NISM Certification 2026: Complete Guide + Free Mock Test
What NISM certification is, which NISM exam your job needs, the exam pattern, fees and pass marks, how to register, and how to pass on your first attempt. Plus a free NISM Series 8 mock test with answers explained.
Written and checked by Vijay Verma, Head Instructor at 9AM Traders Academy, 15 years in the stock market. Exam details checked against nism.ac.in; mock test questions reviewed against the official syllabus. Last updated: 4 November 2026.
Free NISM Series 8 mock test
A free NISM Series VIII Equity Derivatives mock test that works like the real exam: timed, with negative marking and a 60% pass mark, every answer explained and a chapter-wise score report. No login.
Choose your NISM mock test
Questions are drawn at random from our question bank, so every attempt is different.
Full mock exam
Exam conditions: one question set, a countdown timer, negative marking and a pass or fail result.
Quick 20
Twenty random questions in 24 minutes. Good for a daily check before your exam.
Chapter practice
Practise one chapter with no timer. The answer and explanation show right after each question.
Your NISM Series VIII mock test result
Score by chapter
NISM Series 8 sample questions with answers
Twelve questions from our bank, one from each part of the syllabus. Try them first, then open the answer. The free mock test above draws from a larger bank.
Basics of derivatives
1. A derivative is a financial contract whose value depends on:
- A. The price of an underlying asset such as a share, index or commodity
- B. The credit rating of the exchange
- C. The RBI repo rate only
- D. The profit of the broker
Show answer
Answer: A. The price of an underlying asset such as a share, index or commodity
A derivative 'derives' its value from an underlying asset, such as a stock, an index, a currency or a commodity.
Forwards and futures
2. Spot price is ₹1,000 and the interest rate is 8% a year. Ignoring dividends, the approximate fair price of a 3-month futures contract is:
- A. ₹980
- B. ₹1,008
- C. ₹1,020
- D. ₹1,080
Show answer
Answer: C. ₹1,020
Cost of carry: futures ≈ spot × (1 + rate × time) = 1,000 × (1 + 0.08 × 3/12) = ₹1,020.
Forwards and futures
3. A trader buys 1 lot of index futures at 22,000 and sells it at 22,150. If the lot size is 50 units, the gross profit is:
- A. ₹150
- B. ₹3,000
- C. ₹7,500
- D. ₹15,000
Show answer
Answer: C. ₹7,500
Profit = (22,150 − 22,000) × 50 = 150 × 50 = ₹7,500, before costs.
Forwards and futures
4. You hold a portfolio worth ₹50 lakh with a beta of 1.2. To fully hedge it with Nifty futures, the value of futures to sell is:
- A. ₹41.7 lakh
- B. ₹50 lakh
- C. ₹60 lakh
- D. ₹62 lakh
Show answer
Answer: C. ₹60 lakh
Hedge value = portfolio value × beta = 50 × 1.2 = ₹60 lakh of index futures.
Introduction to options
5. A call option with strike ₹500 trades at a premium of ₹42 when the stock is at ₹530. Its time value is:
- A. ₹12
- B. ₹30
- C. ₹42
- D. ₹72
Show answer
Answer: A. ₹12
Intrinsic value = 530 − 500 = ₹30. Time value = premium − intrinsic value = 42 − 30 = ₹12.
Introduction to options
6. You buy a call with a strike of ₹1,000 at a premium of ₹25. At expiry, your breakeven price is:
- A. ₹975
- B. ₹1,000
- C. ₹1,025
- D. ₹1,050
Show answer
Answer: C. ₹1,025
A call buyer breaks even when the price equals strike + premium = 1,000 + 25 = ₹1,025.
Introduction to options
7. You buy a put with a strike of ₹800 at a premium of ₹18. At expiry, your breakeven price is:
- A. ₹782
- B. ₹800
- C. ₹818
- D. ₹836
Show answer
Answer: A. ₹782
A put buyer breaks even at strike − premium = 800 − 18 = ₹782.
Option trading strategies
8. A long straddle consists of:
- A. Buying a call and selling a put at the same strike
- B. Buying a call and a put at the same strike and expiry
- C. Selling a call and a put at different strikes
- D. Buying a stock and selling a call
Show answer
Answer: B. Buying a call and a put at the same strike and expiry
A long straddle buys both a call and a put at the same strike and expiry. It profits from a big move in either direction.
Clearing and settlement
9. The clearing corporation guarantees settlement of trades by:
- A. Insuring every trader
- B. Becoming the counterparty to both sides of every trade (novation)
- C. Asking SEBI to pay defaults
- D. Settling only large trades
Show answer
Answer: B. Becoming the counterparty to both sides of every trade (novation)
Through novation the clearing corporation becomes the buyer to every seller and the seller to every buyer, which removes counterparty risk.
