NISM Series-XV: Research Analyst

The NISM Series-XV: Research Analyst certification aims to improve the quality of services that are provided by the research analysts in the financial services sector. This test essentially establishes a minimal knowledge level for those registered as research analysts under the SEBI (Research Analyst) Regulations, 2014, as well as those involved in the creation and dissemination of research analyses, as well as research analysts and their partners. The notable people must pass the NISM Series-XV: Research Analyst test in order to meet the requirements outlined in Regulation 7(2) of the SEBI (Research Analysts) Regulations, 2014.

Benefits of the exam:

Moreover, passing the NISM Series-XV: Research Analyst examination will enable you to-

Know the fundamentals of Indian Securities Markets along with various terminologies that are used in equity and debt markets
Gain knowledge about the top down and bottom up approach of fundamental research
Understand the basic concepts for micro and macro-economic analysis, the sources of different information for analysis, and the different macroeconomic variables affecting the analysis.
Understand the qualities of a good research report.
Know about the key industry drivers and the information sources for industry analysis.
Understand the qualitative and quantitative dimensions with regards to company analysis.
Know about the fundamentals of Risk and Return, valuation principles, and also the philosophy of various corporate actions.

Target Audience:

Well, the NISM Series-XV: Research Analyst exam is recommended for the following people:

People registered as research analyst under SEBI (Research Analyst) Regulations, 2014.
Individuals who are employed as research analyst or as partners of a research analyst.
Persons engaged in preparation and publication of research report.
Industry professionals
Interested individuals

Scheduling the exam

So, you can apply for the exam following the steps given below:

Register with the NISM Portal
Use your email address and password to login
Check availability of seats
Schedule the test or enroll online
Make payment using Credit Card / Debit Card/ Net Banking
Download the Admit Card
Download the Study material
Access Exam Results

Rescheduling the exam

You can reschedule your scheduled exam on your own by logging into NISM portal four days prior to the date of a scheduled exam.
So, you may be offered rescheduling of the exam subject to availability of slots and that too only in certain cases such as:
- Significant / prolonged disruption of internet / power at the test center
- Non-availability of NISM’s examination application due to scheduled or unscheduled maintenance
- Inability of NISM or test administrator to conduct examination/s because of circumstances like natural disasters, law and order situation etc.

Special Accommodation Policy

If you require special accommodations when taking the NISM Series-XV: Research Analyst exam, you must notify NISM in advance.
Therefore, you have to send the Special Accommodation form to NISM at least 30 days in advance in order to get assistance for special accommodations.
- So, you will be given the approval/denial for Special Accommodation by NISM after assessing its need at its sole discretion.

Exam Details

Moreover, it is a very important thing to note the pattern of exam, number of questions asked, time allotted and other minor details. So, we have mentioned the important details of the NISM Series-XV: Research Analyst exam as follows:

Type of questions-Multiple-choice questions
Time allotted-2hrs
No. of questions-100
Passing score-60%
Fee-Rs. 1500+

For more details and any queries, visit the NISM Series-XV: Research Analyst Exam FAQs

NISM Series-XV: Research Analyst Exam Course Outline

The syllabus of exam has been categorized in various sections and subsections. So, let’s look into the various domains of the exam as follows:

DOMAIN 1. INTRODUCTION TO RESEARCH ANALYST PROFESSION

Primary Role of a Research Analyst
Primary Responsibilities of a Research Analyst
Basic Principles of Interaction with Companies/Clients
Important Qualities of a Research Analyst

DOMAIN 2. INTRODUCTION TO SECURITIES MARKET

Introduction to Securities and Securities Market
Product Definitions / Terminology
Structure of Securities Market
Various Market Participants and Their Activities
Kinds of Transactions
Dematerialization and Rematerialization of securities

DOMAIN 3. TERMINOLOGY IN EQUITY AND DEBT MARKETS

Terminology in Equity Market
Debt Market Terminology
Types of Bonds

DOMAIN 4. FUNDAMENTALS OF RESEARCH

What is Investing?
The role of research in investment activity
Technical Analysis
Fundamental Analysis
Quantitative Research
Behavioral Approach to Equity Investing

DOMAIN 5. ECONOMIC ANALYSIS

Basic Principles of Microeconomics
Basic Principles of Macroeconomics
Introduction to Various Macroeconomic Variables
Role of economic analysis in fundamental analysis
Secular, cyclical and seasonal trends
Sources of Information for Economic Analysis

DOMAIN 6. INDUSTRY ANALYSIS

Role of industry analysis in fundamental analysis
Defining the industry
Understanding industry cyclicality
Market sizing and trend analysis
Secular trends, value migration and business life cycle
Understanding the industry landscape
Key Industry Drivers and Industry KPIs
Regulatory environment/framework
Taxation
Sources of information for industry analysis

