SEBI Launched 50-Mark Online Investor Certification Exam

SEBI Launches Investor Certification Exam

The Securities and Exchange Board of India (SEBI) has introduced a free, voluntary online investor certification examination to enhance individuals’ knowledge about stock market investing. It is developed in collaboration with the National Institute of Securities Markets (NISM), and aims to help investors test and expand their understanding of the markets and investing.

Objective and Development

SEBI stated that the certification examination is developed to assist individuals in gaining comprehensive knowledge about investing in the Indian securities markets. The initiative is part of SEBI’s efforts to promote financial literacy and investor awareness in the country.

Key Statements

Ananth Narayan G, Whole Time Member of SEBI, highlighted the significance of this new certification examination during the launch event. He emphasized that the certification is a major step towards facilitating digital financial education in the securities market.

“This online exam will help enhance investors’ understanding of the investment process and the associated risks in the securities market and thus promote an efficient approach to investment aligned with the risk appetite of the investor,” he added.

Topics Covered in the Certification

The SEBI Investor Certification Examination covers a wide range of topics:

• Basics of Financial Literacy: Understanding saving, investing, budgeting, and the impact of inflation on financial decisions.
• Government Schemes: Information on various finance and investment-related government schemes.
• Market Functions: Learning about primary and secondary markets and their roles in investment activities.
• Market Infrastructure: Understanding the roles of stock exchanges, depositories, and regulatory bodies in maintaining market integrity and investor protection.
• Investment Risks: Educating about credit, market, and liquidity risks inherent in investment activities.
• Risk Management: Understanding concepts like hedging and diversification.
• Ethical Practices: Recognizing the importance of due diligence, ethical behavior, and transparency in investment practices.
• Investor Rights: Making investors aware of their rights, duties, and disclosure standards.
• Grievance Redressal: Providing guidance on the process of lodging complaints through SEBI’s portal in case of disputes or grievances.

Certification Requirements

To obtain the certification, investors must pass an online exam of 50 marks. Further, following details are also included:

• Passing Grade: A score of 50% is required, meaning investors must correctly answer at least 25 questions.
• No Negative Marking: There is no penalty for incorrect answers.
• Validity: The certification is valid for two years.
• Cost: The certification is free of cost. Registered investors will be provided with the necessary study material free of cost.

Conclusion

SEBI’s new Investor Certification Examination is a significant initiative to improve financial literacy and awareness among investors in India. By offering a comprehensive, free, and voluntary certification program, SEBI aims to enhance investors’ understanding of the securities market, the investment process, and the associated risks, promoting a more informed and efficient approach to investing.

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