Clearing and settlement
10. Daily mark-to-market profits and losses on futures are settled in cash:
- A. At expiry only
- B. On the next working day (T+1)
- C. Once a month
- D. Only when the position is closed
Show answer
Answer: B. On the next working day (T+1)
MTM obligations are settled in cash on the working day after the trade day.
Regulatory framework
11. Position limits in the derivatives market are set mainly to:
- A. Increase brokerage income
- B. Prevent too much concentration and possible manipulation
- C. Raise tax revenue
- D. Fix the price of contracts
Show answer
Answer: B. Prevent too much concentration and possible manipulation
Limits on how large a position one client or member can hold reduce the risk of manipulation and concentrated defaults.
Accounting and taxation
12. For most individual traders, profit or loss from equity F&O trading is taxed as:
- A. Short-term capital gains
- B. Long-term capital gains
- C. Non-speculative business income
- D. Speculative income
Show answer
Answer: C. Non-speculative business income
Exchange-traded F&O transactions are treated as non-speculative business income under the Income Tax Act.
What is NISM certification?
NISM, the National Institute of Securities Markets, is an educational institution set up by SEBI in 2006. It runs certification exams for people who work in India's securities markets: stock broking, derivatives, mutual funds, investment advice, research and operations.
For many market jobs, a NISM certificate is not optional. SEBI regulations require certain roles to hold a valid NISM certification, so brokers, mutual fund distributors and investment advisers ask for it before they hire. That is why the NISM exam is often the first step into a stock market career.
Which NISM exam do you need?
NISM runs many certification series. These are the ones most people take, matched to the work they lead to. Always confirm the exact requirement with your employer or on NISM's website.
| NISM series | Certificate | Usually needed for | Free mock test |
|---|---|---|---|
| Series VIII | Equity Derivatives | Dealers and staff of brokers who handle futures and options, sub-brokers and authorised persons in F&O | Live: take it |
| Series X-A | Investment Adviser (Level 1) | Anyone registering as a SEBI investment adviser, and people giving investment advice for one (needs Level 2 too) | Coming soon |
| Series X-B | Investment Adviser (Level 2) | The second exam required for SEBI investment advisers, after Level 1 | Coming soon |
| Series V-A | Mutual Fund Distributors | Mutual fund distributors, AMFI-registered agents and bank staff selling mutual funds | – |
| Series XV | Research Analyst | Research analysts registering with SEBI and people writing research reports | – |
| Series VII | Securities Operations and Risk Management | Back-office, operations and risk staff at brokers | – |
| Series I | Currency Derivatives | Dealers in currency futures and options | – |
| Series XVI | Commodity Derivatives | Dealers and staff working in commodity futures and options | – |
| Series VI | Depository Operations | Staff of depository participants who handle demat accounts | – |
Most common choice: if you want to work at a stock broker or trade derivatives professionally, start with Series VIII. If you want to become a SEBI-registered investment adviser, you need both Series X-A and X-B.
NISM exam pattern and pass marks
Every NISM exam is a computer-based multiple-choice test with negative marking. These are the official patterns for the three most popular exams.
| Series VIII: Equity Derivatives | Series X-A: Investment Adviser L1 | Series X-B: Investment Adviser L2 | |
|---|---|---|---|
| Questions | 100 multiple-choice questions | 90 multiple-choice + 9 caselets of 5 questions (135 total) | 90 multiple-choice + 6 caselets of 5 questions (120 total) |
| Total marks | 100 (1 mark each) | 150 | 150 (case questions carry 2 marks each) |
| Duration | 2 hours | 3 hours | 3 hours |
| Negative marking | 25% of the question's marks | 25% of the question's marks | 25% of the question's marks |
| Pass mark | 60% | 60% (90 of 150) | 60% (90 of 150) |
| Fee | ₹1,500 + gateway charges | ₹3,000 + gateway charges | ₹3,000 + gateway charges |
| Certificate valid for | 3 years | 3 years | 3 years |
Source: NISM's official pages for Series VIII, Series X-A and Series X-B. NISM can revise patterns and fees, so check before you book.
How to register for a NISM exam
NISM fees, validity and renewal
Fees depend on the series: ₹1,500 for Series VIII and ₹3,000 each for the Investment Adviser exams, plus payment gateway charges. NISM certificates are generally valid for 3 years. To keep working in a role that needs it, renew before it expires, either by passing the exam again or, where NISM offers it for your series, by attending a Continuing Professional Education (CPE) programme. For investment advisers, NISM runs a separate renewal exam, Series X-C.
