Podcast
Questions and Answers
What key aspect does NISM provide to assist candidates in preparing for its examinations?
What key aspect does NISM provide to assist candidates in preparing for its examinations?
- Comprehensive online courses
- One-on-one coaching sessions
- Free access to industry seminars
- Lucid and focused workbooks (correct)
Which approach is NOT covered in the research preparation material provided by NISM?
Which approach is NOT covered in the research preparation material provided by NISM?
- Top down approach
- Bottom up approach
- Qualitative analysis
- Technical analysis (correct)
What is the primary purpose of the publication issued by NISM?
What is the primary purpose of the publication issued by NISM?
- To provide general reading and educational content (correct)
- To serve as a legal guide for investments
- To endorse financial products
- To offer specific investment strategies
Which of the following is a key topic included in the NISM research preparation material?
Which of the following is a key topic included in the NISM research preparation material?
As of March 2023, how many certificates has NISM issued through its programs?
As of March 2023, how many certificates has NISM issued through its programs?
Which of the following is NOT a responsibility of NISM or SEBI regarding the publication?
Which of the following is NOT a responsibility of NISM or SEBI regarding the publication?
What type of analysis must candidates understand according to the NISM research preparation content?
What type of analysis must candidates understand according to the NISM research preparation content?
What does the disclaimer emphasize regarding the views expressed in the publication?
What does the disclaimer emphasize regarding the views expressed in the publication?
What is the primary function of a depository in the securities market?
What is the primary function of a depository in the securities market?
Who appoints the Depository Participants (DPs)?
Who appoints the Depository Participants (DPs)?
Which of the following is NOT true regarding Trading Members?
Which of the following is NOT true regarding Trading Members?
What role does an Authorized Person serve in the stock market?
What role does an Authorized Person serve in the stock market?
Which of the following institutions is NOT qualified to be a Depository Participant?
Which of the following institutions is NOT qualified to be a Depository Participant?
What is the primary service offered by Depository Participants?
What is the primary service offered by Depository Participants?
How many depositories are currently registered with SEBI in India?
How many depositories are currently registered with SEBI in India?
Which statement accurately reflects the role of clearing banks in stock exchanges?
Which statement accurately reflects the role of clearing banks in stock exchanges?
Which of the following best describes equity shares?
Which of the following best describes equity shares?
What is a key characteristic of debentures?
What is a key characteristic of debentures?
Who regulates equity shares in the Indian securities market?
Who regulates equity shares in the Indian securities market?
Which financial product is primarily used to raise long-term debt?
Which financial product is primarily used to raise long-term debt?
What is Electronic Gold Receipt (EGR) considered in the Indian financial market?
What is Electronic Gold Receipt (EGR) considered in the Indian financial market?
What type of investors typically purchase equity shares?
What type of investors typically purchase equity shares?
What is the main feature that differentiates fully convertible debentures from non-convertible ones?
What is the main feature that differentiates fully convertible debentures from non-convertible ones?
Which of the following statements about government securities is true?
Which of the following statements about government securities is true?
What is a follow-on public offer primarily used for?
What is a follow-on public offer primarily used for?
What is the maximum number of investors allowed for issuing shares under private placement according to the Companies Act 2013?
What is the maximum number of investors allowed for issuing shares under private placement according to the Companies Act 2013?
Who qualifies as a Qualified Institutional Buyer (QIB) in the context of Qualified Institutional Placements?
Who qualifies as a Qualified Institutional Buyer (QIB) in the context of Qualified Institutional Placements?
Which of the following is NOT considered a method of private placement?
Which of the following is NOT considered a method of private placement?
What does a preferential issue entail?
What does a preferential issue entail?
What must a privately placed security do to be listed on a stock exchange?
What must a privately placed security do to be listed on a stock exchange?
Which of the following securities is excluded from a preferential issue?
Which of the following securities is excluded from a preferential issue?
What role does SEBI play in relation to the issuance of Qualified Institutional Placements?
What role does SEBI play in relation to the issuance of Qualified Institutional Placements?
What aspect of companies is analyzed qualitatively?
What aspect of companies is analyzed qualitatively?
Why is personal communication with management important for analysts?
Why is personal communication with management important for analysts?
How do quantitative analysis methods differ from qualitative methods?
How do quantitative analysis methods differ from qualitative methods?
What is a potential risk when interacting with company management?
What is a potential risk when interacting with company management?
Which of the following is NOT a quantitative analysis aspect?
Which of the following is NOT a quantitative analysis aspect?
What might an analyst use to determine which company performs better among peers?
What might an analyst use to determine which company performs better among peers?
Which of the following areas does industry analysis NOT typically cover?
Which of the following areas does industry analysis NOT typically cover?
What is the main purpose of understanding the regulatory environment in industry analysis?
What is the main purpose of understanding the regulatory environment in industry analysis?
Study Notes
NISM Certification
- NISM offers certifications in the Indian Securities Market.
- NISM has provided over 17 lakh certifications to date (as of March 2023).
- NISM publications support candidates to better understand the content for exams.
Equity & Debt
- Equity represents fractional ownership in a business venture.
- Debentures are long-term debt, that can be secured or unsecured, convertible or non-convertible, and domestic or foreign currency.
Public & Private Placement
- Companies can issue equity shares through a fresh issue of capital in a follow-on public offer, an Offer for Sale, or private placements.
- Private placements can be made through a Qualified Institutional Placement (QIP) or preferential allotment.
- QIPs are limited to Qualified Institutional Buyers, like financial institutions, mutual funds, and banks.
- A preferential issue is private placement to a select group of individuals or institutions.
Securities Market Participants
- Depositories are institutions that hold securities in electronic form.
- Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL) are the two main depositories in India.
- Depository Participants (DPs) are appointed by the depository, and act as agents for investors to hold and transact securities electronically.
- Trading Members/Stock Brokers are registered members of stock exchanges, who facilitate buy and sell transactions for investors.
- An Authorised Person is an agent, appointed by a stock broker, to reach out to investors.
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Description
This quiz covers key concepts related to NISM certifications in the Indian Securities Market, focusing on equity and debt instruments, public and private placements. Additionally, it touches upon the participants in the securities market. Test your knowledge on these essential topics to strengthen your understanding ahead of your certification exam.
