Securities Markets Foundation book by National Institute of Securities Markets

Securities Markets Foundation is an introductory yet comprehensive guide, imparting a foundational understanding of the Indian securities markets, their structure, products, participants, and regulatory ecosystem. The workbook establishes a market-wide knowledge benchmark for beginners, covering the functioning of primary and secondary markets, equity and debt securities, mutual funds, derivatives, asset allocation concepts, and the essentials of financial planning. Authored under NISM's rigorous content-development framework, it follows a structured, learner-friendly pedagogy aimed at enabling candidates to acquire conceptual clarity and examination-ready competence.

This book is intended for the following audience:

• Entry-level Professionals aspiring to build a career in the Indian securities market
• Employees of Securities-market Intermediaries, such as brokers, advisors, depositories, mutual funds, and investment service providers
• Professionals from other industries looking to acquire domain knowledge in capital markets
• Students, Teachers & Homemakers interested in understanding the functioning of the securities market
• General Learners & Retail Investors seeking to build financial literacy
• Candidates preparing for the NISM-Series-XII Certification Examination, which is voluntary but widely recognised as a benchmark qualification

The Present Publication is the September 2025 Workbook Version, developed in collaboration with the Certification Team of NISM and Aparna Bhat, Sunita Abraham and Uma Shashikant. It is published exclusively by Taxmann, with the following noteworthy features:

• [Comprehensive Coverage] Explains securities markets, financial instruments, market processes, and regulatory norms in simple and accessible language
• [Syllabus-aligned] Covers every topic outlined in the prescribed syllabus and weightage framework for the NISM-Series-XII exam
• [Practical Orientation] Includes examples, illustrations, and introductory numericals to build application-based understanding
• [Structured Learning Path] Ideal for candidates with no prior exposure to securities markets—progresses from basic to intermediate concepts
• [Supports Exam Preparation] Provides practice questions, sample illustrations, and learning notes designed to help candidates understand question patterns
• [Regulation-focused Content] Clarifies rules, processes, and compliance aspects essential for functioning in the Indian market ecosystem

The workbook encompasses the entire spectrum of introductory securities market knowledge. Major chapters include:

• Understanding Securities Markets and Performance
• Structure of Indian securities markets
• Key market participants
• Role and economic significance of securities markets
• Technological advancements in market infrastructure
• Securities: Types, Features & Investment Concepts
• Equity, debt, hybrid instruments, and commodities
• Role and characteristics of equity and debt
• Choice between debt and equity for issuers and investors
• Basics of derivatives
• Asset allocation, diversification, and behavioural aspects of investing
• Investment processes for equity and debt instruments
• Primary Markets
• IPOs, FPOs, rights issues, private placements
• Market intermediaries and regulatory processes
• Issue mechanisms and pricing
• Secondary Markets
• Stock exchanges, trading members, and trading systems
• Order types, settlement cycles, risk management
• Investor protection mechanisms
• Mutual Funds & Derivatives
• Types of mutual fund schemes and NAV concepts
• Benefits, risks, and suitability frameworks
• Basics of futures and options
• Financial Planning Essentials
• Budgeting, savings, and personal finance
• Risk profiling, goal setting, and portfolio planning
• Steps in a structured financial-planning process
• Each chapter is aligned with the official NISM syllabus and examination objectives

The workbook follows a pedagogically optimised structure:

• Conceptual Introductions – Every chapter begins with simplified explanations of key concepts
• Progressive Depth – Topics build from basic definitions to applied understanding
• Examples & Illustrations – Realistic scenarios and sample computations reinforce learning
• Learning Objectives – Clearly defined outcomes help candidates assess readiness
• Exam-oriented Notes – Includes sample questions, cautionary guidance, and conceptual clarifications
• Syllabus Alignment – Each section directly corresponds to NISM's published syllabus outline and weightages