Admission: OPEN
Smart Advance Diploma in Financial Market Management(SADFMM)
About “SADFMM” Smart Advance Diploma in financial market management is a Foundation Course with 100% Job guarantee in broking houses, financial institutions and banking industry. It’s a new / latest course to get white-collar job placement. This course is totally based on research and experience followed by practical about stock, derivatives, options, commodity, and currency market operations, risk management in brokering industry, investment advisor, technical analysis, fundamental analysis and research analyst in financial institutions and banks.
This is a one year career oriented course in financial market a part of BFSI segment. NSE courses, SEBI courses and BSE certification courses are now in huge demand in broking houses, stock market advisory companies, IPO and investment advisory company. These companies need experts to serve their clients in retail or for corporates. This course is the combination of NCFM & NISM certification examination by Education wing of NSE & SEBI. Candidate has to clear these certification Exam and after certification the candidate will get the placement in various broking, Banking and Financial companies.
However, this course is quite useful for those who wants to be an expert in Stock Market Trading and can utilize their talents and experiences for Portfolio Management, Research Advisory services and Independent business owner in the field of Financial Market with a option for huge entrepreneurship
This course is divided in 10 modules including preparation and certification of NSE and SEBI certificates alog with theoretical and practical on live software used in stock market trading. Apart from this 11th module is of personality development with interview preparation for internship or on job training.
Apart from this we provide knowledge regarding ALGO Trading (Automated / Robotic Trading) to match with the upcoming future emerging market trends.
MODULE - 1
CAPITAL MARKET (DEALERS)
01.INTRODUCTION TO INVESTMENT AND DIFFERENT
FINANCIAL PRODUCTS
WHAT ARE THE BASIC OF INVESTMENT?
INVESTMENT AVENUES
INVESTMENT QUOTES
WHY SHOUD INVESTED IN STOCK MARKET
02.AN OVERVIES OF INDIAN FINANCIAL MARKETS
UNDERSTANDING THE FINANCIAL SYSTEM
TYPES OF SECURITIES
EQUITY SHARES
DEBEBTURES
BONDS
STOCK EXCHANGE
PRIMARY MARKET
SECONDARY MARKET
IPO, FPO, RIGHT ISSUE
BOOK BUILDING
MARKET INDEX
WHAT IS DEPOSITORY
MARKET CAPITALIZATION
MARKET CAPITALIZATION RATIO
TURNOVER
TURNOVER RATIO
MARKET SEGMENTS
CAPITAL MARKET
WHOLESALE DEBT MARKET
FUTURE & OPTIONS MARKET
CURRENCY DERIVATIVE MARKET
DEMUTUALISATION
DEMATERIALISATION
CLEARING CORPORATION
INVESTOR PROTECTION
DIRECT MARKET ACCESS
ASBA
ICDR
SLB
INDIA VIX
03.TRADING MEMBERSHIP
STOCK BROKER
MEMBERSHIP IN NSE
NEW MEMBERSHIP CRITERIA
CORPORATE STRUCTURE
CAPITAL ADEQUACY
CONTINUING MEMBERSHIP
SUSPENSION AND EXPULSION OF MEMBERSHIP
CLIENT BROKER RELASHIONSHIP
SUB BROKER
AUTHORIZED PERSONS
DISPUTE ARBITRATION ANDAPPEAL
CODE OF ADVERTISEMENT
04.TRADING
TRADING MECHANISM
OPEN OUTCRY SYSTEM
ONLINE TRADING
TRADING NETWORK
ADVANTAGE OF SCREEN BASED TRADING
WHAT IS ORDER MANAGEMENT
TIME CONDITION
PRICE CONDITION
ORDER MATCHING
MARKET TYPES
NORMAL MARKET
AUCTION MARKET
ODD LOT MARKET
RETAIL DEBT MARKET
HIERARCHY IN STOCK MARKET
MARKET PHASES
NEAT SCREEN
ACTIVITY LOG
SNAP QUOTE
ONLINE BACKUP
BASKET TRADING
ACTIVE AND PASSIVE ORDER
INDEX INQURY
PRICE FREEZE
PRICE BANDS
CIRCUIT BREAKERS
INTERNET BROKING
05.CLEARING, SETTLEMENT AND RISK MANAGEMENT
CLEARING AND SETTLEMENT:
KEY TERMINOLOGIES
FUNDS PAY-IN, SECURITIES PAY-IN
FUNDS PAY-OUT, SECURITIES PAY-OUT
AGENCY INVOLVED IN CLEARING AND SETTLEMENT PROCESS:
CLEARING CORPORATION
CLEARING MEMBER
CLEARING BANKS
DEPOSITORIES
HOW THE TRADE TAKE PLACE?
SETTLEMENT PROCESS
SETTLEMENT CYCLE
RISK IN SETTLEMENT:
COUNTER PARTY RISK
SYSTEM RISK
MARGIN MECHANISM:
VAR
ELM
MTM
CROSS MARGINING
PENALTY FOR MARGIN SHORTFALL
NUMBERING SYSTEM OF ISIN
06.LEGAL FRAMEWORK
MARKET REGULATOR
MAIN LEGISLATIONS
SCRA, 1956
SEBI ACT
DEPOSITORY ACT
INDIAN CONTRACT ACT
INCOME TAX ACT
07.TIME VALUE OF MONEY
BASIC TIME VALUE CONCEPTS
VARIABLES OF IN INTEREST COMPUTATIONS
SIMPLE AND COMPOUND INTERESTS
FUTURE VALUE OF SINGLE CASH FLOW
ANNUITY COMPUTATIONS
FUTURE VALUE OF AN ANNUITY
PRESENT VALUE OF A SINGLE CASH FLOW
08.FUNDAMENTAL VALUATION CONCEPTS
WHAT IS FUNDAMENTAL VALUATION?
INDUSTRY ANALYSIS
CORPORATE ANALYSIS
FINANCIAL ANALYSIS
RATIO ANALYSIS
TYPES OF INVESTOR
GENERAL DO’S AND DON’TS FOR INVESTOR
MODULE - 2
EQUITY DERIVATIVES MARKET
01.INTRODUCTION TO DERIVATIVES
WHAT IS DERIVATIVE?
