NCFM SECURITIES MARKET BASIC

INTRODUCTION TO CAPITAL MARKET 

• Fundamental Role
• Equity capital
• Debt capital
• Preference capital
• Primary market
• Secondary market
• Differential Voting Rights (D VR) Shares
• Global Depository Receipt ( GDR) /
• American Depository Receipts (ADR)
• Converitable Preference Shares
• Debentures / Bonds
• Foreign Currency Convertible
• Bonds Government Securities
• Treasury Bills
• Certificate of Deposit (CD)
• Commercial Pares (CP)
• Call Money / Notice Money /
• Institutions & Intermediaries
• Indices
• Capital Assets Pricing Model (CAPM )
• Reforms in Indian Securities Markets 

Chapter 2 FUNDAMENTAL ANALYSIS OF EQUITY 

• Purpose of Fundamental Analysis
• Purpose of Technical Analysis
• Financial Statement Analysis
• Sector-Specific Ratios 

Chapter 3 PRIMARY MARKETS PROCESS 

• Typical Fund Raising Stages
• IPO Process
• Why IPO? 

Chapter 4 MEMBERSHIP ON EXCHANGES 

• Stock Broker
• Trading Members
• Clearing Members
• Membership Norms
• Trading Membership – Admission Procedure
• Trading Membership – Surrender Procedure
• Trading Membership – Suspension & Expulsion
• Authorized Persons
• Sub – brokers
• Broker – Client Relationship
• Investors Service Cell & Arbitration
• Code of Advertisement 

Chapter 5 REGULATORY FRAMEWORK 

• Securities Contracts (Regulation ) Act, 1956
• Securities and Exchange Board of India Act, 1992
• SEBI (Intermediaries ) Regulations, 2008
• SEBI (Prohibition of Insider Trading ) Regulations 1992
• SEBI (Prohibition of fraudulent and Unfair Trade Practices relating to securities market) Regulations, 2003
• The Depositories Act. 1996
• Indian Contract Act, 1872
• Income Tax Act,1961
• Anti – Money Laundering 

Chapter 6 INTRODUCTION TO DERIVATIVES 

• What is Derivatives?
• Kinds of Derivatives Contracts
• OTC Derivatives & Exchange Traded Derivatives
• Participants
• Continuous Compounding
• Why Derivatives? 

Chapter 7 INTEREST RATE DERIVATIVES 

• Fixed & Floating Interest Rate
• Debt Securities Valuation
• Discounting
• Price Risk
• Duration & Modified Duration
• Yield to Maturity
• Interest Rate Futures – Underlying Concepts
• Interest Rate Futures on NSE
• Hedging through Interest Rate Futures
• Reducing portfolio Maturity through Interest Rate Futures
• Speculation Through Interest Rate Futures
• Calendar Spread Trading through Interest Rate Futures
• Cash and Futures Arbitrage through Interest Rate Futures
• Interest Rate Futures – NSE Contract Specifications 

Chapter 8 CURRENCY DERIVATIVES 

• Introduction to Exchange Rate
• Exchange Rate Policy
• Foreign Currency Quotes
• Spread
• Forward / Future Rates
• Hedging through Currency Futures
• Speculation through Currency Futures
• Contract Specification
• Membership
• Participation

Chapter 9 INTRODUCTION TO MUTUAL FUNDS 

• Mutual fund Role
• Mutual fund Scheme Types
• Nature of Investments
• Investments Style
• Structure of Scheme Geography
• Dividend Payout Option Growth Option
• Tick Size

 Chapter 10 MUTUAL FUNDS – STRUCTURE & OPERATIONS 

• Mutual Funds Structures
• Mutual Fund Operations
• Mutual Fund Distribution Channels
• Distribution Commission
• New Fund Offer 

Chapter 11 MUTUAL FUNDS – INVESTOR’S TRANSACTIONS 

• Who can invest?
• Who cannot invest?
• Know your Customer (KYC) Requirements
• Investors Transactions ( Normal Physical Mode)
• Investor Transactions (Through The Internet)
• Investor Transactions (NSE MFSS Channel) 

Chapter 12 MUTUAL FUNDS – EXPENSES, NAV & LOAD 

• Expenses
• Net Assets & NAV
• Valuation
• Load
• Cut-off Timing 

Chapter 13 MUTUAL FUNDS – TAXATION 

• Securities Transaction Tax (STT)
• Capital Gains
• Equity-Oriented Schemes
• Debt-Oriented Schemes
• Additional tax on income Distributed
• Tax Deducted at Source (TDS) 

Chapter 14MUTUAL FUND – INFORMATION SOURCES 

• SID, SAI & KIM
• Fact Sheets
• Fund account statements
• Annual Report and Portfolio Statements
• Other sources of information 

Chapter 15 MUTUAL FUNDS – INVESTOR PROTECTION 

• Structural Protection
• Time-Standards
• Other legal considerations for investors