The NCFM stands for NSE Certification in Financial Market India. Students who take this course will be able to get knowledge of mutual funds, financial markets, equities research, capital markets, and currency derivatives. NISM, on the other hand, is an abbreviation for the National Institute of Securities Market, which is part of the Securities Exchange Board of India.The NCFM and NISM certifications provide courses for applicants interested in expanding and structuring their careers in the stock market, derivatives, the mutual funds industry, and the general public who wish to learn more about the financial market.
What is NCFM (National Stock Exchange) Financial Markets Certification?
It may appear terrible to you, but it is not as frightening as it appears. The NSE established NCFM as an institute to create trained human resources with expertise in certain market segments and the industry to guide market participants.
Many certifications are held under the NCFM title to educate people working in the financial sector to follow the code of conduct established by the regulator, the SEBI (Stock Exchange Board of India), as well as to acquire the necessary skills and ability to understand the workings of the system and guide the audiences accordingly. The NCFM values human competence over technology, believing that the individual providing sales and service in the sector should be knowledgeable.
What is NISM (National Institute of Securities Markets)?
The NISM is an Indian public trust that develops and improves financial education for those working in the finance industry in order to maintain a financial literacy standard. The SEBI, the regulator, established this institute in 2006.
The NISM improves quality by starting educational programmes for industry participants. An international advisory group provides strategic guidance. NISM is made up of six separate schools offering various certificates.
They are named below: –
- School for Investor Education and Financial Literacy (SIEFL)
- School for Certification of Intermediaries (SCI)
- School for Securities Information and Research (SSIR)
- School for Regulatory Studies and Supervision (SRSS)
- School for Corporate Governance (SCG)
- School for Securities Education (SSE)
These schools educate persons who buy and sell assets in the securities market, as well as those hired directly or indirectly by financial institutions, as well as those engaged in securities market research and market supervision, such as ministers and officers.
It also holds corporate governance training and conferences. The goal of this institute is to provide education in accordance with the framework, objective, and vision of NISM in order to prepare competent professionals capable of serving the security markets.
NCFM vs NISM Infographics
NISM vs NCFM Exam Requirements
NISM Prerequisite
To apply for any NISM certificate, you must first complete out the online registration form on their website.
Fill out the enrollment form to enrol in the certification of your choosing.
The examination must be taken within 180 days following enrolment.
Following that, you can select the examination centre and slot that are offered online.
Students should use internet study materials to prepare for the examination. Following that, an online exam must be administered, with the results announced once the exam is completed.
NCFM is required
Register for this course online and reserve a slot for a convenient date and time.
The training materials can be downloaded online or ordered from the institute.
Different exams have different passing percentages that must be met. Some tests feature negative indications as well.
You will be a qualified professional if you pass the online examination with the required passing percentage.
Comparative Table
| Section | NCFM | NISM | |
|---|---|---|---|
| Institution Created By | NCFM is created by the NSE – The National Stock Exchange. | The regulator, SEBI, makes NISM. | |
| The number of Modules | NCFM has over 50 modules with foundations, intermediate, and advanced modules. | NISM has over 15 different courses and modules. | |
| Mode of Examination | The NCFM provides online tests. | The NISM tests are all online. | |
| Exam Window | The NCFM examination windows are open for candidates to book their seats at their convenience. | The NISM examination windows are available for candidates to reserve their seats at their convenience. | |
| Subjects | The NCFM covers trading, mutual funds, currency derivatives, interest rates, banking, etc. | The NISM covers interest rate derivatives, currency derivatives, depository operations, mutual funds foundation, etc. | |
| Pass Percentage | The NCFM passing percentage depends on the module you choose to appear for. Mostly the passing rate is between 50% to 60%; however, some examinations have negative markings. | The NISM passing percentage depends on the module you choose to appear for. Mostly the passing rate is between 50% to 60%; however, some examinations have negative markings. | |
| Fees | The fee structure for the NCFM modules is priced at ₹ 1,500/- is revised to ₹ 1,700/- and taxes with effect from April 1, 2017. | Most NISM certifications are below ₹ 2,000; however, several cost higher than ₹ 10,000. | |
| Job Opportunites/Job Titles | The NCFM job opportunities differ depending on your earned certificate. | The NISM job opportunities vary depending on the certificate you earned. |
Important differences
- The NCFM course was developed by the National Stock Exchange or NSE. The NISM course was developed by the Securities Exchange Board of India (SEBI).
- Currency derivatives, banking, interest rates, trading, and mutual funds are among the topics covered by the NCFM. Currency derivatives, mutual fund foundation, depository activities, and interest rate derivatives are among the issues covered by the NISM.
- An NCFM degree qualifies a candidate for the positions of trader, financial market consultant, stockbroker, dealer, analyst, and investor. A candidate with a NISM degree can apply for jobs as a banker, stockbroker, or securities market analyst.
- The major goal of the NCFM course is to provide professionals with information, abilities, and expertise in comprehending essential financial sector features such as interest rates, currency derivatives, and so on. The NCFM course adds value to professionals’ jobs because no official training is currently available on the ever-changing dynamics of the financial business.
The National Institute of Securities Market NISM course, on the other hand, is designed to provide financial education and financial literacy to players in the financial sector. In other words, NISM focuses on providing financial market professionals with a deep understanding of the dynamics of ever-changing financial needs.
Why pursue NCFM?
The NCFM certification focuses on important areas of the financial sector; its primary goal is to provide knowledge and skills to financial industry professionals. Because there is no formal schooling or training for financial markets in India, these sector certifications for diverse fields are quite valuable in adding value to a profession.
NCFM has developed with a diverse set of qualifications, specialities, and orientations in all facets of the sector. Furthermore, the entire testing and scoring process for the evaluations is automated. These assessments are significant because they assess the candidate’s ability, practical knowledge, and skill in operating and performing in the financial market.
Why pursue NISM?
In the greatest interests of investors, the SEBI founded the NISM institute and guided individuals working in and throughout the business in learning and understanding financial markets.
The primary goal of this institute is to provide financial literacy and financial education to market participants. SEBI aims to improve the financial market’s quality by launching quality financial education.