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NISM Series-XII: Securities Markets Foundation
Online Mock Test | 9R™ Exam Mastery Study Plan | SEBI Syllabus 2025 | 750+ Practice Questions
Prepare confidently for the NISM Series-XII Securities Markets Foundation exam with our SEBI-aligned resources. Get access to 750+ topic-wise mock test questions with detailed explanations and coverage of the latest exam pattern. Our exam prep package includes a printed guide book, eBook, Udemy practice tests, FAQs, glossary terms, and the powerful 9R™ Exam Mastery Study Plan. Whether you're learning about Indian securities market basics, mutual funds, derivatives, market participants, or SEBI regulations—we help you build clarity and exam confidence.
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Why Choose Gurukul On Road for NISM Securities Markets Foundation Exam Preparation?
- Access a comprehensive question bank of 750+ practice questions including full-length NISM Series-XII mock tests, chapter-wise quizzes, and exam-pattern-based practice with detailed solutions.
- Aligned with the latest NISM Securities Markets Foundation syllabus (2025) and updated SEBI regulations, covering all key topics including primary and secondary markets, mutual funds, derivatives, equity and debt instruments.
- Master foundational concepts in Indian securities markets, market infrastructure institutions, regulatory bodies, and financial instruments with our structured learning modules.
- Available in multiple formats: Online Mock Tests, Udemy Practice Tests, Printed Exam Guide Book, and downloadable eBook with answer keys and explanations.
- Leverage the free 9R™ Exam Mastery Study Plan—tailored to your weekly progress, topic prioritization, and exam weightage for efficient preparation.
- Get one-click access to FAQs, exam eligibility criteria, NISM registration process, exam fees, passing marks, duration, and official syllabus PDF.
- Smart tools like performance tracking, answer explanations, score analytics dashboard help boost your accuracy and speed in real exam conditions.
- Stay current with SEBI circulars, NISM exam pattern changes, and real-world case study examples via our regularly updated exam prep blogs.
- Built to help you clear the NISM Series-XII exam in your first attempt—with focused guidance, topic-wise test series, and real-exam simulation features.
- Trusted by thousands preparing for NISM, SEBI, IRDAI & III exams—get expert-curated glossary terms, and learning resources for thorough preparation.
Available in Multiple Formats for NISM Series-XII Securities Markets Foundation Exam 2025
Printed Guide Book also available on Amazon & Flipkart
eBook version available for Kindle & Google Play Books
- Why Gurukul On Road for NISM Series-XII Securities Markets Foundation Exam?
- Available in Multiple Formats for NISM Series XII
- Latest SEBI, NISM, & AMFI Circulars
- NISM Series-XII Securities Markets Foundation – Test Objectives Summary
- Exam Preparation Tips
- 9R Study Plan Framework
- Study Plan & Preparation Tips
- FAQs
- All NISM Related Modules & Resources
- 9R Study Plan Request Form
Latest SEBI, NISM, & AMFI Circulars, Risk-o-Meter Disclosures & Market Updates — Aligned for NISM Series-XII Securities Markets Foundation Exam 2025
Stay exam-ready with curated SEBI circulars, NISM exam-related announcements, and AMFI compliance updates tailored for the NISM Series-XII Securities Markets Foundation certification exam. These regulatory updates are mapped to key areas such as equity and debt instruments, mutual funds, market participants, and securities regulations. Each update includes MCQ-relevant highlights to help you understand how current policy changes influence the NISM exam syllabus, sample questions, and practice tests. Visit our Regulatory Circulars Section to stay ahead in your exam preparation.
- SEBI Circular 2025: Re-Lodgement of Physical Share Transfers — Exam Application for Securities Types & Market Participants (NISM Series-XII Relevance)
- Risk-o-Meter & Expense Disclosure by Mutual Funds — Important for Mutual Fund Basics & NISM Series-XII MCQs (2024-2025)
- Browse All SEBI / NISM / AMFI Circulars — Mapped to Securities Market Foundation Certification Topics
Exam Overview Test Objectives – Unit-wise Key Focus Areas for NISM Series-XII Securities Markets Foundation 2025 Exam
Unit 1: Understanding Securities Markets and Performance
Introduces the structure and functioning of Indian securities markets. Focuses on capital allocation, market participants (investors, issuers, regulators), and emerging technologies like cybersecurity, resilience, and innovation sandboxes.
