Examination Overview - NISM Series XXI-A: PMS Distributors Certification
The NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination is a mandatory exam introduced by NISM and mandated by SEBI for individuals engaged in the distribution of Portfolio Management Services on behalf of SEBI-registered Portfolio Managers.
This certification aims to establish a minimum knowledge benchmark for PMS distributors to ensure quality representation, informed product distribution, and client-centric advisory in the portfolio management industry.
The examination covers a wide range of topics, including investment fundamentals, capital market instruments, portfolio management operations, regulatory frameworks, taxation aspects, performance measurement techniques, and ethical practices required for engaging clients and managing compliance under SEBI regulations.
Passing this examination is compulsory as per SEBI Notification Ref. No. SEBI/LAD-NRO/GN/2021/48 dated September 7, 2021, and is essential for anyone acting as a distributor of PMS offerings.
Examination Objectives
On successful completion of the Portfolio Management Services (PMS) Distributors certification examination, the candidate should:
Know the basics of investments, securities markets, investing in stocks, understanding fixed income securities, derivatives and mutual funds.
Understand the role of portfolio managers, operational aspects of portfolio management services and the overall portfolio management process, including performance measurement and evaluation.
Get oriented to the taxation aspects and regulatory, governance and ethical aspects of portfolio managers and PMS distributors.
For more details, please visit the official website of
NISM.
Assessment Structure
| Component |
Details |
| Number of Questions | 100 |
| Marks per Question | 1 mark |
| Total Marks | 100 |
| Exam Duration | 2 Hours |
| Passing Criteria | 60% |
| Negative Marking | 10% of marks assigned per question |
Syllabus Outline with Weightages
| Chapters |
Chapter Name |
Proposed Weightages |
| 1 | Investments | 7 |
| 2 | Introduction to securities markets | 5 |
| 3 | Investing in stocks | 10 |
| 4 | Investing in fixed income securities | 5 |
| 5 | Derivatives | 5 |
| 6 | Collective Investment Vehicles | 5 |
| 7 | Role of portfolio managers | 10 |
| 8 | Operational aspects of portfolio managers | 13 |
| 9 | Portfolio management process | 15 |
| 10 | Performance measurement and evaluation of portfolio managers | 10 |
| 11 | Taxation | 5 |
| 12 | Regulatory, governance and ethical aspects of portfolio managers | 10 |
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Frequently Asked Questions – NISM Series XXI-A: PMS Distributors Certification
Finding a high-quality NISM Series XXI-A Portfolio Management Services Mock Test is essential for your preparation. While some free tests are available, they often don't cover the full depth of the syllabus or include the negative marking. For a reliable and comprehensive experience, nismexams.in offers a dedicated package with over 600 exam-focused questions, concise revision notes, and multiple test attempts, ensuring your practice is aligned with the actual SEBI-mandated exam.
The NISM Series XXI-A exam is a 2-hour computer-based test consisting of 100 multiple-choice questions (MCQs), with each question carrying one mark. A critical aspect to be aware of is the 10% negative marking for each incorrect answer. To pass and receive the certification, you must achieve a minimum score of 60%.
Trying a NISM XXI-A Demo Test is a smart way to evaluate a platform's quality before you commit. A good demo test should give you a clear idea of the question style and the user interface you can expect. While our main offering at nismexams.in is a premium, all-inclusive package, a demo helps you see the value you'll get from our full Portfolio Management Services Practice Test.
A strategic study plan should prioritize the chapters with the highest weightage. For the NISM Series XXI-A exam, you must focus on:
Portfolio Management Process (15%)
Operational Aspects of Portfolio Managers (13%)
Investing in Stocks (10%)
Role of Portfolio Managers (10%)
Performance Measurement and Evaluation (10%)
Regulatory, Governance, and Ethical Aspects (10%)
Mastering these six chapters is crucial as they make up 68% of the entire exam.
A NISM XXI-A Mock Test is a complete simulation of the actual exam, not just a list of questions. It is timed for 2 hours, contains 100 questions structured according to the official syllabus weightages, and most importantly, it applies the 10% negative marking. This is fundamentally different from a simple question bank because it trains you to handle the time pressure and strategic decision-making required for the real test, which is a core feature of the preparation offered on nismexams.in.