INDIAN DERIVATIVES MARKET
EXCHANGE TRADED DERIVATIVES IN INDIA
ECONOMIC FUNCTIONS OF THE DERIVATIVE MARKET
WHAT ARE DERIVATIVE PRODUCTS
PARTICIPANTS IN DERIVATIVE MARKET
TYPES OF DERIVATIVE MARKET
02.UNDERSTANDING INDEX
WHAT IS AN INDEX
ECONOMIC SIGNIFICANCE OF INDEX MOVEMENTS
INDEX CONSTRUCTION ISSUES
INDEX MANAGEMENT
MAJOR INDICES IN INDIA
INDEX DERIVATIVES
WHAT IS IMPACT COST
03.INTODUCTION TO FORWARD AND FUTURE
WHAT IS FORWARD CONTRACT
SAILENT FEATURES OF FORWARD CONTRACT
WHAT IS FUTURE CONTRACT
DIFFERENCE BETWEEN FORWARD AND FUTURE MARKET
FUTURE TERMINOLOGY
WHAT ARE FUTURE PAYOFFS
HOW TO CALCULATE FUTURE PRICE
UNDERSTANDING BETA
HOW TO APPLY STOCK FUTURE
HOW TO USE STOCK FUTURE IN SPECULATION
HEDGING
HOW A HEDGER USE NIFTY FUTURE
04.INTRODUCTION TO OPTIONS
WHAT IS AN OPTION
OPTION TERMINOLOGY
CALLS AND PUTS
MONEYNESS OF THE OPTIONS
COMPARISON BETWEEN FUTURES AND OPTIONS
OPTION PAY OFF AND ITS TYPES
APPLICATION OF OPTIONS IN CASE OF HEDGING
WHAT IS OPTION GREEKS
THE GREEKS
HOW A HEDGER USE NIFTY FUTURE
05.OPTION TRADING STRATEGIES
SPREAD STRATEGY
LONG STRADDLE
SHORT STRADDLE
LONG STRANGLE
SHORT STRANGLE
COVERED CALL STRATEGY
COLLAR STRATEGY
LONG CALL BUTTERFLY
06.TRADING SYSTEMS
TRADING OF DERIVATIVE CONTACRS:
RING TRADING
SCREEN BASED TRADING
NEAT SYSTEM
ENTITIES IN TRADING SYSTEM
NEAT SYSTEM HIERARCHY
CLIENT- BROKER RELATIONSHIP IN DERIVATIVE SEGMENT
ORDER TYPES AND CONDITIONS
TRADER WORK STATION
PLACING ORDERS ON THE TRADING SYSTEM
CONTRACT SPECIFICATION
07.CLEARING AND SETTLEMENT SYSTEM
WHAT IS CLEARING
WHAT IS SETTLEMENT
CLEARING ENTITIES
CLEARING MECHANISM
SETTLEMENT PROCEDURE
COMPUTATION OF MTM
RISK MANAGEMENT
MARGIN SYSTEM IN F&O
SPAN MARGIN
CLIENT MARGIN REPORTING
CROSS MARGINING
CALENDAR SPREAD MARGIN
08.REGULATORY FRAMEWORK, ACCOUNTING AND TAXATOIN :
SECURITIES CONTRACT REGULATION ACT, 1956
SEBI ACT, 1992
FORMS OF COLLATERAL ‘s ACCEPTABLE AT NSCCL
PROFESSIONAL CLEARING MEMBERS
REGULATION FOR DERIVATIVE TRADING
DERIVATIVE TRADING FRAMEWORK
POSITION LIMITS IN EQUITY DERIVATIVE MARKET
ACCOUNTING FOR FUTURE AND OPTION CONTRACTS
ACCOUNTING FOR EQUITY INDEX / STOCK FUTURE
ACCOUNTING AT THE TIME OF DAILY SETTLEMENT
ACCOUNTING FOR OPEN POSITION
ACCOUTING AT THE TIME FINAL SETTLEMENT
ACCOUNTING IN CASE OF DEFAULT
ACCOUNTING FOR EQUITY INDEX / STOCK OPTIONS
ACCOUNTING FOR OPENS OPTION POSITION
TAXATION OF DERIVATIVE TRANSACTION
09.SALES PRACTICES AND INVESTORS PROTECTIONS SERVICES
HIGH RETURN OR RISK FREE INVESTMENT
INVESTMENT ADVISOR SERVICES
UNSUITABLE INVESTMENT RECOMMENDATIONS
CHURING
UNDERSTANDING RISK PROFILE OF THE INVESTORS
GRIEVANCE REDRESSAL MECHANISM FOR INVESTORS
ARBITRATION
SEBI COMPLAINTS REDRESS SYSTEM
DO’s INVESTORS
DON’Ts INVESTORS
MODULE - 2
EQUITY DERIVATIVES MARKET
01.INTRODUCTION TO DERIVATIVES
WHAT IS DERIVATIVE?
