NISM Series XVSEBI mandatoryTier S
Research AnalystCertification Guide.
Mandatory for SEBI Research Analyst registration. Covers fundamental analysis, valuation, financial statement analysis, technical analysis, and regulatory compliance. The most intellectually demanding of the Big 3.
IntermediateDifficulty
Suggested prep: 25-35 days
25%Negative marking
Avoid blind guessing.
3 yearsValidity
Computer-Based Test (CBT)
Rank 3Priority
Research track
01Overview
What this certification is really testing.
Ideal for
- Aspiring SEBI Registered Research Analysts
- Finance professionals wanting to publish stock recommendations
- Equity research careers at brokerages/AMCs
- Financial influencers/content creators
Career paths
- SEBI Registered Research Analyst
- Equity Research Analyst at Brokerage
- Independent Stock Advisory (SEBI RA)
- Financial Content Creator (legally compliant)
- Sell-Side / Buy-Side Analyst
Mandatory for
- SEBI Registered Research Analysts (RAs)
- Employees of research firms providing investment recommendations
- Anyone publishing stock recommendations publicly
02Syllabus
Study by chapter weightage, not by guesswork.
The highest scoring chapters carry 28% of the paper. Start there, then use the low-weight chapters for polish.
Chapter weightage
High-weightage focus
Company Analysis - Financial/Quantitative Analysis
14%Income Statement analysis - revenue, EBITDA, PAT · Balance Sheet analysis - assets, liabilities, equity · Cash Flow Statement - CFO, CFI, CFF
Valuation Principles
14%P/E Ratio - trailing vs forward P/E · P/B Ratio and when to use it (banking/NBFC) · EV/EBITDA - enterprise value multiples
03Key concepts
Concepts and formulas to keep handy.
Key concepts to remember
- P/E Ratio = Market Price per Share / Earnings per Share - lower P/E always cheap
- P/B Ratio is most useful for banking and NBFC stocks (asset-heavy businesses)
- EV/EBITDA = (Market Cap + Debt - Cash) / EBITDA - capital structure neutral
- DCF: Value today = sum of all future cash flows discounted at required rate of return
- DuPont ROE = Net Margin x Asset Turnover x Financial Leverage
- SEBI RA registration requires: net worth of Rs. 5 lakhs (individual), qualification in finance, NISM XV certificate
- Research Analyst must disclose: financial interest, compensation received, conflict of interest in every report
- Insider trading = trading on UPSI (Unpublished Price Sensitive Information) - strict penalties
- CAPM: Expected Return = Risk-Free Rate + Beta x (Market Return - Risk-Free Rate)
- Operating leverage = Fixed costs / Total costs - higher operating leverage = more volatile earnings
- Porter's Five Forces: Threat of new entrants, Bargaining power of buyers/suppliers, Threat of substitutes, Industry rivalry
- Free Cash Flow = CFO - Capital Expenditure - the true measure of cash available to shareholders
Important formulas
- P/E Ratio = Market Price per Share / EPS
- P/B Ratio = Market Price per Share / Book Value per Share
- EV = Market Cap + Total Debt - Cash & Cash Equivalents
- EV/EBITDA = Enterprise Value / EBITDA
- ROE = Net Profit / Shareholders' Equity x 100
- ROE (DuPont) = (Net Income/Sales) x (Sales/Assets) x (Assets/Equity)
- ROCE = EBIT / Capital Employed x 100
- Current Ratio = Current Assets / Current Liabilities
- Debt-to-Equity = Total Debt / Shareholders' Equity
- Interest Coverage = EBIT / Interest Expense
- Dividend Yield = Annual Dividend per Share / Market Price x 100
- PEG Ratio = P/E Ratio / Earnings Growth Rate
- Free Cash Flow = Cash from Operations - Capital Expenditure
- Gordon Growth Model: P = D / (r - g)
- CAPM: E(R) = Rf + x (Rm - Rf)
- Sharpe Ratio = (Rp - Rf) / p
04Study plan
A clear way to study this module.
Study strategy
- This is the most intellectually demanding NISM exam - allocate 25-35 days minimum
- Chapters 8 (Financial Analysis) + 10 (Valuation) carry 28% combined - master these first
- Practice calculating ALL financial ratios - P/E, P/B, ROE, ROCE, D/E, ICR, Current Ratio
- Learn DCF conceptually - you won't calculate full DCF but must understand the framework
- Chapter 13 (Legal) is 10% - memorize SEBI RA registration requirements and code of conduct
- Technical Analysis (Ch 14) is only 5% - know the basics (support, resistance, moving averages) but don't over-invest time
- For case studies: practice reading mini financial statements and extracting insights quickly
- Take 3-4 full-length mock tests with case studies in exam conditions
Exam-day tips
- Case studies take longer - attempt MCQs first, then tackle the 5 case studies
- 0.25 negative marking - be cautious with guesses on MCQs
- For financial ratio questions, write down the formula before calculating
- Regulatory questions (Ch 13) are scored easy - don't skip them
- Case studies often test: ratio interpretation, valuation comparison, or regulatory compliance
- Budget: 60 min for 80 MCQs + 45 min for 5 case studies + 15 min review
05Common mistakes
The pass mark is simple. The paper is not.
Scoring warning
Because this paper has negative marking, precision matters more than speed. Attempt the sure questions first, then return to calculations and close-call options.
Common mistakes
- Confusing trailing P/E (past EPS) with forward P/E (projected EPS) - the exam specifies which
- Using P/B for service companies - P/B is most relevant for banking/asset-heavy businesses
- Forgetting that EV includes debt - so EV/EBITDA is capital structure neutral, P/E is not
- Not reading SEBI RA disclosure requirements carefully - many questions test specific clauses
- Spending too much time on case studies - flag and move on if stuck
Ready to register?
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