Research Analyst Certification Examination

Research Analyst Certification Examination

The examination seeks to create a common minimum knowledge benchmark for all associated persons registered as research analyst under SEBI (Research Analyst) Regulations, 2014, individuals employed as research analyst and partners of a research analyst, engaged in preparation and/or publication of research report or research analysis.

  • Know the basics of Indian Securities Markets and different terminologies used in equity and debt markets
  • Know about the top down and bottom up approach to fundamental research
  • Know the basic principles for micro and macro-economic analysis, the sources of different information for analysis and the various macroeconomic variables affecting the analysis.
  • Know the key industry drivers and sources of information for industry analysis.
  • Understand about the Qualitative and Quantitative dimensions with regards to Company Analysis.

Research Analyst Certification Examination Fees Details

Name of Module: NISM-Series-XV: Research Analyst Certification Examination

Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks* (%) Certificate Validity#

(in years)

120 100 100 60 3

+: Inclusive of Service Tax. Payment Gateway Charges extra.

*: Negative marking – 25% of the marks assigned to the question

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

CHAPTER-1: Introduction to Research Analyst Profession

  • Understand the Primary role of a Research Analyst
  • Know the Primary responsibilities of a Research Analyst
  • Know the Basic principles of interaction with Companies / Clients
  • Understand the Important qualities of a Research Analyst

CHAPTER-2: Introduction to Securities Market

  • Know about “Securities” and “Securities Market”
  • Understand Product Definitions / Terminology
  • Know the Structure of Securities Market
  • Know Various market participants and their activities
  • Learn about the Kinds of transactions
  • Know about Dematerialization and Rematerialization of securities

CHAPTER-3: Terminology in Equity and Debt Markets

  • Know about the Terminology in Equity Market
  • Know about the Terminology in Debt Market
  • Understand the Types of Bonds

CHAPTER-4: Fundamentals of Research

  • Learn about investing
  • Understand the Research on businesses or stocks
  • Understand Fundamental Analysis – Top down approach and Bottom up approach
  • Understand Technical Analysis
  • Know about Behavioral Finance

CHAPTER-5: Economic Analysis

  • Understand the basic principles of microeconomics
  • Know the basic principles of macroeconomics
  • Know the Introduction to various macroeconomic variables
  • Know about the Sources of information for economic analysis

CHAPTER-6: Industry Analysis

  • Understand Dr. Michael Porter’s five force model for industry analysis
  • Understand Political, Economic, Socio-cultural, Technological, Legal and Environmental (PESTLE) Analysis
  • Understand Boston Consulting Group (BCG) Analysis
  • Understand Structure Conduct Performance (SCP) Analysis
  • Know the Key Industry Drivers
  • Understand the Regulatory environment/framework
  • Know about the Sources of information for industry analysis

CHAPTER-7: Company Analysis – Qualitative Dimensions

  • Understand Business and Business Models
  • Know the Competitive Advantages/Points of differentiation over the competitors
  • Understand Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
  • Know about Quality of management (including independent directors) and governance
  • Understand Pricing power and sustainability of this power
  • Know about the Organization structure
  • Understand Critical business drivers/success factors
  • Know about the Risks in the business
  • Understand Compliance orientation of the company
  • Know about the Documentation on Guidance v/s Actuals
  • Know about the Sources of information for analysis

CHAPTER-8: Company Analysis – Quantitative Dimensions

  • Know the History of Business Vs. Future of Business
  • Understand the Basics of Profit and Loss Account (P/L)
  • Understand the Basics of Balance Sheet (B/S)
  • Understand the Basics of Cash Flows
  • Know about the Contingent Liabilities, Off-balance sheet items, Accounting Policies, Notes to Accounts
  • Know the Basics of Taxation affecting to Companies
  • Know about the Important points to keep in mind while looking at financials
  • Know about the Quality of business in the past through quantitative lenses
  • Peeping in to future with caution
  • Understand Peer Comparison
  • Know the History of Equity expansion
  • Understand about Dividend and earnings history
  • Know the History of corporate actions
  • Know the Ownership and Insiders’ Sales and Purchase of stocks in the past

CHAPTER-9: Corporate Actions

  • Understand the philosophy of corporate actions

CHAPTER-10: Valuation Principles

  • Know the difference between Price and Value
  • Understand why Valuations are required
  • Know the Sources of Value in a Business – Earnings and Assets
  • Learn about the Discounted Cash Flows model for Business Valuation
  • Learn about Absolute Valuations vs. Price-Value sense
  • Know the Earnings based Valuation Matrices
  • Know the Assets based Valuation Matrices
  • Understand the Relative Valuations – Trading Multiples and Transaction Multiples
  • Know the Sum-Of-The-Parts (SOTP) Valuation
  • Know the other Valuation Parameters in new age economy and businesses
  • Understand the Capital Asset Pricing Model
  • Understand the Objectivity of Valuations
  • Know some important considerations in the context of Business Valuation

CHAPTER-11: Fundamentals of Risk and Return

  • Understand the Concept of return of investment and return on investment
  • Know the Calculation of simple, annualized and compounded returns
  • Learn about the Risks in investments
  • Know the Concepts of market risk (Beta)
  • Understand Sensitivity analysis to assumptions
  • Know the Concept of Margin of Safety
  • Know the Comparison of equity returns with bond returns
  • Know the Basic Behavioral Biases influencing investments
  • Know about some pearls of wisdom from Investment Gurus across the world

CHAPTER-12: Qualities of a good Research Report

  • Learn about the Qualities of a good Research Report
  • Know about the Checklist based approach to the Research Reports
  • Know about the sample checklist for Investment Research Reports

CHAPTER-13: Legal and Regulatory Environment

  • Understand the Regulatory infrastructure in Financial Markets s
  • Understand the Important regulations in Indian Securities Market
  • Know the Code of Conduct/Ethics for Research Analysts
  • Know the Disclosure Requirements for Research Analysts