GITS Academy NCFM Certification Training

National Stock Exchange

The National Stock Exchange (NSE) is India's leading stock exchange covering various cities
and towns across the country. NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The Exchange has brought about
unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities
that serve as a model for the securities industry in terms of systems, practices and procedures.

NSE has played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent trading, clearing and settlement
mechanism, and has witnessed several innovations in products & services viz. demutualisation of
stock exchange governance, screen based trading, compression of settlement cycles,
dematerialisation and electronic transfer of securities, securities lending and borrowing,
professionalisation of trading members, fine-tuned risk management systems, emergence of
clearing corporations to assume counterparty risks, market of debt and derivative instruments
and intensive use of information technology.

About NCFM
Taking into account international experience and the needs of the Indian financial markets,
National Stock Exchange introduced in 1998 a facility for testing and certification by launching
NSE's Certification in Financial Markets (NCFM).

NCFM is an online testing and certification programme. It tests the practical knowledge and
skills required to operate in the financial markets. Tests are conducted in a secure and unbiased
manner and certificates awarded based on merit of the candidate to qualify the on-line test.

The entire process of testing, assessing and scores reporting in the NCFM is fully automated.
The system is operated through an intranet facility by using a central World Wide Web server
with terminals located at each of the designated test centres to be used as an examination front
end. Communication between the central server and the test centres is achieved through
VSAT/leased line network.

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

GITS Academy
GITS offers wide spectrum of training solutions that are designed to suit every skill, ranging
from procedural, operational, managerial to the end user.

GITS incorporates outstanding individuals from diverse and separate background experiences,
which focuses on providing the best quality support and the right technology solution that meets
our customer's business need. We retain the philosophy “Complete customer satisfaction is the
only key performance indicator" We are focused on taking care of our customers interests and
we ensure delivering effective levels of services. Our team believes that the professional
relationship is purely based on the results of the solutions that we provide at your desktop.

We at GITS Academy in regard of NCFM gives Comprehensive and analytical training on

following Modules

a. Financial Market: A Beginner's Module

b. Securities Market Basic Module
c. Capital Market Dealer Module
d. Equity Derivative : A Beginner's Module
e. Equity Derivative : A Dealer Module
f. Investment Analysis and Portfolio Management
g. Commodities Market Module
h. FIMMDA- NSE Debt Market Beginner's Module
i. Mutual Funds: A Beginner’s Module
j. Interest Rate Derivatives: A Beginner’s Module

Our Classroom session includes Notes on relevant subject, demo test after every class .

We have designed a Module called Investor Knowledge Module basically for those who want
to enhance their knowledge and are not so interested in getting NSE Certification. Here we give
in depth knowledge of each financial product like Equity, Derivative, Commodity, Fixed Income
Securities.

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Financial Market: Beginner’s Module

Module Fee=3500/-

a. Investment basics
 Brief Introduction of Financial Products
b. Securities
 Function of Securities Market
 Regulators and Participant in Securities Market
c. Primary Market
 Face Value of Share/ Debenture
 Issue of Share
 Public Issue and Private Placement
 Listing of Securities
 Role of SEBI in Capital Issuance
 Foreign Capital Issuance
 Stock Split , Buyback
d. Secondary Market
 Products in Secondary Markets
 Equity Investment
 Debt Investment

e. Derivatives
 Forward, Future and Option
 Commodity Derivative and Currency Derivative
f. Depository
 Depository participant
 ISIN
 Custodian
g. Mutual Funds and Hedge Fund
 Tracking Error
 Net Asset value
 Exchange Traded Fund
 Investor Protection Fund
h. Analysis of Financial Statement

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Securities Market Basic Module

Module Fee=4000/-

a. Securities Market in India

 Securities Market , Financial System and Economic Development
b. Primary Market
 Merchant Banking
 ADR/GDRs
 Mutual Fund
 Venture Capital Fund
c. Secondary Market
 Stock Exchange, Listing, Delisting of Securities
 Trading, Clearing and Settlement
 Risk Management
d. Government Securities Market
 Introduction to Indian Debt Market, their Primary and Secondary
Market
e. Derivative Market
 Derivative Market in India
 Future and Option
 Trading system, clearing and settlement
f. Regulatory Framework
 SCRA Act, 1956
 SEBI Act, 1992
 Securities Market Regulation Act, 1993
g. Mathematics and Statistics
 Measurement of Central Tendency
 Risk and Return
 Financial Statement Analysis
h. Corporate Finance
 Cost of Capital
 Capital Structure
 Capital Budgeting

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Capital Market Dealer Module

