Exam and Question Bank Details

NISM Series I: Currency Derivatives Exam and Question Bank Details

The NISM Series I: Currency Derivatives Certification Exam is an authorized, mandatory certification for individuals involved with currency derivatives in India—especially approved users and sales personnel of trading members on recognized stock exchanges.

It helps establish a common baseline of knowledge across participants in the currency derivatives market—covering market fundamentals, trading mechanics, risk management, regulatory framework, taxation, and investor protection.

Exam Details

• Mode: Online at NISM-certified test centres
• Question Format: Multiple Choice Questions (MCQs)
• Number of Questions: 100
• Total Marks: 100 (1 mark per question)
• Passing Score: 60 marks (60%)
• Duration: 120 minutes (2 hours)
• Negative Marking: 25% deduction per wrong answer
• Fees: ₹1,500 (+ applicable gateway charges)
• Certificate Validity: 3 years

Who Should Take This Exam?

• Approved users and sales personnel of trading members in the currency derivatives segment of recognized stock exchanges.
• Students, professionals, and individuals interested in currency markets and derivatives.

Objectives of the Examination

• Understand fundamentals of currency markets, including exchange-traded derivatives.
• Grasp trading, clearing, and settlement mechanisms, plus basic derivative strategies.
• Familiarize with the regulatory environment governing currency derivatives in India.

Syllabus Overview

• Unit I: Introduction to Currency Markets – history, major pairs, Indian FX market, exchange rate arithmetic, economic indicators.
• Unit II: Foreign Exchange Derivatives – definition, functions, futures, options, swaps, participants, ET vs OTC, rationale for ETCD in India.
• Unit III: Exchange-Traded Currency Futures – contract specs, pay-off diagrams, trading mechanism, pricing.
• Unit IV: Exchange-Traded Currency Options – basics, moneyness, Greeks, pricing models, pay-offs, pros/cons vs OTC.
• Unit V: Strategies Using Currency Derivatives – hedging, speculation, arbitrage, spreads, limitations.
• Unit VI: Trading Mechanism – order management, price limits, cost components, systems.
• Unit VII: Clearing, Settlement & Risk Management – clearing, position limits, margining, guarantees.
• Unit VIII: Regulatory Framework – SCR Act, RBI-SEBI committees, FEMA, SEBI & RBI guidelines, membership criteria.
• Unit IX: Accounting & Taxation – disclosure norms, accounting guidelines, tax treatment.
• Unit X: Code of Conduct & Investor Protection – SEBI conduct, grievance redressal, investor protection funds, POA, risk disclosure, KYC.

Study Material & Preparation

• Official NISM Workbook (free after enrolment or via NISM portal download).
• Workbook includes worked examples and end-of-chapter sample questions.
• No official classroom training is provided by NISM.

Registration & Enrollment Procedure

• Register via the NISM Certification Portal.
• Enroll and select test city, centre, and slot.
• Provide PAN during registration (required for certification).
• Certificate is issued within two weeks of passing the exam.
• Certificate validity: 3 years (renew via NISM CPE or re-exam).

Preparation Strategy & Exam Day Tips

• Study the workbook thoroughly—focus on derivatives mechanics, contract specifications, and regulatory framework.
• Practice using mock tests or third-party question banks.
• Avoid random guessing due to negative marking.
• Results and certificate are available shortly after submission (PAN required).

Finsafar Question Bank

• 600+ high-quality MCQs aligned with the latest 2025 syllabus.
• Practice sets, last-day revision, and full-length mock exams with conceptual explanations.
• Step-by-step guidance for cross-rate calculations, derivative strategies, and pricing.

This structured preparation approach ensures better exam readiness and practical confidence in currency derivatives.