Difference Between NISM and NCFM

The NCFM CertificationNCFM CertificationIn 1998 National Stock Exchange (NSE) launched NSE’s certification in financial markets (NCFM) as an online testing and certification program. NCFM exam helps the people working with financial intermediaries acquire the necessary knowledge and skills to offer a better quality of services.read more and NISM CertificationNISM CertificationNISM offers a variety of certification modules designed to help finance professionals working in different roles gain an in-depth understanding of financial principles relevant to their specific field of expertise.read more offer courses for candidates interested in developing and shaping their careers in the stock market, the derivatives, the mutual funds industry, and the general public who want to know more about the financial market.

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The article is articulated in this order:

What is NCFM (National Stock Exchange) Certification of Financial Markets?

It might sound scary to you; however, it is not as frightening as it sounds. The NSE has commenced NCFM as an institute to develop skilled human resources with proficiency in particular market segments and the industry to guide the audiences who participate in the market.

Many certifications are conducted under the NCFM title to educate people working in the financial sector to follow the code of conduct set by the regulator that is the SEBI (Stock Exchange Board of India) also to acquire the required skills and ability to know the working or the system and guide the audiences accordingly. The NCFM believes in human expertise more than technology, for they think that the person providing sales and service in the industry should possess the appropriate knowledge.

What is NISM (National Institute of Securities Markets)?

The NISM is an Indian public trust that provides financial markets education and maintains a financial literacyFinancial LiteracyFinancial literacy refers to an investor’s knowledge and understanding of various financial products that help him with money management, personal finances, investment, and tax planning. It examines how prudently an individual manages his finances, therefore building the necessary requirements such as an emergency fund, a retirement fund, and how they plan to handle insurance, estate planning, paying for education, etc.read more standard by developing and improving financial education for people working in the finance industry. This institute was set up by the regulator itself, the SEBI, in 2006.

The NISM adds quality by initiating educational programs for the participants of this industry. It is provided strategic guidance by an international advisory council. NISM consists of 6 different schools for different certifications. 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 provide knowledge to people involved in buying and selling assets in the security market, people employed directly and indirectly through financial institutions, people engaged in research of the securities market, and supervising the market, including the ministers and officers.

It also conducts workshops and conferences for corporate governanceCorporate GovernanceCorporate governance is a set of rules or practices through which an entity is directed and controlled to increase shareholders wealth by increasing the economic value and is concerned about its relations with various entity stakeholders.read more. The motive of this institute is to provide education as per the framework, the mission, and vision of NISM to prepare competent professionals who are capable enough to serve the security markets.

NCFM vs NISM Infographics

NISM vs NCFM Exam Requirements

NISM Requirement

  • To appear for any NISM certificate, you need to fill in the online registration form available on their website.You need to enroll for the certification of your choice by filling in the enrollment form.The examination needs to have appeared for 180 days of enrollment.Next, you can choose the examination center and slot available online.The students should prepare for the examination with the help of online study material. After that, an online exam needs to be given where the results are declared after you finish the exam

NCFM requirement

  • Register online for this course and book a slot for a suitable date and time.You can download the course material online or order the same from the institute.Different examinations have different passing percentages that need to be attained. Some tests also have negative markings.If you clear the examination online with the required passing percentage, you will be a certified professional.

Comparative Table

Key Differences

  • The National Stock Exchange or NSE created the NCFM course. The Securities Exchange Board of India SEBI created the NISM course.The subjects focused in the case of the NCFM include currency derivatives, banking, interest rates, trading, and mutual fundsMutual FundsA mutual fund is a professionally managed investment product in which a pool of money from a group of investors is invested across assets such as equities, bonds, etcread more. The topics focused on in the NISM are currency derivatives, mutual funds foundation, depository operations, and interest rate derivatives.A candidate with an NCFM degree can apply for the trader,financial marketFinancial MarketThe term “financial market” refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.read more consultant, stockbroker, dealer, analyst, and investor. In the case of a candidate holding a NISM degree, they can apply for the job roles of a banker, stockbrokerStockbrokerA stockbroker is an individual or company qualified enough to trade securities in the financial markets on behalf of financial institutions, individual and institutional investors, and organizations. They can work either independently as a professional trader or broker-dealer or associate with a brokerage firm.read more, and securities market.The main focus of the NCFM course is to enable professionals with knowledge, skills, and expertise in understanding the critical elements such as interest rates, currency derivatives, etc., of the financial sector. The NCFM course adds value to the careers of the professionals as currently, no formal training is provided concerning the ever-changing dynamics of the financial industry.

On the other hand, the main focus of the National Institute of Securities Market NISM course is to offer financial education and financial literacy to the participants of the financial sector. In other words, NISM focuses on guiding the professionals employed in the financial markets with a thorough knowledge of the dynamics of the ever-changing financial needs.

Why pursue NCFM?

The NCFM certification focuses on critical elements of the financial sector; its main aim is to provide knowledge and expertise to professionals working in the financial industry. Since there is no formal education or training for financial markets in India, these certifications for various fields of the industry are very significant in adding value to a career.

NCFM has emerged with multiple qualifications, specializations, and orientations in all areas and parts of the industry. In addition, the entire process of testing and scoring for the assessments is automated. These tests are important as they test the candidate’s ability, practical knowledge, and skill to operate and perform in the financial market.

Why pursue NISM?

The SEBI established the NISM institute in the best interest of the investors and guided the employees working in and throughout the industry in knowing and understanding the financial markets.

Providing financial literacy and financial education to the market participants is the main focus of this institute. SEBI seeks to add quality to the financial market by initiating quality financial education.

This article has been a guide to NISM vs. NCFM. Here, we have discussed the top differences between NISM and NCFM, along with infographics and a comparative table. You may also have a look at the following articles: –

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