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 Unit 1: Understanding Securities Markets and Performance

1.1. Understand the meaning of securities and securities markets

1.1.1. List the key functions of securities markets participants

1.2. Describe the structure of securities markets and role of its participants

1.2.1. Investors

1.2.2. Issuers

1.2.3. Intermediaries

1.2.4. Regulators

1.3. Understand the role of securities markets as allocators of capital

 

Unit 2: Securities: Types, Features and Concepts

2.1. Define and differentiate equity and debt securities

2.2. Explain the features of equity capital

2.3. Explain the features of debt capital

2.4. Understand the factors that influence the choice between equity and debt capital for issuers

2.5. Describe the various aspects of investing in equity

2.5.1. Understand the concepts and differences between price and intrinsic value

2.5.2. Describe the equity investing process

2.6. Describe the concepts and elements of financial analysis and valuation

2.6.1. Understand the fundamental and technical analysis

2.6.2. Understand the Discounted Cashflow and Relative Valuation models

2.7. Define and describe commonly used terms in equity investing

2.7.1.Price Earning Multiple (PE multiple)

2.7.2. Price to Book Value (PBV)

2.7.3. Dividend Yield

2.8. Explain the risk and return from investing in equity

2.9. Explain the basic features of debt instrument

2.10. List the types and structure of debt instruments

2.10.1.Distinguish between various types, tenors and structures of debt instruments

2.10.2.Explain the classification of debt market instrument

-Describe various types of money market instruments and their features

-Describe government securities and their features

-Describe Corporate bonds and debentures and their features

2.11. Understand concepts and terms relating to debt securities

2.11.1. Time Value of money

2.11.2. Yield and Price

2.11.3. Yield to maturity

2.12. Understand the benefits and risks of investing in debt securities

2.13. Describe the factors that influence the choice between equity and debt for investors

2.14. Describe hybrid instruments and their features

2.14.1. Preference shares

2.14.2. Convertible debentures

2.14.3. Depository Receipts (IDR, GDR and ADR)

2.14.4. Foreign Currency Convertible Bonds (FCCB)

 

Unit 3: Primary Markets

3.1. Understand the nature and functions of the primary market

3.1.1. Define primary markets

3.1.2. List and describe the functions of the primary markets

3.1.3. Differentiate the primary market from the secondary market

3.2. Define and differentiate various types of issues in primary markets (Public issue, Private Placement, Preferential issue, Rights & Bonus issues)

3.3. List the categories of issuers in the primary markets

3.4. Describe the regulatory framework for primary markets

3.4.1. List the key regulations for public issues

3.5. List the types of investors in the primary markets

3.6. Describe the types of public issues of equity shares

3.6.1. Define and differentiate initial public offer (IPO) and follow on public offer

3.6.2. Define and differentiate fresh issue of equity shares and offer for sale

3.7. Describe the pricing process in a public issue of shares

3.7.1. Fixed price issue

3.7.2. Book built issue

3.8. Describe the public issue process

3.8.1. List the constituents in a public issue and their roles

3.9. Define and list the features of a prospectus

3.10. Describe the process of applying to a public issue

3.10.1. Basis of allotment

3.10.2. Green shoe option

3.11. Understand the process and importance of listing of public issues

3.12. Describe rights issues in equity

3.13. Understand the process and concepts in public issue of debt securities

3.14. Describe private placements in equity and debt

3.14.1. Qualified Institutional Placement (QIP)

3.14.2. Institutional Placement Program (IIP)

 

