Examination Overview - NISM Series XVI: Commodity Derivatives Certification
The Commodity Derivatives examination seeks to create a common minimum knowledge benchmark for associated persons functioning as approved users and sales personnel of the trading members in the commodity derivatives segment of a recognized stock exchange.
The examination aims to enable a better understanding of various derivatives products available in commodity derivatives markets, regulations and risks associated with the products and the exchange mechanisms of trading, clearing and settlement.
Examination Objectives
On successful completion of the Commodity Derivatives examination, the candidate should:
Know the basics of the Indian commodity derivatives markets.
Understand various trading strategies that can be built using commodity derivatives.
Understand the clearing, settlement and risk management as well as the operational mechanism related to commodity derivatives markets.
Know the regulatory environment in which the commodity derivatives markets operate in India.
For more details, please visit the official website of
NISM.
Assessment Structure
| Component |
Details |
| Mode of Exam |
Online (Computer-Based Test) |
| Language Options |
English |
| Number of Questions |
100 |
| Type of Questions |
Multiple Choice Questions (MCQs) |
| Total Marks |
100 |
| Marks per Question |
1 mark |
| Passing Criteria |
60% (You need at least 60 correct answers) |
| Negative Marking |
25% of the marks assigned to the question |
| Exam Duration |
2 Hours (120 Minutes) |
| Exam Fee |
Rs. 1,500 (inclusive of GST) + payment gateway charges extra |
| Result Declaration |
Immediately after exam completion |
| Certificate Validity |
3 Years from the date of passing |
| PAN Requirement |
PAN must be updated in your profile to apply |
| Exam Delivery Modes |
At 150+ NISM test centers across India |
Syllabus Outline with Weightages
| Chapter No. |
Chapter Name |
Weightage (%) |
| 1 | Introduction to Commodity Markets | 10 |
| 2 | Commodity Indices | 5 |
| 3 | Commodity Futures | 15 |
| 4 | Commodity Options | 15 |
| 5 | Strategies using Commodity Futures & Commodity Options | 15 |
| 6 | Trading Mechanism | 10 |
| 7 | Clearing, Settlement and Risk Management | 15 |
| 8 | Legal and Regulatory Environment | 5 |
| 9 | Accounting and Taxation | 5 |
| 10 | Codes of Conduct and Investor Protection Measures | 5 |
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FAQs - NISM XVI:Commodity Derivatives
Finding a high-quality NISM Series XVI Commodity Derivatives Mock Test is essential for effective preparation. While you might find basic tests online, a truly reliable mock test should mirror the actual exam's complexity and structure. At nismexams.in, our package includes over 700 exam-focused questions that are specifically designed to cover the entire NISM syllabus, including the 25% negative marking, ensuring you practice with the most accurate and relevant material available.
The NISM Series XVI exam is a 2-hour computer-based test featuring 100 multiple-choice questions, with each question valued at one mark. A critical component of the exam is the 25% negative marking for every incorrect answer. To pass and earn the certification, you must achieve a minimum score of 60%. This structure demands not only strong subject knowledge but also careful time management and strategic answering.
Trying a NISM XVI Demo Test is an excellent way to gauge the quality of a preparation platform and get a feel for the types of questions you'll face. A good demo test should give you a snapshot of the full Commodity Derivatives Practice Test experience. While our primary offering at nismexams.in is a comprehensive premium package, a demo helps you understand the value and quality you can expect from our full mock test series.
A smart study plan focuses on the chapters with the highest weightage. For the NISM Series XVI exam, you must prioritize:
1. Commodity Futures (15%)
2. Commodity Options (15%)
3. Strategies using Commodity Futures & Commodity Options (15%)
4. Clearing, Settlement and Risk Management (15%)
5. Introduction to Commodity Markets (10%)
6. Trading Mechanism (10%)
Mastering these six chapters is critical as they constitute 80% of the entire exam.
A NISM XVI Mock Test is a complete exam simulation, not just a set of questions. It replicates the real exam environment by being timed for 2 hours, containing 100 questions distributed according to the official syllabus weightages, and applying the 25% negative marking rule. This is fundamentally different from simply practicing questions, as it trains you to handle the pressure and strategic demands of the actual test, which is a key part of the preparation offered on nismexams.in.
While a free Commodity Derivatives Mock Test can be a starting point, relying solely on it is a risky strategy for a professional certification. Free resources are often not updated, may contain errors, and rarely cover the full depth of the syllabus. For an exam with negative marking, a comprehensive and verified question bank, like the 700+ questions included in our affordable package, is a much more reliable path to success.
