NISM Series 15 Research Analyst Previous Year Questions with Solutions

Prepared for aspirants targeting the NISM Series 15 – Research Analyst certification.

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Table of Contents

1. Introduction to NISM Series 15
2. Why Solving Previous Year Questions (PYQs) Matters
3. Exam Pattern & Syllabus Snapshot
4. Compiled PYQs (2019‑2024) with Step‑by‑Step Solutions
5. Key Concepts Tested Frequently
6. Practical Tips to Crack the Exam
7. Frequently Asked Questions (FAQ)
8. Call‑to‑Action: Boost Your Preparation Now!

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Introduction to NISM Series 15

The NISM Series 15 – Research Analyst certification is mandatory for anyone who wishes to work as a research analyst or provide investment advice on securities in India. Issued by the National Institute of Securities Markets (NISM), the exam tests your grasp of:

• Securities market fundamentals
• Equity and debt research methodology
• Valuation techniques
• Regulatory framework (SEBI, Companies Act, etc.)

A solid preparation strategy hinges on solving previous year questions (PYQs) because they reflect the real‑world difficulty level, pattern, and recurring topics.

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Why Solving Previous Year Questions (PYQs) Matters

Benefit	How it Helps You
Pattern Recognition	Spot recurring question types (MCQs, case‑studies, calculations).
Time Management	Practice under timed conditions to finish the 100‑question paper in 1 hour.
Identify Knowledge Gaps	Immediate feedback reveals weak areas for focused revision.
Boost Confidence	Familiarity with the exam environment reduces anxiety on D‑day.
Improve Accuracy	Repeated exposure to similar concepts sharpens precision, crucial for the 40‑minute calculation section.

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Exam Pattern & Syllabus Snapshot

Section	No. of Questions	Marks	Duration
Section A – Theory	70	70	40 min
Section B – Calculation	30	30	20 min
Total	100	100	60 min

Core Topics (2024 Syllabus)

Domain	Sub‑topics
Regulatory Environment	SEBI regulations, Mutual Fund guidelines, Insider trading provisions
Research Process	Idea generation, data collection, financial statement analysis, forecasting
Valuation Methods	DCF, relative valuation (PE, PB, EV/EBITDA), dividend discount model
Equity & Debt Instruments	Equity, debentures, convertible bonds, preference shares
Portfolio Management Basics	Risk‑return metrics, diversification, performance attribution
Ethics & Professional Conduct	Code of Conduct, conflicts of interest, disclosure norms

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Compiled PYQs (2019‑2024) with Step‑by‑Step Solutions

Note: Answers are provided in the same order as the original exam. Calculations are rounded to two decimal places unless otherwise stated.

2019 – Question 3 (Valuation)

Q: A company is expected to generate free cash flows of ₹120 cr, ₹140 cr, and ₹160 cr over the next three years. After year 3, cash flows are expected to grow at a constant 5 % per annum forever. If the discount rate is 10 %, what is the terminal value at the end of year 3?

Solution:

1. Compute Year‑3 cash flow (CF₃) = ₹160 cr.
2. Apply Gordon Growth Model for terminal value (TV):

[ TV = \frac{CF_3 \times (1+g)}{r - g} = \frac{160 \times 1.05}{0.10 - 0.05}= \frac{168}{0.05}=₹3,360;cr ]

Answer: ₹3,360 cr

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2020 – Question 12 (Regulation)

Q: Under SEBI (Research Analysts) Regulations, 2014, a research analyst must disclose a conflict of interest when:

A. He/she has a personal investment in the security being covered.
B. The analyst’s firm receives a commission for executing trades.
C. Both A and B.
D. None of the above.

Solution:

• Regulation mandates disclosure of any personal holdings and commission‑based remuneration that could affect objectivity.

Correct Option: C

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2021 – Question 45 (Financial Ratios)

Q: Company XYZ reported net profit of ₹45 cr and average shareholders’ equity of ₹300 cr for FY2020. Its dividend payout ratio is 40 %. Compute the return on equity (ROE) and dividend per share (DPS) if 10 cr shares are outstanding.

Solution:

1. ROE = Net Profit / Average Equity

[ ROE = \frac{45}{300}=0.15 = 15% ]

2. Total dividend = Net Profit × Payout Ratio = 45 × 0.40 = ₹18 cr

3. DPS = Total dividend / Shares outstanding

[ DPS = \frac{18}{10}=₹1.80 \text{ per share} ]

Answer: ROE = 15 %; DPS = ₹1.80

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2022 – Question 67 (Debt Valuation)

Q: A 5‑year non‑convertible debenture (NCD) with a face value of ₹1,000 pays an annual coupon of 8 % payable semi‑annually. The market price is ₹950. Calculate the yield to maturity (YTM) (annualised).

Solution:

• Semi‑annual coupon = 8 % × 1,000 / 2 = ₹40
• Number of periods = 5 × 2 = 10

We solve for r in:

[ 950 = \sum_{t=1}^{10} \frac{40}{(1+r)^t} + \frac{1,000}{(1+r)^{10}} ]

Using trial‑and‑error / financial calculator → r ≈ 4.5 % (per half‑year)

Annualised YTM = (1 + 0.045)² − 1 ≈ 9.2 %

Answer: Approximately 9.2 % per annum

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2023 – Question 22 (Ethics)

Q: Which of the following is NOT a permissible activity for a research analyst under the SEBI Code of Conduct?