INDIAN DERIVATIVES MARKET
EXCHANGE TRADED DERIVATIVES IN INDIA
ECONOMIC FUNCTIONS OF THE DERIVATIVE MARKET
WHAT ARE DERIVATIVE PRODUCTS
PARTICIPANTS IN DERIVATIVE MARKET
TYPES OF DERIVATIVE MARKET
02.UNDERSTANDING INDEX
WHAT IS AN INDEX
ECONOMIC SIGNIFICANCE OF INDEX MOVEMENTS
INDEX CONSTRUCTION ISSUES
INDEX MANAGEMENT
MAJOR INDICES IN INDIA
INDEX DERIVATIVES
WHAT IS IMPACT COST
03.INTODUCTION TO FORWARD AND FUTURE
WHAT IS FORWARD CONTRACT
SAILENT FEATURES OF FORWARD CONTRACT
WHAT IS FUTURE CONTRACT
DIFFERENCE BETWEEN FORWARD AND FUTURE MARKET
FUTURE TERMINOLOGY
WHAT ARE FUTURE PAYOFFS
HOW TO CALCULATE FUTURE PRICE
UNDERSTANDING BETA
HOW TO APPLY STOCK FUTURE
HOW TO USE STOCK FUTURE IN SPECULATION
HEDGING
HOW A HEDGER USE NIFTY FUTURE
04.INTRODUCTION TO OPTIONS
WHAT IS AN OPTION
OPTION TERMINOLOGY
CALLS AND PUTS
MONEYNESS OF THE OPTIONS
COMPARISON BETWEEN FUTURES AND OPTIONS
OPTION PAY OFF AND ITS TYPES
APPLICATION OF OPTIONS IN CASE OF HEDGING
WHAT IS OPTION GREEKS
THE GREEKS
HOW A HEDGER USE NIFTY FUTURE
05.OPTION TRADING STRATEGIES
SPREAD STRATEGY
LONG STRADDLE
SHORT STRADDLE
LONG STRANGLE
SHORT STRANGLE
COVERED CALL STRATEGY
COLLAR STRATEGY
LONG CALL BUTTERFLY
06.TRADING SYSTEMS
TRADING OF DERIVATIVE CONTACRS:
RING TRADING
SCREEN BASED TRADING
NEAT SYSTEM
ENTITIES IN TRADING SYSTEM
NEAT SYSTEM HIERARCHY
CLIENT- BROKER RELATIONSHIP IN DERIVATIVE SEGMENT
ORDER TYPES AND CONDITIONS
TRADER WORK STATION
PLACING ORDERS ON THE TRADING SYSTEM
CONTRACT SPECIFICATION
07.CLEARING AND SETTLEMENT SYSTEM
WHAT IS CLEARING
WHAT IS SETTLEMENT
CLEARING ENTITIES
CLEARING MECHANISM
SETTLEMENT PROCEDURE
COMPUTATION OF MTM
RISK MANAGEMENT
MARGIN SYSTEM IN F&O
SPAN MARGIN
CLIENT MARGIN REPORTING
CROSS MARGINING
CALENDAR SPREAD MARGIN
08.REGULATORY FRAMEWORK, ACCOUNTING AND TAXATOIN :
SECURITIES CONTRACT REGULATION ACT, 1956
SEBI ACT, 1992
FORMS OF COLLATERAL ‘s ACCEPTABLE AT NSCCL
PROFESSIONAL CLEARING MEMBERS
REGULATION FOR DERIVATIVE TRADING
DERIVATIVE TRADING FRAMEWORK
POSITION LIMITS IN EQUITY DERIVATIVE MARKET
ACCOUNTING FOR FUTURE AND OPTION CONTRACTS
ACCOUNTING FOR EQUITY INDEX / STOCK FUTURE
ACCOUNTING AT THE TIME OF DAILY SETTLEMENT
ACCOUNTING FOR OPEN POSITION
ACCOUTING AT THE TIME FINAL SETTLEMENT
ACCOUNTING IN CASE OF DEFAULT
ACCOUNTING FOR EQUITY INDEX / STOCK OPTIONS
ACCOUNTING FOR OPENS OPTION POSITION
TAXATION OF DERIVATIVE TRANSACTION
09.SALES PRACTICES AND INVESTORS PROTECTIONS SERVICES
HIGH RETURN OR RISK FREE INVESTMENT
INVESTMENT ADVISOR SERVICES
UNSUITABLE INVESTMENT RECOMMENDATIONS
CHURING
UNDERSTANDING RISK PROFILE OF THE INVESTORS
GRIEVANCE REDRESSAL MECHANISM FOR INVESTORS
ARBITRATION
SEBI COMPLAINTS REDRESS SYSTEM
DO’s INVESTORS
DON’Ts INVESTORS
MODULE - 3
CURRENCY DERIVATIVE MARKET
01.INTRODUCTION TO CURRENCY MARKETS
HISTORY OF FOREIGN EXCHANGE MARKETS
FOREX MARKET
MAJOR CURRENCY
WHAT A CURRENCY PAIR
WHAT IS TWO WAY QUOTES
APPRECIATION/DEPRECIATION
WHAT IS RBI REFERENCE RATE
SETTLEMENT DATE OR VALUE DATE
OTC FORWARD MARKET
WHAT IS CROSS RATE
IMPACT OF MARKET FACTORS
ECONOMIC INDICATORS
GDP
RETAIL SALES
INDUSTRIAL PRODUCTION
CONSUMER PRICE INDEX
NONFARM PAYROLLS
CENTRAL BANK MEETING AND KEY DECISIONS
02.FOREIGN EXCHANGE DERIVATIVES
DERIVATIVE DEFINATION
CURRENCY DERIVATIVES
DERIVATIVE DEFINED IN RBI ACT
WHAT ARE DERIVATIVE PRODUCTS
FORWARD/FUTURE/OPTIONS
WHAT IS SWAPS
INTEREST RATE SWAPS
CURRENCY SWAPS
PARTICIPANTS IN DERIVATIVE MARKET
SPECULATORS/HEDGERS/ARBITRAGEURS
ECONOMIC FUNCTIONS OF DERIVATIVE MARKETS
03.EXCHANGE TRADED CURRENCY FUTURES
HISTORY OF CURRENCY FUTURES IN INDIA
EXCHANGE TRADED CURRENCY FUTURES
FUTURES TERMINOLOGY
SPOT PRICE
FUTURE PRICE
CONTRACT CYCLE
EXPIRY DATE
CONTRACT SIZE
INITIAL MARGIN
MTM MARGIN
RATIONALE BEHIND CURRENCY FUTURES
DISTINCTION BETWEEN FUTURE AND FORWARD CONTRACTS
BENEFIT OF FUTURE TRADING
LIMITATIONS OF FUTURES
INTEREST RATE PARITY AND PRICING OF CURRENCY FUTURES
04.STRATEGIES USING CURRENCY FUTURES
MARKET PARTICIPANTS
HEDGER
SPECULATOR
ARBITRAGEUR
WHAT IS PAYOFF
COMBINED POSITION OF FUTURE AND UNDERLYING
PAYOFF CALCULATION
INVESTMENT IN ASSETS OUTSIDE INDIA AND REPATRIATION
USE OF CURRENCY FUTURES BY SPECULATORS AND ARBITRAGEURS
SPREAD TRADING
