Securities Market Basic Module (Foundation) Practice Exam

Securities Market Basic Module (Foundation) Practice Exam

Securities Market Basic Module (Foundation) builds upon the concepts introduced in the Financial Market Beginner’s Module, offering a deeper and more detailed understanding of key areas within the Indian securities market. This module also introduces learners to the structure of the securities market and the functioning of the government securities segment.

Key Learning Objectives

• Gain a clear understanding of the various products, participants, and functions of the securities market
• Understand the design and structure of the primary and secondary markets
• Develop a foundational understanding of the government securities market

Who Will Benefit from This Course?

• Students
• Individual Investors
• Employees of Brokers and Sub-brokers
• Depository Participant Staff
• Employees of Mutual Funds
• Research Analysts and Employees of Research Firms
• BPO and IT Professionals working with financial clients
• Anyone with an interest in the Indian securities market

Exam Details 

• Duration: 120 minutes
• No. of questions: 60
• Maximum marks: 100, Passing marks: 60 (60%). There is negative marking for incorrect answers.

Course Outline

The Securities Market Basic Module (Foundation Module) covers the following topics:

1. Securities Market in India – An Overview

• Securities market and financial system; Products, participants and functions; Primary market; Secondary market; Derivatives market; Regulators; Exchanges; Depositories; Clearing corporations; Regulatory framework; Reforms.

2. Primary Market

• Book building; Credit rating; Merchant banking; On-line IPOs; Demat issues; Private placement; Virtual debt portals; ADRs/GDRs; Other regulations; Public issues; Euro issues; Debt issues; Collective investment vehicles viz., MFs, VCFs, CISs.

3. Secondary Market

• Membership; Listing; Trading and settlement mechanism;Technology;Trading rules- Insider Trading; Unfair trade practices;Takeovers; Buy back; Turnover; Market capitalization; Prices; Liquidity; Transaction costs; Risk management; Indices.

4. Government Securities Market

• Indian debt market; Primary market; Secondary market-NDS; NDS-OM; CCIL; Wholesale debt market (WDM) segment of NSE.

5. Derivatives Market

• Products, Participants and functions; Trading mechanism; Membership; Contract specification; Clearing & Settlement; Open interest; Implied interest rate; Implied volatility; Risk management; Debt derivatives.

6. Mathematics and Statistics

• Measures of central tendency; Return and Risk.