If you aspire to become a certified distributor of Portfolio Management Services (PMS) in India, the NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination is your gateway. This mandatory certification, prescribed by the Securities and Exchange Board of India (SEBI), ensures a uniform knowledge benchmark for PMS distributors and aims to improve the quality of distribution and support services in this specialized field. Here’s everything you need to know about the exam.
Why is the NISM PMS Distributors Certification Important?
SEBI mandates that individuals engaged by Portfolio Managers as distributors must obtain this certification to ensure they possess the required knowledge and skills to serve clients effectively.
This certification is essential for:
- Ensuring transparency and professionalism in PMS distribution.
- Enhancing the knowledge base of distributors about investments, portfolio management, and regulatory compliance.
- Improving the quality of service provided to clients by certified professionals.
About NISM and Its Role
The National Institute of Securities Markets (NISM) plays a crucial role in enhancing the securities market ecosystem by:
- Conducting mandatory certification examinations for associated persons in securities market intermediaries.
- Offering Continuing Professional Education (CPE) programs for revalidation of certifications.
Key Highlights of the PMS Distributors Certification Examination
Background
SEBI, through notification SEBI/LAD-NRO/GN/2021/48 dated September 7, 2021, mandated this certification for all PMS distributors. NISM launched this certification with its communiqué dated February 16, 2021, and has recently revised it with effect from January 24, 2024.
Examination Objectives
Upon completing this certification, candidates will:
- Gain a comprehensive understanding of investments, securities markets, and financial products like stocks, fixed income securities, derivatives, and mutual funds.
- Learn the role of portfolio managers and the operational aspects of PMS, including performance measurement and evaluation.
- Become familiar with taxation, regulatory frameworks, governance, and ethical standards for PMS distributors.
Assessment Structure
Total Questions: 80 multiple-choice questions and 3 case-based questions.
Marks Distribution:
MCQs: 80 questions (1 mark each) = 80 marks
Caselets:
2 caselets (5 questions each, 1 mark per question) = 10 marks
1 caselet (5 questions, 2 marks per question) = 10 marks
Negative Marking: 25% of the marks assigned to a question.
Passing Criteria: 60%
Duration: 2 hours
CPE Program for Revalidation
Candidates can revalidate their certificate for three years by successfully completing the CPE program during the 12 months preceding the certificate's expiry.
Individuals from the Principal or Grandfather category can also obtain certification for the first time by completing the CPE program.
PAN Requirement
Passing certificates are issued only to candidates who update their Income Tax Permanent Account Number (PAN) in their registration details.
Exam Fee
The exam fee includes Goods and Services Tax (GST), with additional payment gateway charges as applicable. As of now the exam fee is Rs. 1500 including GST. (Kindly Note: This is NISM exam fee to be paid at the time for enrolling for the exam on NISM portal)
Why Choose NISM PMS Certification?
- It is a mandatory certification for PMS distributors, ensuring compliance with SEBI regulations.
- It enhances your credibility and knowledge in the PMS domain.
Tips to Prepare for the Exam
- Understand the Exam Syllabus: Focus on topics like investments, portfolio management, taxation, and ethical standards.
- Practice Case-Based Questions: These questions test your practical understanding and application of PMS concepts.
- Review Regulatory Guidelines: Stay updated on SEBI regulations related to PMS.
- Mock Tests: Attempt mock tests to get familiar with the exam pattern and improve your time management skills.
The NISM-Series-XXI-A: PMS Distributors Certification Examination is a vital step for anyone looking to establish a career in Portfolio Management Services. By earning this certification, you not only comply with SEBI regulations but also enhance your expertise and credibility as a PMS distributor.
Start your journey towards certification today and take your career to new heights!
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