NISM exam centres in Delhi
NISM exams are taken at approved test centres, and Delhi NCR has several. You see the list of centres and free slots when you book on NISM's portal, so pick the one closest to you and check the address on your admit card before the day. Reach the centre at least 30 minutes early with a valid photo ID.
Preparing in West Delhi? 9AM Traders Academy runs live NISM prep classes at Building No. 22, 23, 2nd Floor, Above White Pharmaceuticals, near Milan Cinema Road, New Moti Nagar, Delhi 110015. Call or WhatsApp 9315906004 to book a free demo class.
How to pass the NISM exam on your first attempt
- Study from the latest NISM workbook. Questions are set from it. Check the version date on NISM's site.
- Learn the calculations. In Series VIII, option breakevens, intrinsic and time value, futures pricing and hedge ratios come up often and are easy marks once practised.
- Take full mock tests in exam conditions. Book the real exam only once you score 70% or more consistently, not just 60%.
- Revise your weakest chapters, not your favourite ones. A chapter-wise score report shows where you lose marks.
- Use negative marking to your advantage. The maths below shows when to guess.
Should you guess in the NISM exam?
A right answer earns 1 mark. A wrong answer costs 0.25. So:
Pure guess from 4 options: 1 in 4 chance of right. Average result = 0.25 × 1 − 0.75 × 0.25 = +0.06 marks. Barely worth it.
Guess after ruling out 2 options: 1 in 2 chance of right. Average result = 0.5 × 1 − 0.5 × 0.25 = +0.375 marks. Always answer these.
More free NISM mock tests
Series VIII mock test
Equity Derivatives. Timed, negative marking, 60% pass mark, every answer explained and a chapter-wise score report.
Start free mock testFree Series VIII formula sheet (PDF)Series X-A mock test
Investment Adviser Level 1, with caselet questions like the real exam.
Coming soonSeries X-B mock test
Investment Adviser Level 2, with 2-mark case questions.
Coming soonNISM exam FAQs
What is NISM certification?
NISM certification is a set of exams run by the National Institute of Securities Markets, an institute set up by SEBI. SEBI regulations require NISM certificates for many securities market jobs, such as derivatives dealers, mutual fund distributors and investment advisers.
Which NISM certification is best?
It depends on the job. For broking and futures and options, Series VIII (Equity Derivatives) is the most common. To become a SEBI investment adviser, you need Series X-A and X-B. For mutual fund distribution, it is Series V-A.
Is the NISM exam difficult?
It is very passable with preparation. The main challenges are negative marking and calculation questions. Studying the official workbook and taking full mock tests until you score 70% or more is usually enough.
What is the passing mark in the NISM exam?
The pass mark is 60% for Series VIII, X-A and X-B, after negative marking. Check NISM's website for other series.
Is there negative marking in the NISM exam?
Yes. In Series VIII, X-A and X-B, 25% of a question's marks are deducted for each wrong answer.
How long is a NISM certificate valid?
NISM certificates for Series VIII, X-A and X-B are valid for 3 years. You renew by passing again or, where available, through NISM's CPE programme.
Can I take the NISM exam online from home?
NISM exams are usually taken at an approved test centre. Check the booking options on NISM's portal when you register, as NISM sets the available modes.
Can I get a job after NISM certification?
A NISM certificate makes you eligible for many roles at brokers, banks, mutual fund distributors and advisory firms. Employers also look for practical market knowledge, so pair the certificate with hands-on trading or analysis skills.
Where can I find NISM Series 8 questions and answers?
The sample questions on this page come with answers and explanations, and the full mock test draws on a larger bank of original questions written to the official syllabus.
Is this NISM mock test free?
Yes. Every test on this page is free, with no login and no limit on attempts.
Are these the real NISM exam questions?
No. NISM's exam questions are confidential. Our questions are original, written by our trainers to the official NISM Series VIII syllabus, and test the same topics at the same level.
How many NISM mock tests should I take before the exam?
Take at least three full mock tests, and only book your exam once you score 70% or more consistently. That margin protects you against a harder question paper on the day.
Is the NISM demo test the same as a mock test?
People use "demo test", "model test", "mock exam" and "mock test" for the same thing: a practice paper in the real exam format. This page is one, built to the official Series VIII rules.
Pass your NISM exam with live classes
9AM Traders Academy prepares students for NISM Series VIII Equity Derivatives and the Investment Adviser (X-A and X-B) exams. Live classes in New Moti Nagar, Delhi or online, with a maximum of 8 students per batch.
Book a free demo class9AM Traders Academy is an independent training institute and is not affiliated with NISM or SEBI. Mock test questions are original and are not taken from the NISM workbook or exam. Exam details are taken from nism.ac.in and may change; always confirm on NISM's website before you register.