Free NISM Series XXV-A Exam Flashcards

A person associated with research services (PARS) in sales or other non-core work may communicate approved research, but should not recast the analyst's conclusion as their own research judgment. Escalate the request to the research team.

XXV-A is for PARS performing sales and other non-core services with client contact and no direct involvement in research-related aspects. Research-facing PARS continue to need Series XV under SEBI's March 2026 circular.

An equity share represents ownership in an issuer; a bond is a debt claim with contractual payment terms. A client summary should not describe the two as having the same payoff or risk.

Its value depends on an underlying, such as a share, index, or interest rate. A PARS should identify the underlying and avoid describing the derivative as an ordinary share.

SEBI is the securities-market regulator. An exchange provides an organized venue and rules for trading listed products; it is not the regulator that grants research-analyst registration.

Confirm the source, date, unit, and whether the figure is an estimate or final release. A correct number from the wrong period can mislead a client.

It measures change in an economy's output over a period. It is a broad indicator, not proof that a particular company's earnings will rise.

Inflation can change input costs, pricing power, and consumers' purchasing power. Its effect depends on the company's industry and ability to pass costs through.

Identify which rate, the period, and the report's stated transmission to borrowing costs or valuation. Avoid turning a broad rate move into a guaranteed security-price prediction.

Industry trends describe a sector; company performance also depends on its own costs, financing, competition, and execution. Explain the report's company-specific evidence separately.

Systematic risk comes from broad market factors and cannot be removed simply by holding more securities in the same market.

Unsystematic risk is specific to a company or narrow group. Diversification can reduce exposure to this kind of risk.

Their prices may respond to the same shocks, so the portfolio still has concentrated exposure. Diversification depends on how risks co-move, not just the number of holdings.

The gain plus income is 10 on an initial 100, so the simple return is 10%. This ignores fees and taxes unless the figures explicitly include them.

Relevant risk and the fact that past results do not promise future performance. Present the period and basis of the return rather than a performance number alone.

Expected return must be considered alongside downside risk, uncertainty, and suitability of the information being communicated. PARS should relay the approved research and risk disclosures accurately.

Diversification can reduce security-specific risk, but broad market risk and losses can remain. It is a risk-management tool, not a guarantee.

Keep it clear, objective, and faithful to the report's evidence and disclosures. A sales summary should not omit material qualifications to make a recommendation sound stronger.

A financial or business interest could affect perceived independence. Clients need the applicable disclosure to judge the research in context.

Treat non-public research as confidential and follow the firm's approved access and release process. Do not selectively share it with a favored client.

Insider-trading rules and confidentiality duties can be implicated. Refer the issue to compliance rather than repeating or trading on the information.

Follow the firm's KYC and compliance process before proceeding with a service that requires it. Do not invent details or bypass checks to meet a sales target.

Record the complaint, the report/version involved, relevant communications, and the escalation path under firm policy. Do not silently alter the research record.

No. It is a NISM certification for sales and other non-core PARS. SEBI research-analyst registration and research-facing personnel requirements are separate matters.

No. SEBI says such PARS need XXV-A only after their existing Series XV certificate expires. The exception applies to the sales and other non-core PARS covered by its March 2026 circular.

Clarify the security, report, and specific point the client wants explained. This prevents an answer about a different instrument or outdated report.

Correct the assumption: a target is an analyst estimate under stated assumptions, not a promise. Review the report's risk language and escalate requests for analysis.

Check report dates, assumptions, scope, and stated evidence. Explain the differences without inventing a new recommendation or declaring one certain.

State the published conclusion, main reasons, key risks, and where to find the full report and disclosures. Keep the summary traceable to the approved document.

It checks comprehension and reveals misunderstanding. Correct the explanation using the report's language rather than assuming that a nod means informed understanding.

Acknowledge urgency, use the latest approved material, and route any request for fresh analysis to authorized research personnel. Do not improvise a trade call.

Point out the limited sample and revisit the report's stated risk and time horizon. This addresses overconfidence without arguing about the client's motives.

Loss aversion can make losses feel disproportionately painful. Keep the risk discussion complete and objective, including unfavorable scenarios.

Listen, capture the exact discrepancy and document version, avoid a defensive promise, and escalate through the firm's complaint and correction process.

Promptly notify the appropriate supervisor or compliance contact, preserve the original communication, and issue an approved correction to affected clients.

The distinction creates a reliable record of what was asked, what information was supplied, and whether further research or compliance action is pending.

Do not reveal confidential client information. Use approved, non-identifying material and follow the firm's consent and privacy rules for referrals.

Explain the applicable terms and most important terms and conditions (MITC) accurately, and refer legal or policy interpretations to authorized staff. Do not promise an exception.

Identify the report/version discussed, answer within the PARS role, include relevant disclosures or links, and record any unresolved question for follow-up.

Clear limits, timely corrections, and consistent disclosures support trust. A promise of returns or privileged access can mislead the client and breach conduct rules.

Escalate the material correction promptly because clients may rely on the wrong information. Schedule routine calls around the correction and notify affected colleagues.

Track time-sensitive client requests, research handoffs, compliance deadlines, and follow-up owners. A plan should make unfinished work visible rather than relying on memory.

Verify against the approved research source and correct or discard the tool output. The tool is an aid, not authority to change research.

It reduces privacy exposure while allowing the task to be completed. Access and share client records only for an authorized purpose.

Use the firm's approved channel, verify the recipient and purpose, and share only the necessary data. Record the handoff where policy requires it.

Review current NISM, SEBI, and firm updates, then test understanding against actual role tasks. Old training notes may not reflect current requirements.

Identify the factual question, what was answered, what remained uncertain, and whether escalation or a correction is needed. Use the findings to improve the next interaction.

A date and source version let staff trace the summary to the approved report and identify clients who may need an update after a correction.

Hand it to authorized research personnel with the client's precise question and relevant context. Do not fill the gap with an unsupported personal view.

Use approved, secure tools; verify outputs; preserve necessary records; and respect confidentiality. Speed is useful only when the information remains accurate and compliant.