Sebi launches free investor-certification programme; free study material, no exam fee!

Move over stock-market gurus, the big boss is in the room.

The market regulator, in association with the National Institute of Securities Market (NISM) has launched a free investor certification programme.

In a circular issued on June 11, the Securities and Exchange Board of India (Sebi) said that this is this voluntary certification aims to help investors test their knowledge of markets and investing. It added that it is designed to assist individuals in their journey towards gaining comprehensive knowledge about investing in the Indian securities markets.

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Details of the course, how to register and helpline to reach out to for queries are available on the investor.sebi.gov.in or https://www.nism.ac.in/sebi-investor-certification-examination/

During the launch, Ananth Narayan G, Whole Time Member of SEBI said that the new certification examination is a significant step towards enhancing digital financial education in the securities market.

He said, “This online exam will help enhance investors’ understanding of the investment process and the associated risks in the securities market and thus promote an efficient approach to investment aligned with the risk appetite of the investor.”

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The examination objectives are the following:

1. Develop a foundational understanding of Basic concepts of Finance, i.e Saving, Investment, Budgeting, Inflation etc.

2. Familiarise with various government schemes

3. Have an understanding of structure of securities markets, including primary and secondary markets.

4. Know the role of stock exchanges, depositories, and regulatory bodies.

5. Learn about risks associated with Investment such as credit risk, market risk, and liquidity risk.

6. Understand risk management concepts, i.e. hedging and diversification.

7. Recognise the importance of due diligence, ethical behavior, and transparency in investment practices.

8. Familiarise investors with their rights and responsibilities, disclosure requirements, and dispute resolution mechanisms.