The Securities and Exchange Board of India ( SEBI ), in collaboration with the National Institute of Seurities Market ( NISM ), has launched a free investor certification program. In a circular issued on June 11, Sebi announced that this voluntary certification aims to help investors test and enhance their knowledge of markets and investing. It is designed to support individuals in gaining comprehensive insights into the Indian securities markets.
Details of the course, including registration information and a helpline for queries, are available at SEBI Investor or SEBI Investor Certification Examination – National Institute of Securities Markets (SEBI InvestorNISM) Websites.
During the launch, Ananth Narayan G, Whole Time Member of SEBI, emphasised the program’s significance in advancing digital financial education in the securities market.
He stated, “This online exam will help enhance investors’ understanding of the investment process and the associated risks in the securities market, promoting an efficient approach to investment aligned with the investor’s risk appetite.”
The certification examination aims to:
1. Develop a foundational understanding of basic financial concepts such as saving, investment, budgeting, and inflation.
2. Familiarise participants with various government schemes.
3. Provide an understanding of the structure of securities markets, including primary and secondary markets.
4. Explain the roles of stock exchanges, depositories, and regulatory bodies.
5. Educate about risks associated with investments, such as credit risk, market risk, and liquidity risk.
6. Introduce risk management concepts, including hedging and diversification.
7. Highlight the importance of due diligence, ethical behaviour, and transparency in investment practices.
8. Familiarise investors with their rights and responsibilities, disclosure requirements, and dispute resolution mechanisms.
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