FIMMDA-NSE Debt Market Basic Module (Foundation) Practice Exam

The FIMMDA-NSE Debt Market Basic Module (Foundation) from NISM is a certification program that provides foundational knowledge of the debt markets in India. It covers key concepts, practices, and regulations related to fixed-income securities, government and corporate bonds, treasury bills, and other debt instruments traded in the Indian financial markets. The module is designed to help participants understand the role of debt markets in financial systems, the regulatory framework governing them, and the processes involved in trading, pricing, and managing debt securities.
Why is FIMMDA-NSE Debt Market Basic Module (Foundation) important?

• Provides a strong foundation in understanding debt markets in India.
• Enhances career prospects in fixed income and treasury roles.
• Develops knowledge of the regulatory environment and market structure.
• Enables participants to learn key concepts related to bonds, interest rates, and yield curves.
• Helps professionals understand the functioning of government securities and corporate bonds.
• Prepares candidates for roles in trading, risk management, and financial analysis related to debt markets.
• Beneficial for those pursuing a career in banking, investment firms, or financial institutions.

Who should take the FIMMDA-NSE Debt Market Basic Module (Foundation) Exam?

• Debt Market Analysts
• Treasury Professionals
• Investment Bankers
• Financial Analysts
• Bond Traders
• Risk Managers
• Portfolio Managers
• Compliance Officers in Financial Institutions

Skills Evaluated

Candidates taking the certification exam on the FIMMDA-NSE Debt Market Basic Module (Foundation) is evaluated for the following skills:

• Understanding of debt instruments, including bonds and government securities.
• Knowledge of pricing, yield, and valuation of debt instruments.
• Familiarity with interest rate risk management and the concept of duration.
• Understanding of the regulatory framework for debt markets in India.
• Ability to analyze and interpret market trends and economic indicators.
• Knowledge of the operational aspects of debt market trading and settlement.
• Skills in calculating various debt market metrics like yield, price, and coupon payments.

FIMMDA-NSE Debt Market Basic Module (Foundation) Certification Course Outline
The FIMMDA-NSE Debt Market Basic Module (Foundation) Certification covers the following topics -

Module 1. Debt Instruments

• Basic concepts of debt instruments

Module 2. Indian Debt Markets

• Different types of products and participants

• The secondary market for debt instruments

Module 3. Central Government Securities: Bonds

• Primary issuance process

• Participants in Government bond markets

• Constituent SGL accounts

• Concept of Primary dealers, Satellite dealers

• Secondary markets for Government bonds

• Settlement of trades in G-Secs

• Clearing corporation

• Negotiated Dealing System

• Liquidity Adjustment Facility (LAF)

Module 4. State Government Bonds

• the Gross fiscal deficit of State Governments and their financing

• Volume, Coupon rates, and ownership pattern of State Government bonds

Module 5. Call Money Markets

• Participants in the call markets

• Call rates

Module 6. Corporate Debt: Bond

• Market segments

• Issue process

• Issue management and Book building

• Terms of a Credit rating

Module 7. Commercial Paper & Certificate of Deposits

• Guidelines for CP Issue

• Rating notches for CPs

• Growth in the CP market

• Stamp duty

• Certificates of deposit

Module 8. Repos

• Repo rate

• Calculating settlement amounts in Repo transactions

• Advantages of Repos

• Recent

• Issues in the repo market in India

• Secondary market transactions in Repos

• Repo accounting

Module 9. Bond Market Indices and Benchmarks

• I-Bex: Sovereign bond index

• NSE-MIBID/MIBOR

Module 10. Trading Mechanism in the NSE-WDM

• Description of the NSE WDM trading system

• Order types and conditions

• After that, Order entry in negotiated trades market

• Order validation and matching

• Trade management

• Reports

• Settlement

• Rates of Brokerage

Module 11. Regulatory and Procedural Aspects

• G-Sec Act 2006

• SEBI (Issue and Listing of Debt Securities) Regulations 2008 and Market Practices and Procedures