LIMITATIONS OF CURRENCY FUTURES FOR HEDGERS
05.TRADING IN CURRENCY FUTURES
CONTRACT SPECIFICATIONS OF CURRENCY FUTURES
TENOR OF FUTURE CONTRACTS
WHAT IS TRADE WORK STATION
DISSEMINATION OF OPEN, HIGH , LOW AND LTP
TRADER WORK STATION SCREEN
ENTITIES IN THE TRADING SYSTEM
ORDER TYPE AND CONDITIONS
TIME CONDITIONS
PRICE CONDITIONS
OTHER CONDITIONS
PRICE LIMIT CIRCUIT FILTER
RULES , REGULATIONS AND BYE LAWS OF EXCHANGE
06.CLEARING, SETTLEMENT AND RISK MANAGEMENT
WHAT IS CLEARING
WHAT IS SETTLEMENT
CLEARING ENTITIES
CLEARING MEMBER
CLEARING BANK
CLEARING MECHANISM
REGULATION GUIDELINES ON OPEN POSITION LIMITS
SETTLEMENT MECHANISM
MTM SETTLEMENT
FINAL SETTLEMENT
RISK MANAGMENT MEASURES
WHAT IS CALENDAR SPREAD MARGINS
SURVEILLANCE
07.EXCHANGE TRADED CURRENCY OPTIONS
HISTORY OF CURRENCY OPTION
WHAT IS OPTION
OPTION TYPES
CALL OPTION / PUT OPTION
OPTION TERMINOLOGY
MONEYNESS OF THE OPTIONS
ITM/ATM/OTM
WHAT IS OPTION PREMIUM
INTRINSIC VALUE AND TIME VALUE
WHAT IS OPTION GREEKS
DELTA/GAMMA/THETA/VEGA
WHAT IS OPTION PAYOFF
OPTION TRADING STRATEGIES
LONG CALL/SHORT CALL
LONG PUT/SHORT PUT
BULL CALL SPREAD
BULL PUT SPREAD
BEAR CALL SPREAD
BEAR PUT SPREAD
LONG STRANGLE/SHORT STRANGLE
LONG STRADDLE/SHORT STRADDLE
SHORT BUTTERFLY
08.ACCOUNTING AND TAXATION
NAME OF ACCOUNTS
INITIAL MARGIN CURRENCY FUTURES
MARK TO MARKET CURRENCY FUTURES
ACCOUNTING ENTRIES FOR LIVE POSITIONS
ACCOUNTING ENTRIES FOR EXPIRED OR CANCELLED POSITIONS
TAXATION OF CURRENCY DERIVATIVE
09.REGULATORY FRAMEWORK
REGULATORY FRAMEWORK FOR CURRENCY DERIVATIVES
SCR(A), 1956
RBI-SEBI TECHNICAL STANDING COMMITTEE
THE TERMS OF REFERENCE TO THE COMMITTEE
FEMA, 1999
REGULATORY FRAMEWORK FOR EXCHANGES
REGULATORY FRAMEWORK FOR CLEARING CORPORATIONS
GOVERNING COUNCIL OF THE EXCHANGE AND CLEARING CORPORATION
ELIGIBILITY CRITERIA FOR MEMBERS
WHO CAN NOT BECOME A MEMBER
REQUIREMENT OF AUTORIZED PERSON /APPROVED USERS
10.CODE OF CONDUCT AND INVESTOR PROTECTION
CODE OF CONDUCT FOR BROKERS
GENERAL PRINCIPLES
TRADING PRINCIPLES
GENERAL GUIDELINES
GRIEVANCE REDRESSAL MECHANISM FOR INVESTORS
NATURE OF COMPLAINTS
ARBITRATION
MODULE – 4
COMMODITY MARKET
1.INTRODUCTION TO DERIVATIVE
TYPES OF DERIVATIVES: FINANCIAL DERIVATIVES - COMMODITY DERIVATIVES
PRODUCTS, PARTICIPANTS AND FUNCTIONS
EXCHANGE–TRADED VERSUS OTC DERIVATIVES
2.COMMODITY DERIVATIVES
HOW THEY DIFFER FROM FINANCIAL DERIVATIVES
WAREHOUSING
QUALITY OF UNDERLYING ASSETS
GLOBAL COMMODITIES EXCHANGES
COMMODITIES EXCHANGES IN INDIA (REGIONAL & NATIONAL)
COMMODITIES PERMITTED FOR TRADING
KABRA COMMITTEE REPORT (ROADMAP)
COMMODITY SPECIFIC ISSUES
CROPPING AND GROWTH PATTERNS
GLOBAL AND DOMESTIC DEMAND- SUPPLY DYNAMICS
PRICE TRENDS AND FACTORS THAT INFLUENCE PRICES
3. INSTRUMENTS AVAILABLE FOR TRADING
TYPES OF INSTRUMENTS (FUTURE, OPTIONS)
BASICS
PAYOFFS
4. PRICING COMMODITY DERIVATIVES
INVESTMENT ASSETS VERSUS CONSUMPTION ASSETS
THE COST OF CARRY MODEL
PRICING FUTURES CONTRACTS ON INVESTMENT COMMODITIES
PRICING FUTURES CONTRACTS ON CONSUMPTION COMMODITIES
THE FUTURES BASIS
5. USING COMMODITY DERIVATIVE MARKETS
HEDGING
SPECULATION
ARBITRAGE
6. THE NCDEX PLATFORM
ABOUT NCDEX
EXCHANGE MEMBERSHIP
RULES, REGULATIONS, BYELAWS
7. COMMODITIES TO BE TRADED ON THE NCDEX PLATFORM.
TYPES OF COMMODITIES
BULLION (SILVER & GOLD)
AGRICULTURAL COMMODITIES
8. TRADING ON THE NCDEX PLATFORM
CONTRACT SPECIFICATIONS
TRADING SYSTEM
ENTITIES IN THE TRADING SYSTEM
TRADER WORKSTATION
ORDER TYPES AND CONDITIONS
EXPOSURE LIMITS
9. CLEARING, SETTLEMENT AND RISK MANAGEMENT
CALENDAR AND SETTLEMENT SCHEDULE
POSITION DETERMINATION
SETTLEMENT MECHANISM - DAILY MARK TO MARKET SETTLEMENT
SETTLEMENT PRICE - DAILY SETTLEMENT PRICE, FINAL SETTLEMENT PRICE
MARGINING O INITIAL MARGIN | DAILY MARK TO MARKET MARGIN | OPEN INTEREST LIMITS SECOND LINE OF DEFENSE | NSCCL SPAN@
FINAL SETTLEMENT - CASH SETTLEMENT - PHYSICAL SETTLEMENT(WAREHOUSING)
EXCEPTION HANDLING - FUNDS SHORTAGES - DELIVERY SHORTAGES
10. REGULATORY FRAMEWORK
RULES GOVERNING COMMODITY DERIVATIVES EXCHANGES
RULES GOVERNING INTERMEDIARIES
INVESTOR GRIEVANCES, ARBITRATION RULES
ACCOUNTING AND TAXATION ISSUES
MODULE - 5
TECHNICAL ANALYSIS
CHAPTER 1
INTRODUCTON TO TECHNICAL ANALYSIS
WHAT IS TECHNICAL ANALYSIS?
