NISM Series VIII: Equity Derivatives
The published syllabus and exam format for the NISM-Series-VIII: Equity Derivatives Certification Examination — plus, for each unit, the calculator that turns the theory into a number you can check.
Exam format at a glance
Syllabus: the ten units, and where each one becomes a number
| Unit | What it covers | Make it concrete |
|---|---|---|
| I. Basics of Derivatives | What a derivative is, the history and evolution of derivative markets, the Indian derivatives market, market participants, types of derivatives markets, and the risks each participant carries. | Glossary |
| II. Understanding Index | What a stock index is and why it matters, types of indices, index attributes, index management and construction, the major Indian indices, and how indices are applied. | NIFTY 50 movement tracker |
| III. Introduction to Forwards and Futures | Forward contracts, futures contract specifications and terminology, how forwards and futures differ, payoff charts, futures pricing and the cost-of-carry model, price discovery and convergence. | Trade cost calculator Contract lot sizes |
| IV. Introduction to Options | Option basics and contract specifications, moneyness, intrinsic value and time value, option payoff charts, how options differ from futures, option pricing, the Greeks and implied volatility. | Options breakeven calculator |
| V. Strategies using Equity futures and Equity options | Hedging, speculation and arbitrage with futures; trading and hedging with options; put-call parity arbitrage; delta hedging; and reading open interest and the put-call ratio. | Options breakeven calculator |
| VI. Trading Mechanism | The trading system and market timings, order types and order management, stock eligibility and index selection criteria, market lot, corporate-action adjustments, trading costs, algorithmic trading and the IRRA platform. | Contract lot sizes Market timings today |
| VII. Introduction to Clearing and Settlement System | Clearing members and the clearing mechanism, interoperability, the settlement mechanism, risk management, SPAN margining and mark-to-market, position limits, violations and penalties, and the settlement guarantee and investor protection funds. | Settlement date calculator Position size calculator |
| VIII. Legal and Regulatory Environment | The Securities Contracts (Regulation) Act 1956 and the SEBI Act 1992, trading regulations, clearing and settlement regulations, membership eligibility, default procedures and exchange outage procedures. | Reference reading — the Acts, SEBI circulars and exchange rulebooks themselves. |
| IX. Accounting and Taxation | Accounting treatment for equity futures and options, and the taxation of derivative transactions in securities — including how turnover is arrived at. | Trade cost calculator |
| X. Sales Practices and Investors Protection Services | Understanding a client's risk profile, the Risk Disclosure Document, anti-money-laundering procedures, and the investor grievance redressal mechanism. | Reference reading — SEBI and exchange investor-protection material. |
What is NISM Series VIII?
NISM Series VIII (Equity Derivatives) is the certification examination for people working in the equity derivatives segment of an Indian exchange. The exam has 100 one-mark questions in 120 minutes, needs 60% to pass, deducts 25% of a question's marks for a wrong answer, and the certificate stays valid for three years from the exam date.
How the marking actually works
Each of the 100 questions carries 1 mark, so the paper is scored out of 100 and 60 marks are needed to pass. Negative marking is 25% of the marks assigned to a question — on a 1-mark question that is a deduction of 0.25 marks for a wrong answer. A question left unanswered scores nothing and deducts nothing, so a wrong answer and a blank answer are not equivalent.
Who the examination is aimed at
NISM states that the examination "seeks to create a common minimum knowledge benchmark for associated persons functioning as approved users and sales personnel of the trading member of an equity derivatives exchange or equity derivative segment of a recognized stock exchange". Anyone may sit it; the benchmark wording describes the roles it was designed for.
Validity and revalidation
The certificate is valid for three years from the date of the examination. NISM also runs a Continuing Professional Education (CPE) programme for this certification: it can issue a new certificate valid for three years from the date of the programme, or revalidate an existing certificate for three years from its date of expiry.
Why the calculators are on the unit table
Several units are arithmetic wearing a description. Cost of carry in Unit III, moneyness and time value in Unit IV, turnover in Unit IX, the settlement count in Unit VII — each becomes obvious the moment you put real numbers through it. Rather than repeating the workbook, this page sends each unit to the tool that shows the calculation, so the definition and the arithmetic are learnt in the same place.
Calculators for the syllabus
Options breakeven calculator
Unit IV & V: moneyness, intrinsic and time value, and where a payoff crosses zero.
Open →Trade cost & breakeven calculator
Unit III & IX: the charges that sit inside cost of carry, and the turnover taxation asks about.
Open →T+1 settlement date calculator
Unit VII: how a settlement date is counted once weekends and exchange holidays are applied.
Open →Contract lot sizes
Unit III & VI: market lot and contract specification, the numbers the exam quotes.
Open →Position size calculator
Unit VII: turning a fixed rupee exposure budget into a quantity in whole lots.
Open →Stock market glossary
Unit I: plain-English definitions of the derivative terms the first unit introduces.
Open →NISM Series VIII FAQ
How many questions are in the NISM Series VIII exam?
The NISM-Series-VIII: Equity Derivatives Certification Examination has 100 questions of 1 mark each, for a total of 100 marks, and is to be completed in 2 hours (120 minutes).
What is the passing score for NISM Series VIII?
The passing score is 60%. On a 100-mark paper that means 60 marks are needed, calculated after negative marking has been applied to wrong answers.
Is there negative marking in NISM Series VIII?
Yes. There is negative marking of 25% of the marks assigned to a question. Because every question carries 1 mark, a wrong answer deducts 0.25 marks. A question left unanswered neither earns nor deducts marks.
How long is the NISM Series VIII certificate valid?
The certificate is valid for 3 years from the date of the examination. NISM's Continuing Professional Education (CPE) programme can issue a new certificate for three years from the date of the programme, or revalidate an existing certificate for three years from its date of expiry.
What is the NISM Series VIII exam fee?
NISM publishes the fee for the Equity Derivatives Certification Examination as Rs. 1,500, with payment gateway charges extra. Fees can be revised, so confirm the current amount on the NISM website before registering.
Who is the NISM Series VIII certification for?
In NISM's words, the examination seeks to create a common minimum knowledge benchmark for associated persons functioning as approved users and sales personnel of the trading member of an equity derivatives exchange or equity derivative segment of a recognized stock exchange.
What does the NISM Series VIII syllabus cover?
Ten units: basics of derivatives, understanding index, forwards and futures, options, strategies using equity futures and options, trading mechanism, clearing and settlement, the legal and regulatory environment, accounting and taxation, and sales practices and investor protection services.
NiftyScanner provides general educational information and user-input mathematical utilities. It does not provide personalised investment advice, research recommendations, trade calls, price targets or suitability assessments. Market-calendar, settlement and transaction-cost information may change and should be verified against current official exchange, clearing, broker, depository and tax records. Trading and investing involve risk; you remain responsible for your own decisions and should seek appropriately qualified professional advice where needed.