Securities Markets Foundation
Foundational exam for securities markets understanding — instruments, primary/secondary markets, MF basics, and regulators.
Exam Pattern & Marking
Detailed Syllabus
6 chapters · 100 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | Mutual Funds | 20 | 58 |
| 2 | Primary Markets | 20 | 59 |
| 3 | Secondary Markets | 20 | 60 |
| 4 | Securities Types Features and Asset Allocation Concepts | 20 | 62 |
| 5 | Derivative Markets | 10 | 30 |
| 6 | Understanding Securities Markets and Performance | 10 | 33 |
| Total | 100 | 302 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series XII is the generalist foundation exam — useful for anyone new to Indian securities markets. It covers the full landscape at conceptual depth without going deep into any single product. Often taken as a starter before specializing.
At a glance: 100 questions · 2 hours · 60% pass mark · 0.25 negative marking · ₹1,500 + GST.
Who should take XII
- Career switchers entering finance
- Junior staff at brokers / AMCs / RTAs needing market literacy
- Students preparing for entry-level finance roles
- Anyone wanting an overview before picking a specialist NISM
Key Knowledge Areas
Securities markets architecture
| Market | Purpose | Examples |
|---|---|---|
| Primary | New issuance | IPO, FPO, rights, private placement |
| Secondary | Trading existing securities | NSE, BSE cash, F&O |
| Money market | Short-term funding | T-bills, CP, CD, repo |
| Debt market | Long-term debt | G-Secs, corp bonds, debentures |
| Forex | Currency exchange | Spot, forwards, futures |
Equity & debt instruments
- Equity: Common stock, preference shares, GDRs/ADRs, REITs/InvITs
- Debt: G-Secs, corporate bonds, debentures (NCDs), tax-free bonds
- Hybrid: Convertible debentures, OCDs, PCDs
Mutual fund basics
Conceptual coverage of MF structure, AMC, NAV, scheme categories, taxation. Less depth than V-A but enough to recognise products.
Investor protection framework
- SEBI — overall regulator
- SCORES — grievance portal
- Investor Education and Protection Fund (IEPF) — unclaimed dividends/shares fund
- Investor associations — represent retail investor interests
Regulatory bodies
| Regulator | Coverage |
|---|---|
| SEBI | Securities markets, intermediaries |
| RBI | Banking, money market, OTC FX, G-Secs |
| IRDAI | Insurance |
| PFRDA | Pension (NPS) |
| IFSCA | GIFT City IFSC entities |
Key Fact: India has a “twin peaks” regulatory model with separate regulators for prudential supervision (RBI) and conduct (SEBI). PFRDA and IRDAI cover specialised verticals.
Exam Tips
Tip 1: Foundation exam = breadth, not depth. Cover all chapters lightly rather than mastering a few.
Tip 2: Regulator-product mapping (SEBI = securities, RBI = banking/money market, IRDAI = insurance) is heavily tested.
Tip 3: Distinguish primary vs secondary markets, debt vs equity, money market vs capital market — these terminology questions are easy marks.
Tip 4: Mutual fund chapter has reasonable weight. Even though depth is limited, know NAV, TER, scheme categories, taxation overview.
Try the Free Quiz
Test your knowledge with our free Series XII practice quiz — or get the full bank of 300+ XII questions plus mock tests in the NISM Exam Prep app.
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