testobjectives_ed_nismviii.pdf

8/14/2019 TestObjectives_ED_NISMVIII.pdf

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NISM-Series-VIII: Equity D

NISM-Series-

Unit 1: Basics of Derivativ

1.1 Basics of DerivativesTo explain the term d

1.2 Derivatives Market His

To study the history

To explain the factor

1.3 Indian Derivatives Marke

To study the history

Understanding of av

1.4 Market Participants

List various stakehol

1.5 Types of Derivatives mar

Differentiate between1.6 Significance of Derivativ

Explain economic pu

1.7 Various risk faced by the

List types of risk in d

Unit 2: Understanding Inde

2.1 Introduction to Index

Explain the term Inde

2.2 Significance of Index

Understand economi2.3 Types of Indices

List different types of

2.4 Attributes of an Index

List important attribut

Explain the term imp

2.5 Index management

Understand how inde

2.6 Major Indices in India

List various indices in

2.7 Applications of Index

Understand various

Unit 3: Introduction to For

3.1 Introduction to Forwards

Explain the term For

List essential feature

Illustrate major draw

NAL INSTITUTE OF SECURITIESAn Educational Initiative by SEBI

erivatives Certification Examination

Test Objectives

III: Equity Derivatives Certification Examin

s

erivatives

ory & Evolution

f derivatives

influencing the growth of derivatives market gl

t

f derivatives in India

ilable derivative products suite in India

ers and their roles

ket

OTC and Exchange Traded Market s

pose of derivatives

participants in derivatives

rivatives

x

x

purpose of index

Indices

es for construction of an Index

ct cost

x is constructed, maintained and revised

India

irect and indirect applications of indices

ards and Futures

and Futures contracts

ard contract

of forward contract

acks in Forward contracts

MARKETS

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tion

obally


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Explain the term Futu

List salient features o

List and explain termi

Illustrate various limit

Compare the advant

3.2 Payoff Charts for FutureIllustrate payoffs for

Draw payoff charts fo

3.3 Futures pricing

Explain the basics of

Describe the expecta

Understand concept

3.4 Commodity, Equity & Ind

Explain the basic diff

3.5 Uses of futures

Analyze the role of di

Outline the use of futExplain different strat

Unit 4 Introduction to Opti

4.1 Basics of options

Explain the term opti

List and explain vario

4.2 Payoff Charts for Option

Illustrate payoffs for


Discuss the risk and

4.3 Basics of options pricing

Understand options

Interpret impact of ea

Give an overview of

Explain the term Opti

4.4 Uses of Options

Analyse the Option tr

Unit 5 Option Trading Stra

5.1 Option spreads

Explain the term opti

Illustrate various opti


5.2 Straddle

Explain what straddle

Elaborate what shoul

Draw Net Payoff Cha



res contract

f Futures contract

nologies used in Futures contract

ations in Futures

ges and disadvantages of forwards and future

contract utures

r Long and Short Futures

cash and carry / Non-arbitrage model for future

ncy model of futures pricing

f convergence of cash and futures prices

ex Futures

rence in Commodity, Equity and Index Future

fferent players in futures market

res contract as an effective instrument for manegies for hedging, speculation and arbitrage in

ns

n contract

us terms of options

ptions

r Long and Short Options

eturn profile of option contracts

and option Greeks

ricing fundamentals

ch factor on Option pricing for Call and Put Opt

inomial and Black-Scholes option pricing mod

on Greeks

ading from traders perspective

egies

n spread

n spreads

r various option spread strategies

position is

d be the market view when Straddle is to be us

rt for Straddle

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s pricing

aging risk futures market

ions

ls

ed (Long/ Short)


