NISM Research Analyst Exam - 2024 - FULL DETAIL

Summary

In this session, Parth Verma from The Valuation School provides a detailed roadmap for preparing for the NISM Research Analyst Series 15 Exam. He explains the importance of this exam for aspiring equity research professionals, especially those looking to become SEBI-registered analysts. Parth emphasizes understanding key concepts like securities markets, economic analysis, industry drivers, and valuation principles. He also highlights the importance of thorough preparation, offering students practical guidance, study notes, and question banks. The video encourages dedication and hard work, aiming to help viewers excel in the exam and build strong foundational knowledge.

Takeaways

• 📘 NISM (National Institute of Securities Markets) is an educational initiative by SEBI (Securities and Exchange Board of India) and plays a role in certifying financial professionals.
• 🎯 The NISM R-15 exam serves as a benchmark for registering as a SEBI-approved research analyst, ensuring a minimum level of awareness in securities and markets.
• 💼 The certification is crucial for anyone aiming to build a career in equity research, especially those interested in understanding Indian securities markets.
• 📊 The curriculum covers basics like the principles of the Indian security markets, terminology used in debt and equity markets, and fundamental and technical analysis.
• 📈 Key skills gained from the preparation include understanding micro and macroeconomic principles, industry drivers, and qualitative and quantitative analysis of companies.
• 💡 Candidates will also learn about valuation principles, the risk-return tradeoff, and the impact of corporate actions like buybacks, stock splits, and demergers.
• 📑 A critical component of the training is understanding what constitutes a good quality equity research report and the key areas it must cover.
• 🧠 The exam consists of 100 MCQ questions, including 92 standard questions and 8 case studies, to be completed in 120 minutes, with a passing score of 60%.
• ⚠️ Negative marking exists for incorrect answers, and students are encouraged to aim for a perfect score rather than the minimum required marks.
• 📅 The preparation process requires dedication, practical understanding, and applying the acquired knowledge to real-life scenarios. Students are advised to start early and follow the structured study approach.

Q & A

What is the full form of NISM?

NISM stands for National Institute of Securities Markets.

What is the role of NISM in the financial sector?

NISM is an educational initiative by SEBI and plays a role in developing sensitivity towards securities markets.

Why should one consider taking the NISM exam?

One should take the NISM exam to gain knowledge about the securities market, which is essential for a career in equity research.

What is the eligibility to appear for the NISM exam?

There is no specific eligibility mentioned, but a basic understanding of finance and securities markets is beneficial.

What are the benefits of clearing the NISM exam?

Clearing the NISM exam can lead to becoming a registered analyst, which is helpful for a career in equity research and financial markets.

What is the structure of the NISM exam?

The NISM exam consists of 100 multiple-choice questions that need to be solved within 120 minutes.

What is the passing score for the NISM exam?

The passing score is 60%, meaning a candidate needs to score at least 60 marks out of 100.

What is the difference between scoring 60 correct questions and having a total score of 60?

Scoring 60 correct questions means answering 60 questions correctly out of 100, whereas having a total score of 60 could include both correct and incorrect answers, with negative marking affecting the total.

How does negative marking work in the NISM exam?

Negative marking is applied for each incorrect answer, with a deduction of 0.25 marks for each wrong answer.

What is the focus area of the NISM exam curriculum?

The NISM exam curriculum focuses on the basics of the Indian securities market, terminology, fundamental analysis, and economic analysis.

What kind of preparation approach is suggested for the NISM exam?

The script suggests a thorough and practical understanding of the exam material, including comprehensive workbook study and practical application of concepts.