NISM Series XV: Research Analyst Exam Pattern

This foundational unit introduces the primary role of a research analyst within the capital markets. It covers the basic responsibilities, the ethical obligations of providing unbiased advice, and the fundamental differences between sell-side, buy-side, and independent research analysts.

Candidates will explore the overarching structure of the Indian securities market. This includes the primary and secondary markets, the role of stock exchanges, depositories, clearing corporations, and the fundamental differences between equity and debt capital.

A research analyst must speak the language of the markets flawlessly. This unit tests your understanding of face value, book value, market capitalisation, yield to maturity (YTM), duration, and convexity in debt markets. Our NISM XV Demo Test ensures your vocabulary is perfectly aligned with industry standards.

This section dives into the core methodologies of research. You will be evaluated on the differences between fundamental and technical analysis, and the application of Top-Down (Economy -> Industry -> Company) versus Bottom-Up research approaches.

Macroeconomics dictates market direction. Candidates must understand how broad economic indicators—such as Gross Domestic Product (GDP), inflation (CPI/WPI), interest rates, fiscal deficits, and monetary policy decisions by the RBI impact corporate earnings and equity valuations.

Companies do not operate in a vacuum. This unit, carrying significant weightage, requires candidates to master Michael Porter’s Five Forces model, understand the industry life cycle (Pioneering, Growth, Maturity, Decline), and identify key macroeconomic drivers that affect specific sectors like banking, IT, or pharmaceuticals. Practising these concepts in a NISM 15 Model Test is crucial for success.

Before looking at the numbers, an analyst must evaluate the business. This section covers qualitative analysis, including evaluating the competitive advantages (moats) of a business, the integrity of the management team, corporate governance standards, and the analysis of the board of directors.

As one of the highest weightage units, financial analysis forms the mathematical core of the examination. You must possess absolute mastery over reading Balance Sheets, Profit & Loss Statements, and Cash Flow Statements. Expect rigorous NISM Research Analyst Certification Model Test questions requiring the calculation and interpretation of liquidity ratios, profitability ratios (ROE, ROCE), leverage ratios, and DuPont analysis

Corporate actions directly impact share prices and historical data adjustments. Candidates must understand the mechanics and implications of dividends, bonus issues, stock splits, rights issues, and buybacks. You will be tested on how these actions alter a company's market capitalisation and outstanding share count.

This 12% weightage unit separates the professionals from the amateurs. You must master the absolute valuation models, specifically the Discounted Cash Flow (DCF) model, Free Cash Flow to Firm (FCFF), and Free Cash Flow to Equity (FCFE). Furthermore, you will be heavily evaluated on relative valuation multiples, including Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA). A robust NISM 15 Demo Test will heavily emphasise these complex calculations.

Research analysts must also understand alternative asset classes. This unit introduces the fundamentals of commodity markets, the factors driving the demand and supply of bullion, base metals, and agricultural commodities, and the basic pricing mechanisms of commodity derivatives.

Understanding how to quantify financial risk is essential for portfolio recommendations. This module covers the concepts of systematic versus unsystematic risk, standard deviation, variance, beta, and the Capital Asset Pricing Model (CAPM). You must know how to calculate the expected return of an asset based on its inherent risk profile.

A brilliant valuation model is useless if it cannot be communicated effectively. This unit tests your understanding of how to structure a professional research report. It covers the essential components: the investment thesis, target price rationale, risk factors, and mandatory regulatory disclosures.

Compliance is non-negotiable. This critical unit demands a thorough understanding of the SEBI (Research Analysts) Regulations, 2014. You will be rigorously tested on the eligibility criteria for registration, the strict rules preventing conflicts of interest, restrictions on trading in securities being researched, and the mandatory disclosures required in public appearances and written reports. Utilizing a NISM Research Analyst Certification Demo Test ensures you memorise these vital regulatory thresholds accurately.

The highest individual weightage in the syllabus is dedicated to Technical Analysis. Candidates must understand the principles of Dow Theory, the construction of various charts (Candlestick, Bar, Line), and the identification of support and resistance levels. You will be extensively evaluated on chart patterns (Head and Shoulders, Double Tops/Bottoms) and technical indicators (Moving Averages, RSI, MACD).