FMBM ncfm1-5

NCFM
NSE's CERTIFICATION IN FINANCIAL MARKETS
Financial Markets: A Beginners' Module
NATIONAL STOCK EXCHANGE OF INDIA LIMITED

Test Details
Sr. Fees Test Duration No. of Maximum Pass Certificate

Name of Module Marks
No. (Rs.) (in minutes) Questions Marks (%) Validity
1 Financial Markets: A Beginners' Module * 1500 120 60 100 50 5

2 Mutual Funds : A Beginners' Module 1500 120 60 100 50 5
3 Currency Derivatives: A Beginner's Module 1500 120 60 100 50 5
4 Equity Derivatives: A Beginner's Module 1500 120 60 100 50 5
5 Interest Rate Derivatives: A Beginner's Module 1500 120 60 100 50 5
6 Commercial Banking in India: A Beginner's Module 1500 120 60 100 50 5
7 Securities Market (Basic) Module 1500 120 60 100 60 5
8 Capital Market (Dealers) Module * 1500 105 60 100 50 5
9 Derivatives Market (Dealers) Module * 1500 120 60 100 60 3
10 FIMMDA-NSE Debt Market (Basic) Module 1500 120 60 100 60 5
11 Investment Analysis and Portfolio 1500 120 60 100 60 5
Management Module
12 Fundamental Analysis Module 1500 120 60 100 60 5
13 Securities Market (Advanced) Module 1500 120 60 100 60 5
14 Mutual Fund (Advanced) Module 1500 120 60 100 60 5
15 Banking Sector Module 1500 120 60 100 60 5
16 Insurance Module 1500 120 60 100 60 5
17 Macroeconomics for Financial Markets Module 1500 120 60 100 60 5
18 NISM-Series-I: Currency Derivatives Certification 1000 120 100 100 60 3
Examination
19 NISM-Series-II-A: Registrars to an Issue and 1000 120 100 100 50 3
Share Transfer Agents - Corporate
Certification Examination
20 NISM-Series-II-B: Registrars to an Issue and 1000 120 100 100 50 3
Share Transfer Agents - Mutual Fund
21 NISM-Series-IV: Interest Rate 1000 120 100 100 60 3
Derivatives Certification Examination
22 NISM-Series-V-A: Mutual Fund 1000 120 100 100 50 3
Distributors Certification Examination *
23 NISM-Series-VI: Depository Operations 1000 120 100 100 60 3
24 NISM Series VII: Securities Operations and 1000 120 100 100 50 3
Risk Management Certification Examination
25 Certified Personal Financial Advisor 4000 120 80 100 60 3
(CPFA) Examination
26 NSDL-Depository Operations Module 1500 75 60 100 60 # 5
27 Commodities Market Module 1800 120 60 100 50 3
28 Surveillance in Stock Exchanges Module 1500 120 50 100 60 5
29 Corporate Governance Module 1500 90 100 100 60 5
30 Compliance Officers (Brokers) Module 1500 120 60 100 60 5
31 Compliance Officers (Corporates) Module 1500 120 60 100 60 5
32 Information Security Auditors Module (Part-1) 2250 120 90 100 60 2
Information Security Auditors Module (Part-2) 2250 120 90 100 60
33 Options Trading Strategies Module 1500 120 60 100 60 5
34 FPSB India Exam 1 to 4** 2000 per 120 75 140 60 NA
exam
35 Examination 5/Advanced Financial Planning ** 5000 240 30 100 50 NA
36 Equity Research Module ## 1500 120 65 100 55 2
37 Issue Management Module ## 1500 120 80 100 55 2
38 Market Risk Module ## 1500 120 50 100 55 2
39 Financial Modeling Module ### 1000 150 50 75 50 NA
* Candidates have the option to take the tests in English, Gujarati or Hindi languages.
# Candidates securing 80% or more marks in NSDL-Depository Operations Module ONLY will be certified as 'Trainers'.
** Following are the modules of Financial Planning Standards Board India (Certified Financial Planner Certification)
FPSB India Exam 1 to 4 i.e. (i) Risk Analysis & Insurance Planning (ii) Retirement Planning & Employee Benefits
(iii) Investment Planning and (iv) Tax Planning & Estate Planning
Examination 5/Advanced Financial Planning ##
Modules of Finitiatives Learning India Pvt. Ltd. (FLIP) ### Module of
IMS Preschool
The curriculum for each of the modules (except Modules of Financial Planning Standards Board India, Finitiatives Learning India Pvt. Ltd. and
IMS Proschool) is available on our website: www.nseindia.com > Education > Certifications.
Preface
The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is
today the largest stock exchange in India and a preferred exchange for trading in
equity, debt and derivatives instruments by investors. NSE has set up a sophisticated
electronic trading, clearing and settlement platform and its infrastructure serves as a
role model for the securities industry. The standards set by NSE in terms of market
practices; products and technology have become industry benchmarks and are being
replicated by many other market participants. It provides a screen-based automated
trading system with a high degree of transparency and equal access to investors
irrespective of geographical location. The high level of information dissemination
through the on-line system has helped in integrating retail investors across the
nation. The exchange has a network in more than 350 cities and its trading members
are connected to the central servers of the exchange in Mumbai through a
sophisticated telecommunication network comprising of over 2500 VSATs. NSE has
around 850 trading members and provides trading in over 1000 equity shares and
2500 debt securities. Besides this, NSE provides trading in various derivative
