NISM Certifications · Paper X-B
NISM-Series-X-B Investment Adviser Level 2 Exam Guide
NISM-Series-X-B is the Level 2 Investment Adviser exam. It is a 3-hour, 150-mark, computer-based MCQ test: 90 one-mark questions and 6 caselets of 5 two-mark questions. Pass mark is 60%, with 25% negative marking. You prepare by mastering insurance, retirement, tax, estate planning, behavioural finance and caselets.
NISM-Series-X-B tests whether you can give complete financial advice, not just recall facts. It covers insurance, retirement planning, taxation, estate planning, behavioural finance, risk profiling and product comparison. The last chapter, case studies, pulls these together. Individual investment advisers and principal officers registered under the SEBI (Investment Advisers) Regulations, 2013 must pass both X-A and X-B.
The exam is 150 marks and 3 hours. It has 90 MCQs of 1 mark and 6 caselets of 5 questions each, with 2 marks per question (120 questions in all). You need 60% to pass. Wrong answers carry negative marking of 25% of the marks assigned to the question, so a wrong answer on a 2-mark question costs more than on a 1-mark question. The certificate is valid for 3 years from the exam date.
Students usually find the tax chapters and the caselets hardest. Tax needs exact rules and quick calculation. Caselets need you to read a client profile and apply several chapters at once. Students who only memorise definitions tend to lose marks on caselets. Those who practise calculations and client-based questions score more steadily. Check the current NISM syllabus and candidate handbook for any change in format before you book.
NISM-Series-X-B: Investment Adviser (Level 2): chapters and topics
Risk Management and Insurance Planning
Basics of Insurance
Risk Management and Insurance Planning
Life Insurance Products
Risk Management and Insurance Planning
Non-Life Insurance Products
Retirement Planning
Retirement Planning Basics
Retirement Planning
Retirement Products
- Retirement Products Overview and Classification
- Employees' Provident Fund and Public Provident Fund
- Employees' Pension Scheme and Gratuity
- National Pension System (NPS)
- Annuities and Pension Plans from Insurers
- Senior Citizen Savings Scheme and Other Fixed Income Options
- Mutual Funds and Systematic Withdrawal Plans for Retirement
- Reverse Mortgage and Other Retirement Income Sources
Retirement Planning
Miscellaneous Aspects of Retirement Planning
Taxation
Concepts in Taxation
- Basics of Income Tax and Tax Structure
- Important Definitions: Assessee, Person, Previous Year, Assessment Year
- Residential Status and Scope of Total Income
- Heads of Income and Computation of Total Income
- Deductions under Chapter VI-A and Rebates
- Tax Rates, Slabs, Surcharge and Cess
- TDS, Advance Tax and Return Filing
Taxation
Capital Gains
- Capital Asset and Transfer: Basic Concepts
- Computation of Capital Gains and Cost of Acquisition
- Indexation and Cost Inflation Index
- Taxation of Listed Securities and Mutual Funds
- Taxation of Other Assets: Property, Gold and Unlisted Shares
- Capital Gains Exemptions: Sections 54 to 54F and 54EC
- Set-off, Carry Forward of Capital Losses and Advance Tax
Taxation
Income from Other Sources
Taxation
Taxation of Debt Products
- Taxation of Interest on Bonds and Debentures
- Capital Gains on Bonds and Debentures
- Taxation of Debt Mutual Funds
- Taxation of Zero Coupon Bonds, Deep Discount Bonds and T-Bills
- Tax-Free Bonds, Sovereign Gold Bonds and Other Debt Instruments
- Bond Stripping, Accrued Interest and Cum/Ex-Interest Transactions
Taxation
Taxation of Equity Products
- Taxation of Equity Shares and Equity Mutual Funds
- Securities Transaction Tax (STT) and Other Transaction Costs
- Taxation of Dividend Income and Buybacks
- Taxation of Equity Derivatives (F&O) and Intraday Trading
- Set-off and Carry Forward of Capital Losses
- Taxation of Other Equity Products (ESOPs, Bonus, Rights, IPOs)
Taxation
Taxation of Other Products
Taxation
Tax Provisions for Special Cases
Estate Planning
Basics of Estate Planning
Estate Planning
Tools for Estate Planning
Behavioural Finance
Basics of Behavioural Finance
Behavioural Finance
Behavioural Finance in Practice
Comprehensive Investment Advice
Risk Profiling for Investors
Comprehensive Investment Advice
Comparison of Products Across Categories
Comprehensive Investment Advice
Case Studies in Comprehensive Financial Advice
How to prepare NISM-Series-X-B: Investment Adviser (Level 2)
Plan for steady study over several weeks. The paper rewards application, so mix reading with calculation and caselet practice. Use the current NISM workbook as your base text.
