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It tests the practical knowledge and skills required to operate in the financial markets in a secure and unbiased manner and awards certificates based on relative merits thus ensuring that the calibre of persons entering this field is kept high in the best interests of a mature and vibrant market. NCFM is an online testing system, a revolutionary concept in administration of examinations and the only one of its kind today in the country. Taking into account international experience and the needs of the Indian financial markets, with a view for protecting interests of investors in financial markets and more importantly, for minimising risks of losses arising out of deficient understanding of markets and instruments, National Stock Exchange introduced in 1998 a facility for testing and certification by launching NSE's Certification in Financial Markets (NCFM). The existing and new employees of mutual funds, particularly those who are involved in sales and marketing, are encouraged to pass the certification in AMFI - Mutual Funds Modules. SEBI has made it mandatory for all mutual funds to appoint agents/distributors who have obtained certification in AMFI - Mutual Funds Modules.SEBI recommends Surveillance Module for the officers working in surveillance departments of stock exchanges.The National Securities Depository Limited has similarly prescribed that all the branches of the depository participants must have at least one person who has qualified the NCFM module on Depository Operations.In order to improve the level of knowledge of market participants, only persons who have passed Capital Market (Dealers) Module of the NCFM are authorised to use the trading system of the National Stock Exchange.Derivatives Market (Dealers) Module of the NCFM has been recognised by SEBI for the purpose. It has been specified by SEBI that all brokers/dealers and sales persons in the derivatives market have to mandatorily obtain certification.Some of these modules have regulatory sanctity. By imparting comprehensive knowledge and skill in the chosen field, NCFM enhances career opportunities for NCFM certified persons. The financial markets are going to be the turf of certified professionals very soon due to regulatory compulsions and/or initiatives of the industry.