NCFM Capital Market (Dealers) study plan

Map the full equity cash-market lifecycle from order entry to settlement, writing a one-page flow diagram in your own words

Distinguish primary market issuance (IPO, FPO, rights, preferential allotment) from secondary market trading and list who bears which risk in each

Explain the roles of exchange, clearing corporation, depository, DP and broker, and state which entity guarantees settlement

Compute T+1 settlement obligations and margin requirements for a worked trade example, showing pay-in and pay-out legs

Define circuit limits, price bands and the call auction mechanism, and state when each applies

Compare market orders, limit orders, SL and SL-M orders and state the execution risk of each

Explain margin trading facility, securities lending and borrowing, and short-selling mechanics including the institutional vs retail distinction

Identify the main debt instrument categories (G-sec, T-bill, corporate bond, commercial paper, certificate of deposit) and their issuers

Compute simple yield and price for a T-bill and a coupon bond using the standard formulas

Describe the primary issuance route for G-secs (auction types) versus corporate bonds (private placement, public issue)

Derive the relationship between bond price, coupon, YTM and duration, and show numerically why price falls when yield rises

Compute accrued interest, dirty price and clean price for a bond between coupon dates

Explain the yield curve, its common shapes, and what each shape implies about expectations

Distinguish credit rating scales and state what a downgrade does to a bond's price and a fund's NAV

Describe the repo market, collateral and the role of the clearing house in a repo transaction

Outline the regulatory framework for debt trading, including reporting platforms and settlement cycles

Explain how a free-float market-capitalisation weighted index is constructed and why free float rather than full market cap is used

Compute an index level from a small set of constituent prices, shares and free-float factors

Describe the impact of a constituent addition, deletion and rebalancing on index level and on a tracking fund

Distinguish price return from total return indices and state when each is used as a benchmark

List the main Indian benchmark indices and the sector or size segment each represents

Explain index maintenance rules: capping, liquidity screens and review frequency

Summarise how index derivatives are used for hedging, speculation and arbitrage, and state the cash-futures basis relationship

Explain futures pricing including cost of carry, and compute the fair value of an index futures contract given spot, rate, dividend yield and days to expiry

Define open interest, rollover and basis, and interpret what a rising OI with rising price signals

Describe the settlement of index futures and options, including cash settlement and final settlement price

Explain how an ETF tracks an index and identify tracking error, premium and discount

Explain option payoffs for calls and puts at expiry and draw payoff and profit diagrams including premium

Compute intrinsic value, time value and the Greeks' directional meaning (delta, gamma, theta, vega) without relying on memorised formulas

Apply put-call parity to a numerical example and identify an arbitrage when parity is violated

Distinguish the strategies of covered call, protective put, straddle and spread, and state the market view each expresses

Describe margining for options (SPAN-style) and explain why option sellers face different margin treatment than buyers

Explain exercise and assignment mechanics, including the role of the clearing corporation

Explain the structure of the currency derivatives market, including OTC forwards versus exchange-traded futures and options

Compute a forward rate from spot, domestic rate and foreign rate using covered interest parity

Distinguish outright forward, swap and carry trades and state the cash-flow timing of each

Interpret USD/INR quotation conventions, tick size and contract size, and compute contract value and margin for a worked position

Describe hedging by an importer and an exporter with currency futures, showing the gain or loss on the hedge

Explain settlement and expiry of currency futures, including the reference rate used

Revise all five domains against your error log and re-attempt every missed question until each is explained correctly in writing

Complete two full-length timed mock tests under exam conditions and score each by domain

Identify your three weakest sub-topics from mock results and close each with a targeted one-hour drill

Write a one-page formula sheet covering bond pricing, futures fair value, parity, forward rates and index weighting

Simulate exam-day pacing and state your time budget per domain