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5.3 Strangle

Explain what is stran


Draw Net Payoff Cha

5.4 Covered Call

Explain what CovereElaborate what shoul

Draw Net Payoff Cha

5.5 Protective Put

Explain what Protecti


Draw Net Payoff Cha

5.6 Collar

Explain what Collar p


Draw Net Payoff Cha

5.7 Butterfly spreadExplain what Butterfl


Draw Net Payoff Cha

Unit 6: Introduction to Tra

6.1 Trading System

Elaborate trading sys

List different entities i

Explain market timin

Outline the corporate

Illustrate the Client B

List various order typ

List various windows

List various futures a

6.2 Selection criteria of Stoc

Explain the eligibility

Stocks

Continued eli

Re-introductio

Derivatives tr

6.3 Selection criteria of Inde

Explain basic criteria

6.4 Adjustments for Corpora

Understand how an

various corporate act

6.5 Position Limits

Explain the position li

6.6 Using daily newspapers



le position

d be the market view when Strangle is to be us

rt for Strangle

Call position is d be the market view when Covered Call is to b

rt for Covered Call

ve Put position is

d be the market view when Protective Put is to

rt for Protective Put

osition is

d be the market view when Collar is to be used

rt for Collar

spread position is

d be the market view when Butterfly spread is t

rt for Butterfly spread

ing Systems

tem in India

nvolved in trading system and explain their role

of derivatives market

hierarchy of trading system

oker Relationship in Derivatives Segment

es and conditions

displayed on the trader workstation

d options market instruments

for trading

criteria of

ibility

n of excluded stocks

ding especially on account of corporate restru

for trading

for Index trading as a Derivative contract

e Actions

djustment is made in position value and contra

ions

mits at various hierarchy levels

o track futures and options

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ed (Long/ Short)

e used

be used

o be used

s

turing

ct specification for


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Unit 7: Introduction to Cle

7.1 Clearing Members

List different types of

Explain the eligibility

7.2 Clearing Mechanism

Explain how to arriparticipants

7.3 Settlement Mechanism

Explain the Settleme

Elaborate the proces

Explain the settlemen

Explain the settlemen

7.4 Understanding marginin

7.5 Risk Management

List the salient featur

Describe process of

List and elaborate eff

Unit 8: Legal and Regulato

8.1 Securities Contract (Reg

Explain provisions of

Explain how SC(R)A

8.2 Securities and Exchange

Define the role of SE

8.3 Regulation in Trading

List important rules a

8.4 Regulation in Clearing &

List the eligibility crite

Explain the mode of

Explain the salient fe

List the responsibiliti

Outline the main obje

8.5 Outline major recommen

8.6 Outline major recommen

Unit 9: Accounting and Ta

9.1 Accounting

Explain accounting o

9.2 Taxation of Derivative tra

Explain the treatment

Describe applicability



ring and Settlement system

clearing members and their roles

norms of clearing members

ve at the open positions of trading memb

t schedule

of arriving at Settlement Price

t mechanism of Futures contract on Index and

t mechanism of Option contract on Index and

and mark to market under SPAN

s of risk containment measures on F&O segm

alculating position limits

ects of non-payment of margin

ry Environment

ulation) Act, 1956

SC(R)A relevant to Derivatives market

aims at preventing undesirable transactions in

Board of India Act, 1992

I in regulating Derivatives market

nd regulations on trading in Derivatives market

Settlement and Risk Management

ria for membership on derivative segment

ayment of margins

tures of cross margining

s of the clearing corporation

ctives of trade guarantee fund

dations of the L C Gupta Committee

dations of the J R Verma Committee

ation

Futures and Options contracts

nsaction in securities

of Profit/ Loss on Derivatives transactions

of Securities Transaction Tax on Derivatives c

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ers and custodial

Stocks

tocks

ent

ecurities

ntracts


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Unit 10: Sales Practices an

10.1 Understanding risk profi

Discuss what does a

Understand importan

List the importance o

List the documents rBest practices in deri

10.2 Investors Grievance Me



d Investors Protection Services

ile of the investors

investor perceive and understand by the word

ce of profiling clients in sales process

KYC

quired by the investors to trade in Derivativesatives sales

chanism

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Risk

ontract

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