NISM Series XIII — Common Derivatives Certification Examination
The mandatory certification for distributing Specialized Investment Funds in India. NISM consolidated the older Currency, Interest-Rate, and Equity Derivatives exams into this single Common Derivatives certification. Pass it once — covers everything you need.
Important to know
Series XIII is built from 3 underlying workbooks
NISM does not publish a single "Series XIII workbook." Distributors are tested on material from three separate certifications consolidated into one exam:
- Series VIII — Equity Derivatives (220 pages) — the most directly relevant for SIF distribution.
- Series I — Currency Derivatives (244 pages) — FX markets, RBI / FEMA framework.
- Series IV — Interest Rate Derivatives (335 pages) — fixed-income vocabulary critical for hybrid LS SIFs.
799 pages total. The good news: chapters 6–10 of all three books are essentially the same content. Smart reading order can save you about 30% of study time. See the study plan.
Who should take this exam
- Mutual Fund Distributors (ARN holders) intending to add SIF distribution to their product mix
- EUIN holders attached to a firm's ARN, who will interact with SIF clients
- Employees of distribution houses engaged in SIF marketing or sales
- Trading-member personnel across currency, interest rate, and equity derivatives segments
- Anyone replacing the older Series I / IV / VIII certifications with the consolidated Series XIII
Examination objectives
On completion of NISM Series XIII, the candidate is expected to demonstrate:
Understand the basics of Indian derivatives markets and the role of each market participant.
Apply trading and hedging strategies using futures and options across underlyings.
Operate clearing, settlement, margining, and risk-management mechanisms.
Navigate the regulatory environment for derivatives and Specialized Investment Funds.
Assessment structure
Format
- • 150 multiple-choice questions, each carrying 1 mark
- • 180 minutes total exam time
- • Online — at NISM test centres or remote-proctored
- • Single-attempt session, no breaks
Scoring
- • Pass mark: 60% (90 / 150)
- • Negative marking: 25% of marks assigned to the question
- • Wrong answer on 1-mark Q → deducts 0.25 marks
- • Unanswered questions: no deduction
PAN required for certificate issuance. Re-attempts permitted after a 7-day cooling period.
SIFPrime quick notes — 10 chapters
Total 150 marks (across the 3 workbooks)
Fast-revision notes complementing the NISM workbooks — learning objectives, key concepts, cheat sheets, and practice questions with explanations. Use these to reinforce after reading a workbook chapter, or as a 10-minute pre-exam refresher.
Basics of DerivativesFree
Introduction to derivatives · History and evolution of derivatives markets · Factors influencing growth of derivatives · History of Indian derivatives market · Derivative products available in India · +4 more
Introduction to the Underlying MarketsSignup
Equity markets and equity indices · Currency markets — INR vs other currencies · Fixed-income securities — government and corporate bonds · Interest rate concepts and yield curves · Return and risk measures for debt — current yield, YTM, duration, PVBP, convexity
Introduction to Forwards and FuturesSignup
Forwards vs futures — standardisation and settlement · Forwards and futures on equities · Payoff charts for futures · Futures pricing — cost of carry, basis · Commodity, equity, and index futures · +4 more
Strategies Using FuturesSignup
Hedging strategies — long hedge, short hedge · Hedge ratio calculation · Beta hedging of equity portfolios · Cash-and-carry arbitrage · Reverse cash-and-carry arbitrage · +3 more
Introduction to OptionsSignup
Call and put options — rights and obligations · Option premium components — intrinsic and time value · Payoff diagrams — long call, short call, long put, short put · Option pricing — Black-Scholes intuition · Implied volatility · +2 more
Option Trading StrategiesSignup
Single-leg strategies — long/short call/put · Spread strategies — bull spread, bear spread · Volatility strategies — straddle, strangle · Range-bound strategies — butterfly, condor · Protective and covered strategies — protective put, covered call
Trading, Clearing, Settlement & Risk ManagementSignup
Trading workflow — order types, lot sizes, market lots · Role of the clearing corporation · Margin types — initial, exposure, MTM, ELM, additional · SPAN methodology · Mark-to-market mechanics · +3 more
Legal and Regulatory EnvironmentSignup
SEBI Act 1992 — overview · L C Gupta Committee — index futures launch framework · J R Verma Committee — risk management framework · RBI-SEBI Standing Technical Committee · Foreign Exchange Management Act (FEMA) · +2 more
Accounting and TaxationSignup
Tax treatment of F&O — speculative vs non-speculative business income · Securities Transaction Tax (STT) · Capital gains for derivatives — generally not applicable · Audit requirements for F&O traders · Tax framework for SIFs · +1 more
Sales Practices, Code of Conduct and Investor ProtectionSignup
Suitability assessment for derivative products · Risk disclosure obligations · Prohibited practices — front-running, churning, misrepresentation · AMFI Code of Conduct · SCORES (SEBI Complaints Redress System) · +1 more
Related resources
Frequently asked questions
Who must clear NISM Series XIII?+
Anyone selling, recommending, marketing, or advising on Specialized Investment Funds (SIFs) in India — including ARN holders, EUIN holders attached to a firm's ARN, and employees of distribution houses engaged in SIF distribution.
Is this the same as the older Currency Derivatives / Equity Derivatives / Interest Rate Derivatives exams?+
NISM Series XIII consolidates Series I (Currency Derivatives), Series IV (Interest Rate Derivatives), and Series VIII (Equity Derivatives) into a single Common Derivatives certification. A candidate may take Series XIII instead of all three individual exams.
How long is the certification valid?+
3 years, renewable via NISM's CPE (Continuing Professional Education) programme or by re-attempting the exam.
What's the negative marking?+
25% of marks assigned to a question. A wrong answer on a 1-mark question deducts 0.25 marks; on a 2-mark question, 0.5 marks.
Can I take the exam online from home?+
Yes — NISM offers remote-proctored mode in addition to test-centre mode. Both have the same fee, syllabus, and certificate value.
How do I register?+
Register at certifications.nism.ac.in. You'll need PAN, photo, signature, and the exam fee. After registration you can schedule the exam slot — typically available within 5–7 days.
When do I receive the certificate?+
On passing, your provisional certificate is issued immediately at the test centre or on the portal. The final PAN-linked certificate is dispatched within 30 days to the address on file.
Is the SIFPrime Academy material free?+
Yes — the chapter content, cheat sheets, and practice questions in the Academy are free for SIFPrime partners. The NISM workbook itself (separate document) is available on the NISM website with login.
Ready to start?
Open Chapter 1 — Basics of Derivatives. About 3 hours of study material. By the end, you'll be comfortable with the vocabulary every later chapter assumes.
Start Chapter 1Disclaimer. SIFPrime Academy material is provided for educational purposes for empanelled partners. Exam parameters (fee, duration, syllabus, dates) are subject to change by NISM. Always verify the latest details at nism.ac.in before scheduling. SIFPrime is not affiliated with NISM; this is independent partner education.