products such as index futures, index options, stock futures, stock options and
interest rate futures.
At NSE, it has always been our endeavour to continuously upgrade the skills and
proficiency of the Indian investor. Since, financially literate investors are the
backbone of the securities market, knowledge and awareness about the securities
market is of the foremost concern to us, starting with the most basic of information
being made available as the first step.
This booklet has therefore been prepared for those of you who are keen to acquire
some basic but key information about the stock markets as an initial step towards
becoming a more informed investor. We hope this booklet will act as a means of
satisfying some of your initial queries on the stock markets.
CONTENTS
1. INVESTMENT BASICS. 6
What is Investment? .............................................................................. 6
Why should one invest?.......................................................................... 6
When to start Investing? ........................................................................ 6
What care should one take while investing? .............................................. 7
What is meant by Interest?..................................................................... 7
What factors determine interest rates? ..................................................... 7
What are various options available for investment?.................................... 8
What are various Short-term financial options available for investment?....... 8
What are various Long-term financial options available for investment? ....... 9
What is meant by a Stock Exchange? ....................................................... 10
What is an „Equity'/Share? ...................................................................... 10
What is a „Debt Instrument'? .................................................................. 11
What is a Derivative? ............................................................................. 11
What is a Mutual Fund? .......................................................................... 11
What is an Index? ................................................................................. 12
What is a Depository? ............................................................................ 12
What is Dematerialization? ..................................................................... 12
2. SECURITIES _________________________________________________13
What is meant by „Securities‟? ................................................................ 13
What is the function of Securities Market? ................................................ 13
Which are the securities one can invest in? ............................................... 13
2.1 REGULATOR ........................................................................................... 14
Why does Securities Market need Regulators? ........................................... 14
Who regulates the Securities Market? ....................................................... 14
What is SEBI and what is its role? ............................................................ 14
2.2 PARTICIPANTS ........................................................................................ 15
Who are the participants in the Securities Market? ..................................... 15
Is it necessary to transact through an intermediary? .................................. 15
What are the segments of Securities Market? ............................................ 15
3. PRIMARY MARKET ______________________________________________16
What is the role of the „Primary Market‟?................................................... 16
What is meant by Face Value of a share/debenture? ................................... 16
What do you mean by the term Premium and Discount in a Security Market?.16
3.1 ISSUE OF SHARES ................................................................................... 17
Why do companies need to issue shares to the public? ............................... 17
What are the different kinds of issues? ..................................................... 17
What is meant by Issue price? ................................................................. 18
What is meant by Market Capitalisation? ................................................... 18
What is the difference between public issue and private placement? ............. 19
What is an Initial Public Offer (IPO)? ........................................................ 19

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NCFM

NSE's CERTIFICATION IN FINANCIAL MARKETS

Financial Markets: A Beginners' Module

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

Sr. Fees Test Duration No. of Maximum Pass Certificate

1 Financial Markets: A Beginners' Module * 1500 120 60 100 50 5

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