Complete Guide to NISM-Series-XII: Securities Markets Foundation Certification
15th Aug 2024
Myonlineprep
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NISM-Series-XII: Securities Markets Foundation Certification Examination
The NISM-Series-XII: Securities Markets Foundation Certification Examination is tailored for entry-level professionals aspiring to build a career in the securities markets. This certification is also beneficial for anyone interested in acquiring foundational knowledge about the Indian securities markets, including:
- Entry-level professionals in the securities markets
- Employees of intermediaries functioning in the securities industry
- Professionals from other industries seeking knowledge of the securities markets
- Students, homemakers, and teachers
The purpose of this exam is to provide participants with essential knowledge about the Indian securities markets, including the relevant rules and regulations. It serves as a voluntary examination for those looking to enhance their understanding of this sector.
Examination Objectives: NISM-Series-XII: Securities Markets Foundation
Upon successful completion of the NISM-Series-XII: Securities Markets Foundation Certification Examination, candidates will:
- Understand the Basics: Gain a foundational understanding of the Indian securities markets.
- Learn Market Processes: Familiarize themselves with the various processes involved in primary and secondary markets.
- Comprehend Mutual Funds and Derivatives: Understand the schemes and products available in mutual funds and derivatives markets in India.
Assessment Structure of the NISM-Series-XII: Securities Markets Foundation Exam
The assessment for the NISM-Series-XII: Securities Markets Foundation Certification Examination is structured as follows:
Aspect | Details |
---|---|
Number of Questions | 100 |
Question Type | 1 mark per question |
Total Marks | 100 marks |
Duration | 2 hours |
Passing Score | 60% (60 marks out of 100) |
Negative Marking | None |
Syllabus Outline and Weightages of the NISM-Series-XII: Securities Markets Foundation Certificaiton Exam
The syllabus for the NISM-Series-XII: Securities Markets Foundation Certification Examination is divided into several chapters, each covering key topics essential for understanding the securities markets:
Unit No. | Unit Name | Weightage (%) | Attempt Free NiSM Mock Test |
---|---|---|---|
Unit 1 | Understanding Securities Markets and Performance | 10% | Click Here |
Unit 2 | Securities: Types, Features and Concepts of Asset Allocation and Investing | 20% | Click Here |
Unit 3 | Primary Markets | 20% | Click Here |
Unit 4 | Secondary Markets | 20% | Click Here |
Unit 5 | Mutual Funds | 20% | Click Here |
Unit 6 | Derivative Markets | 10% | Click Here |
How to Register and Take the NISM-Series-XII: Securities Markets Foundation Examination
To learn more about the NISM-Series-XII: Securities Markets Foundation Certification Examination and to register, please visit the official NISM website at www.nism.ac.in.
Details of Topic-wise Syllabus: NISM-Series-XII Securities Markets Foundation Certificaiton Exam
Unit No. | Chapter Name | Topic Name |
---|---|---|
Chapter 1 | Understanding Securities Markets and Performance | Securities Markets |
Securities | ||
Securities Markets: Structure and Participants | ||
Role of Securities Markets | ||
Technological Advancements in the Securities Market | ||
Chapter 2 | 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 | ||
Asset Allocation and Diversification | ||
Understanding the Factors Underlying the Investment Process | ||
Various Aspects of Investing in Equity: Price and Value | ||
Equity Investing Process | ||
Various Aspects of Investing in Debt Securities | ||
Debt Investing Process | ||
Chapter 3 | 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 | ||
Chapter 4 | 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 | ||
Chapter 5 | 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 | ||
Chapter 6 | Derivatives Markets | Derivatives |
Underlying Concepts in Derivatives | ||
Types of Derivative Products | ||
Structure of Derivative Markets | ||
Trading and Settlement Process: Equity Futures and Options | ||
Risk Management in Derivative Markets | ||
Application of Derivatives Products in Risk Management | ||
Market Indicators |
Preparation Strategy for NISM-Series-XII: Securities Markets Foundation Certification Examination
To excel in the NISM-Series-XII: Securities Markets Foundation Certification Examination, a strategic preparation approach is essential:
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Understand the Syllabus: Begin by thoroughly reviewing the syllabus outline provided by NISM. Focus on understanding the key topics, such as securities markets, primary and secondary markets, mutual funds, and derivatives. Pay special attention to the chapters with higher weightages, such as "Securities: Types, Features and Concepts of Asset Allocation and Investing" and "Primary Markets."
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Use Official Study Materials: Utilize the official NISM study materials, which are designed to cover the entire syllabus comprehensively. These materials are crucial for building a strong foundation in the basics of the securities markets.
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Practice with Mock Tests: Regularly take MyOnlinePrep mock tests to familiarize yourself with the exam format and timing. Mock tests help you identify areas where you need further study and improve your time management skills during the actual exam.
