NISM Series VIII Equity Derivatives

NISM Series VIII: Equity Derivatives — The F&O Professional's Essential Certification

The NISM Series VIII: Equity Derivatives Certification Examination is a mandatory certification for all approved users and sales personnel of NSE and BSE trading members who deal in equity derivatives (Futures & Options). It tests the candidate's knowledge of equity derivatives products, trading mechanisms, settlement procedures, and risk management frameworks.

Exam Pattern

Mode: Online CBT. Duration: 2 hours. Questions: 100 MCQs. Passing Marks: 60%. Negative Marking: 25%. Fees: ₹1,500 + GST. Validity: 3 years.

Syllabus Overview

Unit 1 — Introduction to Derivatives (10%): Definition, types, history, economic purpose of derivatives. Unit 2 — Understanding Index (10%): Nifty, Sensex, index construction, free-float methodology. Unit 3 — Introduction to Futures & Options (20%): Forward contracts, futures pricing, options payoffs, moneyness. Unit 4 — Trading, Clearing, and Settlement (25%): Order types, margin system, daily MTM, physical settlement of stock derivatives. Unit 5 — Regulatory Framework (20%): SEBI circulars on F&O, position limits, circuit filters. Unit 6 — Uses of Derivatives (15%): Hedging, speculation, arbitrage strategies with options and futures.

Key Topics to Master

Pay special attention to option Greeks (Delta, Gamma, Theta, Vega), the Black-Scholes model for option pricing, margin calculations (SPAN + Exposure), and the physical settlement process introduced by SEBI for individual stock derivatives. These topics carry high weightage and are also practically relevant for every F&O trader.

Regulatory Statutory Warning & Disclaimers

Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.