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NISM Series XII: Securities Markets Foundation exam preparation
The entry-level certification on how Indian securities markets work, from shares and IPOs to funds, derivatives and financial planning.
NISM Series XII exam pattern
NISM Series XII syllabus, unit by unit
The exam covers 7 units. The percentage is the share of questions each unit usually carries, so spend your time in that proportion.
Unit 1 Understanding securities markets and performance5%
Securities markets move savings of households into the investments of companies and governments. This chapter explains why markets exist, who takes part, and who keeps them honest.
- Primary versus secondary market.
- Money market versus capital market.
- Roles of SEBI, RBI and other regulators.
Unit 2 Securities: types, features and concepts20%
Equity, preference shares, bonds, government securities and money market instruments all have different rights and risks. This is the biggest topic and most questions are definition or comparison based.
- Equity versus preference shares.
- Bonds, debentures, G-secs, T-bills, CP and CD.
- Corporate actions: dividend, bonus, split, rights, buyback.
- Credit ratings and key valuation ratios.
Unit 3 Primary markets15%
How companies raise money from the public: IPOs, FPOs, rights, QIPs and private placements. The mechanics of book building, categories of investors, and listing are tested closely.
- IPO process and documents.
- Book building, price band and cut-off price.
- Investor categories and reservation.
- Other routes: rights, QIP, preferential, OFS.
Unit 4 Secondary markets20%
Where shares trade every day. This chapter covers exchanges, brokers, orders, indices, settlement, the depository system and the safeguards that protect the market.
- Stock exchanges, trading hours and settlement.
- Order types and price bands.
- Depositories and demat.
- Indices and circuit breakers.
Unit 5 Mutual funds20%
Mutual funds pool money from many investors. This chapter covers structure, NAV, scheme types, costs, SIP and what to read before investing.
- Structure of a mutual fund and its NAV.
- Scheme types: equity, debt, hybrid, index, ETF.
- SIP, expense ratio, exit load and riskometer.
- How to choose a fund.
Unit 6 Derivatives markets10%
Futures and options in simple terms: what they are, why people use them and the key vocabulary.
- Futures versus options.
- Hedging, speculation, arbitrage.
- Lot size, margin and expiry.
Unit 7 Financial planning and securities markets10%
Markets are a means to meet goals. This chapter links securities to planning: goals, risk profile, asset allocation, tax, insurance and avoiding frauds.
- Financial planning steps and life stages.
- Risk profile and asset allocation.
- Time value of money and inflation.
- Investor rights, grievance routes and frauds.
Try 4 sample questions
These are from Mock 1. Open the free mock to see the correct answer and the reason behind each one.
Q1. Which term is described here? A demat account holds securities in electronic form and is opened with a depository participant.
- Free-float market capitalisation
- Ponzi scheme
- Stockbroker
- Demat account
Q2. Which term is described here? A debenture is a long-term debt instrument issued by a company, which can be secured or unsecured and may be convertible into shares.
- Buyback
- Settlement cycle
- Debenture
- Minimum subscription
Q3. Which term is described here? Application Supported by Blocked Amount means the application money stays blocked in the investor's bank account until allotment, and is debited only for allotted shares.
- Underwriter
- Preference share
- Market participants
- ASBA
Q4. Which statement best describes “Hybrid fund”?
- Investors must complete KYC with PAN and address proof before investing in mutual funds, and KYC is done once for the whole market.
- A retail individual investor is one who bids for shares worth up to ₹2 lakh in an issue.
- A hybrid fund invests in a mix of equity and debt to balance growth and stability.
- In a buyback, a company repurchases its own shares from shareholders, reducing the number of shares outstanding.
How to prepare for NISM Series XII
- Download the study guide and read the first three pages.
- Study the biggest units first. Their weight shows on this page.
- Take Mock 1 after one pass through the guide.
- Move to the next mock only when you clear the pass mark by 15 marks.
- Redo every wrong answer. Each one names its unit.
The app also lists your weak units after each mock and runs in English, Hindi or Gujarati. Mock tests and study material are in English.
Frequently asked questions
How many questions are there in NISM Series XII?
The NISM Series XII (Securities Markets Foundation) exam has 100 multiple-choice questions carrying 100 marks, to be answered in 120 minutes.
What is the passing score for NISM Series XII?
The pass mark is 60%. Aim to clear 75% in practice mocks before you book the real exam.
Is there negative marking in NISM Series XII?
No. There is no negative marking, so attempt every question.
Is the NISM Series XII study guide free?
Yes. UpperCrust Academy gives a free 40-page study guide PDF for NISM Series XII, written unit by unit.
Are the NISM Series XII mock tests free?
Yes. You get 5 full-length mock tests with the answer and the reason for every question. Sign in once with your mobile number or Google to start.
Is this affiliated with NISM?
No. UpperCrust Academy is independent preparation material from UpperCrust Wealth. Confirm the latest syllabus and exam rules on the official NISM website.
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UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.