100+ Free NISM Series VIII Practice Questions
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The breakeven price at expiry for the buyer of a call option is:
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Key Facts: NISM Series VIII Exam
100
Multiple-Choice Questions
NISM Series VIII Exam Page
60%
Passing Score
NISM Series VIII FAQs
25%
Negative Marking
NISM Series VIII FAQs
2 hrs
Exam Duration
NISM Series VIII Exam Page
INR 1,500
Examination Fee
NISM Series VIII FAQs
3 yrs
Certificate Validity
NISM Certifications
The NISM-Series-VIII: Equity Derivatives Certification Examination has 100 single-correct multiple-choice questions of 1 mark each, taken over 2 hours, with a 60% (60 marks) pass requirement and 25% negative marking on each wrong answer. The syllabus spans 10 units; Introduction to Forwards and Futures (25 marks) and Introduction to Options (25 marks) carry the most weight, followed by Legal and Regulatory Environment (15) and Clearing and Settlement (13). The examination fee is INR 1,500 plus taxes, and the certificate is valid for 3 years. SEBI mandates this certification for approved users and sales personnel of equity derivatives trading members.
Sample NISM Series VIII Practice Questions
Try these sample questions to test your NISM Series VIII exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Which of the following best describes a derivative contract?
2Which of the following is NOT one of the four main types of participants in the derivatives market?
3A trader who simultaneously buys a stock in the cash market and sells its futures to lock in a risk-free spread is acting as a/an:
4Which of the following is a key economic function served by derivatives markets?
5Which of the following are exchange-traded derivatives in the Indian equity market?
6Which feature distinguishes exchange-traded derivatives from OTC derivatives?
7Leverage in derivatives trading primarily refers to:
8In which year were equity derivatives (index futures) first introduced for trading on Indian stock exchanges?
9A stock market index is best described as:
10The Nifty 50 and most major Indian equity indices are constructed using which weighting methodology?
About the NISM Series VIII Exam
NISM-Series-VIII is the SEBI-mandated certification for approved users and sales personnel dealing in the equity derivatives segment in India. It tests derivatives basics, indices, futures, options, trading strategies, clearing and settlement, regulation, taxation, and sales practices through 100 single-correct multiple-choice questions.
Questions
100 scored questions
Time Limit
2 hours (120 minutes)
Passing Score
60% (60 out of 100 marks), with 25% negative marking per wrong answer
Exam Fee
INR 1,500 plus applicable taxes payable to NISM at registration (National Institute of Securities Markets (NISM))
NISM Series VIII Exam Content Outline
Basics of Derivatives
Definition and types of derivatives, history, market participants, exchange-traded vs OTC, leverage, and the economic functions of derivatives markets.
Understanding the Index
Market indices, free-float market-capitalisation weighting, index construction, and the use of indices as underlyings for equity derivatives.
Introduction to Forwards and Futures
Forwards and futures, cost-of-carry pricing, basis and convergence, contango and backwardation, margins, mark-to-market, beta-based hedging, and spreads.
Introduction to Options
Calls and puts, payoffs, moneyness, intrinsic and time value, Black-Scholes pricing, option Greeks, implied volatility, and put-call parity.
Option Trading Strategies
Covered calls, protective puts, vertical spreads, straddles, strangles, collars, and aligning strategies with directional or volatility views.
Introduction to Trading Systems
Exchange trading systems, order types and attributes such as market, limit, stop-loss and IOC orders, and contract adjustments for corporate actions.
Introduction to Clearing and Settlement System
Central counterparty role, novation, clearing members, VaR/SPAN margining, mark-to-market margins, settlement of futures and options, and default management.
Legal and Regulatory Environment
SEBI Act and SCRA, insider-trading and PFUTP prohibitions, position limits, stock eligibility, investor grievance redressal, SAT appeals, and client protection.
Accounting and Taxation
Accounting for margins and derivative positions, taxation as non-speculative business income, and Securities Transaction Tax on equity derivatives.
Sales Practices and Investor Protection Services
Suitability and fair-dealing obligations, accurate disclosures, avoidance of mis-selling, and investor protection services for derivatives clients.
How to Pass the NISM Series VIII Exam
What You Need to Know
- Passing score: 60% (60 out of 100 marks), with 25% negative marking per wrong answer
- Exam length: 100 questions
- Time limit: 2 hours (120 minutes)
- Exam fee: INR 1,500 plus applicable taxes payable to NISM at registration
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
NISM Series VIII Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the NISM Series VIII exam?
The NISM-Series-VIII: Equity Derivatives Certification Examination has 100 multiple-choice questions of 1 mark each, with a single correct answer per question, to be completed in 2 hours.
What is the passing score for NISM Series VIII?
The passing score is 60%, meaning a candidate must score at least 60 out of 100 marks. There is a 25% negative marking, so 0.25 marks are deducted for each wrong answer.
Is there negative marking in NISM Series VIII?
Yes. There is negative marking of 25% of the marks assigned to each question, so each incorrect answer deducts 0.25 marks. This makes careful answering and avoiding random guessing important.
How much does the NISM Series VIII exam cost in 2026?
The examination fee for NISM-Series-VIII is INR 1,500, plus applicable taxes such as GST, payable to NISM at the time of registration through the NISM certification portal.
How long is the NISM Series VIII certificate valid?
The NISM Series VIII certificate is valid for 3 years from the date of passing. It can be renewed through the Continuing Professional Education (CPE) programme or by passing the examination again.
Who needs the NISM Series VIII certification?
SEBI mandates the NISM-Series-VIII certification for approved users and sales personnel of trading members who deal in the equity derivatives segment, ensuring minimum knowledge standards for handling derivatives transactions.
What topics carry the most weight in NISM Series VIII?
Introduction to Forwards and Futures (25 marks) and Introduction to Options (25 marks) carry the highest weight, followed by Legal and Regulatory Environment (15) and Clearing and Settlement System (13).
How long does it take to prepare for NISM Series VIII?
Most candidates prepare in about 4 to 6 weeks studying part-time, spending roughly 30 to 60 hours on the official NISM workbook and practice questions before sitting the computer-based exam.