PRICE ANALYSIS
THE BASIC ASSUMPTIONS
STRENGTHS & WEAKNESS OF T.A
CHAPTER 2
CANDLESTICKS AND TYPES OF CHART
LINE CHAT, BAR CHART, CANDLE CHART, RENKO CHART, POINT & FIGURE CHART ETC.
TYPES OF CANDLESTICKS AND ANALYSIS
HAMMER, INVERTED HAMMER, DOJI, HANGING MAN, SHOOTING STAR, ENGULFING PATTERNS, PIERCING PATTERNS
MORNING STAR, EVENING STAR, TASUKI GAP, TWEEZER PATTERNS, THREE WHITE SOLDIERS & BLACK CROW, THREE INSIDE IN & OUT
CHAPTER 3
CHART PATTERN STUDY
SUPPORT & RESISTANCE
PRACTICAL ANALYSIS OF SUPPORT & RESISTANCE
S & R ZONES AND REVERSAL LEVELS
TREND LINES & ITS APPLICATIONS
TREND LINES WITH DOW THEORY
HEAD & SHOULDERS AND INVERTED HEAD & SHOULDERS CHART PATTERNS
DOUBLE TOP & DOUBLE BOTTOM CHART PATTERNS
ROUNDING TOP & ROUNDING BOTTOMS CHART PATTERNS
CUP & HANDLE AND INVERTED CUP & HANDLE CHART PATTERNS
TRIPLE TOP & TRIPLE BOTTOM CHART PATTERNS
WEDGE PATTERNS, FLAG PATTERNS, PENNANT PATTERNS, TRIANGLE PATTERNS
CHAPTER 4
GAP THEORY
COMMON GAPS
BREAKAWAY GAPS
RUNAWAY/ CONTINUATION GAP
EXHAUSTION GAP
ISLAND CLUSTER GAP
CHAPTER 5
INDICATORS AND OSCILLATORS
WHAT ARE INDICATORS AND OSCILLATORS, WHAT THE OFFER?
TYPES OF INDICATORS
MOVING AVERAGES, EXPONENTIAL MOVING AVERAGE & USING BOTH TOGETHER
TREND FOLLOWING INDICATORS
VOLUME WEIGHTED AVERAGE PRICE(VWAP)
RELATIVE STRENGTH INDEX (RSI)
MOVING AVERAGE CONVERGENCE & DIVERGENCE (MACD)
STOCHASTICS OSCILLATORS (SLOW, FAST, FULL)
WILLIAMS %R, WILLIAM ALLIGATOR
RATE OF CHANGE (ROC)
COMMODITY CHANNEL INDEX (CCI)
AVERAGE DIRECTIONAL INDEX (ADX)
AVERAGE TRUE RANGE (ATR)
MONEY FLOW INDEX (MFI)
BOLLINGER BANDS (BB)
ON BALANCE VOLUME (OBV)
FIBONACCI RETRACEMENT (FIB)
CHAPTER 6
TRADING SIGNALS AND STRATEGIES USING ABOVE ALL
POSITIVE & NEGATIVE DIVERGENCES IN INDICATORS
OVERBOUGHT & OVERSOLD ZONES
PREDICTING THE MOMENTUM
PRICE & VOLUME SENSITIVE TECHNIQUES
HOW TO USE INDICATORS IN BULL & BEAR MARKETS?
TRADING MARKET TOOL KIT APPLICATIONS
ADVANTAGES OF DAY TRADING
RISKS ASSOCIATED WITH DAY TRADING
SWING TRADING, SCALPING, FADING, TOP BOTTOM STRATEGIES
CHAPTER 7
DOW THEORY & ELLIOTT WAVE THEORY
INTRODUCTION TO DOW THEORY
PRINCIPLES OF DOW THEORY
SIGNIFICANCE & PROBLEMS OF DOW THEORY
INTO. ELLIOTT WAVE THEORY
PRACTICAL APPLICATION OF ELLIOTT WAVE THEORY WITH FUNDAMENTAL CONCEPTS
ELLIOTT WAVE LEVELS WITH FIBONACCI RETRACEMENTS
CRITICISM OF ELLIOTT WAVE THEORY
CHAPTER 8
TRADING PSYCOLOGY & RISK MANAGEMENT
INTRODUCTION
RISK MANAGEMENT AND ITS COMPONENTS
ANALYZE REWARD RISK RATIO, STOP LOSS, TRAIL STOP LOSS, BOOK PROFIT
QUALITIES OF SUCCESSFUL TRADERS
PSYCHOLOGIES DURING TRADING
CASE STUDIES
GOLDEN RULES OF TRADERS
DO’S & DON’TS IN TRADING
RULES TO STOP LOSING TRADING MONEY
CHOOSING THE PROFITABLE TRADES & STUDYING THE MARKET
IMPORTANCE OF DISCIPLINE IN TRADING
MODULE - 6
FUNDAMENTAL ANALYSIS
CHAPTER 1
INTRODUCTION TO FUNDAMENTAL ANALYSIS
WHAT IS FUNDAMENTAL ANALYSIS?
WHY IS FUNDAMENTAL ANALYSIS RELEVANT FOR INVESTING?
