Key benefits of NSE NCFM Capital Market Dealers Module (CMDM)
The NCFM Capital Market Dealers Module is one of the most trending modules of National Stock Exchange’s Education System. From the name itself, we can derive at a conclusion that this module is meant for the aspirant dealers of the NSE. Well, this is not exactly so; because many others also benefit by taking this course.
This course benefits employees of stock brokers and sub brokers, students, teachers, investors and anyone who is passionate for learning about the stock market operations.
The CMDM i.e. Capital Market Dealers Module covers broadly information on the below mentioned topics-
- An Overview of Indian Securities Market
- Trading Membership
- Trading System
- Clearing & Settlement System
- Legal Framework
- Fundamental Valuation Concepts
This module should be studied very thoroughly to understand the objective of National Stock Exchange in imparting the requisite knowledge required, especially for the ones who are willing to acquire the membership of NSE. Through this module, you can learn the operation cycle of the Capital Markets and its working via NEAT system.
NSE operates on the ‘National Exchange for Automated Trading’ (NEAT) system, a fully automated screen based trading system, which adopts the principle of an order driven market. It is not even easy to acquire the membership rights of the NSE. Once you acquire it, you have to adopt extra caution as you are always monitored by the NSE. If you as a member happen to violate the bye-laws of SEBI (Securities Exchange Board of India) and other governing bodies in this regard, your license to trade may get suspended or cancelled. For this, you need to be well versed with the following laws:
- SEBI (Intermediaries) Regulations, 2008
- SEBI (Prohibition of Insider Trading) Regulations, 1992
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
- The Depositories Act, 1996
- Indian Contract Act, 1872
- Income Tax Act, 1961
The passing criteria is simple set at 50% and no negative marking for wrong answers. The certificate is valid for 5 years and this certificate is counted for the purpose of NCMP (NSE certified market professional) certification also.
For further details, you may visit www.nseindia.com, and if you would like to have a look at the type of questions that area asked in this examination, check this link: https://www.nseindia.com/content/ncfm/CMDM-PractQns_E.pdf
Before opting for this module, one may consider his/her objective of grabbing the certification. Recently, there are some other certifications like NISM (National institute of securities management in India) which have different series and are preferred over this NCFM CMDM Module.
Even when you move for searching jobs in the stock broking industry, the recruiters seek the candidates who have opted for NSE or BSE certifications rather than freshers. The recruiters also prefer the NISM certification holder over the Capital Market Dealer’s Module. It is assumed that the person having this certification has the necessary knowledge about overall operations of the secondary markets.
So, not only from the knowledge perspective that you gain with this certification, but also from the job perspective, this certification will definitely add value to your resume!
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