NISM Series XVI study plan

Map the commodity market ecosystem: identify participants (producers, consumers, traders, speculators, hedgers, arbitrageurs), spot vs. forward vs. futures, and the physical-to-derivative value chain

Explain the regulatory architecture: SEBI's mandate over commodity derivatives, the role of recognized exchanges, clearing corporations, and depositories in the post-FMC-merger structure

Summarize key commodity market history in India including the transition from regional exchanges to national exchanges and the regulatory consolidation under SEBI

Distinguish between agricultural and non-agricultural commodities and list the major exchange-traded contracts on Indian exchanges

Compare spot, forward, and futures pricing relationships and explain basis, contango, and backwardation with commodity-specific examples

Outline the SEBI (Securities Contracts Regulation) framework as it applies to commodity derivatives, including eligibility criteria for commodity derivatives and the role of commodity derivatives exchanges

Identify the categories of intermediaries in commodity derivatives (brokers, clearing members, trading members) and their registration requirements

Explain the role of warehousing, quality standards, and delivery infrastructure in linking physical and derivative markets

Explain futures contract mechanics: contract specification, tick size, lot size, price limits, margins, and daily mark-to-market

Describe options on commodity futures: call and put payoffs, intrinsic value, time value, moneyness, and the role of the underlying futures contract

Differentiate commodity futures from commodity options in terms of obligation, margin, and risk profile

Interpret the contract specifications published by Indian exchanges for major commodities (gold, crude oil, and a representative agri commodity)

Trace the order lifecycle from placement to execution to clearing to settlement on a commodity exchange

Explain the role of the clearing corporation, novation, and how counterparty risk is intermediated

Describe daily mark-to-market settlement, final settlement, and the physical delivery process including warehouse receipts and delivery allocation

Compute initial margin, maintenance margin, and mark-to-market cash flows for a sample futures position

Distinguish between trading members, clearing members, and professional clearing members and their obligations

Explain the margin framework for commodity derivatives including initial margin, exposure margin, and additional/volatility margins

Describe the risk management architecture: position limits, price bands, circuit breakers, and the role of the exchange's risk management committee

Outline client protection mechanisms: segregation of client funds, client collateral, and the process for handling client complaints and arbitration

Explain the investor protection fund and dispute resolution mechanisms available to commodity derivative clients

Identify the KYC and client onboarding requirements applicable to commodity derivative trading

Summarize SEBI's powers, inspection, investigation, and enforcement mechanisms over commodity derivative intermediaries

Describe the code of conduct and compliance obligations for commodity derivative brokers, including record-keeping and reporting

Explain anti-money laundering and know-your-client obligations in the commodity derivatives context

Outline the grievance redressal escalation path: broker, exchange, SEBI SCORES, and arbitration

Identify prohibited practices such as front-running, circular trading, and price manipulation, and the corresponding penalties

Apply risk management concepts to client-level scenarios: suitability assessment, risk disclosure, and margin adequacy

Analyze case scenarios involving default, delivery failure, and clearing member default, and explain the default waterfall

Explain the role of the settlement guarantee fund and how it protects counterparties

Evaluate client protection gaps and best practices in commodity derivative intermediation

Consolidate all five domains into a single revision map linking market structure, products, clearing, regulation, and risk

Complete two full-length timed mock exams under exam conditions and analyze error patterns by domain

Revisit the two weakest domains identified in mock analysis and close knowledge gaps

Memorize key regulatory thresholds, margin percentages, and position limit figures using spaced-repetition flashcards