Unit 2: Securities – Types, Features & Investment Concepts
Covers the full spectrum of securities—equity, debt, hybrids, derivatives, mutual funds, structured and distressed products. Learners will explore asset allocation, portfolio strategy, risk-return alignment, valuation models, and investing process for both equity and debt.
Unit 3: Primary Markets
Explains how companies raise capital via public issues, IPOs, FPOs, and private placements. Focus areas include book building, issue pricing, regulatory compliance, listing norms, and the roles of merchant bankers, underwriters, and other intermediaries.
Unit 4: Secondary Markets
Delves into trading, clearing, and settlement in equity, debt, and commodity markets. Emphasis on trading systems, order types, investor protection, circuit breakers, margining, corporate actions, client onboarding, and surveillance mechanisms.
Unit 5: Mutual Funds
Comprehensive coverage of mutual fund schemes, types, NAV calculation, SIP/STP/SWP mechanisms, distributor roles, online/offline investment processes, investor services, costs, regulatory framework, and fund performance interpretation.
Unit 6: Derivative Markets
Focuses on derivative instruments (futures, options, swaps, forwards), trading and settlement, margining, and risk management frameworks. Practical understanding of hedging, speculation, arbitrage, pay-off structuring, and real-world derivative applications is included.
Study Plan & Preparation Tips for NISM Series-XII Securities Markets Foundation Exam 2025
Build a solid foundation to crack the NISM Series-XII Securities Markets Foundation exam with confidence. Whether you are a student or a working professional aiming for your first SEBI-recognized certification, this structured study plan ensures clarity across all exam topics — from Indian securities markets basics to mutual funds, derivative products, regulatory bodies, and financial planning concepts.
How to prepare effectively for the NISM Series-XII exam:
– Begin with the latest NISM syllabus PDF and understand each unit objective. Use our guide book, printed workbook, or eBook to grasp foundational concepts.
– Practice topic-wise MCQs from all modules, including equity & debt instruments, primary vs secondary markets, risk-return, derivatives, and mutual funds.
– Attempt full-length mock tests using our online test series and Udemy practice sets. Focus on exam pattern, question type, and negative marking awareness.
– Pay attention to market infrastructure institutions (MIIs), SLBM, Risk-o-Meter, circuit breakers, and investor rights — key topics from SEBI circulars and exam blogs.
– Use FAQs, glossary terms, summary flashcards, and real-time test analytics to close knowledge gaps before your final revision phase.
- Download the official NISM Series-XII syllabus PDF & topic checklist to track coverage of each unit (1–6).
- Follow a week-wise plan aligning reading, quizzes, and revision with the 9R™ Exam Mastery Study Plan.
- Practice on our learning app or Udemy course to simulate the actual exam in both English and Hindi.
- Revise from summary dashboards, unit-wise tests, and solved questions across all core themes like market regulation, order types, and MF categories.
- In the final 3 days, review your analytics dashboard, SEBI updates, glossary flashcards, and mock answer explanations.
Topper’s Tip: “80% of your score comes from mastering concept clarity and mock test performance. Focus on order types, investor protection rules, equity-debt distinction, and fund classifications.”
9R Study Plan Framework: Crack NISM Series-XII Securities Markets Foundation Exam with Confidence
Preparing for the NISM Series-XII: Securities Markets Foundation exam on a tight schedule? Our exclusive 9R™ Exam Mastery Framework is a strategic, structured study plan tailored for aspirants aiming to master the fundamentals of Indian securities markets. Whether you're using our online mock tests, Udemy practice series, printed guide book, or SEBI-aligned eBook, this framework is built to enhance your concept clarity, exam readiness, and retention for real exam scenarios.
- R1 – Read: Begin with the official NISM Series-XII syllabus PDF and topic checklist. Focus on market participants, securities types, mutual funds, and derivatives.
- R2 – Recall: Prepare handwritten or digital notes on high-weightage concepts like equity vs debt, order types, NAV calculation, and risk-return principles.
- R3 – Review: Use our printed guide book or eBook to revise definitions, formulae (e.g., YTM, DCF valuation), and process flows for IPO, trading, and settlement.
- R4 – Rehearse: Take unit-wise mock tests covering primary vs secondary markets, mutual fund types, regulatory bodies, and margin requirements.
- R5 – Resolve: Revisit tough topics using our glossary terms, blog explainers, FAQ library, and SEBI/NISM regulatory circular summaries.
- R6 – Revise: Practice frequently asked MCQs on investor rights, stock exchange roles, SLBM, Risk-o-Meter, circuit breakers, and exam pattern insights.
