NISM XII Securities Markets Foundation: Practice Tests

This course contains the use of artificial intelligence.

Knowing the definitions of a share, a bond or a mutual fund is a starting point. The harder step is deciding who receives issue proceeds, which order can execute, what must be delivered at settlement, and how a stated cash flow changes an investor's return. These practice tests help you work through those decisions while preparing for NISM-Series-XII: Securities Markets Foundation.

Build understanding with 320 original single-correct questions. Four focused sets contain 55 questions each. They cover market participants and investment instruments; primary-market issuance; secondary-market trading and settlement; and mutual funds with derivatives. Each answer option has feedback, followed by a worked explanation and a short study suggestion. Calculation questions distinguish cash received, payoff, profit, NAV and the amount actually invested.

The final 100-question mock has a 120-minute limit and the published six-unit weighting: 10% markets, 20% instruments and investing, 20% primary markets, 20% secondary markets, 20% mutual funds and 10% derivatives. It uses one correct answer per question and a 60% passing target with no negative marking. The focused sets use a separate 70% practice target and an 80-minute study timer; they are not additional full-length exam simulations.

What to practise

• Follow subscriptions, allotments, rights and existing-share sales without confusing issuer funding with trading turnover.
• Work through order books, partial fills, net obligations, corporate actions and investor records.
• Calculate yields, NAV, average unit cost, option profit and futures cash flows using the stated assumptions.
• Distinguish current fund categories, Life Cycle Funds and SIF eligibility from outdated product descriptions.

How to use the tests

Start with the focused sets. For every error, identify the condition that changes the answer, read the feedback for the competing options and revisit the relevant current NISM study material. Then take the mock without checking answers during the attempt. Review by unit as well as total score, and solve missed calculations again with a changed condition.

The scope follows the NISM March 2026 workbook and current public curriculum, with relevant SEBI rules checked on 16 October 2026. Prices, fees, lot sizes and recovery assumptions supplied in scenarios are illustrative unless expressly identified as a current rule. These are independent practice questions, not official or recalled examination questions. The course is not affiliated with or endorsed by NISM or SEBI, and a practice score does not guarantee an examination result.