What is the NISM XVI exam?
The NISM Series XVI: Commodity Derivatives Certification Examination is a SEBI-mandated qualifying exam for approved users and sales personnel of members of commodity derivatives exchanges in India. It is conducted by the National Institute of Securities Markets (NISM) and is required for those dealing in commodity derivatives at brokers and trading members on exchanges such as MCX and NCDEX.
What this practice test covers
- Fundamentals of commodity markets: spot markets, participants, and price discovery
- Commodity futures and options: contract specifications, payoffs, and pricing
- Uses of commodity derivatives: hedging, speculation, and arbitrage
- Trading mechanism, order types, and margining
- Clearing, settlement, delivery, warehousing, and quality standards
- Risk management and the SEBI regulatory framework for commodity derivatives
- Accounting and taxation of commodity derivatives
Passing the NISM XVI exam
NISM XVI is a 100-mark computer-based test of 100 questions (1 mark each) to be completed in 2 hours, with a passing score of 60%. It carries negative marking of 25% (0.25 marks) for every wrong answer, so accuracy matters as much as coverage. NISM can revise its criteria, so always verify the current passing marks and marking scheme on nism.ac.in before registering.
Why practice with mock tests
Reading the official workbook builds conceptual understanding, but a timed mock test reveals what you can actually answer under exam conditions. Because NISM XVI penalises wrong answers, full-length mocks help you judge when to attempt and when to skip, surface the topics you keep getting wrong, and remove surprises on exam day.