- R7 – Replicate: Simulate the full test environment by solving real-feel mock exams with timer, feedback, and coverage across all six units.
- R8 – Reflect: Use your mock analytics dashboard to analyze weak areas like order matching rules, prospectus structure, NAV logic, or SLBM mechanism.
- R9 – Reattempt: Revisit incorrect answers and rework similar questions from our smart question bank and adaptive practice sets for final reinforcement.
This 9-step strategy is mapped to the latest NISM Securities Markets Foundation exam pattern and key topics such as market structure, product features, mutual fund operations, trading lifecycle, and regulatory framework. Perfect for learners using our mock test series, Udemy practice sets, glossary-enabled eBooks, and topic-wise revision tools aligned to SEBI/NISM 2025 guidelines.
Glossary of Key NISM Series-XII: Securities Markets Foundation Examination 2025
1. Securities Markets
Definition: Financial marketplaces where securities are issued and traded, facilitating the flow of capital from those who have it (savers) to those who need it (borrowers/issuers) for productive use.
2. Securities
Definition: Financial instruments that represent ownership, a debt agreement, or the right to ownership, such as shares, bonds, debentures, and derivatives.
3. Capital Allocation
Definition: The process by which financial resources are distributed among various investment opportunities, efficiently channeling savings into productive investments within the economy.
4. Investors
Definition: Individuals or institutions who commit capital with the expectation of generating a financial return. They can be individual (retail) or institutional (e.g., mutual funds, insurance companies).
5. Issuers
Definition: Entities (corporates, governments, local bodies, municipalities) that raise capital by issuing securities to investors.
6. Intermediaries
Definition: Entities that facilitate the functioning of securities markets, connecting investors and issuers. Examples include merchant bankers, registrars, underwriters, and bankers.
7. Regulators
Definition: Government or statutory bodies that oversee and regulate the securities market to ensure fair, transparent, and efficient operations. Key regulators in India include SEBI, RBI, MCA, MoF, IBBI, and IRDAI.
8. Cyber-security
Definition: Measures taken to protect computer systems, networks, and data from digital attacks, damage, or unauthorized access, crucial for maintaining integrity in electronic trading systems.
9. Cyber Resilience
Definition: The ability of an organization to continue delivering its intended outcomes despite adverse cyber events, ensuring operational continuity in securities markets.
10. Sandboxes (Regulatory Sandbox)
Definition: Frameworks set up by regulators to allow financial institutions and fintech companies to test new products, services, or business models in a live environment but under controlled conditions and regulatory oversight.
11. Equity
Definition: A type of security that represents ownership interest in a company, typically in the form of shares. Equity holders have a claim on the company's assets and earnings and may have voting rights.
12. Debt
Definition: A type of security that represents borrowed money that must be repaid, typically with interest, over a specified period. Examples include bonds and debentures.
13. Hybrid Securities
Definition: Financial instruments that combine features of both equity and debt securities, such as convertible debentures, depository receipts, and warrants.
14. Commodities
Definition: Raw materials or primary agricultural products that can be bought and sold, such as gold, crude oil, or agricultural produce, often traded on specialized commodity exchanges.
15. Derivatives
Definition: Financial contracts whose value is derived from an underlying asset, such as stocks, bonds, currencies, or commodities. Common types include futures, options, and swaps.
16. Mutual Funds
Definition: Investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities (stocks, bonds, money market instruments). Managed by professional fund managers, they issue units to investors.
17. Structured Products
Definition: Complex financial instruments that offer a customized risk-return profile, often combining traditional investments with derivatives.
18. Distressed Securities
Definition: Securities of companies that are facing financial difficulties, bankruptcy, or are in default, often trading at a significant discount.
19. Preference Shares
Definition: A type of equity capital that gives holders preferential rights over common shareholders, usually regarding dividend payments and asset distribution upon liquidation.
20. Differential Voting Rights (DVRs)
Definition: Shares that carry voting rights disproportionate to their equity stake, allowing promoters to retain control with a lower ownership percentage.
21. Money Market Instruments
Definition: Short-term debt instruments (typically with maturities of less than one year) that provide liquidity and are actively traded, such as treasury bills, commercial papers, and certificates of deposit.
22. Government Securities (G-Secs)
Definition: Debt instruments issued by the government to finance its fiscal deficit. They are generally considered risk-free due to the sovereign guarantee.
23. Corporate Bonds
Definition: Debt instruments issued by corporations to raise capital, promising to pay interest over a specified period and repay the principal amount at maturity.