DOMAIN 7. COMPANY ANALYSIS – BUSINESS AND GOVERNANCE

Role of company analysis in fundamental research
Understand Business and Business Models
Pricing Power and Sustainability of This Power
Competitive Advantages/Points of differentiation over the Competitors
Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
Quality of Management and Governance Structure
Risks in the Business
History of credit rating
ESG framework for company analysis
Sources of Information for Analysis

DOMAIN 8. COMPANY ANALYSIS – FINANCIAL ANALYSIS

Introduction to financial statement
Stand-alone financial statement and consolidated financial statement
Balance Sheet
Basics of Profit and Loss Account (P/L)
Statement of changes in shareholder’s equity
Basics of Cash Flows
Notes to accounts
Important Points to Keep In Mind While Looking At Financials
Reading audit report to understand the quality of accounting
Financial statement analysis using ratios
Commonly used ratios
L. Dupont analysis
M. Forecasting using ratio analysis
N. Peer Comparison
O. Other aspects to study from financial reports

DOMAIN 9. CORPORATE ACTIONS

Philosophy of Corporate Actions
Dividend
Rights Issue
Bonus Issue
Stock Split
Share Consolidation
Merger and Acquisition
Demerger / Spin-off
Scheme of arrangement
Loan Restructuring
Buyback of Shares
Delisting and relisting of Shares
Share Swap

DOMAIN 10. VALUATION PRINCIPLES

Difference Between Price and Value
Why Valuations are required
Sources of Value in a Business – Earnings and Assets
Approaches to valuation
Discounted Cash Flows Model for Business Valuation
Relative valuation
Earnings Based Valuation Matrices
Assets based Valuation Matrices
Relative Valuations – Trading and Transaction Multiples
Sum-Of-The-Parts (SOTP) Valuation
Other Valuation Parameters in New Age Economy and Businesses
Capital Asset Pricing Model
Objectivity of Valuations
Some Important Considerations in the Context of Business Valuation

DOMAIN 11. FUNDAMENTALS OF RISK AND RETURN

Concept of Return of Investment and Return on Investment
Calculation of Simple, Annualized and Compounded Returns
Risks in Investments
Measuring risk
Concepts of Market Risk (Beta)
Sensitivity Analysis to Assumptions
Concept of Margin of Safety
Comparison of Equity Returns with Bond Returns
Calculating risk adjusted returns
Basic Behavioral Biases Influencing Investments
Some Pearls of Wisdom from Investment Gurus across the World
Measuring liquidity of equity shares

DOMAIN 12. QUALITIES OF A GOOD RESEARCH REPORT

Qualities of a Good Research Report
Checklist Based Approach to the Research Reports
A Sample Checklist for Investment Research Reports

DOMAIN 13. LEGAL AND REGULATORY ENVIRONMENT

Regulatory infrastructure in Financial Markets
Important regulations in Indian Securities Market
Code of Conduct for Research Analysts
Management of Conflicts of Interest and Disclosure Requirements for Research Analysts
Exchange surveillance mechanisms: GSM and ASM

DOMAIN 14. ANNEXURE – 1

DOMAIN 15. ANNEXURE – 2

Study guide for the NISM Series-XV: Research Analyst Exam

First of all, you should familiarize yourself with all the topics and subtopics that are there in the exam syllabus. This will help you have a good concept of what you’ll need to learn and how you’ll arrange your study time. Also, bear in mind that the actual application of what you learn is critical, so keep that in mind while you study. As a result, begin your preparation by properly reviewing the curriculum.

NISM Series-XV: Research Analyst preparation guide

1. Explore the details of exam

Another aspect to consider before starting is to know all about the pattern of exam including details about the type and number of questions and also the time allotted. This will help you strategize your learning technique and will also help you manage your time while doing the exam.

2. Study resources

NISM provides it’s workbooks for studying. You can order these workbooks online through Taxmann Publications Private Ltd.
NISM provides videos of certain courses on Youtube. Therefore, you can access those videos for gaining more knowledge about the exam.
Alongside, you can also go for online trainings provided by different platforms. This will help you in learning the basics at at greater pace. Moreover, self-study can also do the needful.

3. Join study groups

Getting involved in study groups and communities can also be beneficial. This serves as a platform that connects professionals and novices, allowing you to have your questions answered while also having constructive dialogues with individuals with similar backgrounds. As a result, joining these organisations will keep you up to date.

4. Practice tests

The last and the most important step of preparation is practicing questions. This has dual benefits as it helps you not only evaluate your level of preparation but also helps you boost your confidence by attempting challenging questions. The practice tests that we offer are definitely reliable and enough to practice in order to ace the exam. Here, we provide unique sets of professionally designed questions for you to practice.