BSE's Certificate on Derivatives Exchange (BCDE)

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Securities and Exchange Board of India (SEBI) has made it mandatory for all brokers/dealers and sales persons desirous of trading in the derivatives market to get themselves certified from an institution approved by SEBI. BSE Certification on Derivatives Exchange (BCDE) is a SEBI-approved on-line testing process for this purpose.


BTI conducts a test of 100 marks consisting of 60 questions. The questions are objective type having multiple choices, with a provision of negative marks for wrong answers.

BCDE is awarded to only those candidates who obtain a minimum of 60% marks.

There is no minimum eligibility criterion for taking the test.



Click here to view the list of Test centres




To educate about the functioning of derivatives markets, the features of various products, the classification of products, the regulatory framework and the margining mechanism.



Nature of financial derivatives including futures and options

Characteristics of derivatives, Underlying assets (Equity Bonds/loans, Foreign Currency, and Commodity) Need for derivatives, Types of derivatives and comparison between them, Forwards/ Futures/ Options, Participants in derivatives market (Hedgers, Speculators, Arbitrageurs). 

Principles of trading and hedging with Index Futures
Terminology - Spot, future price, contract specifications, contract cycle, expiry date, settlement date, basis, mark to market, Contract specification for BSE Sensex, Tick size, Types of orders, Trading strategies, Hedging Strategies, Initial, Maintenance Margins, Executing and Clearing, Execution, Matching confirmation, Clearing Mechanism, Settlement, Settlement price, Settlement cycle, Cash Vs. Physical delivery, "Open interest" and "Trading volumes".

Principles of trading and hedging with Options

Terminology - call, put, writer, buyer, premium, intrinsic value, time value, expiry date, settlement date, strike price, ATM, OTM & ITM, The Greeks - (Delta, Gamma, Theta, Vega). 

Risk management systems and procedures

Types of risks (Counter-party or credit risks, Market or price risks, Liquidity risks, Legal and regulatory risks, Operating risks), Risk identification and measurement, Methods of risk control (Position limits, VAR, Margins, Operating Procedures and systems etc.), Separation of trading, settlement, accounting and risk control functions, Internal control structure and Management Information System, Regulatory and external reporting.

Regulatory aspects, Accounting and taxation

SCRA/Regulatory changes made and required, SEBI Act, LC. Gupta Committee report, Bye laws and special regulatory requirements of the derivatives market, Rights and obligations in broker-client relationships, Accounting of derivatives (Treatment of margins, Valuation and accounting of closing position), Taxation of derivatives.




Derivatives Dealers, Stock Brokers, High Net Worth Investors, Custodians, Mutual Funds, Portfolio Managers, Insurance Companies, Banks, Financial Institutions and Management Students




120 minutes




3 years



Rs.1,000.00 (Inclusive of Service Tax and Study Material)

Candidates interested in taking the test in Mumbai may approach the BTI with a DD of Rs. 1,000.00 drawn in favour of "BSE Institute Limited" payable at Mumbai.


Candidates interested in taking the test at any of the regional centres i.e. Delhi, Kolkata, Chennai, Ahmedabad, Rajkot and Cochin may approach the respective centres with a DD of Rs. 1,000.00 drawn in favour of "BSE Institute Limited" and payable at the respective centre.


Fees once paid will not be refunded, validity period for the Fees would be 180 days from the date of the payment.



Phone: 022 – 2272 8856
E-mail: training@bseindia.com


Certification Examination (Outside Mumbai) for 75 or more candidates


Govind Singh Sailoni
E-mail: govindsingh.sailoni@bseindia.com

Phone: 022 - 2272 8062



Test Schedule


Programme Schedule