24. Debentures
Definition: Long-term debt instruments issued by companies, often unsecured by physical assets, relying on the issuer's creditworthiness.
25. Depository Receipts (DRs)
Definition: Negotiable certificates issued by a bank that represent shares of a foreign company. Examples include American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).
26. Foreign Currency Convertible Bonds (FCCB)
Definition: Bonds issued in a currency different from the issuer's domestic currency, which can be converted into equity shares of the issuing company.
27. Warrants
Definition: Long-term options issued by a company that give the holder the right to purchase a company's stock at a predetermined price, typically at a future date.
28. Asset Allocation
Definition: The process of dividing an investment portfolio among different asset classes (e.g., equities, debt, commodities) to achieve an optimal balance of risk and return based on an investor's goals and risk tolerance.
29. Diversification
Definition: A risk management strategy that mixes a wide variety of investments within a portfolio, aiming to minimize risk by reducing exposure to any single asset or risk factor.
30. Intrinsic Value
Definition: The true, underlying value of an asset or security, determined by fundamental analysis rather than market price.
31. Price Earning Multiple (PE Multiple)
Definition: A valuation ratio that compares a company's current share price to its per-share earnings, indicating how much investors are willing to pay for each rupee of earnings.
32. Price to Book Value (PBV)
Definition: A valuation ratio that compares a company's current market price per share to its book value per share, reflecting how investors value the company's assets.
33. Dividend Yield
Definition: A financial ratio that indicates the annual dividend per share as a percentage of the share's current market price, representing the return on investment from dividends.
34. Equity Research
Definition: The process of analyzing financial information and other qualitative factors to evaluate a company's stock, often culminating in buy, sell, or hold recommendations.
35. Fundamental Analysis
Definition: A method of evaluating securities by attempting to measure their intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.
36. Technical Analysis
Definition: A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volumes, to identify patterns and predict future price movements.
37. Discounted Cash Flow (DCF)
Definition: A valuation method used to estimate the value of an investment based on its expected future cash flows, which are discounted to their present value.
38. Relative Valuation Models
Definition: Valuation methods that estimate the value of an asset by comparing it to the values of similar assets, using metrics like P/E ratio, P/B ratio, or EV/EBITDA.
39. Time Value of Money (TVM)
Definition: The concept that a sum of money is worth more now than the same sum will be at a future date due to its potential earning capacity.
40. Yield to Maturity (YTM)
Definition: The total return an investor can expect to receive if they hold a bond until its maturity date, taking into account the bond's current market price, par value, coupon interest rate, and time to maturity.
41. Primary Market
Definition: The market where new securities are issued for the first time by companies or governments to raise capital directly from investors through initial public offerings (IPOs) or other new issues.
42. Secondary Market
Definition: The market where previously issued securities are traded among investors, providing liquidity for investors and price discovery for securities.
43. Initial Public Offer (IPO)
Definition: The first time a private company offers its shares to the public, allowing it to raise capital from public investors.
44. Follow-on Public Offer (FPO)
Definition: A subsequent offering of shares to the public by a company that is already listed on a stock exchange.
45. Book Building
Definition: A process used for IPOs and FPOs to determine the issue price of a security based on demand from institutional investors, where bids are collected within a price range.
46. Prospectus
Definition: A legal document issued by a company when offering securities for sale, providing detailed information about the company, its financial performance, the offering, and associated risks.
47. Allotment (Basis of Allotment)
Definition: The process by which shares are allocated to applicants in a public issue, especially when the issue is oversubscribed.
48. Green Shoe Option
Definition: A clause in an underwriting agreement that allows the underwriter to sell more shares than initially planned if the demand for the issue is higher than expected.
49. Stock Exchanges
Definition: Organized marketplaces where securities are traded, providing a platform for buyers and sellers to interact and facilitating price discovery and liquidity.
50. Clearing Corporation
Definition: An entity that facilitates the clearing and settlement of trades, ensuring that buyers receive securities and sellers receive payment, thereby reducing counterparty risk.
FAQ - Frequently Asked Questions: NISM Series-XII Securities Markets Foundation 2025
Q1. What is the NISM Series-XII: Securities Markets Foundation exam?
It is an entry-level certification exam by SEBI/NISM designed to test basic knowledge of Indian securities markets, financial products, market participants, and regulatory frameworks. It is suitable for beginners and aspirants new to finance.
Q2. Who should take the NISM Series-XII exam?
This exam is ideal for beginners, students, career-switchers, or anyone looking to enter the Indian securities markets or build foundational finance knowledge.
