Top 50 Questions on NISM Series 15 – Research Analyst (Complete Guide)

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📚 Introduction

The NISM Series 15 – Research Analyst certification is mandatory for anyone who wants to work as a research analyst in India’s securities market. Aspirants often ask the same set of questions while preparing for the exam. This blog consolidates the top 50 questions—from exam pattern to tricky concepts—so you can study smarter and score higher.

Tip: Keep this post bookmarked. Use the table of questions as a quick revision checklist before the exam.

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📌 Table of Contents

#	Question	Category
1	What is the purpose of NISM Series 15?	General
2	Who is required to obtain the Research Analyst certification?	Eligibility
3	What is the validity period of the certificate?	Certification
4	How many marks is the exam worth?	Exam Pattern
5	What is the passing criteria?	Exam Pattern
6	How many questions are there and what is the duration?	Exam Pattern
7	Explain the three‑tier structure of the securities market.	Market Structure
8	Differentiate between primary and secondary markets.	Market Structure
9	What are the functions of SEBI?	Regulatory
10	Define “Insider Trading” and its penalties.	Regulatory
11	What is a “Research Analyst” as per SEBI (Research Analysts) Regulations, 2014?	Definition
12	List the eligibility criteria for the certification.	Eligibility
13	What are the continuing education requirements?	Certification
14	Explain the concept of “Fundamental Analysis”.	Analysis
15	What are the three financial statements and their inter‑relationship?	Financial Statements
16	How is EPS calculated?	Ratios
17	Define P/E ratio and its limitations.	Valuation
18	What is Discounted Cash Flow (DCF) valuation?	Valuation
19	Explain the steps to compute Free Cash Flow to Firm (FCFF).	Valuation
20	What is “Enterprise Value” and how is it derived?	Valuation
21	Differentiate between “Technical Analysis” and “Fundamental Analysis”.	Analysis
22	What are the major chart patterns?	Technical
23	Explain the concept of “Moving Average Convergence Divergence (MACD)”.	Technical
24	What is a “Relative Strength Index (RSI)” and its interpretation?	Technical
25	Define “Beta” and its significance in CAPM.	Risk
26	What is the Capital Asset Pricing Model (CAPM) formula?	Risk
27	How is the Cost of Equity calculated using CAPM?	Risk
28	Explain “Weighted Average Cost of Capital (WACC)”.	Risk
29	What is “Alpha” in portfolio performance?	Portfolio
30	Define “Sharpe Ratio” and its usage.	Portfolio
31	What are the different types of mutual funds?	Products
32	Explain the concept of “Net Asset Value (NAV)”.	Products
33	What is a “Closed‑End Fund” vs an “Open‑End Fund”?	Products
34	What are the key disclosures required in a research report?	Compliance
35	Explain “Analyst Rating Scale” (Buy/Hold/Sell) and its implications.	Reporting
36	What is a “Conflict of Interest” and how should it be managed?	Ethics
37	Define “Research Analyst Certification” renewal process.	Certification
38	What are “Sectoral Indices” and how are they constructed?	Indices
39	Explain the concept of “Liquidity” in securities.	Market Microstructure
40	What is “Market Capitalisation” and its categories?	Market Structure
41	How does “Short Selling” work and what are its risks?	Trading
42	Define “Margin Trading” and “Leverage”.	Trading
43	What is “Corporate Governance” and why is it important for analysts?	Governance
44	Explain “Earnings Guidance” and its impact on stock price.	Fundamentals
45	What are “Non‑Performing Assets (NPAs)” and their relevance?	Banking
46	How to interpret a “Cash Flow Statement” for investment decisions?	Financial Analysis
47	What is “Scenario Analysis” in valuation?	Valuation
48	Explain the meaning of “Beta‑Adjusted Returns”.	Risk
49	What are the penalties for non‑compliance with SEBI regulations?	Regulatory
50	How to prepare a “Research Report” that satisfies SEBI guidelines?	Reporting

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🔎 Detailed Answers (Selected Highlights)

Below are concise explanations for the most frequently asked questions. Use them for quick revision; refer to the official NISM study material for deeper coverage.

1. What is the purpose of NISM Series 15?

• To validate the competence of professionals conducting securities research.
• Ensures uniform standards across research analysts and protects investors from misleading advice.