Unit 4: Secondary Markets

4.1. Describe the role and list the functions of the secondary markets

4.2. Understand the market structure and describe the functions of the market participants

4.2.1. Stock exchanges

4.2.2. Issuers and Investors

4.2.3. Intermediaries involved in trading, clearing and settlement processes

4.2.4. Regulation of Secondary markets

4.3. Describe the role of brokers and sub-brokers and processes for client acquisition

4.3.1. Understand the Client acquisition process by a trading member

4.3.2. 3-in-1 accounts

4.3.3. Power of Attorney

4.4. Understand the trade execution process and explain related concepts

4.4.1. Electronic Trading system

4.4.2. Orders and their types

4.4.3. Trade and order execution

4.4.4. Contract note

4.4.5. Cost of trading

4.5. Understand the settlement process of a trade

4.5.1. Explain the concepts of delivery and squaring off/span>

4.5.2. Determine settlement obligation

4.5.3. Understand the concepts of settlement cycle, pay-in and pay-out

4.5.4. Explain the importance and types of margin requirements

4.5.5. Describe concepts of short delivery and short payment

4.5.6. Understand the impact of Corporate actions on settlement process

4.5.7. Explain the concept and role of circuit breakers

4.6. Understand and interpret market information

4.6.1. Market size and activity

4.6.2. Reading market prices

4.6.3. Disclosures by listed securities

4.7. Understanding the risk management systems for secondary markets

4.7.1. Capital adequacy norms

4.7.2. Margins and penalties for shortfall or defaults

4.7.3. Monitoring and inspection

4.8. List the rights, obligations and grievance redressal mechanism for investors in secondary markets

 

Unit 5: Mutual Funds

5.1. Define and explain the concept of mutual fund

5.1.1. Explain basic features of a mutual fund

5.1.2. Understand various features of mutual fund products

5.2. Describe key terms and concepts associated with mutual funds

5.2.1. Types and categories of Mutual fund schemes

5.2.2. Know units and unit capital

5.2.3. Know Mark to market (MTM) value and Net Asset Value (NAV)

5.2.4. Know Fund running expenses (FRE), Loads

5.3. Understand the workings of a mutual fund and roles of constituents in the mutual fund

5.4. Know the regulatory framework for mutual funds

5.4.1. Features of Mutual Fund Regulation

5.4.2. Investor Service Standards

5.5. Define and List the types of open-ended mutual fund products

5.5.1. Equity

5.5.2. Debt

5.5.3. Hybrid

5.5.4. Solution oriented

5.6. Define and Explain the types of close-ended mutual fund products

5.6.1. Fixed Maturity Plans (FMP)

5.6.2. Infrastructure Debt Schemes

5.6.3. Real Estate Mutual Funds

5.6.4. Real Estate Investment Trusts (REITs)

5.6.5. Infrastructure Investment Trusts (InvITs)span>

5.7. Describe the processes associated with investing in mutual funds

5.7.1. Permanent Account Number (PAN) and Know Your Customer (KYC) process

5.7.2 Purchases: New Fund Offer (NFO) and Continuous offer

5.7.3. Redemptions

5.7.4. Non-financial transactions

5.7.5. Statement of accounts and demat form

5.7.6. Distributor commissions

5.8. Understand how systematic transactions are conducted and their uses

5.8.1 Systematic Investment Plan

5.8.2 Systematic Withdrawal Plan

5.8.3 Systematic Transfer Plan

5.8.4 Switches

5.9. Know how to use information available on mutual funds for investment decision making

5.10.List the costs and benefits of investing in mutual funds

 

Unit 6: Derivative Markets

6.1. Define derivative products and explain its role in risk management

6.2. Describe key concepts with regard to derivatives

6.2.1. Zero Sum Game

6.2.2. Cash Settlement

6.2.3. OTC and Exchange Traded Derivatives

6.2.4. Arbitrage

6.3. List types of derivative products and their features

6.3.1. Forwards

6.3.2. Futures

6.3.3. Options

6.3.4. Swaps

6.4. Describe the structure of the derivative markets

6.5. Understand how derivatives are traded and settled

6.6. Describe the regulatory and risk management process for derivatives for derivative markets

6.7. Understand how derivative products are used in speculation, hedging and risk management

6.8. Describe the costs, benefits and risks of derivatives

6.9. Understand the key derivative market indicators

6.9.1. Open Interest

6.9.2. Put Call Ratio

 

Unit 7: Financial Planning and Securities Markets

7.1. Understand the financial planning framework for investing in securities

7.2. Describe the steps involved in financial planning

7.3. Explain the concepts and benefits of asset allocation process and diversification

7.4. Understand the asset allocation in the financial planning process

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