Research Analyst

Syllabus and chapter weightage

Weightages are taken from the official syllabus table published in the NISM workbook, so you can see exactly where the marks are.

Every chapter can be read free, no account needed — tap a chapter to open its plain-English Foundation lesson.

Sample questions

5 questions from the chapter tests, one per chapter. Pick your answer before you open the explanation.

1. Question 1 · Chapter 1: Introduction to Research Analyst Profession

   Under the SEBI Research Analysts Regulations, 2014, a Research Analyst means a person who:

   1. A.Trades in securities on his own account only
   2. B.For consideration, is engaged in the business of providing research services, including a part-time research analyst
   3. C.Advises only institutional clients, on a full-time basis
   4. D.Manages a portfolio of securities on behalf of clients
   Show the answer

   Answer: B. For consideration, is engaged in the business of providing research services, including a part-time research analyst

   As per SEBI Research Analysts Regulations, 2014, a Research Analyst means a person who, for consideration, is engaged in the business of providing research services and includes a part-time research analyst.

   Two elements of the definition are worth noticing.

   "For consideration" — the activity must be carried on as a business for reward.

   "Includes a part-time research analyst" — the express inclusion closes off the argument that occasional or part-time research falls outside the regulations.

   Option D describes a portfolio manager, a different intermediary altogether.

   What the role actually involves: there is Research — collection of information from various sources — and then Analysis — processing of data to take decisions. And in summary, the role of a research analyst is that of a selector — to do a comprehensive study of companies, evaluate their past performance, analyse how a company is expected to perform in the future and make recommendations based on this analysis.

2. Question 2 · Chapter 2: Introduction to Securities Market

   In an eligible IPO, what proportion of shares must be allocated to retail investors?

   1. A.At least 25%
   2. B.At least 35%
   3. C.Utmost 35%
   4. D.At least 50%
   Show the answer

   Answer: B. At least 35%

   In an eligible issue, at least 35% of shares should be allocated to retail investors (investors investing less than or equal to ₹2,00,000 in the issue) while utmost 50% can be allocated to qualified institutional investors. Other investors can be issued the balance.

   Note the direction of each limit: retail is a floor (at least 35%) and QIB is a ceiling (utmost 50%). Getting these the wrong way round is the common error.

   Also note that retail here is defined by amount invested — less than or equal to ₹2,00,000 in the issue — not by the type of investor.

   The anchor allocation sits inside the QIB bucket: anchor investors can be allocated up to 60% of the portion allocated to QIBs, so at most 30% of the whole issue.

   And the eligibility gate before any allocation: SEBI's regulations include minimum requirements for net tangible assets, profitability and net-worth, along with mandatory listing of the shares on a nationwide stock exchange and offering the shares in dematerialized form.

3. Question 3 · Chapter 3: Terminology in Equity and Debt Markets

   A company with a face value of ₹2 per share declares a 30% dividend. The dividend per share is:

   1. A.₹30
   2. B.₹6
   3. C.₹0.60
   4. D.₹3
   Show the answer

   Answer: C. ₹0.60

   Dividend is generally declared as a percentage of the face value of the shares.

   30% of ₹2 = ₹0.60 per share.

   The workbook makes precisely this comparison: if a company with Face value of ₹10 declares 30% dividend, it means dividend of ₹3 per share. However, if a company with Face value of ₹2 declares 30% dividend, it means dividend of ₹0.60 per share.

   Option D is the answer for a ₹10 face value — the same percentage on a different face value.

   This is why face value matters at all: the face value of a share is important for calculating the dividend payable on a share. When dividend is mentioned as a percentage, that percentage is reckoned with respect to the face value.

   And when face value changes: the face value of a company's share does not usually change unless the company decides to split or consolidate its shares. If an investor holds 1 share of ₹10 face value and the company decides to split its one share into five shares, then the new face value of its shares would be ₹2 and the investor would hold 5 such shares.

   Related ratio: Dividend per Share divided by Earnings per Share is known as Dividend Payout Ratio.

4. Question 4 · Chapter 4: Fundamentals of Research

   According to the workbook, investment in the context of the securities market involves thorough analysis of the underlying security in terms of which three dimensions?

   1. A.Liquidity, taxation and convenience
   2. B.Safety/risk, income and growth potential
   3. C.Price, volume and time span
   4. D.Source, impact and certainty
   Show the answer

   Answer: B. Safety/risk, income and growth potential

   The workbook's definition is precise: investment involves an upfront commitment of money to earn returns over an investment horizon, and it involves thorough analysis of the underlying security in terms of safety/risk, income, and growth potential.

   Option A lists factors used to judge an investment avenue in other syllabi, not this definition. Option C is the three essential elements of price behaviour in technical analysis — price history, volume and time span. Option D is the three-part test for whether information is insider information. All three wrong options are real lists from elsewhere, which is exactly how NISM builds distractors: learn each list attached to its own heading.

5. Question 5 · Chapter 5: Economic Analysis

   Two major influencers of the economic policies in an economy are __________ and __________.

   1. A.Government; Central Bank
   2. B.Stock Exchanges; Government
   3. C.Central Bank; Stock Exchanges
   4. D.Commercial Banks; Rating Agencies
   Show the answer

   Answer: A. Government; Central Bank

   The workbook states it directly: "Two major influencers of the public policies in an economy are the government and the central bank." Government decisions, collectively, are fiscal policy; central bank actions, collectively, are monetary policy.

   Why the others are wrong: stock exchanges are trading venues, not policy makers — they set trading rules, not economic policy. Commercial banks transmit monetary policy, they do not make it. Rating agencies opine on credit quality and have no policy role at all. This exact question appears in the workbook's own sample set, so answer it in the wording above.

Frequently asked questions

What is the passing mark for NISM Series XV?

You need 60% to pass NISM-Series-XV: Research Analyst. On a 100-mark paper that is 60 marks.

Is there negative marking in NISM Series XV?

There is negative marking of 25% of the marks for that question, so a wrong answer costs you 0.25 marks on a 1-mark question. Guess only when you can eliminate at least two options.

How long is the NISM Series XV exam?

The exam runs for 120 minutes and carries 100 marks in total.

How long is the NISM Series XV certificate valid?

NISM certifications are generally valid for 3 years from the date of passing, after which they must be renewed. Confirm the current position on nism.ac.in before your certificate lapses.