Module Fee=4500/-
a. Trading
 Market Types and its Phases
 NEAT System
 Auction
 RetDebt Market
b. Clearing and Settlement
 Settlement Cycles
 Securities Settlement
 Funds Settlement
 Risk Containment Measures
 Investor Protection Fund
c. Trading Membership
 Broker Client Relationship
 Dispute, Arbitration and Appeal
d. Legal Framework
 SCRA Act, 1956
 SEBI Act, 1992
 Depositories Act,1996
 Indian Contract Act, 1872
 Companies Act, 1956
e. Overview of Indian Securities Market
 Market Segments
 Product and Participants
 Derivative Market
 Reforms in Securities Market
f. Fundamental Valuation Concepts
 Understanding Financial Statements
 Time Value of Money
 Equity Research

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure for Mutual Funds: A Beginner’s Module

Module Fee=4500/-

a. Mutual Funds
 Introduction, their Structure in India
 Role of AMC, Registrar and Transfer Agent
 NFO
 Investor Rights and Obligation
b. Mutual Fund: Product and Feature: Equity Funds
 Open ended and Closed Fund
 Different types of Funds
 Entry load, Expense Ratio, Exit load
c. Mutual Fund: Product and Feature: Gold ETFs
 Introduction to Exchange Traded Funds
 Working during NFO, on an ongoing basis
 Market making by APs
d. Mutual Fund: Product and Feature: Debt Funds
 Interest Rate Risk
 Credit Risk
 How is Debt Instrument Priced
 Different Debt Fund Schemes
e. Mutual Fund: Product and Feature: Liquid Funds
 Floating Rate Schemes
 Portfolio Churning in Liquid Funds
f. Taxation
 Capital Gain Tax
 Indexation
 Reason of popularity of Fixed Maturity Plan
g. Regulations
 Objective of AMFI
 Advantage of Mutual Fund
 Systematic Investment Plan, Systematic Transfer Plan, Systematic
Withdrawn Plan
 Choosing between Dividend Option, Dividend Reinvestment, Growth
Option

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Derivative Basic Module Module Fee=4500/-

a. Introduction of Derivative
 Definition of Derivative
 Origin of Derivatives
 Derivatives in India
b. Definition of Basic Derivatives
 Forward Contract and their Settlement
 Futures
 Options- Call and Put Option
 Terminology of Derivatives
 Moneyness of an Option
c. Application of Basic Derivatives
 Participants in Derivative Market
 Uses of Derivatives
d. Trading Futures and their Payoffs
e. Trading Options
 Option Payout
 Option Strategies
 Determination of Option price
f. Derivative trading on Exchange
 Derivative trading on NSE
 Settlement of Derivatives- Future and Option
 Accounting and Taxation of Derivatives

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Derivative Dealer Module Module Fee=4500/-

a. Introduction to Derivative
 Derivative Products and participant in Derivative Market
 NSE Derivative Market
b. Market Index
 Economic Significance of Index Movements
 Index Derivative and Index Funds
c. Introduction to Future and Options
 Forward Contract, Future, Option and their Valuation
 Interest Rate Future and swaps
d. Application of Futures and Options
 Greeks Latter
 Option Trading Strategies
e. Trading
 Future and Option Trading System
 Future and Option Market Instruments
 Criteria for Stock and Index Eligibility for trading
f. Clearing and Settlement
 Clearing and Settlement Mechanism
 Risk Management
 Margining System
g. Regulatory Framework
 SCRA Act, 1956
 SEBI Act, 1992
 Regulation for Derivative Trading

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Investment Analysis and Portfolio Management

Module Fee=5500/-

a. Objective of Investment Decision

 Introduction on Investment
 Types of Investors
 Constraints in Investment
b. Financial Markets
 Primary and Secondary Market
 Trading in Secondary Market
 Money Market
 Repos and Reverse
 Bond Market
 Common Stock
c. Fixed Income Securities
 Time Value of Money
 Simple and Compound Interest Rate
 Real and Nominal Interest Rate
 Bond Price Fundamentals
 Bond Yields
 Interest Rates, Term structure of Interest Rate
 Macaulay and Modified Duration
d. Capital Market Efficiency
 Weak-form Market Efficiency
 Semi-strong form Market Efficiency
 Strong form Market Efficiency
e. Financial Analysis and Valuation
 Analysis of Financial Statement
 Income Statement
 Balance Sheet
 Cash Flow Statement
f. Modern Portfolio Theory
 Diversification and Portfolio Risk
 Capital Asset Pricing Module
 Mean- Variance Investors and Market Behaviour
 Estimation of Beta

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

 Multifactor Modules
g. Valuation of Derivatives
 Forward and Future
 Call and Put Option
 Cost of Carry Model
 Backwardation and Contango
 Option Pricing
h. Investment Management
 Investment Companies
 Active and Passive Management
 Net asset Value
 Performance Assesment of Managed Fund