Q3. What are the eligibility criteria for NISM Series-XII?
There is no specific eligibility requirement. Anyone interested in understanding securities markets can appear for the exam. No prior qualification or age restriction exists.
Q4. What is the duration and format of the NISM Series-XII exam?
The exam is of 2 hours duration, consists of 100 multiple-choice questions, and carries a total of 100 marks. The passing score is 50%. There is no negative marking.
Q5. Where can I register for the NISM Series-XII exam?
You can register online through the official NISM website at www.nism.ac.in. Choose “Certification” → “Enroll Now.”
Q6. What topics are covered in the NISM Series-XII syllabus?
Topics include Indian securities market structure, primary & secondary markets, mutual funds, derivatives, financial planning, and regulatory institutions like SEBI, RBI, and IRDAI.
Q7. What is the passing criteria for the NISM Series-XII exam?
You need to score a minimum of 50% (i.e., 50 out of 100) to pass the exam. There is no negative marking, and results are declared immediately after the exam.
Q8. Are there free mock tests available for NISM Series-XII?
Yes. Gurukul On Road offers free mock test samples, full-length tests, and a paid question bank with detailed explanations for real-exam preparation.
Q9. How can Gurukul On Road help in NISM Series-XII preparation?
We offer Online Mock Tests, Udemy Practice Sets, a Printed Guide Book, eBook, 9R™ Study Plan, updated SEBI circulars, glossary terms, and focused prep blogs for 360° coverage.
Q10. What is the 9R™ Study Plan for NISM exam prep?
It’s a proprietary framework by Gurukul On Road that breaks down the syllabus into 9 focused study zones — from recall, relate, revise to rehearse — for strategic exam mastery.
Q11. How often is the NISM Series-XII exam conducted?
The exam is available year-round through computer-based testing across NSE/NISM certified centers in India. You can choose your date at the time of registration.
Q12. What is the exam fee for NISM Series-XII?
As of 2025, the fee is ₹1500 (inclusive of taxes) for each attempt. It is non-refundable, so ensure you're well-prepared using mock tests before booking.
Q13. Can I reschedule my NISM exam date?
Yes. Rescheduling is possible if done at least 15 days before the scheduled exam date. Login to your NISM account to manage bookings.
Q14. Is the exam certificate valid for lifetime?
Yes. Unlike some other NISM certifications, the Series-XII Foundation certification is valid for a lifetime and does not require renewal or CPE.
Q15. What types of questions are asked in the exam?
The exam consists of 100 multiple-choice questions (MCQs) covering concepts, definitions, application-based situations, and SEBI regulatory updates.
Q16. Are solutions provided in your online mock tests?
Yes. All our online mock tests come with detailed solutions and explanations to reinforce concept clarity and error correction during prep.
Q17. Are financial planning and mutual funds included in the syllabus?
Yes. Basics of financial planning, role of mutual funds, their types, structure, NAV, and investor suitability are included in the syllabus and in our study material.
Q18. Does the exam include derivative markets and instruments?
Yes. Topics include futures, options, and basics of derivative markets with examples, suitable for beginners. Gurukul resources include simplified examples for easy understanding.
Q19. Are there topic-wise practice tests?
Yes. We provide topic-wise and section-wise mock tests on primary market, secondary market, participants, mutual funds, derivatives, SEBI regulations, and more.
Q20. How can I download the syllabus and exam guide?
You can download the official NISM syllabus PDF from NISM’s official site or get a customized syllabus summary from our platform at Gurukul On Road.
Q21. Can I study for NISM Series-XII without a finance background?
Absolutely. The exam is designed for freshers. Our printed study guide and online video modules cover all basics from scratch — ideal for non-finance graduates too.
Q22. What’s included in the eBook version of the guide?
Our eBook includes exam-oriented content, mock questions, case examples, and regulatory highlights with bookmarking and search features for easy access.
Q23. What devices are compatible with the online test series?
Our mock test platform is mobile-optimized and works on desktops, laptops, tablets, and smartphones across browsers like Chrome, Safari, Firefox, and Edge.
Q24. Can I download and print the questions for offline revision?
Yes. The printed guide book includes 500+ practice questions and concept drills. Additionally, downloadable PDFs are available from the LMS for revision.
Q25. How can I get notified of latest SEBI updates relevant to this exam?
We regularly update our blog with latest SEBI circulars, NISM notifications, and changes in exam pattern so you stay fully aligned with current exam standards.
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