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Exam Review

Key Facts: NISM Series XXV-A Exam

50 Q

Exam Questions

NISM Official Syllabus

60 Min

Exam Duration

NISM Official Syllabus

50%

Passing Score

NISM Official Syllabus

₹1,500

Exam Fee

NISM Registration Portal

NISM Series XXV-A is a 50 MCQ, 60-minute certification exam with a 50% passing score and no negative marking.

Sample NISM Series XXV-A Practice Questions

Try these sample questions to review concepts for the NISM Series XXV-A exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary role of a Person Associated with Research Services (PARS) in a research analyst firm?
A.To handle sales, marketing, and client support activities without publishing independent research reports
B.To conduct core financial research and write and sign research reports for public distribution
C.To trade on behalf of the research analyst firm using the firm's proprietary capital
D.To audit the financial statements of companies that are being recommended by the firm
Explanation: Persons Associated with Research Services (PARS) are responsible for non-core activities like marketing, sales, and relationship management. They are not authorized to write, sign, or publish independent research reports.
2Which regulatory body is responsible for registering and supervising Research Analysts in India?
A.Insurance Regulatory and Development Authority of India
B.Reserve Bank of India
C.Securities and Exchange Board of India
D.Association of Mutual Funds in India
Explanation: The Securities and Exchange Board of India (SEBI) is the statutory regulator for securities markets in India. It is responsible for governing and registering Research Analysts under the SEBI (Research Analysts) Regulations, 2014.
3Which segment of the Indian securities market allows investors to trade in contracts derived from underlying assets?
A.Equity cash market
B.Derivatives market
C.Debt market
D.Commodity spot market
Explanation: The derivatives market deals in financial contracts like futures and options whose value is derived from underlying assets such as equities or indices. It allows investors to hedge risks or speculate on price movements.
4Which institution acts as a custodian for securities in dematerialized form in India?
A.Merchant banker
B.Stock broker
C.Clearing corporation
D.Depository
Explanation: Depositories like NSDL and CDSL maintain electronic records of securities owned by investors. They act as custodians of shares and other instruments in dematerialized form.
5What is the key structural difference between core research services and non-core research support?
A.Core services do not require any NISM certifications, while non-core services require multiple credentials
B.Core services are regulated by RBI, while non-core services are regulated by SEBI
C.Core services involve data analysis and formulating recommendations, while non-core services focus on sales and distribution
D.Core services are performed only by stock exchanges, while non-core services are run by depository participants
Explanation: Core research services involve analyzing financial data, conducting valuations, and writing research reports. Non-core services, on the other hand, cover distribution, sales, client interaction, and administrative support.
6Is a sales associate (PARS) permitted to modify a research analyst's recommendations when presenting them to a client?
A.No, they must communicate the recommendations exactly as published by the analyst without any alterations
B.Yes, they can modify recommendations if they believe the client has a different risk tolerance
C.Yes, they can change the target price if market conditions have shifted since the report's publication
D.Yes, but only if they obtain verbal permission from the sales manager of the firm
Explanation: Under SEBI guidelines, associated persons in sales cannot alter or modify research analyst findings. They must present the recommendations and target prices exactly as published in the official research report.
7Which of the following best describes the role of clearing corporations in the Indian securities market?
A.They hold dematerialized shares on behalf of individual and institutional investors
B.They provide online trading platforms for executing equity, debt, and derivative trades
C.They register investment advisors and monitor compliance of portfolio managers
D.They guarantee the financial settlement of trades and act as a central counterparty to both buyers and sellers
Explanation: Clearing corporations are responsible for clearing and settling trades executed on stock exchanges. They act as central counterparties, eliminating counterparty risk by guaranteeing settlement.
8Which of the following entities is classified as an intermediary in the primary market?
A.Portfolio manager
B.Merchant banker
C.Depository participant
D.Custodian of securities
Explanation: Merchant bankers are key intermediaries in the primary market who manage public issues, book building, and underwriting. They help issuers raise capital from the public.
9What is the primary benefit of the dematerialization of shares for retail investors?
A.It eliminates risks such as theft, loss, forgery, and bad delivery of physical certificates
B.It guarantees a minimum annual dividend yield on equity investments
C.It exempts investors from paying capital gains taxes on stock transactions
D.It permits investors to trade on margin without maintaining collateral
Explanation: Dematerialization (demat) converts physical certificates into electronic form. This process eliminates historical risks of loss, paper forgery, theft, and delays associated with physical share certificates.
10If a research analyst publishes a 'BUY' recommendation, what is the role of the sales representative (PARS)?
A.To provide a personal guarantee that the stock price will rise to the target specified in the report
B.To aggressively persuade all clients to purchase the stock regardless of their risk profiles
C.To distribute the report to clients and explain its contents and disclosures exactly as drafted by the analyst
D.To offer rebates on brokerage commissions to clients who buy the recommended stock
Explanation: The sales representative acts as a bridge between the research desk and clients. Their role is to distribute the report, explain the rationale, and outline the disclosures without modifying the analyst's findings.

About the NISM Series XXV-A Exam

The NISM Series XXV-A Certification Examination aims to establish a common minimum knowledge benchmark for persons associated with research services in sales and other non-core roles.

Exam sponsor: NISM. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

50 MCQs of 1 mark each. No negative marking.

Time Limit

60 minutes

Passing Score

50% (25 out of 50)

Exam / Certification Fees

₹1,500

Exam sponsor website

Reported exam pass rate: Not published by NISM. The official 50% figure is the passing-score threshold, not a candidate pass rate. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

10%

Introduction to Research Analysis Profession and Securities Markets

Overview of research services and basics of Indian securities markets.

10%

Fundamentals of Research, Market Terminologies and Market Analysis

Market terminologies, data sources, and economic indicators.

14%

Risk and Return Fundamentals

Systematic and unsystematic risk, diversification, and portfolio basics.

16%

Research Reporting, Ethics, and Regulatory Environment

SEBI Research Analyst regulations, reporting standards, ethics, and disclosures.

30%

Client Interaction and Relationship Skills

Communication, negotiation, objection handling, and relationship management.

20%

Professional Efficiency, Development, and Tools

Professional standards, tools, and supporting research analysts.

Preparing for the NISM Series XXV-A Exam

What You Need to Know

  • Passing score: 50% (25 out of 50)
  • Assessment: 50 MCQs of 1 mark each. No negative marking.
  • Time limit: 60 minutes
  • Exam / certification fees: ₹1,500 Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

NISM Series XXV-A: Suggested Study Strategy

1Understand the role boundaries of sales and marketing personnel compared to Core Research Analysts.
2Focus heavily on Client Interaction and Relationship Skills, which carries 30% weight in the exam.
3Study the SEBI (Research Analysts) Regulations, 2014, including disclosure requirements and code of conduct.
4Get comfortable with basic financial calculations and concepts of systematic and unsystematic risk.
5Practice simulated tests under a 60-minute time limit to build speed and accuracy.

Frequently Asked Questions

What is the NISM Series XXV-A exam?

It is a certification exam for persons associated with research services in non-core roles like sales, marketing, and client support.

Is there negative marking in the NISM XXV-A exam?

No, there is no negative marking in the NISM Series XXV-A examination.

What is the passing score for NISM Series XXV-A?

The passing score is 50% (25 marks out of 50 total marks).

What is the validity of the NISM XXV-A certificate?

The certificate is valid for a period of 3 years from the date of passing the examination.

What is the registration fee for NISM Series XXV-A?

The registration fee is ₹1,500 plus payment gateway charges (NISM XXV-A exam page).