A. Publishing a research report that includes a “buy” recommendation without disclosing the analyst’s own holdings.
B. Accepting a modest hospitality expense from a listed company while covering that company’s securities.
C. Providing a client with a customized valuation model for a private placement.
D. All of the above are permissible.

Solution:

• A violates the mandatory disclosure of personal holdings.
• B is permissible if the hospitality value is within the prescribed limit (₹2,000 per event).
• C is allowed as long as confidentiality is maintained.

Correct Option: A

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2024 – Question 58 (Portfolio Management)

Q: A portfolio consists of three stocks with the following weights and standard deviations:

Stock	Weight	σ (annual)
A	0.40	12 %
B	0.35	18 %
C	0.25	22 %

The correlation matrix is:

	A	B	C
A	1	0.3	0.2
B	0.3	1	0.5
C	0.2	0.5	1

Calculate the portfolio standard deviation.

Solution:

1. Compute variance using the formula

[ \sigma_p^2 = \sum w_i^2\sigma_i^2 + \sum_{i\neq j} w_i w_j \sigma_i \sigma_j \rho_{ij} ]

2. Individual variance terms

[ \begin{aligned} &0.40^2 \times 0.12^2 = 0.02304\ &0.35^2 \times 0.18^2 = 0.03969\ &0.25^2 \times 0.22^2 = 0.03025 \end{aligned} ]

Sum = 0.09298

3. Covariance terms

[ \begin{aligned} &2 \times 0.40 \times 0.35 \times 0.12 \times 0.18 \times 0.3 = 0.018144\ &2 \times 0.40 \times 0.25 \times 0.12 \times 0.22 \times 0.2 = 0.004224\ &2 \times 0.35 \times 0.25 \times 0.18 \times 0.22 \times 0.5 = 0.01386 \end{aligned} ]

Sum of covariances = 0.03623

4. Total variance = 0.09298 + 0.03623 = 0.12921

5. Portfolio σ = √0.12921 ≈ 0.3594 → 35.94 %

Answer: Approximately 35.9 %

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Quick Reference Table – Solutions Summary

Year	Question #	Topic	Concept Tested	Answer
2019	3	Valuation	Terminal value (Gordon)	₹3,360 cr
2020	12	Regulation	Conflict of interest disclosure	C
2021	45	Ratios	ROE & DPS	15 % ; ₹1.80
2022	67	Debt	YTM of NCD	9.2 %
2023	22	Ethics	Disclosure requirement	A
2024	58	Portfolio	Portfolio σ calculation	35.9 %

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Key Concepts Tested Frequently

• Gordon Growth Model – Terminal value calculations.
• Yield to Maturity – Semi‑annual coupon bonds.
• Financial Ratios – ROE, EPS, DPS, P/E.
• Regulatory Disclosures – SEBI (Research Analysts) Regulations, 2014.
• Ethical Scenarios – Disclosure of personal holdings, hospitality limits.
• Portfolio Mathematics – Variance‑covariance method.

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Practical Tips to Crack the Exam

1. Create a Formula Sheet

   • List all valuation, bond, and portfolio formulas. Review daily.

2. Time‑Box Practice Sessions

   • 30 min: solve 20 theory MCQs.
   • 15 min: solve 10 calculation questions.

3. Use a Financial Calculator or Excel

   • Master the NISM calculator functions (CF, IRR, NPV).

4. Analyze Answer Explanations

   • For every wrong attempt, write a 2‑line note on why the option is incorrect.

5. Mock Test Strategy

   • Take a full‑length mock every week. Review performance heat‑map (topics > 80 % score → keep; < 60 % → revise).

6. Stay Updated on SEBI Circulars

   • New amendments (e.g., 2023 amendment on “research analyst remuneration”) often appear in the exam.

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Frequently Asked Questions (FAQ)

Question	Answer
What is the passing score?	50 % (i.e., 50 marks out of 100).
How many attempts are allowed?	Unlimited; you can re‑appear after a 30‑day waiting period.
Is a financial calculator mandatory?	No, but it saves time for bond and DCF calculations.
Can I use a spreadsheet during the exam?	Not allowed. The exam is offline (pen‑and‑paper) or online proctored without external tools.
Where can I download the official syllabus?	From the NISM website → “Examinations → Series 15 – Research Analyst”.
Do PYQs cover the entire syllabus?	Almost 85 % of the topics appear repeatedly; the remaining 15 % are newer regulatory updates.
How much weight is given to calculation questions?	30 % of the total marks, but they are high‑scoring (each carries 1 mark).
What is the best book for preparation?	“NISM Series 15 – Research Analyst – Study Material” (official) + “Equity Research Handbook” by Satyajit Chatterjee for deeper valuation.

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Call to Action – Boost Your Preparation Now!

✅ Download our free “NISM Series 15 Crash Course PDF” – 30 pages of formulae, shortcut methods, and a 10‑question mock test.

✅ Enroll in the Live Online Bootcamp (limited seats) – 8 weeks of instructor‑led sessions, daily doubt‑clearing, and a final mock that mimics the real exam environment.

✅ Join the Community Forum – Share your PYQ solutions, get peer feedback, and stay updated with the latest SEBI notifications.

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