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Review Sample Questions: Go through the sample questions provided in the NISM study guide. These questions will give you an idea of the types of questions that may appear in the exam and help you assess your understanding of key concepts.
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Regular Revision: Set up a revision schedule that allows you to revisit important topics regularly. Consistent revision is key to retaining information and reinforcing your understanding.
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Stay Updated: Keep yourself informed about any updates or changes in the Indian securities markets, as this knowledge could be valuable during the exam.
Benefits of Passing the NISM-Series-XII: Securities Markets Foundation Certification Examination
Successfully passing the NISM-Series-XII: Securities Markets Foundation Certification Examination offers several significant benefits:
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Foundation in Securities Markets: Gain a solid understanding of the basics of the Indian securities markets, which is crucial for anyone looking to enter or advance in this field.
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Career Opportunities: This certification opens up career opportunities in the securities markets and related industries, making it easier to secure entry-level positions in financial services, stockbroking firms, and investment companies.
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Professional Credibility: Holding this certification demonstrates your commitment to learning and professional development, enhancing your credibility with employers and clients.
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Versatility: The knowledge gained through this certification is applicable across various roles within the securities markets, making it a versatile qualification for different career paths.
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Personal Development: Even if you are not pursuing a career in securities markets, this certification provides valuable insights into financial markets, making it beneficial for personal financial planning and investment decisions.
Eligibility for NISM-Series-XII: Securities Markets Foundation Certification Examination
The NISM-Series-XII: Securities Markets Foundation Certification Examination is open to a wide range of candidates, including:
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Entry-Level Professionals: Individuals who are just starting their careers in the securities markets and want to build a strong foundation.
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Employees of Intermediaries: Employees working with intermediaries in the securities industry who wish to gain a basic understanding of the markets they operate in.
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Professionals from Other Industries: Professionals from different industries who are interested in acquiring knowledge about the securities markets to diversify their skill set.
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Students: Students who are pursuing finance, economics, or business studies and are interested in gaining practical knowledge of the securities markets.
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Homemakers and Teachers: Homemakers, teachers, and others who are interested in understanding the basics of the securities markets, whether for personal knowledge or educational purposes.
FAQs for NISM-Series-XII: Securities Markets Foundation Certification Examination
Q1: Who should take the NISM-Series-XII: Securities Markets Foundation Certification Examination?
A1: This examination is ideal for entry-level professionals in the securities markets, employees of intermediaries in the securities industry, students, homemakers, teachers, and anyone interested in gaining basic knowledge of the Indian securities markets.
Q2: What are the eligibility criteria for the NISM-Series-XII exam?
A2: There are no specific educational prerequisites for this exam, making it accessible to anyone interested in learning about the securities markets. It is open to professionals, students, and individuals from various backgrounds.
Q3: What topics are covered in the NISM-Series-XII syllabus?
A3: The syllabus covers essential topics such as the basics of securities markets, primary and secondary market processes, mutual funds, derivatives markets, and the types and features of securities.
Q4: How is the NISM-Series-XII exam structured?
A4: The exam consists of 100 multiple-choice questions, each worth 1 mark. The total duration of the exam is 2 hours, and there is no negative marking. To pass, candidates must score at least 60%.
Q5: How can I prepare for the NISM-Series-XII: Securities Markets Foundation Certification Examination?
A5: To prepare effectively, review the official NISM study materials, practice with mock tests, focus on key topics outlined in the syllabus, and regularly revise the material. Understanding sample questions and staying updated on market trends can also be helpful.
Q6: What are the benefits of passing the NISM-Series-XII certification exam?
A6: Passing this exam provides a strong foundation in securities markets, enhances career opportunities in the financial services industry, and increases professional credibility. It is also beneficial for personal financial planning and investment decisions.
Q7: How do I register for the NISM-Series-XII exam?
A7: You can register for the exam by visiting the official NISM website at www.nism.ac.in. The website provides detailed instructions on the registration process and exam schedules.
Q8: Is the NISM-Series-XII exam mandatory?
A8: No, the NISM-Series-XII: Securities Markets Foundation Certification Examination is a voluntary exam. It is designed for those who wish to gain foundational knowledge of the securities markets, whether for career advancement or personal interest.
Q9: Are there any resources available to help with exam preparation?
A9: Yes, NISM provides official study materials that cover the syllabus comprehensively. Additionally, platforms like MyOnlinePrep offer mock tests and other resources to aid in exam preparation.
Q10: What is the passing score for the NISM-Series-XII exam?
A10: The passing score for the NISM-Series-XII exam is 60%, meaning you need to score at least 60 out of 100 marks to pass
15th Aug 2024
Myonlineprep
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