• To have a basic understanding about fundamental analysis .

• To learn the various valuation methodologies

14. Financial Markets (Advanced) Module

• To have a comprehensive and broad based knowledge about the financial markets.

• To get acquainted with various products, players and functioning of financial markets.

15. Securities Market (Advanced) Module

• To have a comprehensive and broad based knowledge about the securities markets.

• To get acquainted with various securities markets products, rules and regulations.

16. Mutual Funds (Advanced) Module

• To have a comprehensive and broad based knowledge about the mutual fund industry.

• To get acquainted with mutual fund operations, valuation of investments by mutual fund schemes, mutual fund accounting and rules & regulations.

17. Banking Sector Module

• have a basic understanding about banking operations

• To get acquainted with various banking related services.

18. Insurance Module

• To have a basic understanding about the concept of insurance

• To learn about the various types of insurance, fundamentals of risk management, insurance contracts and principles etc.

19. Macroeconomics for Financial Markets Module

• To have a basic understanding of various macroeconomic concepts

• To learn about macroeconomic behavior

20. Options Trading Strategies Module

• To learn about the various option strategies.• To understand payoff concepts.• To understand the objectives and risks of each

different strategies.

21. Options Trading (Advanced) Module

• To have a comprehensive and broad based knowledge about the options markets.

• To get acquainted with various types of options and options strategies

22. Commodities Market Module

• To understand the difference between commodity and financial derivatives.

• To know the usage of commodity futures. • To understand the pricing mechanism of

commodity futures. • To learn about the NCDEX trading platform,

clearing and settlement operations. • To know the regulatory framework and taxation

aspects of the commodities market.




• Fees - 2,022/- (Rupees Two Thousand Twenty Two Only)

23. Surveillance in Stock Exchanges Module

• To understand the importance of market surveillance mechanism.

• To learn the role of surveillance in risk management.

• To learn the rules and regulations like Anti Money Laundering Act, SEBI (Prohibition of Insider Trading) Regulations etc."

• To understand the concept of corporate governance.

24. Corporate Governance Module

• To understand the evolution of corporate governance in India.

• To understand the clause 49 of the listing agreement.

• To know about the disclosure and reporting requirements for companies.

25. Compliance Officers (Brokers) Module

• To understand the statutes pertaining to the securities market.

• To learn about the rules, regulations and bye-laws of the exchanges.

• To understand the SEBI guidelines.

26. Compliance Officers (Corporates) Module

• To understand the Companies Act, 1956.• To know about the provisions of the listing

agreement.• To know about the Securities Contracts

(Regulation) Act, 1956.

27. Information Security Auditors Module (Part-1) & Information Security Auditors Module (Part-2)

• To understand the regulatory, legal and compliance issues in information security for financial markets.

• To know the provisions for business continuity plan.

• To understand the security management practices and physical and environmental security.

• Test details Duration: 120 minutes per module (Part 1 & Part 2) No. of questions: 90 in each module (Part 1 & Part 2)• Maximum marks: 100• Passing marks: 60 (60%) for each module (Part 1 &

Part 2); There is negative marking for incorrect answers.• Certificate validity: For successful candidates,

certificates are valid for 2 years from the test date. • Fees - 2,528/- (Rupees Two Thousand Five Hundred

Twenty Eight Only) each for Information Security Auditors Module (Part 1) and Information Security Auditors Module (Part 2).

Who will benefit from this course?

• Students• Teachers• Investors• Employees of BPOs/IT Companies• Employees of Brokers/Sub-Brokers• Housewives• Anybody having interest in the Indian securities market• Financial planners• Analysts• Equity researchers• Anybody having interest in the Indian mutual fund industry• Portfolio Managers• Financial Institutions• Anybody having interest in the Stock market operations

• Corporate Executives• Employees of Export/Import Houses• Anybody having interest in the derivatives market• Employees of Banks, Insurance Companies"• Primary Dealers• Anybody having interest in the Indian money market• Depository Particpants employees• Employees of Mutual Funds• Employees of Research Houses/Analysts/Researchers• Anybody having interest in the Securities Market• Anybody having interest in the Fixed Income Market• Debt Market Dealers

Registration

• Online Registration @ https://www.enit.co.in• Offline Registration Download Forms @ http://www.nseindia.com/education/content/offline_register.htm

https://www.enit.co.in/

https://www.enit.co.in/

Features of On-line registration

• On-line registration and access for updating candidate profile.

• Different modes for payment of fees.• Ability to schedule tests for any Exchange

specified test centers as per requirement.• Generation of Hall ticket.

• Who can join NCFM? No formal educational background is necessary for registration to the NCFM programme. Nor is there an age requirement. However, candidates are expected to be numerate and comfortable with written English.• How to join NCFM?One can join NCFM by registering himself for the programme by filling up part-I of the prescribed registration form. The candidate may enroll for the chosen module by filling up part-II of the said form. The details regarding the test center, date and time of test are informed to the candidate.• Is there any deadline for taking the test?Yes. Test fees are valid for 180 days from the date of payment. Candidates need to enroll for the test(s) within 180 days from payment of fees.• Is it necessary to take test of all modules of the NCFM?No. A candidate can seek testing and certification in any module of his choice.

FAQs

• When do I get my result?Marks are provided to the candidate immediately on submission of the answer paper. A certificate is mailed to the successful candidates within 15 to 20 days from the test date. However, in case of Risk Analysis & Insurance Planning Module, Retirement Planning & Employee Benefits Module, Investment Planning Module and Tax Planning & Estate Planning Module, a certificate is mailed within 30 to 40 days from the test date.

TEST CENTERS IN KERALA

1. Calicut-NSE.iT Office premises #16/910 - B, P.V.Bldg, Saibaba Lane, Annie Hall Road, Calicut -673002 2. Cochin-NSE.iT 39/4609, A-1, K.G. Oxford Business Centre, Shrikandath Road, Ravipuram, Next to V G Saraf Memorial Hospital, Off M.G. Road, Kochi – 682016

3. Kannur-NSEiT 55K, 1st floor, Madathil Commercial Building , (Opp to Kavitha Theatre) S.N.Park,Kannur 670001 Kerala

Contd…….4. Kollam-NSEiT Sofia Complex , 2nd floor, Anda Mukkam, Behind Hanuman Temple, Kollam -1

5. Kottayam-NSEiT 1st floor, Bennies INN, Shastri Road, Kottayam - 686001

REFERENCE……

• www.nseindia.com

http://www.nseindia.com/

THANK YOU

NSE’s CERTIFICATION IN FINANCIAL MARKETS (NCFM)

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