NISM Series VIII- Equity Derivatives Certification Examination

Published on March 28, 2024

The NISM Series VIII- Equity Derivatives Certification Examination aims at creating a common minimum expertise standard for all persons who are involved in trading equity derivatives in a recognized stock exchange.

Exam Pattern: NISM Series VIII- Equity Derivatives



Test Duration (in Minutes)


No. of Questions


Maximum Marks


Pass Marks*(%)


Certificate Validity(in years)#



Assessment Structure:

  • The NISM-Series-VIII: Equity Derivatives Examination consists of 100 questions, each carrying 1 mark.
  • Participants have 2 hours to complete the examination.
  • There is negative marking (25% deduction) for incorrect answers.
  • The passing score is 60%.

Syllabus:NISM Series VIII- Equity Derivatives

Chapter 1: Basics of Derivatives

  • Basics of Derivatives
  • Derivatives Market – History & Evolution
  • Indian Derivatives Market
  • Market Participants
  • Types of Derivatives Market
  • Significance of Derivatives
  • Various risks faced by the participants in derivatives

Chapter 2: Understanding Index

  • Introduction to Index
  • Significance of Index
  • Types of Stock Market Indices
  • Attributes of an Index
  • Index management
  • Major Indices in India
  • Application of Indices

Chapter 3: Introduction to Forwards and Futures

  • Introduction to forward contracts
  • Futures contracts
  • Contract specifications of futures contracts
  • Some important terminology associated with futures contracts
  • Differences between Forwards and Futures
  • Pay off Charts for Futures contract
  • Futures pricing
  • Price discovery and convergence of cash and futures prices on the expiry
  • Uses of futures

Chapter 4: Introduction to Options

  • Basics of options
  • Contract specifications of exchange-traded options
  • Moneyness of an option
  • Intrinsic value and time value of an option
  • Pay off Charts for Options
  • Distinction between futures and options contracts
  • Basics of Option Pricing and Option Greeks
  • Option Pricing Models
  • Implied volatility of an option
  • Analysis of options from the perspectives of buyer and seller

Chapter 5: Strategies using Equity futures and Equity options

  • Futures contracts for hedging, speculation and arbitrage
  • Use of options for trading and hedging
  • Arbitrage using options: Put-call parity
  • Delta-hedging
  • Interpreting open interest and put-call ratio for trading strategies

Chapter 6: Trading Mechanism

  • Trading Mechanism
  • Eligibility criteria for selection of stocks for derivatives trading
  • Selection criteria of Index for trading
  • Adjustments for Corporate Actions
  • Trading costs
  • Algorithmic trading
  • Tracking Futures and Options data

Chapter 7: Introduction to Clearing and Settlement System

  • Clearing Members
  • Clearing Mechanism
  • Interoperability of clearing corporations
  • Settlement Mechanism
  • Risk Management
  • Margining and mark to market under SPAN
  • Position limits
  • Violations and Penalties
  • Settlement Guarantee Fund and Investor Protection Fund:

Chapter 8: Legal and Regulatory Environment

  • Securities Contracts (Regulation) Act, 1956
  • Securities and Exchange Board of India Act, 1992
  • Regulations in Trading
  • Regulations in Clearing & Settlement and Risk Management
  • Eligibility criteria for membership on derivatives segment

Chapter 9: Accounting and Taxation

  • Accounting
  • Taxation of derivative transaction in securities

Chapter 10: Sales Practices and Investors Protection Services

  • Understanding risk profile of the client
  • Risk Disclosure Document
  • Written Anti Money Laundering Procedures
  • Investors Grievance Mechanism
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