NISM PracticeNISM negative marking: how it works and how to handle it
In some NISM papers a wrong answer costs a quarter of a mark; in others it costs nothing. Knowing which kind you are sitting changes how you should answer.
What NISM's pages say
Each examination's page on nism.ac.in states its own rule under "Assessment Structure". On the pages we read on 12 November 2026, the rule is one of two kinds: either that there shall be no negative marking, or that 25% of the marks assigned to a question are deducted for each wrong answer. The table on our all exams page shows the rule for thirteen examinations, with the date read.
- No negative marking on the pages read: Mutual Fund Distributors (V-A), Mutual Fund Foundation (V-B), Securities Markets Foundation (XII).
- Negative marking of 25% on the pages read: Currency Derivatives (I), Depository Operations (VI), Securities Operations and Risk Management (VII), Equity Derivatives (VIII), Investment Adviser Level 1 and Level 2 (X-A, X-B), Common Derivatives (XIII), Research Analyst (XV), Commodity Derivatives (XVI).
Rules can be revised. Before your examination, read the assessment structure on the page of your own module.
How the score is calculated
For a paper of one-mark questions with 25% negative marking:
Score = number correct − (number wrong × 0.25)
Questions left unattempted neither add nor subtract. Where a question carries two marks, a wrong answer costs 25% of two marks, that is half a mark.
Worked examples (100 questions of 1 mark, pass mark 60%)
| Correct | Wrong | Not attempted | Score | Result at 60% |
|---|---|---|---|---|
| 70 | 20 | 10 | 70 − 5 = 65 | Pass |
| 64 | 36 | 0 | 64 − 9 = 55 | Fail |
| 64 | 12 | 24 | 64 − 3 = 61 | Pass |
| 60 | 0 | 40 | 60 | Pass, exactly |
Rows two and three have the same number of correct answers. The candidate who guessed everything failed; the one who left the doubtful ones passed.
Score calculator
Should you guess?
With four options and a penalty of a quarter mark, the arithmetic is simple.
- Blind guess among four: one chance in four of gaining 1, three in four of losing 0.25. Expected gain = 0.25 − 0.1875 = +0.06 of a mark. Nearly nothing, with a real risk of loss on a bad run.
- Two options ruled out: one chance in two of gaining 1, one in two of losing 0.25. Expected gain = 0.5 − 0.125 = +0.375. Worth answering.
- One option ruled out: expected gain = 0.333 − 0.167 = +0.17. Marginally worth it.
So the practical rule is: answer when you can eliminate at least one or two options with reason; leave it when you have no idea at all and are already safely above the pass mark; and never guess wildly through a block of questions.
When there is no negative marking
In papers without negative marking, such as the Mutual Fund Distributors examination on the page we read, a blank answer has no advantage over a guess. Attempt every question. Use the last minutes to fill any that remain, after eliminating the options you know to be wrong.
A method for the paper
- First pass: answer every question you are sure of. Mark the doubtful ones and move on.
- Count. Before the second pass, see how many sure answers you have against the pass mark.
- Second pass: return to marked questions. Answer where you can rule out options.
- Leave the rest in a negative-marking paper; fill them in a paper without it.
- Do not change a considered answer on a late impulse without a reason.
Practise under the right rule
Our practice tests apply each module's rule in mock mode: a quarter mark is deducted for wrong answers in the Equity Derivatives set, and nothing in the Mutual Fund Distributors set. Practising with the penalty on teaches you to feel the difference between knowing and hoping.
Questions candidates ask
Is there negative marking in the NISM Mutual Fund Distributors exam?
NISM's page for Series V-A, read on 12 November 2026, says there shall be no negative marking.
How much is deducted for a wrong answer where there is negative marking?
25% of the marks assigned to the question: 0.25 mark for a one-mark question.
Should I attempt all questions in a paper with negative marking?
Not blindly. Answer where you can rule out one or two options; leave pure guesses, especially if you are already above the pass mark.
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An independent practice site. NISM is the National Institute of Securities Markets. This site is not connected with, approved by or paid by NISM or SEBI, and uses none of their logos. The questions are our own; none is taken from NISM's question bank, workbooks or mock tests, and a score here does not predict a result. Examination facts were read on nism.ac.in on 12 November 2026 and can change: check the page of your module on nism.ac.in before you pay or prepare. Nothing here is investment advice.