EFFICIENT MARKET HYPOTHESIS(EMH)
ARGUMENTS AGAINST EMH
STEPS IN FUNDAMENTAL ANALYSIS
CHAPTER 2
BRUSHING UP THE BASICS
CONCEPT OF “TIME VALUE OF MONEY”
INTEREST RATES AND DISCOUNTS FACTORS
OPPORTUNITY COST, RISK FREE RATE, EQUITY RISK PREMIUM
THE BETA, RISK ADJUSTED RETURN (SHARPE RATIO)
CHAPTER 3
UNDERSTANDING FINANCIAL STATEMENTS
WHERE CAN ONE FIND FINANCIAL STATEMENTS
THE DIRECTORS REPORTS
THE AUDITORS REPORTS
FINANCIAL STATEMENTS, BALANCE SHEET, INCOME STATEMENTS, SCHEDULE NOTES & ACCOUNTS
CASH FLOW STATEMENTS
FINANCIAL STATEMENT ANALYSIS AND FORENSIC ACCOUNTING
COMPARATIVE AND COMMON SIZE FINANCIAL STATEMENTS
FINANCIAL RATIOS (PE, EPS, BV, PEG, EV, ROE, ROCE ETC...)
DU-PONT ANALYSIS
CASH CONVERSION CYCLE
THE SATYAM SCAM AND NEED OF FORENSIC ACCOUNTING
CHAPTER 4
VALUATION METHODOLIES
TOP- DOWN VALUATION (EIC ANALYSIS)
DISCOUNTED CASH FLOW MODELS
DIVIDEND DISCOUNT MODEL
FCFF & FDFE BASED DCF
SUM OF THE PARTS (SOTP)
PRICE/ EARNINGS RATIO
PRICE/ BOOK VALUE RATIO
ENTERPRISE VALUE/ EBITDA RATIO
PRICE/ SALES RATIO
SPECIAL CASES OF VALUATION
IPOS, FINANCIAL SERVICES, NET INTEREST MARGIN (NIM)
FIRMS WITH NEGATIVE CASH FLOWS, ACQUISITION VALUATIONS, DISTRESSED COMPANIES
WORKING ALL TOGETHER, CHECKLIST.
MODULE - 7
ADVANCED OPTION STRATEGY
CHAPTER 1
INTRODUCTION TO OPTIONS
OPTION TERMINOLOGY
OPTION PAYOFFS
CHAPTER 2
DIFFERENT TYPES OF OPTION STRATEGY
LONG CALL
SHORT CALL
SYNTHETIC LONG CALL
LONG PUT
SHORT PUT
COVERED CALL
LONG COMBO
PROTECTIVE CALL
COVERED PUT
LONG STRTADDLE
SHORT STRADDLE
LONG STRANGLE
SHORT STRANGLE
COLLAR
BULL CALL SPREAD
BULL PUT SPREAD
BEAR CALL SPREAD
BEAR PUT SPREAD
LONG CALL BUTTERFLY
SHORT CALL BUTTERFLY
LONG CALL CONDOR
SHORT CALL CONDOR
MODULE - 8
SECURITIES OPERATIONS & RISK MANAGEMENT
CHAPTER 1
INTRODUCTION TO THE SECURITIES MARKET
INTRODUCTION
SECURITIES MARKET
MONEY MARKETS
PRODUCTS TRADED IN INDIAN SECURITIES MARKETS
CHAPTER 2
MARKET PARTICIPANTS IN THE SECURITIES MARKET
INTRODUCTION
INVESTORS, ISSUERS, INTERMEDIARIES, REGULATORS
CHAPTER 3
INTRODUCTION TO SECURITIES BROKING OPERATIONS
INTRODUCTION TO TRADE LIFE CYCLE
FRONT OFFICE OPERATIONS
MIDDLE OFFICE OPERATIONS
BACK OFFICE OPERATIONS
CHAPTER 4
RISK MANAGEMENT
WHAT IS RISK MANAGEMENT
COMPLIANCES AND REGULATORY REPORTING
CORE SETTLEMENT GUARANTEE FUND
CHAPTER 5
CLEARING & SETTLEMENT PROCESS
INTRODUCTION
ROLE OF THE CLEARING AGENCY/CORP./HOUSES
CLEARING BANKS AND THEIR FUNCTIONS
CLEARING MEMBERS/ CUSTODIANS
DEPOSITORIES & DEPOSITORY PARTICIPANTS
CLEARING PROCESS
DETERMINATION OF SETTLEMENT OBLIGATIONS – EQUITY SEGMENT
SETTLEMENT OF FUNDS
SETTLEMENT OF SECURITIES
CORPORATE ACTIONS ADJUSTMENT
AUCTION OF SECURITIES
INVESTOR GRIEVANCE
ARBITRATION
CHAPTER 6
OTHER SERVICES PROVIDED BY BROKER
INTRODUCTION
IPO APPLICATIONS
TRADING MUTUAL FUNDS UNITS
PORTFOLIO MANAGEMENT
DEPOSITORY SERVICES
RESEARCH REPORT
MODULE - 9
INVESTMENT ADVISER LEVEL 1
CHAPTER 1
INTRODUCTION TO INDIAN FINANCIAL MARKET
UNDERSTAND THE MACRO-ECONOMIC PARAMETERS OF INDIAN ECONOMY
UNDERSTAND THE FEATURES OF INDIAN FINANCIAL MARKETS
KNOW THE STRUCTURE OF INDIAN FINANCIAL MARKETS
UNDERSTAND THE ROLE OF THE PARTICIPANTS IN THE INDIAN FINANCIAL MARKETS
KNOW THE ROLE OF VARIOUS REGULATORS REGULATING INDIAN FINANCIAL MARKETS (IN BRIEF)
CHAPTER 2
SECURITIES MARKET SEGMENTS
UNDERSTAND THE NATURE, FUNCTIONS AND TYPES OF ISSUES IN PRIMARY MARKETS
KNOW THE ROLE AND FUNCTION OF SECONDARY MARKETS
UNDERSTAND THE VARIOUS TYPES OF VARIOUS CORPORATE ACTIONS
CHAPTER 3
MUTUAL FUNDS
UNDERSTAND THE MEANING AND FEATURES OF A MUTUAL FUND
KNOW THE KEY TERMS AND CONCEPTS ASSOCIATED WITH MUTUAL FUNDS
KNOW THE REGULATORY FRAMEWORK FOR MUTUAL FUNDS
KNOW THE VARIOUS TYPES OF MUTUAL FUND PRODUCTS
UNDERSTAND THE TAXATION OF MUTUAL FUND PRODUCTS
KNOW THE INVESTMENT OPTIONS IN MUTUAL FUNDS