While a free Portfolio Management Services Mock Test can be a useful starting point, it is a very risky strategy to rely on it alone for a mandatory professional certification. Free resources are often not updated, may contain errors, and rarely provide the comprehensive coverage needed. Investing in an affordable and expertly crafted package, like the one at nismexams.in, is a much more reliable way to ensure you pass on the first attempt.
This chapter carries the highest weightage at 15% and is the heart of the certification. It covers the entire lifecycle of managing a client's portfolio, from understanding their needs and creating an investment policy statement (IPS) to asset allocation, portfolio construction, and periodic rebalancing. A deep understanding of this process is what separates a successful portfolio manager and is therefore heavily tested.
To successfully pass the NISM Series XXI-A: Portfolio Management Services (PMS) Distributors 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 10% negative marking for any incorrect answers has been applied.
You can find a complete Portfolio Management Services Model Test as part of the comprehensive preparation package at nismexams.in. Our platform is specifically designed to provide an authentic exam experience with multiple full-length mock tests. Each NISM XXI-A Model Test is created by industry experts to accurately reflect the difficulty, question format, and topic distribution of the actual NISM exam.
The 10% negative marking means that for every incorrect answer, 0.10 marks will be deducted from your score. This might seem small, but it means that for every ten questions you guess wrong, you lose one full mark. This rule discourages random guessing and makes it essential to answer only when you are reasonably confident. Practicing with our NISM XXI-A Practice Test helps you develop a strategy for when to answer and when to skip.
This certification is mandatory for any individual engaged by a SEBI-registered Portfolio Manager to act as a distributor of Portfolio Management Services (PMS). This includes employees, agents, and any associated person involved in the sales and distribution process.
The 15-day access plan at nismexams.in is perfectly suited for a focused, short-term preparation schedule. A successful 15-day strategy would be:
Days 1-7: Go through our Concise Short Notes to quickly cover all the important concepts from the high-weightage chapters.
Days 8-12: Dedicate this time to intensive practice with our 600+ Exam-Focused Questions, attempting chapter-wise tests.
Days 13-15: Take multiple full-length mock tests to master time management and get comfortable with the negative marking system.
Yes, but at an introductory level. The chapters "Derivatives" and "Collective Investment Vehicles" (which includes mutual funds) each have a 5% weightage. The exam expects you to have a basic understanding of these instruments as they can be part of a client's overall portfolio, but the main focus is on direct equity and fixed income securities.
This chapter has a high weightage of 13% because it covers the practical, day-to-day functioning of a PMS. It includes crucial topics like client onboarding, documentation, custody of securities, reporting to clients, and handling of funds. As a distributor, you need to understand these operational details to set the right expectations with clients.
Our package is designed for thorough practice. We offer 15 test attempts per set, which allows 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 confident on exam day.
Absolutely. Our concise notes are created specifically for quick and effective revision. They summarize the most critical concepts, formulas, and regulatory points from the entire syllabus into an easy-to-digest format. This makes them the perfect tool for last-minute preparation.
Once you successfully pass the exam, the NISM Series XXI-A: Portfolio Management Services (PMS) Distributors Certification is valid for a period of three years. To keep your certification active after this period, you will need to either pass the exam again or complete a Continuing Professional Education (CPE) program as specified by NISM.
Yes, our NISM XXI-A Practice Test comprehensively covers the "Performance Measurement and Evaluation of Portfolio Managers" chapter, which has a 10% weightage. Our question bank includes practical questions on topics like benchmarking, calculating returns (like Time-Weighted and Money-Weighted returns), and risk-adjusted performance measures.
A Portfolio Management Services Demo Test is a short, 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, with 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 intensity of the real exam.
Our course provides exceptional value. For just Rs. 599, you receive a complete and expertly designed preparation toolkit, including over 600 practice questions, concise revision notes, and multiple test attempts. This affordable, all-in-one package offers a structured and reliable path to passing a mandatory SEBI certification, saving you the potential cost and time of failing and needing to re-attempt the exam.
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