Common Derivative certificate Examination Overview
The various derivatives products available in the three derivatives segments, regulations, and risks associated with these products and the exchange mechanisms of clearing and settlement. It also covers knowledge competencies related to the understanding of the financial structure in India and the importance of the different rules and regulations governing the Indian securities market, especially those related to the exchange traded derivatives.
(8143575575) Monday – Friday, 6 am – 8 pm Weekend Batches Also Available
Opp: RS Brothers, KPHB Main Road, Kukatpally, Hyderabad, Telangana 500072
(8143575575) Monday – Friday, 6 am – 8 pm Weekend Batches Also Available
What are the course objectives?
- Know the basics of the Indian derivatives market (covering Equity Derivatives, Currency Derivatives, and Interest Rate Derivatives).
- Understand the various trading and hedging strategies that can be built using futures and options.
- Understand the clearing, settlement and risk management as well as the operational mechanism related to the derivatives markets.
- Know the regulatory environment in which the derivatives markets operate in India.
Fees Details ?
Fees Details
Name of Examination: NISM-Series-XIII: Common Derivatives Certification Examination
| Fees (Rs.) | Test Duration (in minutes) | No. of Questions | Maximum Marks | Pass Marks* (%) | Certificate Validity (in years)# |
| 3000+ | 180 | 150 | 150 | 60% or 90 marks | 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.
Who will benefit from this course ?
- All approved users and sales personnel of trading members of currency derivatives, interest rate derivatives and equity derivatives segments of recognized stock exchanges
- Interested students/professionals
- Any other individuals
Our Training Features
Online Classes
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CLASSROOM TRAINING
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Job Assurence
Common Derivative certificate Examination Syllabus
CHAPTER-1: Basics of Derivatives
Introduction to derivatives
History and evolution of derivatives market
Factors influencing the growth of derivatives market
History of Indian derivatives Market and available derivative products in India
Market participants and their roles in the derivatives markets
OTC and Exchange Traded Market
Significance and economic purpose of derivatives
Risks associated with financial derivatives
CHAPTER-2: Introduction to the Underlying Markets
Introduction to Equity Markets and Equity Indices
Introduction to Currency Markets
Introduction to Fixed-income Securities
Introduction to “Interest Rate” concept and yield curve
Return and Risk Measures for Debt Securities (Current yield, YTM, Duration, PVBP, Convexity, etc.)
CHAPTER- 3: Introduction to Forwards and Futures
Introduction to Forwards and futures contracts
Forwards and Futures on Equities
Payoff Charts for Futures contract
Futures pricing
Basic differences in Commodity, Equity and Index Futures
Exchange Traded Currency Futures
Concept of Interest rate parity and pricing of currency futures
Interest Rate Futures
Delivery aspects of IRD contracts including conversion factor, invoice amount, cheapest-to-deliver bond
Chapter – 4: Strategies Using Futures
Strategies using Equity Futures
Strategies for hedging, speculation, and arbitrage in futures market
Strategies Using Currency Futures
Strategies Using Interest Rate Futures
Chapter – 5: Introduction to Options – Options on Equities and Currencies
Basics of options
Concept of option premium
Call and Put option
Buying and selling (writing) options
European vs. American option
Moneyness of an option
Binomial and Black-Scholes option pricing models and option Greeks
Payoff charts for options
Uses of Options
Chapter – 6: Option Trading Strategies – Strategies using Equity Options and Currency options
Options spreads and their payoff charts
Straddle: market view and payoff charts
Strangle: market view and payoff charts
Covered Call: market view and payoff charts
Protective Put: market view and payoff charts
Collar: market view and payoff charts
Butterfly spread: market view and payoff charts
chapter – 7: Introduction to Trading, Clearing, Settlement & Risk Management
Introduction to Trading Systems
Clearing Mechanism and computation of open positions
Settlement Mechanism for futures and options contracts
Margining and mark to market (MTM) under SPAN
Risk Management features, position limits and net worth requirements
Margin collection process of Clearing Corporations and delivery procedure
Chapter – 8: Legal and Regulatory Environment
Provisions of Securities Contract (Regulation) Act, 1956
Role of SEBI in regulating Derivatives market and SEBI Act, 1992
Important rules and regulations on trading in Derivatives market
Regulations in clearing & settlement and risk management
Outline major recommendations of the L C Gupta Committee
Outline major recommendations of the J R Verma Committee
RBI-SEBI Standing Technical Committee on Exchange Traded Currency and Interest Rate Derivatives
Provisions of Foreign Exchange Management Act, 1999
Salient features of RBI notification ‘Currency Futures (Reserve Bank) Directions, 2008
Features of RBI Circular ‘Guidelines on trading of Currency Futures in Recognized Stock / New Exchanges’
Salient features of SEBI Regulations for Currency Derivatives Exchanges
Explain the role of various regulators in Bond and Interest Rate Derivatives Market
Regulatory reporting requirements for Interest Rate Derivatives Markets
Role of FIMMDA in fixed income and derivatives markets in India
Chapter – 9: Accounting and Taxation
Accounting treatment for derivative contracts
Taxation of derivative transaction in securities
Chapter – 10: Sales Practices, Code of Conduct and Investor Protection Measures
Basic features of SEBI Codes of Conduct for Brokers and Sub-Brokers
Importance of risk profiling of clients in sales process
Importance of KYC and required documentation for investors to trade in Derivatives contract
Best practices in derivatives sales
Grievance redressal mechanism available to the investors
Nature of complaints considered by exchanges
Arbitration mechanism at exchanges
Our Students Testimonials
This course will be providing me good knowledge about the accounting concepts. Also, it will be giving be exposure to the practical as well as the theoretical aspect of accounting as a whole.
Ramu