NISM-Series-XV Research Analyst Certification

A professional organization that provides high-quality education, certifications, and research in the financial markets.

NISM's goal is to improve the knowledge and skills of professionals working in various parts of the financial sector.

NISM conducts certification exams and Continuing Professional Education (CPE) programs to ensure professionals meet the required knowledge standards for different roles in the financial industry.

Long-term debt instruments issued by companies, governments, or special purpose vehicles, which can be secured or unsecured. They can be fully convertible, non-convertible, or partly convertible into shares.

Debentures that can be fully converted into shares of the issuing company under pre-defined terms.

Debentures that allow investors to convert a specified portion into shares of the issuing company, according to pre-defined terms.

Pure debt instruments that do not include a conversion option into shares. They are typically repaid on maturity.

Bonds issued in a currency different from the issuer's home currency. For example, a company in India issuing bonds in US Dollars.

Short-term debt instruments with maturity periods of less than one year. Examples include Treasury Bills, Commercial Papers, and Certificates of Deposit.

Debt instruments issued by the government with maturities ranging from 91 days to 364 days.

Short-term debt instruments issued by companies to raise funds for their operations. Maturities typically range from a few days to a year.

Debt instruments that allow investors to convert them into shares of the issuing company, typically issued offshore in foreign currency with interest and principal repayment in that same currency. Dividend payments upon conversion happen in Indian Rupees, leaving currency risk with the investor.

Floating rate debt instruments that link their interest payments to the returns of a specific underlying equity asset, like the Nifty 50 index or an individual stock. A portion of the principal is invested in fixed income securities for principal protection, while the remainder is used for equity exposure through options.

Similar to ELDs, but link interest payments to the returns of a specific commodity asset, typically precious metals like gold and silver. They offer investors potential gains from commodity markets while safeguarding initial capital.

Securities backed by a pool of mortgages, issued by institutions. They generate income from mortgage payments, offering investors a way to participate in the housing market.

Securities backed by a pool of various financial assets, not just mortgages. These assets could include auto loans, credit card receivables, or rent payments.

These trusts pool money from investors and put it into revenue-generating real estate projects.

Similar to REITs, but these trusts invest in infrastructure projects, not real estate.

They are basic, interchangeable materials or goods, like gold bars or crude oil.

These commodities come from natural resources like mining or extraction. Examples include metals or crude oil.

These commodities are grown, like grains or pulses.

A special purpose vehicle (SPV) is a company created for a specific, usually short-term project.

Securitization is the process of taking a bundle of assets, like mortgages, and turning them into securities that can be traded.

The distributable surplus cash flow is the money a company has left over after paying its expenses. This money is distributed to the investors.

The clearing corporation in an exchange-traded market guarantees the settlement of trades between buyers and sellers, ensuring that both parties fulfill their obligations.

A percentage of the transaction value calculated based on the "Value At Risk" philosophy, charged by the clearing corporation to cover the potential losses caused by a buyer or seller defaulting on their trade.

The amount of loss a trade has experienced during a specific period due to price fluctuations. It is calculated based on the difference between the initial trade price and the current market price.

A type of margin charged by the clearing corporation to cover potential losses when the market value of a position exceeds a certain limit. It is calculated based on the peak value of the trade during a given time period.

Organized marketplaces where buyers and sellers of securities can transact in already issued stocks and other financial instruments. Trading occurs electronically and anonymously, with clearing and settlement managed by appointed agencies.

Institutions that hold securities (like shares, bonds, etc.) in electronic form on behalf of investors. They provide services related to transactions in dematerialized form, and investors hold accounts with them through Depository Participants.

Agents of the depository that act as intermediaries between the depository and investors. They enable investors to hold and transact in securities in dematerialized form, managing investor-level accounts.

Entities that facilitate transactions in the securities market by connecting buyers and sellers. Examples include stock exchanges, depositories, and depository participants.

A method of selling existing shares in a company to raise capital, where the proceeds go to the selling shareholders, not the company. Often used by promoters or large investors, and can be seen as a secondary market transaction using the primary market route.

Shares issued by a company to employees, promoters, or others as a reward for their contribution to the company. These shares are not meant to raise capital but can be used to incentivize and motivate employees, especially top management.

A scheme where companies give employees the right to purchase company shares at a pre-determined price after a specific period (vesting period). This encourages employees to work hard for the company's success because a higher share price means a bigger profit for them.

A market where existing securities like shares and bonds are bought and sold after the initial offering. It provides liquidity for investors, allowing them to buy or sell securities quickly. A strong secondary market helps boost the primary market by reassuring investors that they can exit their investments if needed.

A way for companies to raise capital by issuing new shares to the public for the first time. This is the initial public offering (IPO) or a follow-on public offering (FPO). The proceeds from an IPO or FPO go to the company for its growth and development.

The practice of disinvesting or selling government-owned shares in public sector undertakings (PSUs) to the public. This is often done through an OFS mechanism, and the proceeds go to the government.

A mechanism where an existing shareholder, typically a promoter or a large investor, offers shares to the public through a process similar to an IPO. The company itself does not issue fresh shares.

A type of debt instrument issued by companies, governments, or special purpose vehicles. They represent a loan from the investor to the issuer, with the issuer promising to repay the principal plus interest at a predetermined time.