Chapter 10: NISM-XV Exam Prep
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Day 42: NISM-XV Module 1 — Securities Market Basics
The regulatory foundation — every concept the exam actually tests
2 min read
📖 The Final Sprint Begins!
You've spent 41 days building genuine understanding of markets, investing, and regulation. Now: exam mode.
Good news: You already know most of this! NISM-XV tests exactly what we've been learning — just with official terminology and specific regulatory details.
These final chapters = targeted revision + exam-specific facts + mock practice. Let's pass this on the first attempt. 🎯
You've spent 41 days building genuine understanding of markets, investing, and regulation. Now: exam mode.
Good news: You already know most of this! NISM-XV tests exactly what we've been learning — just with official terminology and specific regulatory details.
These final chapters = targeted revision + exam-specific facts + mock practice. Let's pass this on the first attempt. 🎯
Key Definitions — Exam Favourites
📌 Securities: Shares, debentures, bonds, government securities, derivatives, MF units
📌 Primary Market: New securities issued (IPO, FPO, Rights Issue)
📌 Secondary Market: Existing securities traded between investors (NSE, BSE)
📌 Capital Market: Long-term securities (equity + bonds, maturity 1 year+)
📌 Money Market: Short-term instruments (T-Bills, CP, CD — maturity <1 year)
📌 Primary Market: New securities issued (IPO, FPO, Rights Issue)
📌 Secondary Market: Existing securities traded between investors (NSE, BSE)
📌 Capital Market: Long-term securities (equity + bonds, maturity 1 year+)
📌 Money Market: Short-term instruments (T-Bills, CP, CD — maturity <1 year)
Types of Securities
| Security | Description | Example |
|---|---|---|
| Equity Shares | Ownership, voting rights, dividend (not guaranteed) | TCS, Reliance |
| Preference Shares | Fixed dividend priority, limited voting | HDFC Pref Shares |
| Debentures/Bonds | Debt instrument, fixed interest, creditor not owner | Corporate bonds |
| Govt Securities | Issued by Central/State Govt, risk-free | 10-year G-Sec |
| Derivatives | Value derived from underlying asset | Nifty Futures, Options |
| MF Units | Units of a pooled investment vehicle | SBI Nifty 50 Index Fund |
The Three Core Acts — MUST Know!
| Act | Year | What It Does |
|---|---|---|
| SEBI Act | 1992 | Gives SEBI statutory powers — protection, regulation, development |
| SCRA (Securities Contracts Regulation Act) | 1956 | Regulates stock exchanges and contracts |
| Depositories Act | 1996 | Established demat system — NSDL and CDSL operate under this |
| Companies Act | 2013 | Company formation, governance, disclosures |
| PMLA | 2002 | Prevention of Money Laundering — basis for KYC |
🎉 Memory Trick: "SSD"
SEBI Act (S) → SEBI's powers. SCRA (S) → Stock exchange rules. Depositories Act (D) → Demat accounts. SSD. Three laws, three purposes, ten exam marks. 🎯
SEBI Act (S) → SEBI's powers. SCRA (S) → Stock exchange rules. Depositories Act (D) → Demat accounts. SSD. Three laws, three purposes, ten exam marks. 🎯
🎯 Takeaway:
Primary = new issue. Secondary = trading existing securities. Equity = ownership, Debt = creditor. Three core acts: SEBI (1992), SCRA (1956), Depositories (1996). Know what each does cold! Tomorrow: Module 2 — Research Process!
Primary = new issue. Secondary = trading existing securities. Equity = ownership, Debt = creditor. Three core acts: SEBI (1992), SCRA (1956), Depositories (1996). Know what each does cold! Tomorrow: Module 2 — Research Process!