CMDM® - Capital Market (Dealers) Module

The National Stock Exchange of India offers a huge number of certifications and modules to the aspirants of the stock market. The Capital Market (Dealers) Module is a module in one of the certification programs provided by the National Stock Exchange of India. Since the National Stock Exchange provides such a wide deal of education, even if a person thinks about taking one of these certification modules, it is better for him to learn about the National Stock Exchange of India first.

The National Stock Exchange of India is located in Mumbai. It was established in 1992. When it was established, it was the first demutualized electronic exchange in the country. The best part about the National Stock Exchange of India was that it was the first exchange in the entire country that provided an electronic automated screen-based trading system. Because of this electronic trading system, trading became way easier for the huge number of traders spread across the country. The total market capitalization of the National Stock Exchange of India is US$ 1.41 trillion. As of March 2016, the National Stock Exchange of India was the 12th largest stock exchange in the entire world the 50 companies and the 51 securities of the National Stock Exchange of India are extensively used by the investors not just in India but all around the world as a perimeter to judge the condition of the Indian capital markets. In other words, they are used as a barometer for the Indian capital markets by the investors all around the world. Despite all this, only four percent of the Indian economy or GDP is derived out of the stock exchanges in India.

Back then, the government of India had decided to bring transparency to the Indian capital market. For this, the government had ordered some of the leading financial institutions of India to form the National Stock Exchange of India. It was then set up by this group of some leading financial institutions of the country. The National Stock Exchange of India offers clearing, settlement and trading services in segments like equity, equity derivatives, debt and currency. The electronic trading facility of the National Stock Exchange has connected together with the investor base of the whole country. The fully automated screen based trading system that the National Stock Exchange of India operates on is called “National Exchange for Automated Trading” (NEAT) system. This system adopts the principle of an order driven market. The National Stock Exchange of India is so coveted that it is very difficult to even get the membership rights of it. Moreover, even if you are lucky enough to acquire the membership rights, you have to adopt extra caution as once you get the membership…you are continuously monitored by the National Stock Exchange. After becoming a member, if you violate any one of the bye-laws of SEBI (Securities Exchange Board of India) or any other governing body, your trade license may be cancelled or suspended.

Now, coming back to the module… there is a lot to learn about the Capital Market Dealers Module as well. As already mentioned above, the National Stock Exchange of India provides a great deal of education under different certification programmes. The Capital Market Dealers Module is a module in one such certification programme only. This program is called NSE Academy Certification in Financial Markets (NCFM).

The Capital Market Dealers Module is a module that provides the aspirants all the useful knowledge and every operational skill-set that is required for the Dealers in the equity market segment. These skills are very important as they come handy for all these aspirants once they become real Dealers. This module gives the candidate all the knowledge that is required along with all the skills that are required to be a dealer in the capital market operations. If someone wants to become a dealer in the cash market, it is mandatory for him to pass this module. Moreover, this module is very important as the authority to use the trading systems of the National Stock Exchange is given to only those persons who have passed this module. The trading software can be accessed by a genuine login ID… and this login ID is given to only those professionals who have passed this module. The Central Board of Secondary Education has made this module a part of the FMM (Financial Market Management) stream for class 12th as well. The Capital Market Dealers Module covers information mainly on these topics:

  1. Trading Membership
  2. Legal Framework
  3. Fundamental Valuation Concepts
  4. Trading system
  5. An overview of Indian Securities Market
  6. Clearing and Settlement System

Overall, this module is a really important one for anyone who is even willing to become a dealer in the stock market.

Who should do this module?

The Capital Market Dealers Module is one of the most popular and trending modules of the education system of the National Stock Exchange. Since the name of the module contains the word “Dealers”, the first impression that everyone gets about this module is that it is meant for only the aspirants who want to become Dealers and nobody else. But this is not the case here. This module is one that can prove to be beneficial for many others as well. The employees of stock brokers, sub brokers, teachers, students and investors can all benefit from this module. In simpler words, this module is meant for everyone who is passionate enough about learning about the stock market operations. The module is not just meant for the aspirant Dealers, but it is meant for everyone who is willing to learn about the stock market and its operations. Even the employees of BPOs and It companies can benefit from this module.

How is this module beneficial?

