- EXAM OVERVIEW
NISM Series XII: Securities Markets Foundation Exam Pattern
Key highlights about the exam structure, marking scheme and important guidelines.
Exam Fees ₹1500 +
(may indicate taxes or additional fees)
Maximum Marks
100 marks
Test Duration
2 hours
Passing Marks
50% (i.e., 50 marks)
Total Questions
100 questions
Negative Marking
No Negative Marking
- Free Mock Tests | Year: 2026
Practice with exam-like mock tests and evaluate your preparation level.
FREE Mock Test 1
50 questions
FREE Mock Test 3
50 questions
FREE Mock Test 2
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Full-Length Test
100 questions
- SYLLABUS OUTLINE
NISM Series XII: Securities Markets Foundation Syllabus
The exam covers the following 11 units:
This introductory chapter explains the structure, functions, and importance of securities markets within the financial system. Candidates must understand market participants, financial instruments, and the role of regulators in maintaining market efficiency. Questions frequently test market performance indicators, economic linkages, and the importance of securities markets in capital formation and wealth creation.
This high-weightage chapter covers various investment products such as equity shares, bonds, mutual funds, and hybrid instruments along with their features and associated risks. Candidates must understand diversification, asset allocation strategies, and investment objectives. Our Securities Markets Foundation Mock Tests strongly emphasise practical investing concepts and product suitability-based questions.
The primary market facilitates capital raising activities for companies and governments. This chapter evaluates your understanding of Initial Public Offerings (IPOs), rights issues, private placements, and public issue procedures. Candidates must understand the role of intermediaries, issue pricing mechanisms, allotment processes, and regulatory requirements applicable to securities issuance activities.
Secondary markets enable trading of existing securities and provide liquidity to investors. Candidates must understand stock exchanges, trading mechanisms, settlement processes, clearing corporations, and investor protection systems. Questions often test operational workflows, market indices, order types, and the role of technology in modern securities market transactions and surveillance systems.
This chapter introduces the structure, functioning, and benefits of mutual funds as pooled investment vehicles. Candidates must understand types of mutual fund schemes, Net Asset Value (NAV), expense ratios, risk factors, and systematic investment plans. Our NISM Foundation Practice Tests heavily focus on scheme selection concepts, investor suitability, and mutual fund operational processes.
Derivative markets are used for hedging, speculation, and risk management purposes. This chapter covers futures contracts, options contracts, market participants, and basic derivative trading concepts. Candidates must understand margin requirements, settlement mechanisms, and the risks associated with derivative instruments while analysing practical applications in securities market operations.
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- FAQ SECTION
Frequently Asked Questions
NISM Series XII Securities Markets Foundation Certification is an entry level certification exam designed for candidates who want to understand the basics of Indian financial markets and securities market operations. The exam focuses on capital markets, mutual funds, derivatives, primary markets, secondary markets, and investment fundamentals.
The NISM Series XII exam consists of: ● 100 multiple choice questions
● Total marks: 100
● Passing marks: 50 percent
● Duration: 2 hours
● No negative marking Candidates should prepare according to the latest syllabus and exam pattern.
No, there is no negative marking in the NISM Series XII Securities Markets Foundation exam. Candidates can attempt all questions without worrying about mark deductions for incorrect answers.
The syllabus covers important topics including:
● securities markets
● investment concepts
● asset allocation
● primary markets
● secondary markets
● mutual funds
● derivative markets
● financial instruments
● market participants These topics help candidates build a strong foundation in financial markets.
Yes, NISM Series XII is considered one of the best certifications for beginners, students, and freshers who want to understand the basics of securities markets and financial market operations.
Candidates can practice free mock tests and exam oriented questions directly through the NISM Series XII Securities Markets Foundation section available on the platform.
Candidates looking for advanced preparation resources can access premium mock tests, chapter wise practice questions, and full length tests through the premium NISM mock test platform designed for multiple certification exams.
Expert curated short notes, revision material, and exam focused preparation resources are available through the NISM study material and short notes section for Securities Markets Foundation certification preparation.
Chapters related to Primary Markets, Secondary Markets, Mutual Funds, and Securities Types and Asset Allocation generally carry higher weightage and are considered important for scoring well in the examination.
After clearing the certification, candidates gain foundational knowledge useful for careers in:
● stock market operations
● mutual funds
● financial services
● banking and finance
● investment advisory support
● securities market intermediaries The certification helps beginners build confidence and understanding of the Indian securities market.