4. Exam Pattern

Parameter	Details
Total Questions	100 (Multiple Choice)
Duration	120 minutes
Marks	100 (1 mark each)
Passing Marks	65 (65%)
Negative Marking	None

14. Fundamental Analysis – Core Components

• Top‑down approach – macro‑economy → industry → company.
• Bottom‑up approach – company fundamentals first.
• Key tools: Ratio analysis, DCF, Comparable company analysis.

17. P/E Ratio

[ \text{P/E} = \frac{\text{Market Price per Share}}{\text{Earnings per Share (EPS)}} ]

• Limitations: ignores growth prospects, capital structure, and cash flow quality.

26. CAPM Formula

[ \text{Expected Return} = R_f + \beta (R_m - R_f) ]

• (R_f) = risk‑free rate, (R_m) = market return, (\beta) = systematic risk.

34. Mandatory Disclosures in a Research Report

Disclosure	Description
Analyst’s name & registration number	Transparency
Date of report & period covered	Timeliness
Basis of recommendation (valuation, peer comparison)	Rationale
Any material conflict of interest	Ethics
Sources of data (primary/secondary)	Credibility

41. Short Selling – Mechanics

1. Borrow shares from a broker.
2. Sell them at the current market price.
3. Later buy back (cover) at a lower price → profit.
4. Risk: Unlimited loss if price rises.

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📊 Quick Revision Tables

Ratios Cheat‑Sheet

Ratio	Formula	Interpretation
Current Ratio	Current Assets / Current Liabilities	Liquidity
Debt‑Equity	Total Debt / Shareholder’s Equity	Leverage
ROE	Net Income / Shareholder’s Equity	Profitability
ROCE	EBIT / (Debt + Equity)	Capital efficiency
Dividend Yield	Dividend per Share / Market Price	Income generation

Valuation Methods Comparison

Method	When to Use	Key Inputs
DCF	Companies with stable cash flows	Forecasted cash flows, WACC, terminal growth
Multiples (P/E, EV/EBITDA)	Peer‑comparable industries	Industry average multiples
Residual Income	Firms with negative cash flow but positive earnings	Cost of equity, book value
Net Asset Value (NAV)	Asset‑heavy businesses (REITs, NBFCs)	Fair value of assets & liabilities

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🛠️ Practical Tips for Exam Day

Tip	How to Implement
Time‑boxing	Allocate 1 min per question; flag and revisit if stuck.
Eliminate options	In MCQs, eliminate at least one wrong choice to boost odds.
Know formulas	Write down all key formulas on a cheat‑sheet during revision; memorize them.
Mock tests	Complete at least 3 full‑length mock exams under timed conditions.
Read SEBI circulars	Recent amendments often appear in the exam.
Stay calm	Deep breathing for 30 seconds after every 20 questions reduces fatigue.

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❓ Frequently Asked Questions (FAQ)

Q1. Can I appear for NISM Series 15 without any prior certification?
A: Yes. The only mandatory requirement is a minimum educational qualification of 10+2 (or equivalent) and no criminal conviction.

Q2. How many attempts are allowed?
A: Unlimited attempts, but each attempt incurs a fresh exam fee.

Q3. Is there a negative marking?
A: No. Guessing does not penalise you, so attempt every question.

Q4. What documents are needed for registration?
A: Photo ID, PAN card, proof of address, educational certificates, and a recent passport‑size photograph.

Q5. How long does the certificate remain valid?
A: Three years. After that, you must complete 30 Continuing Professional Education (CPE) hours and apply for renewal.

Q6. Does the exam include questions on derivatives?
A: Yes, but only in the context of research coverage (e.g., futures/options on underlying securities).

Q7. Can I take the exam online?
A: As of 2024, NISM conducts the exam offline at authorized centers. Check the official website for any updates on online mode.

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📈 How to Build a Winning Study Plan

1. Week 1–2: Cover Regulatory & Ethics (questions 1‑13, 34‑36).
2. Week 3–4: Deep dive into Financial Statements & Ratios (questions 15‑19, 45‑46).
3. Week 5: Master Valuation Techniques (questions 17‑20, 47‑48).
4. Week 6: Focus on Technical Analysis & Market Microstructure (questions 21‑24, 39‑42).
5. Week 7: Practice Mock Tests and review wrong answers.
6. Week 8: Final revision – flashcards for formulas, disclosures, and SEBI guidelines.

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🚀 Call‑to‑Action

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