Securities Market Module (Advanced) Practice Exam
Securities markets serve as a powerful catalyst for economic development, playing a vital role in channeling savings into productive investments that support long-term national growth. They help transform the economy into a more efficient, competitive, and innovation-driven environment.
The Securities Market (Advanced) Module is designed to offer a comprehensive and in-depth understanding of the Indian securities markets. Although not mandatory, it is recommended that candidates complete the NCFM Beginners modules beforehand. Earning this certification validates your expertise in advanced financial instruments, market regulations, and capital market practices in India.
Learning Objectives:
- Gain holistic and in-depth knowledge of the securities markets.
- Understand a wide range of financial products, regulatory frameworks, and market dynamics.
Who Should Take This Exam?
This certification is suitable for
- Students of Management and Commerce
- Security Market Professionals
- Finance Professionals
- Employees with banks and financial institutions.
- Professionals seeking to enhance their knowledge of the Indian securities market, particularly those involved in:
- Wealth Management: Financial advisors, relationship managers, and wealth management professionals.
- Investment Banking: Investment bankers, analysts, and professionals working in capital markets activities.
- Portfolio Management: Portfolio managers and investment analysts.
- Financial Research: Equity research analysts and other research professionals.
Roles and Responsibilities
Depending on your specific job role, here are some examples of how a deeper understanding of the securities market can be applied:
- Wealth Managers: Providing clients with informed investment advice based on advanced financial analysis and product knowledge.
- Investment Bankers: Structuring complex financial transactions and making sound recommendations to clients considering capital market activities.
- Portfolio Managers: Constructing and managing investment portfolios using a wider range of advanced financial instruments for optimal risk-adjusted returns.
- Financial Researchers: Conducting in-depth research and analysis of securities, providing valuable insights to investors and market participants.
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 exam covers the following topics:
1. INTRODUCTION TO CAPITAL MARKET
A. Fundamental Role
- Equity capital
- Debt capital
- Preference capital
B. Capital Market Segments
- Primary market
- Secondary market
C. Products / Instruments
- Differential Voting Rights (D VR) Shares
- lobal Depository Receipt ( GDR) / American Depository Receipts
- (ADR) Con veritable Preference Shares
- Debentures / Bonds
- Foreign Currency Convertible
- Bonds Government Securities
- Treasury Bills
- Certificate of Deposit (CD)
- Commercial Pares (CP)
- Call Money / Notice Money / Term Money Rep o / reverse repo
D. Institutions & Intermediaries
E. Indices
F. Capital Assets Pricing Model (CAPM )
G. Reforms in Indian Securities Markets
2. FUNDAMENTAL ANALYSIS OF EQUITY
A. Purpose
- Fundamental Analysis
- Technical Analysis
B. Financial Statement Analysis
- Ratios commonly tracked by company’s Shareholders Ratios to asses.
- Company’s Margins
- Asses Company’s Capital Structure Ratios to asses
- Company’s Solvency
- Ratios to asses company’s Assets & Liabilities Efficiency
- Ratios to Asses Company’ Return Generation Efficiency
B. Sector-Specific Ratios
3. PRIMARY MARKETS PROCESS
A. Typical Fund Raising Stages
B. IPO Process
C. Why IPO?
4. MEMBERSHIP ON EXCHANGES
A. Stock Broker
B. Trading Members
C. Clearing Members
D. Membership Norms
E. Trading Membership – Admission Procedure
F. Trading Membership – Surrender Procedure
G. Trading Membership – Suspension & Expulsion
H. Authorized Persons