What is NCFM?
NCFM stands for NSE Certification in Financial Markets. It an online testing and certification program offered by the National Stock Exchange of India (NSE). It offers a great opportunity for people interested in increasing their skills and knowledge in the Financial field. This certification program is suitable for beginners who want to learn about the stock market and evaluate their skills.
The beginner module of NCFM is named as “Financial Markets-A Beginner’s module”. The module will be absolutely basic and will be also relevant to people who are not from commerce background. You can register online and enrol yourself for this program by paying a fee. The NCFM program operates on the intranet and is administered through the designated test centres located across India.
What does the NCFM course include?
The NCFM course by NSE is a basic level programme for all those people who wish to begin a career in the financial markets in India. You can also enrol if you simply want to learn the fundamentals of capital markets. The course is structured in such a way that it will help you understand the basic concepts relating to the financial market and how it works. You will study about the different avenues of investment, the derivatives market, the primary and the secondary market, and financial statement analysis.
Why should one take the NCFM course?
- To get a basic knowledge of the products, players and functioning of the financial markets, particularly the capital market.
- To understand the terms and definitions used in the financial newspapers and periodicals.
Who will benefit from the NCFM course?
The following people can benefit from this course looking for something to gain and acquire knowledge:
- Employees of BPOs/IT Companies
- Employees of Brokers/Sub-Brokers
- Anybody who has an interest in the Indian securities market
NCFM Test details
To get the certification, you must appear for the test in which you will be required to attempt 60 questions in the duration of 120 minutes.
- No. of questions: 60
- Maximum marks: 100,
- Passing marks: 50 (50%);
- There is no negative marking in this module.
- Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.
The fees of the NCFM module is Rs 1700 excluding the GST of 18%. You will be required to pay Rs 2006 to register for the exam and get the certification.
|Module Fees||GST @ 18%||Total Fees|
NCFM Course Outline
- Markets and Financial Instruments
Types of Markets: Equity Debt, Derivatives Commodities; Meaning and features of private, Public companies; Types of investment avenues.
- Primary Market
Initial Public Offer (IPO); Book Building through Online IPO; allotment of Shares; Basis of Allotment; Private Placement, Eligibility to issue securities; Pricing of Issues; Fixed versus Book Building issues;
- Secondary Market
Role and functions of Securities and Exchange Board of India (SEBI); Depositories; Stock exchanges Intermediaries in the Indian stock market Listing; Membership; Trading Clearing and settlement and risk management; Investor protection fund (IPF); and Do’s and Don’ts for investors, Equity and debt investment.
Types of derivatives; Commodity versus financial derivatives, Commodity and commodity exchanges.
- Financial Statement Analysis
Balance sheet; Profit & loss account; Stock market-related ratios; Simple analysis before
investing in the shares; understanding annual report; Director’s report etc.