NISM Series VIII (Equity Derivatives) is one of the NISM certifications that carries negative marking — and candidates who prepare using guidance written for Series V-A or XII walk in with exactly the wrong exam strategy.
Here is what the numbers actually mean.
The numbers
| Metric | Value |
|---|---|
| Total marks | 100 |
| Passing marks | 60 (60%) |
| Number of questions | 100 |
| Marks per question | 1 |
| Negative marking | 25% (−0.25 per wrong answer) |
| Duration | 120 minutes |
| Validity | 3 years |
| Fee | ₹1,500 |
How the deduction actually works
NISM's rule is that negative marking is 25% of the marks assigned to that question. Every Series VIII question is worth 1 mark, so:
- Correct answer: +1
- Wrong answer: −0.25
- Unanswered: 0
Four wrong answers cancel out one correct answer. That is the ratio to keep in your head.
A worked example. You answer 90 questions, get 68 right and 22 wrong, and leave 10 blank:
- Correct: 68 × 1 = 68
- Wrong: 22 × −0.25 = −5.5
- Blank: 0
- Net score: 62.5 — a pass, but only just, and those 22 wrong answers cost you the equivalent of five and a half correct ones.
When to guess and when to skip
This is where the arithmetic earns its keep. On a four-option question:
| Situation | Expected value | Verdict |
|---|---|---|
| No idea, blind guess (1 in 4) | +0.06 | Not worth it — skip |
| Eliminated 1 option (1 in 3) | +0.17 | Marginal |
| Eliminated 2 options (1 in 2) | +0.38 | Guess |
| Confident but not certain | Clearly positive | Answer |
The practical rule: eliminate at least one option, or leave it blank.
That said, do not over-apply this. Most candidates who fail Series VIII do not fail because they guessed too much — they fail because they did not know the material well enough. Negative marking is a reason to be disciplined, not a reason to be timid. If you have a genuine reason to prefer one option, answer it.
Where the deductions actually come from
In practice, wrong answers on Series VIII cluster in three places:
Sign errors on payoffs. "Mr X sold one futures contract at 745 and bought it back at 754." Candidates compute 9 × lot size correctly and then mark it positive. The arithmetic was right; the direction was not. These are the most infuriating marks to lose because you knew the answer.
Margin terminology. Initial, exposure and extreme loss margins are easy to confuse under time pressure, and the clearing and settlement chapter is heavily tested.
Greeks stated in reverse. A question asks what happens to delta for a far out-of-the-money option; the difference between "near 0" and "near 1" is one careless read.
None of these is a knowledge gap. All three are avoidable with timed practice.
Fee, registration and validity
- Fee: ₹1,500 per attempt, paid on the NISM certification portal when you book your slot.
- Validity: 3 years from the exam date.
- Renewal: re-take the exam, or complete the applicable CPE programme before expiry. CPE is unavailable once the certificate has lapsed.
On exam day
- Carry a government-issued photo ID and your admit card.
- Arrive 30 minutes early.
- No calculator or notes — an on-screen calculator is provided.
- Pace at roughly 70 seconds per question, leaving about 20 minutes to revisit flagged items.
Practise free on ScoreSetu: 600 NISM VIII questions with explanations, plus timed mocks scored to the real 60% pass mark so you can build the eliminate-or-skip habit before it costs you marks.
Quick recap
- Pass: 60%, scored after deductions.
- Negative marking: −0.25 per wrong answer; blanks are free.
- Guess only after eliminating at least one option.
- Fee: ₹1,500 per attempt. Validity: 3 years.