- Read the official NISM syllabus and candidate handbook first. Note the format, passing mark and negative marking rule, and confirm them on the NISM site.
- Split the 20 chapters into five blocks: insurance, retirement, taxation, estate planning, and behavioural finance with risk profiling and product comparison. Give the tax block the most time, since it has the most chapters.
- For each chapter, write a one-page sheet of definitions, limits, rates, conditions and exceptions. Revise these sheets on your phone.
- Practise tax computations by hand: capital gains, holding periods, set-off rules and tax on debt, equity and other products. Always confirm rates and limits from the latest workbook, as tax rules change.
- Learn to compare products across categories on cost, risk, liquidity, tax treatment and suitability. This feeds directly into the caselets.
- Practise caselets from the start of week three. Read the client facts, list goals, risk profile, horizon and tax position, then answer each question from that list.
- Take full-length timed mock tests of 120 questions in 3 hours. Review every wrong answer and note whether it was a knowledge gap, a calculation slip or a misread.
- In the last week, revise your sheets, redo weak chapters and take one more mock. Do not start new material in the final two days.
Time management in the exam
- You have 3 hours for 120 questions, which is about 90 seconds a question on average. Treat the 1-mark MCQs as faster and the caselet questions as slower.
- Do the 90 one-mark MCQs first if the screen lets you move freely. Aim to finish them in well under half the time so you keep a reserve for caselets.
- Read each caselet once fully before its questions. Jot down client age, income, goals, horizon and tax facts on the rough sheet if allowed, so you do not reread the passage five times.
- Skip any calculation that will take more than about two minutes, mark it and return later. Do not let one question cost you five.
- Remember each caselet question is worth 2 marks, so a wrong guess costs more. Guess only when you can remove at least one option.
- Keep the last 10 to 15 minutes to review marked questions and check that no question is left unanswered by mistake.
Mistakes that cost marks in NISM-Series-X-B: Investment Adviser (Level 2)
Studying only definitions and skipping calculations
Fix: Solve tax and retirement problems on paper every study session until the steps feel automatic.
Using outdated tax rates or limits
Fix: Take rates, holding periods and limits only from the current NISM workbook and update your revision sheets accordingly.
Ignoring the negative marking on 2-mark questions
Fix: Guess on caselet questions only after eliminating options. Leave a question only if you truly have no basis to choose.
Answering caselets from general knowledge instead of the client facts
Fix: Base every answer on the facts given. Check goal, horizon, risk capacity and tax status before choosing an option.
Treating X-B as a repeat of X-A
Fix: Expect more planning, tax and case-based application in X-B. Study its chapters on their own terms.
Skipping full-length mocks
Fix: Take at least a few timed mocks of the full length. They build stamina and show how long caselets really take.
NISM-Series-X-B: Investment Adviser (Level 2): frequently asked questions
What is the format of the NISM-Series-X-B exam?
It is a computer-based test of 150 marks in 3 hours. It has 90 MCQs of 1 mark and 6 caselets of 5 questions each, worth 2 marks per question, making 120 questions. Pass mark is 60%.
Is there negative marking in NISM X-B?
Yes. A wrong answer costs 25% of the marks assigned to that question. So a wrong answer on a 2-mark caselet question costs more than on a 1-mark MCQ.
Do I need to pass both X-A and X-B?
Individual investment advisers and principal officers registered under the SEBI (Investment Advisers) Regulations, 2013 must pass both NISM-Series-X-A and X-B. Check the latest SEBI requirements for your specific role.
How long is the X-B certificate valid?
The certificate is valid for 3 years from the date of the examination. Plan to re-take the exam before it lapses if your role requires a valid certificate.
Which chapters should I focus on most?
Spend extra time on the taxation chapters and the case studies chapter, since they need calculation and application. Insurance, retirement, estate planning, behavioural finance and product comparison also feed into the caselets, so do not skip them.