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
 GITS Academy NCFM Certification Training

Course Structure of FIMMDA NSE Debt Market Basic Module

Module Fee=5500/-

Debt Instrument: Fundamental Feature

 Coupon, Term to Maturity of Bond
 Asset Backed Securities
a. Indian Debt Market: A Profile
 Market Segment
 Participant in Debt Market
 Secondary Market for Debt Instrument
b. Central Government Securities: Bonds
 Primary Issuance Process
 Participant in Indian Debt Market
 Constituent SGL Account
 Primary Dealers
 Satellite Dealers
 Secondary Market for Debt Securities
 Settlement of trades in G Secs
c. Central Government Securities: T- Bills
 Issuance Process
 Cut off Yields
 Investors in T-Bills
 Secondary Market Activity in T-Bills
d. State Government Bonds
 Gross Fiscal Deficit of State Government and its Financing
 Ownership of Pattern of State Government Bonds
e. Call Money Markets
 Volumes in Call Market
 Participant in Call Market
f. Corporate Debt: Bonds
 SEBI Regulation, 2008
 Listing Criteria of NSE Debt Market
 Secondary Market
 Credit Rating
g. Commercial Paper and Certificate of Deposit

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
 GITS Academy NCFM Certification Training

 Guideline for CP Issue

 Growth of CP Market
 Certificate of Deposit
h. Repos
 Repo Rate
 Calculation of Settlement Amount in Repo Transaction
 Repo Market in India
 Secondary Market transaction in Repo
 Repo Accounting
i. Bond Market Indices and Benchmark
 I-Bex Sovereign Bond Index
 FIMMDA NSE MIBID MIBOR
j. Trading Mechanism in NSE-WDM
 Description of NSE-WDM
 Trading Mechanism
k. Regulatory and Procedural Aspects
 Government Securities Act,2006
 SEBI (GUIDELINES FOR DISCLOSURE AND INVESTOR PROTECTION), 2000
 SEBI (ISSUE AND LISTING OF DEBT SECURITIES) REGULATIONS, 2008
l. Valuation of Bonds
 Bond Valuation
 Accrued Interest
 Yield
m. Yield Curve and Term Structure of Interest Rate
 BOOTSTRAPPING
 Theories of Term Structure of Interest Rate
n. Duration
 Modified Duration
 Rupee Duration
 Portfolio Duration
o. Fixed Income Derivatives
 Interest Rate Future
 Interest Rate Swap

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Commodities Market Module Fee=5500/-

a. Introduction to Derivatives
 Products, participants and functions
 Derivatives markets
b. Commodity Derivatives
 Difference between commodity and financial derivatives
 Global commodities derivatives exchanges
 Evolution of the commodity market in India
c. NCDEX Platform
 Structure of NCDEX
 Exchange membership
 Capital requirements
 Trading, Clearing, Settlement IN The NCDEX system
d. Commodities trading on NCDEX Platform
 Agricultural commodities
 Precious metals
e. Instrument available for trading
 Forward contracts, Introduction to futures AND options
f. Pricing Commodity Futures
 The cost of carry model
g. Using Commodity Futures
 Hedging
 Speculation
 Arbitrage
h. Trading
 Futures trading system
 Commodity futures trading cycle
 Margins for trading in futures
i. Clearing and Settlement
 Risk management
 Margining at NCDEX
j. Regulatory Framework
 Rules governing commodity derivatives exchanges
 Rules governing intermediaries
 Rules governing investor grievances, arbitration

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775
GITS Academy NCFM Certification Training

Course Structure of Investment Knowledge Module Module Fee=6000/-

a. Objective of Investment Decision

 Avenues of Investment
 Types of Investor
 Introduction to Exchange Market
b. Financial Markets
 Money Market
 Capital Market-Primary Market and Secondary Market
c. Equity Market
 Fundamental analysis and technical analysis
d. Fixed Income Securities
 Valuation of Bond
 Clean Price, Dirty Price and Accrued Interest
 Macaulay Duration and Modified Duration
e. Derivative Market
 Forward, Future and Option
 Black Scholes Model
 Cost of Carry Model
 Backwardation and Contango
 Introduction to the Currency and Credit Derivative
f. Investment Management
 Active and Passive Management
 Mutual Fund, Hedge Fund
 Measurement of Risk-Beta, alpha, Sharpe Ratio and Treynor Ratio
 Introduction to VaR

#16, 3rd Floor, 10th Cross, Sampige Road Malleswaram, Mail: training@gitsacademy.com
Call: 080-23467842, 9632240775