KNOW THE PROCESSES ASSOCIATED WITH INVESTING IN MUTUAL FUNDS
UNDERSTAND THE USES AND PROCESSES OF CONDUCTING SYSTEMATIC TRANSACTIONS I. LIST THE BENEFITS OF INVESTING WITH MUTUAL FUNDS
CHAPTER 4
INVESTMENT PRODUCTS
UNDERSTAND THE VARIOUS TYPES OF SMALL SAVINGS INSTRUMENTS
UNDERSTAND THE VARIOUS TYPES OF FIXED INCOME / DEBT INSTRUMENTS
KNOW THE VARIOUS TYPES OF ALTERNATE INVESTMENTS
KNOW THE CONCEPT OF DIRECT EQUITY AS AN INVESTMENT OPTION
CHAPTER 5
MANAGING INVESTMENT RISK
KNOW THE CONCEPT OF RISK
KNOW THE COMMON TYPES OF RISK
UNDERSTAND THE WAYS OF MEASURING RISK
CHAPTER 6
MEASURING INVESTMENT RETURNS
UNDERSTAND THE VARIOUS RETURN CONCEPTS
UNDERSTAND THE CONCEPT OF RETURN
UNDERSTAND THE CONCEPT OF COMPOUNDING
KNOW THE COMPUTATION OF REAL RATE OF RETURN VS. NOMINAL RETURN
KNOW THE COMPUTATION OF TAX ADJUSTED RETURN
UNDERSTAND THE CONCEPT OF RISK-ADJUSTED RETURNS
CHAPTER 7
CONCEPT OF FINANCIAL PLANNING
UNDERSTAND WHAT CONSTITUTES FINANCIAL PLANNING
KNOW THE NEED FOR FINANCIAL ADVISORY SERVICES
UNDERSTAND THE SCOPE OF FINANCIAL ADVISORY SERVICES
UNDERSTAND THE BUSINESS MODEL FOR THE DELIVERY OF FINANCIAL ADVICE TO CLIENT
UNDERSTAND ASSETS, LIABILITIES AND NET WORTH
UNDERSTAND THE PREPARATION OF BUDGET
KNOW THE FINANCIAL PLANNING DELIVERY PROCESS
CHAPTER 8
ASSET ALLOCATION AND INVESTMENT STRATEGIES
KNOW THE VARIOUS ASSET CLASSES
LEARN ABOUT PORTFOLIO CONSTRUCTION
UNDERSTAND THE CONCEPT OF PRACTICAL ASSET ALLOCATION AND REBALANCING STRATEGIES
KNOW THE NEED FOR PORTFOLIO MONITORING AND RE-BALANCING
CHAPTER 9
INSURANCE PLANNING
UNDERSTAND THE NEED FOR INSURANCE IN PERSONAL FINANCE
LIST THE REQUIREMENTS FOR A RISK TO BE INSURABLE
UNDERSTAND THE ROLE OF INSURANCE IN PERSONAL FINANCE.
KNOW THE VARIOUS STEPS INVOLVED IN INSURANCE PLANNING
KNOW THE TYPES OF INSURANCE PRODUCTS
UNDERSTAND ABOUT THE LIFE INSURANCE PRODUCTS
UNDERSTAND ABOUT THE NON-LIFE INSURANCE PRODUCTS
UNDERSTAND THE LIFE INSURANCE NEEDS ANALYSIS (HUMAN LIFE APPROACH, NEEDS APPROACH)
CHAPTER 10
RETIREMENT PLANNING
UNDERSTAND THE RETIREMENT PLANNING PROCESS
UNDERSTAND AND ESTIMATE RETIREMENT CORPUS
DETERMINE THE RETIREMENT CORPUS
LEARN ABOUT THE VARIOUS RETIREMENT PRODUCTS AND THEIR FEATURES
CHAPTER 11
TAX AND ESTATE PLANNING
UNDERSTAND INCOME TAX PRINCIPLES
UNDERSTAND TAX ASPECTS OF INVESTMENT PRODUCTS
LEARN ABOUT THE WEALTH TAX ACT AND ITS IMPLICATION FOR CLIENTS
KNOW ABOUT ESTATE PLANNING
CHAPTER 12
REGULATORY ENVIRONMENT AND ETHICAL ISSUES
UNDERSTAND THE PROVISIONS OF THE SEBI (INVESTMENT ADVISERS) REGULATIONS, 2013
UNDERSTAND THE OVERALL FRAMEWORK OF THE REGULATORY SYSTEM
LEARN ABOUT THE ROLES OF REGULATORS: MOF, MCA, SEBI, RBI, IRDA, PFRDA
UNDERSTAND THE ROLE OF SELF-REGULATORY ORGANIZATIONS
UNDERSTAND THE PROVISIONS OF PMLA, 2002
KNOW THE CODES OF CONDUCT BY SEBI, AMFI, ETC
KNOW THE ETHICAL ISSUES IN PROVIDING FINANCIAL ADVICE H. UNDERSTAND INVESTOR COMPLAINT REDRESSAL MECHANISM
PRACTICALS
WORKSHOPS ABOUT FUND MANAGEMENT
VIRTUAL PORTFOILO CONSTRUCTION
QUALITY RESEARCH REPORTS
ANALYSING RISK WITH ALLOCATING FUND
WHAT TO DO DURING SCHEDULED AND UNSCHEDULED *EVENTS?
ANALYSING TECHNICAL ANALYSIS WITH FUNDAMENTALS.
MODULE - 10
RESEARCH ANALYST MODULE
CHAPTER 1
INTRODUCTION TO RESEARCH ANALYST PROFESSION
PRIMARY ROLE OF RESEARCH ANALYST
PRIMARY RESPONSIBILITIES OF A R.A
BASIC PRINCIPLES OF INTERACTION WITH COMPANIES/CLIENTS
IMPORTANT QUALITIES OF A RESEARCH ANALYST
CHAPTER 2
INTRODUCTION TO SECURITES MARKET
INTRODUCTION TO INDIAN FINANCIAL MARKET
PRODUCTS DEFINITIONS/ TERMINOLOGY
TERMINOLOGY IN EQUITY MARKET & DEBT MARKET
TYPES OF BONDS
STRUCTURE OF SECURITIES MARKET
VARIOUS MARKET PARTICIPANTS AND THEIR ACTIVITY
KINDS OF TRANSACTIONS
DEMATERIALIZATION AND REMATERIALIZATION OF SECURITIES
CHAPTER 3
FUNDAMENTALS OF RESEARCH
WHAT IS INVESTING?
