The entire module has been planned on a computer with no use of paper whatsoever, a concept which only students who have taken the graduate management admission test (GMAT) are familiar with in India. According to Sebi, in such an environment the candidate's performance will be known instantly and it also helps eliminate any malpractices which may arise.

Interestingly, the exchange has quietly tested around 120 students on its NSE Certification in Financial Markets (NCFM) concept at the KJ Somaiya and SP Jain management institutes.

These institutes had made derivatives a part of their curriculum and after holding classes, NSE officials put these students through a "tough" test which they had little difficulty clearing, said NSE sources. However, as the certification programme has only recently been granted approval by Sebi, these students are not certified aseligible for trading in derivatives.

Brokers can, however, take heart from the fact that the test which these students took was much tougher than the one they would be taking.

The exchange has decided to allow two members from each broking outfit to take the test, to start with. ``The syllabus for the students was much tougher than the one prescribed for brokers,'' said an NSE official. An applicant to the test would be provided with an identity card following which he can come to the exchange any time to take the test.

Once he walks in for the test, he is provided with a computer terminal, which first matches his identity before putting out a question paper on the screen. The test will have a 90-minute duration with the computer seeking answers to about 40-50 random questions. Once the test is concluded, the computer corrects the answers and the results are out almost immediately.

There is no restriction on the number of times a person can take the test. ``We want to keep testing him till we are surethat he is well informed about the processes involved,'' said a senior NSE official. ``The testing mechanism is devised in such a way that it effectively tests members and at the same time is not cumbersome,'' said the official.

NSE had earlier devised its own syllabus which had to be toned down following the syllabus prescribed by Sebi which is not as tough as the one prepared by NSE. The exchange has already started with mock trading in this segment. It will, towards the end of July, carry out training sessions for members wanting to take the test. ``The person will first be trained for a couple of days on the syllabus and will then take the test,'' said the official. The NSE syllabus is divided into categories which include introduction to derivatives, basics of futures, basics of options, trading and clearing mechanism, usage of futures and valuations, legal regulation and taxation issues and accounting and taxation issues.

What has Sebi been set up for?; when was the first index prepared?; How doesone buy the index? are some of the easier questions. The tougher ones range from simple calculations to in-depth knowledge of the various regulatory and legal provisions.