NISM Series-XII: Securities Markets Foundation Practice Exam
NISM Series-XII: Securities Markets Foundation Practice Exam
NISM Series-XII: Securities Markets Foundation Practice Exam
The NISM-Series-XII: Securities Markets Foundation Certification Examination is intended for individuals at the entry-level who are interested in establishing a career in the securities markets. The primary objective of this examination is to provide participants with a foundational understanding of the Indian securities markets, along with relevant rules and regulations.
Who should take the exam?
This NISM series examination serves as a valuable resource for those seeking fundamental knowledge of the Indian securities markets, including:
Novice professionals entering the securities markets
Employees of intermediaries operating within the securities industry
Professionals from diverse backgrounds keen on familiarizing themselves with the securities markets
Students
Homemakers
Educators
Exam Learning Objectives:
Upon successful completion of the examination, candidates should be able to:
Learn the fundamental concepts of the Indian Securities Markets.
Understand the various processes involved in both Primary and Secondary Markets.
Comprehend the schemes and products offered in Mutual Funds and Derivatives Markets in India.
Recognize the steps involved in the financial planning process.
Exam Details
Exam Name: NISM Series-XII: Securities Markets Foundation
Exam Languages: English
Test Duration: 120 minutes
No. of Questions: 100
Maximum Marks: 100
Pass Marks: 60%
Certificate Validity: 3 years
Course Outline
The Exam covers the given topics -
Domain 1: Understanding Securities Markets and Performance
Securities Markets
Securities
Securities Markets: Structure and Participants
Role of Securities Markets
Technological advancements in the securities market
Domain 2: Understand Securities: Types, Features and Concepts of Asset Allocation and Investing
Securities available in the securities market
Choice between Equity and Debt Financing for Issuers
Characteristics and role of equity capital
Characteristics and role of Debt securities
Choosing between Debt and Equity Investment Avenues
Hybrid Instruments
Characteristics and role of Commodities as an asset class
Derivatives as investments
Asset Allocation and Diversification
Understanding the factors underlying the investment process
Various aspects of investing in Equity
Equity Investing Process
Various aspects of investing in Debt securities
Debt Investing Process
Domain 3: Learn about Primary Markets
Primary Market: Definition and Functions
Primary Vs Secondary Markets
Intermediaries in Primary Market
Types of Issues
Types of Issuers
Types of Investors
Regulatory Framework for Primary Markets
Types of Public Issue of Equity Shares
Pricing a Public Issue of Shares
Public Issue Process of equities
Prospectus
Applying to a Public Issue
Listing of Shares
Rights Issue of Shares
Regulatory requirements for a Public Issue of Debt Securities
Public issue process for debt securities
Private Placements in Equity and Debt
Domain 4: Understand Secondary Markets
Role and Function of the Secondary Market
Types of secondary markets for different securities
Market Structure and Participants
Brokers and Client Acquisition
Trade Execution
Clearing and Settlement of Trades
Trading and settlement process from investor’s point of view
Market Information and Regulation
Risk Management Systems
Rights, Obligations and Grievance Redressal
Secondary market trading and reporting for debt securities
Domain 5: Learn about Mutual Funds
Meaning and Description of a Mutual Fund
Terms and Concepts Related to Mutual Funds
Types of Open-ended Mutual Fund Products
Types of Closed ended Mutual Fund Schemes
Investment approaches – active and passive
Processes for Investing in Mutual Funds
Systematic Transactions
Switches
Reading Mutual Fund Information
Benefits and Costs of Investing in Mutual Funds
Regulation of Mutual Funds
Investor Service Standards
Domain 6: Understand about Derivative Markets
Derivatives
Underlying concepts in Derivatives
Types of Derivative Products
Structure of Derivative Markets
Trading and Settlement Process: Equity Futures
Risk Management in Derivative Markets
Application of Derivatives Products in Risk Management