One can make a long list of the benefits that this module provides the aspirants or the candidates. Many of the benefits of this module have already been mentioned above. This module is really beneficial for the candidates as it provides them the knowledge and the skill sets that are really useful and important. These skills and knowledge come very handy for all the aspirants when they become real brokers or dealers in the cash market.

The module is very beneficial as it makes the candidates and the aspirant understand all the capital market trading operations of the National Stock Exchange. This understanding of all the operations proves to be really useful for these aspirants out there in the real world. Once you pass this module, you will have a crystal-clear understanding of the settlement, clearing and risk management processes. In a nutshell, this module is very important and beneficial for all the aspirants and the candidates because it is one of the best ways for these aspirants to get the best of knowledge and acquire the best skills that prove extremely helpful and useful for them when they become real dealers and brokers. This module doesn’t just give you knowledge about the trading operations, but it also makes the candidates learn about all the important regulatory aspects of the trade. Moreover, as already mentioned above, it is mandatory for anyone to pass this module if he wants to get the authorisation to use the trading software of the National Stock Exchange of India. This fact makes this module even more important and beneficial in a unique sort of way. Also, it is very important for somebody who is willing to become a dealer in the cash market as it is mandatory to pass this module first to become a dealer.

Moreover, when you have a coveted module like Capital Market Dealers Module on your CV, your employment and career prospects improve to a very great extent. For instance, if you go searching for jobs in an industry like Stock broking, you will get a huge benefit as the employers today seek candidates who have opted for some NSE or BE certifications. Today, people believe in specialization and getting this certification serves the exact same purpose for the candidates or the aspirants. This certification serves as a proof of the fact that you are great at what you do ad you have acquired the greatest set of skills and knowledge possible for the job. When an employer sees this certification on your CV, it is assumed that you have all the necessary knowledge about all the operations of the secondary markets.

So, this certification does not just help you in getting and acquiring knowledge about all that there is to know about the stock market and its operations, but it helps you from the job perspective as well. It increases your demand in the industry. It makes sure that you are preferred above all your peers who do not have a certification like this… and being preferred above all the peers is something that every professional wants and expects from his profession.

How to prepare for this module?

When a person even thinks about taking up a certification, the first question that comes to mind is how to prepare for the exam. People tend to think so much about the methods of preparation and the Assignment of preparation that they end up doing very little preparation. There is no method of preparation that can be termed as the ideal one for preparing for an exam. Every student, candidate or aspirant prepares according to his own calibre, skills and capabilities. Since every person has his own set of capabilities and his own calibre, the Assignment of preparation for every person is also different. For this reason, there can be no ideal method of preparation for any exam in the world. However, for every exam, there are some things that the candidates need to do in order to succeed in that exam. These things are very crucial for the success of the aspirants. Some of these things are:

1. Mock tests

This is something that proves to be really useful and helpful in preparing for an exam. One should take as many mock tests as he can before taking the final exam. Taking mock tests is one of the best ways for a candidate to prepare for an exam. The best part about taking mock tests is that the candidate gets to experience everything that he is going to feel on the day of the actual exam without really worrying about the results. Mock tests are really helpful for the candidates as they give the candidate the chance to get really aware of all the rules and regulations of the exam. They make the students realise how long have they come in terms of the preparation and how long do they have to go. They introduce the candidates to the kind of pressure they are going to face in the real exam.

2. Be calm during the exam

All your preparation can instantly turn into waste if you do not keep your calm during the final exam. No matter how many hours you have put into the preparation, all that can turn meaningless if you submit to the pressure of the examination hall. The candidates should always remember that it is in the examination hall that matters the most. One should always keep his calm and be patient in the exam hall.

What is the exam format?

The exam for the Capital Market Dealers Module is conducted online and all the questions are multiple choice questions. The duration of the test is one hour and forty-five minutes, i.e. 105 minutes. The total number of questions in the exam is 60. These 60 questions constitute 100 marks in total. One needs to score at least 50 percent in the exam to pass it. There is negative marking for all the wrong answers that you mark. So, you better be careful before answering a question. The weightage of different topics in the exam is as follows:

  1. Trading- 30%
  2. Fundamental valuation Concepts-6%
  3. Legal Framework- 9%
  4. Trading Membership- 20%
  5. Overview of Indian Securities Market- 10%
  6. Clearing Settlement- 25%

Moreover, once you get the certification, it remains valid for the next five years.