This is one of the most critical chapters, carrying a 15% weightage. It moves beyond theory into the practical application of commodity derivatives. You will learn essential real-world strategies such as hedging for producers and consumers (e.g., a farmer locking in a price for their crop), speculative strategies based on market views, and arbitrage strategies to profit from price discrepancies. Our concise notes help simplify these complex strategies for easy understanding.
To pass the NISM Series XVI: Commodity Derivatives Certification Exam, you must score a minimum of 60%. This means you need to achieve a net score of at least 60 marks out of 100 after the 25% negative marking for incorrect answers has been applied.
You can find a complete Commodity Derivatives Model Test within the comprehensive preparation package at nismexams.in. Our platform is designed to provide an authentic exam experience with multiple full-length mock tests. Each NISM XVI Model Test is crafted by subject matter experts to accurately reflect the difficulty, question style, and topic distribution of the actual NISM exam.
The 25% negative marking means that for every question you answer incorrectly, 0.25 marks will be subtracted from your total score. In practical terms, for every four questions you get wrong, you lose one full mark that you would have earned from a correct answer. This makes random guessing a poor strategy and highlights the importance of accuracy, which you can build by using our extensive NISM XVI Practice Test.
This certification is designed for individuals working or aspiring to work in the commodity derivatives segment. This includes:
Approved users and sales personnel of stockbroking firms.
Traders and investors interested in commodity markets.
Students aiming for a career in finance and capital markets.
Anyone who wants to gain a formal and in-depth understanding of commodity derivatives.
The 15-day access plan offered at nismexams.in is specifically designed for focused, short-term preparation. A successful 15-day strategy would be:
Days 1-7: Thoroughly review our Concise Short Notes to quickly cover all the important concepts and formulas across the syllabus.
Days 8-12: Dedicate this time to intensive practice with our 700+ Exam-Focused Questions, attempting chapter-wise tests to solidify your understanding.
Days 13-15: Take multiple full-length mock tests to master time management and get accustomed to the negative marking system.
Yes, the exam places very high and equal importance on both. The chapters "Commodity Futures" and "Commodity Options" each have a 15% weightage, and the "Strategies" chapter, also with a 15% weightage, covers the application of both. A deep understanding of the mechanics and use cases for both futures and options is absolutely essential to pass.
This chapter carries a heavy 15% weightage because it covers the operational core of the commodity derivatives market. It explains how trades are guaranteed by the clearing corporation, how daily profits and losses are settled (mark-to-market), and the mechanisms used to manage risk (like margins). A thorough understanding of this topic is vital for anyone operating in the market and is heavily tested in the exam.
Our package is designed to help you practice until you are completely confident. We offer 15 test attempts per set, allowing you to retry the tests multiple times. This repetition is key to identifying your weak areas, learning from your mistakes, and tracking your improvement, ensuring you are fully prepared on exam day.
Absolutely. Our "Power Notes" are specifically created for quick and effective revision. They distill the most important concepts, formulas, and facts from the entire syllabus into a concise format. This makes them the perfect tool for last-minute preparation, allowing you to refresh your memory on key topics without having to re-read lengthy chapters.
After you successfully pass the exam, the NISM Series XVI: Commodity Derivatives Certification is valid for a period of three years. To maintain your certification beyond this period, you will need to either pass the exam again or complete a Continuing Professional Education (CPE) program as prescribed by NISM.
Yes, our NISM XVI Practice Test is comprehensive and covers all chapters according to their weightage, including the "Commodity Indices" chapter. While it has a smaller weightage of 5%, we ensure our question bank has sufficient questions on this topic so you are prepared for any question that may appear in the exam.
A Commodity Derivatives Demo Test is a brief, free sample designed to give you a preview of our platform and the quality of our questions. In contrast, a full mock test is a complete simulation of the actual exam, featuring 100 questions, a 2-hour timer, and negative marking. A demo is for a quick look, but only the full mock tests can properly prepare you for the real exam's intensity.
Our course offers unparalleled value. For just Rs. 599, you get a complete and expertly crafted preparation toolkit that includes over 700 practice questions, concise revision notes, and multiple test attempts. This affordable, all-inclusive package provides a structured and reliable path to passing a mandatory SEBI certification, saving you the potential cost and time of failing and re-attempting the exam.
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