RESEARCH ON BUSINESSES OF STOCKS
FUNDAMENTAL ANALYSIS
TECHNICAL ANALYSIS
BEHAVIORAL FINANCE
CHAPTER 4
ECONOMIC ANALYSIS
BASIC PRINCIPLE OF MICROECONOMICS
BASIC PRINCIPLES OF MACROECONOMICS
INTRODUCTION TO VARIOUS MACROECONOMIC VARIABLES
SOURCES OF INFORMATION FOR ECONOMICS ANALYSIS
CHAPTER 5
INDUSTRY ANALYSIS
MICHAEL PORTER’S FIVE FORCE MODEL FOR INDUSTRY ANALYSIS
POLITICAL, ECONOMIC, SOCIO- CULTURAL, TECHNOLOGICAL, LEGAL & ENVIRONMENTAL (PESTLE) ANALYSIS
BOSTON CONSULTING GROUP (BCG) ANALYSIS
STRUCTURE CONDUCT PERFORMANCE (SCP)
KEY INDUSTRY DRIVERS
REGULATORY ENVIRONMENT/FRAMEWORK
SOURCES OF INFORMATION FOR INDUSTRY ANALYSIS
CHAPTER 6
COMPANY ANALYSIS – QUALITATIVE DIMENSIONS
UNDERSTAND BUSINESS AND BUSINESS MODELS
COMPETITIVE ADVANTAGES/ POINTS OF DIFFERENTIATION OVER THE COMPETITORS
STRENGTH, WEAKNESS, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS
QUALITY OF MANAGEMENT (DIRECTORS, GOVERNANCE)
PRICING POWER AND SUSTAINABILITY OF THIS POWER
ORGANIZATION STRUCTURE
CRITICAL BUSINESS DRIVERS/SUCCESS FACTORS
RISK IN BUSINESS
COMPLIANCE ORIENTATION OF THE COMPANY
DOCUMENTATION ON GUIDANCE VS ACTUALS
SOURCES OF INFORMATION FOR ANALYSIS
CHAPTER 7
COMPANY ANALYSIS – QUANTITATIVE ANALYSIS
HISTORY OF BUSINESS VS FUTURE OF BUSINESS
BASICS PROFIT AND LOSS ACCOUNT (P/L)
BASICS OF BALANCE SHEET
BASICS OF CASH FLOWS
CONTINGENT LIABILITIES
BASICS OF TAXATIONS AFFECTING TO COMPANIES
IMPORTANT POINTS TO KEEP IN MIND WHILE LOOKING AT FINANCIALS
QUALITY OF BUSINESS IN THE PAST THROUGH QUANTITATIVE LENSES
PEEPING IN TO FUTURE WITH CAUTIONS
PEER COMPARISON
HISTORY OF EQUITY EXPANSION
DIVIDEND AND EARNINGS HISTORY
HISTORY OF CORPORATE ACTIONS
PHILOSOPHY OF CORPORATE ACTIONS
OWNERSHIP AND INSIDERS’ SALES AND PURCHASE OF STOCKS IN THE PAST
CHAPTER 8
VALUATION PRINCIPLES
DIFFERENCE BETWEEN PRICE AND VALUE
WHY VALUATIONS ARE REQUIRED
SOURCES OF VALUE IN A BUSINESS-EARNINGS AND ASSETS
DISCOUNTED CASH FLOWS MODEL FOR BUSINESS VALUATION
ABSOLUTE VALUATION VS PRICE VALUE SENSE
EARNINGS BASED VALUATION MATRICES
ASSETS BASED VALUATION MATRICES
RELATIVE VALUATIONS – TRADING AND TRANSACTIONS MULTIPLES
SUM OF THE PARTS (SOTP) VALUATION
OTHER VALUATION PARAMETERS IN NEW AGE ECONOMY AND BUSINESS
CAPITAL ASSET PRICING MODEL
OBJECTIVE OF VALUATIONS
SOME IMPORTANT CONSIDERATION IN THE CONTEXT OF BUSINESS VALUATION
CHAPTER 9
FUNDAMENTALS OF RISK AND RETURN
CONCEPT OF RETURN OF INVESTMENT AND RETURN ON INVESTMENT
CALCULATION OF SIMPLE, ANNUALIZED AND COMPOUNDED RETURNS
RISK IN INVESTMENT
CONCEPTS PF MARKET RISK (BETA)
SENSITIVITY ANALYSIS TO ASSUMPTIONS
CONCEPT OF MARGIN OF SAFETY
COMPARISON OF EQUITY RETURNS WITH BOND RETURNS
BASIC BEHAVIORAL BIASES INFLUENCING INVESTMENTS
SOME PEARLS OF WISDOM FROM INVESTMENT GURUS ACROSS THE WORLD
CHAPTER 10
QUALITIES OF A GOOD RESEARCH REPORT
QUALITIES OF A GOOD RESEARCH ANALYST FOR GOOD RESEARCH REPORT
CHECKLIST BASED APPROACH TO THE RESEARCH REPORTS
A SAMPLE CHECKLIST FOR INVESTMENT RESEARCH REPORTS
CHAPTER 11
LEGAL AND REGULATORY ENVIRONMENT
REGULATORY INFRASTRUCTURE IN FINANCIAL MARKETS
IMPORTANT REGULATIONS IN INDIAN SECURITIES MARKETS
CODE OF CONDUCT FOR RESEARCH ANALYST
MANAGEMENT OF CONFLICTS OF INTEREST AND DISCLOSURE REQUIREMENT FOR RESEARCH ANALYSTS
PRACTICALS
HOW TO WRITE A GOOD RESEARCH REPORT?
SELECTION OF STOCKS OR ANY SECURITIES
SOURCES FOR RESEARCH REPORT
ANALYSING RESEARCH REPORTS OF OTHER INVESTMENT FIRMS
HOW TO CLONE A REPORT?
CASE STUDIES OF GOOD RESEARCH REPORTS
QUALITIES OF GOOD RESEARCH REPORTS
ROLE OF RESEARCH ANALYST IN OUR FINANCIAL MARKET.