SEBI Investor Certification Examination

Securities and Exchange Board of India (SEBI) in association with National Institute of Securities Markets (NISM) has introduced this examination with an aim of fostering Financial Literacy and Investor awareness in Indian Securities Markets.

This initiative seeks to empower individuals with essential knowledge about basic concepts of savings and Investment. By equipping potential investors with the necessary skills and insights, the regulator aims to enhance financial literacy and promote informed decision-making.

The exam objectives are as follows:

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

b) Information about various Government Schemes

c) Explore the structure of securities markets, including primary and secondary markets.

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

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

f) Understand risk management concepts, i.e. hedging and diversification.

g) Recognize the importance of due diligence, ethical behavior, and transparency in investment practices.

h) Familiarize investors with their rights and responsibilities, disclosure requirements, and dispute resolution mechanisms.

This exam aims to empower prospective investors, enabling them to make informed choices and navigate the complexities of financial markets effectively.

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