Wednesday, March 17, 2010

How to clear NSE NCFM Certification in Capital Markets- Dealer's module ?

In my previous post ( ) I had mentioned how you can clear the NCFM Certification in Financial markets- Beginner's module.

In this post, I would give you insight into NSE NCFM Certification in Capital Markets- Dealers module which I cleared in June 2009 with 84% marks.

As the name suggests, this module is mandatory for those who want to work in brokerage houses and those who want to learn about capital markets. This certificate can help you become a dealer at brokerage houses in India. With this module, you will understand:

a) Clearing, Settlement and Risk Management process

b) Capital market trading operations of NSE.

c) Eligibility criteria to become member of NSE.

What is it that "NSE NCFM Certification in Capital Markets-Dealers module" covers ?

An Overview of the Indian Securities Market:

Introduction - Market segments, products and participants; Primary Market; Secondary Market; Derivatives Market; Market Design - Primary Market, Secondary Market, Derivatives Market; Reforms in securities market

Trading : Concept of Trading System; Functionalities of NEAT system; Order management; Trade management; Auction; Limited physical market; Retail debt market (RDM); Internet broking and Wireless application Protocol (WAP).

Clearing and Settlement : Clearing and settlement mechanism; Securities & Funds Settlement; Risk Containment Measures; International Securities Identification Number; Dematerialization and Electronic Transfer of Securities; Investor Protection Fund; Clearing Software-Data and Report Download.

Trading Membership : Stock Brokers; Membership in NSE; Sub brokers; Authorised persons; Broker-client relations; Sub-broker-client relation; Dispute, arbitration and appeal; Code of advertisement for trading members.

Legal Framework : Securities Contracts (Regulation) Act, 1956; Securities Contracts (Regulation) Rules, 1957; Securities and Exchange Board of India Act, 1992; SEBI (Intermediaries) Regulations, 2008; SEBI (Insider Trading) Regulations, 1992; SEBI (Prohibition of Fraudulent And Unfair Trade Practices Relating to Securities Markets) Regulations, 1995; The Depositories Act, 1996; Indian Contract Act, 1872; The Companies Act, 1956; and Income Tax Act, 1961, Money Laundering Act, 2002

Fundamental Valuation Concepts : Elementary statistical concepts; Coefficient of variation; Covariance; Correlation coefficient; Normal distribution; Time value of money; Understanding financial statements.

Tips to clear the NSE NCFM Certification in Capital Markets- Dealers module:

1). If you are a trader and are familiar with basics of trading like order book, outstanding position, and price-time priority of order, and you understand legal framework of exchanges, then this will be very helpful and you will not need to spend more than 1 day to prepare for NSE Certification in Capital Markets- Dealers module.

2). Go through the material that NSE provides 2-3 times.

3). Solve the model test paper on NSE website 3-4 times till you get atleast 90% marks !

4). At end of each chapter in book, there are sample questions and answers- Go through them 4-5 times - each chapter !

5). If you have done all the above 4 points that I mentioned, i am sure you will clear the NSE NCFM Certification in Capital Markets- Dealer's module !!

All the best !!