Practical Examination for Introduction to Financial Markets – I for 11th class

One of the very strong salient features of FMM is development of employable skills. The success of FMM will depend upon whether students on completion of this course are able to acquire necessary competence and skills for financial markets.

In Stock and Commodity Markets, both speed and accuracy are extremely important. Due to globalisation, entry of FIIs (Foreign Institutional Investors), instant spread of information (impacting the share prices) through electronic and print media such as T.V. channels, Internet, introduction of futures and options, the share and commodity markets have become highly volatile. This calls for executing the buy / sell orders at high speed to take advantage of best rates (lowest while buying and highest while selling).

However, while it is important to execute orders with speed, the accuracy while entering an order cannot be ignored. The loss from a wrong entry of a buy or sell order can cause very serious financial loss to the client(s) ranging from few hundreds to lakhs or crores depending upon the quantity and price of a scrip. Therefore, stock and commodity markets require 100% accuracy while entering orders.

As required by CBSE, BLB Institute of Financial Markets (BIFM) has developed a mock trading software called TradeSenseTM. The TradeSenseTM has been designed to develop practical skills of speed and accuracy in stock market through step by step process. This will be achieved by a modular approach through 6 modules, 3 each for 11th & 12th class respectively.

Modules for 11th Class
1.    Numeric Speed Booster (NSB):- To help students gain command in finger setup on Numeric Pad.
2.    Trade Function Builder (TFB):- To help students develop speed and accuracy without trading.
3.    Precision Builder (PB):- To build order punching accuracy in simulated trading.

A unique feature of TradeSenseTM is a large number of user friendly reports for the students as well as school principals. It is also possible for the CBSE and NSE to monitor the progress of all the schools and students through TradeSense software.

At CBSE Headquarters, we also monitor the progress of development of practical skills through TradeSense software. It is found that the progress of some of the schools/students is not satisfactory and they are not giving adequate attention for practical. This being a skill oriented course without devoting required time of 60 hours of practical, FMM will fail, defeating the very purpose of launching this course.

In view of the above, it is advised that school should conduct the practical examination only after each of the student has practiced at least for 60 hours. Schools can conduct the practical examination through TradeSenseTM software as per detailed procedure given in the software itself. The practical examination will consist of 3 parts as given below:

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S.No.	Module	Time (Minutes)	Max. Marks	Pass Marks
1	Multiple Choice Questions	10	10	3
2	Trade Function Builder	10	15	5
3	Precision Builder	10	15	5
	Total	30	40	13

1.    Multiple Choice Questions (MCQs) : Written multiple choice questions (MCQs) of 10 Marks . This can be conducted by schools themselves.

1(a)    Salient Features of the NEAT    – 5 Marks
• Key Functions
• Buy, Sell, Order Modification (OM) & Order Cancellation (OC)

1(b)    Introduction to Trading Systems – 5 Marks
• BSE Trading System : Bombay Online Trading System (BOLT)
• NSE Trading System : National Exchange For Automated Trading (NEAT)
• Open Dealer Integrated Network Trading system (ODIN)

As per the existing procedure schools who have introduced FMM can promote students from 11th to 12th class, pending holding of online examination by NSE called NCFM Financial Markets – Beginner’s Module between 15th May to 30th June. During teacher’s training at BLB Institute of Financial Markets, teachers have informed that the students could not devote required 60 hours for practical due to various reasons such as new subject, internet non availability, lack of trained man power etc.

In view of the above for proper skill development, the practical examination can be conducted before 30th June 2008, as in the case of NCFM examination. Students of FMM can appear/re-appear for practical examination after devoting a minimum of 60 hours of practical on TradeSense.