An authorized person plays a key role in providing financial aid and investment products as well as services to her clients. To become an authorized person in India, it is essential that one clear the authorized person exam, after which one receives the privilege to perform a variety of functions such as handling client portfolios, executing trades, and providing assistance to the client’s investments and trades. To prepare for these exams, one can consider taking the help of a variety of authorized person courses available across the country. Some of these courses are detailed below.
1. NCFM (NSE Certification in Financial Markets)
To become an authorized person, one can opt for the Authorised Persons’ course and give the exam that has been arranged by NSE, otherwise known as the National Stock Exchange of India. This is an online test that assesses an individual’s practical skills as well as knowledge when it comes to operating financial markets in India. This program is incredibly useful for beginners in the stock market who desire to hone their skills. NCFM certified people tend to attract a host of employers. The various basic modules in NCFM include the following:
- Mutual funds
- Financial markets
- Commercial banking in India
- FIMMDA, or the NSE debt market
- Currency derivatives
- Interest rate derivatives
- Equity derivatives
- Clearing settlement and risk management
- Securities market
Besides studying for these basic modules, one can opt for intermediate or advanced study modules as well.
2. BCSM (BSE Certification of the Securities Market)
Another authorised Persons course certification exists from the Bombay Stock Exchange which allows individuals to receive the qualification of an authorized person. This is known as the BSE Certification of the Securities Market or BCSM, for short. Through this exam, one can ensure that they have the basic knowledge of all of the current stock exchanges, and their operations. The course is for individuals who wish to become authorized persons, stockbrokers, depository participants, or mutual funds investors. One can receive a 6-year validity on their certification when they choose to become certified through this course. Under this certification, one can find the following modules:
- Rolling settlement
- Trading clearing and settlement
- Secondary market
- Tax provisions
- Mutual funds
- Dematerialization of shares
- BOLT
- Inspection of broker’s books
- Surveillance
- Sensex and other indices
- Ethics code of conduct for brokers and authorized persons
- Futures and options
- Primary market
- Listing
- Book building and IPOs
- Debt marketing
- Investor grievance redressal system
- Internet trading
3. NISM Courses (National Institute of Securities Market)
Finally, to become an authorized person, you can also choose to enroll yourself in NISM Authorised Persons courses. The main goal of this institute is to educate stockbrokers, authorized persons, and investors about the stock market. Through certification that you receive from NISM, you can be trained in the various financial modules that are vital to know before enabling others to trade in financial markets. In fact, as per certain stockbroking firms, a NISM certificate is mandated before one is employed as an authorized person or stock broker for that firm.
Anyone seeking to become a qualified authorized persons through NISM will have to opt for NISM Series VI Depository Operation as well as the NISM Series VIII: Equity derivatives certifications. In addition to these, NISM offers various PGDM and certification programs as well. In fact, it offers certain full-time programs which are listed as follows.
- PGDM Fintech
- PGDM Securities market
- PGP Quantitative finance
- PGP Securities market
NISM also offers aspiring authorized persons part-time and full-time programs as well.
Procedure to become an authorized person in India
- The first step to becoming an authorized person is to clear the NISM Series VIII- Equity Derivatives Certificate Exam. This certification will be valid for three years once cleared, although the type of exam can change depending on the authorized persons’ requirements.
- The second step is to approach any well-established broker in India and pay security money.
- It’s vital to register with whichever segment you want to and pay the corresponding fee for that.
- Through the aid of logistical support that is received from a stockbroker, you can now start running your business with your broking partner.
The Bottom Line
Provided you understand the key steps and opt for a good training module, becoming an authorized person in India is a simple and straightforward process. Aspiring authorized persons can choose from any of three different kinds of Authorised Persons courses and their subsequent examinations to become certified. Each type of certificate comes with its own validity so ensure that you are well versed with what these are.
