Qualities of a Good Research Report
7 questions. Each answer is explained.
Question 1 of 7Practice · Series XV — Research Analyst
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Learn these topics
More units in NISM Series XV
- Introduction to Research Analyst Profession2
- Introduction to Securities Market3
- Terminology in Equity and Debt Markets3
- Fundamentals of Research7
- Economic Analysis7
- Industry Analysis12
- Company Analysis – Business and Governance9
- Company Analysis – Financial Analysis16
- Corporate Actions7
- Valuation Principles13
- Fundamental analysis of commodities9
- Fundamentals of Risk and Return10
- Legal and Regulatory Environment15
- Technical Analysis22
- Case Study - Valuation8
Exam format
| Questions | 100 · 1 mark each |
|---|---|
| Duration | 120 min · 2 hours |
| Pass mark | 60% · 60 of 100 marks |
| Negative marking | 25% · 0.25 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | Not published by NISM |
NISM Series XV Research Analyst
Exam rules read on NISM's site on 3 October 2026. Exam pattern revised on 20 January 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 3 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 7 questions on Qualities of a Good Research Report, with answers
Q1Which presentation best improves the quality and usability of a research report?
Option A. Clearly separating facts, assumptions, forecasts and conclusions — Correct answer
Option B. Mixing facts, forecasts and opinions together without labels
Why it is wrong: Mixing categories makes the logic difficult to audit.
Option C. Omitting all risks so that the recommendation is easier to read
Why it is wrong: Omitting material risks makes the report less balanced and useful.
Option D. Using only management’s wording without independent analysis
Why it is wrong: A research report should contain independent analysis.
Answer: A. A good research report should make clear what is historical fact, what is an assumption or forecast, and what judgement the analyst has drawn. This improves transparency and allows the reader to evaluate the reasoning. Remember: A reader should be able to trace the analyst’s conclusion back to evidence and assumptions.
Hint, shown before you answer in practice mode: Common mistake: Presenting forecasts in a way that makes them look like established facts.
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Q2What is a key advantage of using a well-designed checklist when preparing research reports?
Option A. It guarantees that the final recommendation will be profitable
Why it is wrong: No research process can guarantee profit.
Option B. It improves consistency and helps avoid missing key items — Correct answer
Option C. It removes the need for any analyst judgement in the report
Why it is wrong: Judgement remains necessary to interpret evidence.
Option D. It permits the analyst to ignore evidence that contradicts the view
Why it is wrong: Good research must confront, not suppress, contradictory evidence.
Answer: B. A checklist can improve process discipline, consistency and completeness across reports. It does not guarantee a correct investment outcome and should support rather than replace professional judgement. Remember: Checklists are process-control tools, not substitutes for thinking.
Hint, shown before you answer in practice mode: Common mistake: Using a checklist mechanically and assuming completion equals analytical quality.
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Q3Two brokerage firms both use the word “Buy,” but one defines it as more than 10% expected upside over 12 months and the other uses a different threshold and horizon. What should a careful reader do?
Option A. Assume the two ratings are directly identical and can be compared one for one
Why it is wrong: Rating labels can use different definitions.
Option B. Ignore the valuation section of each report because the word “Buy” is sufficient
Why it is wrong: The underlying valuation and reasoning remain important.
Option C. Check each firm’s stated rating definition, return threshold and time horizon — Correct answer
Option D. Treat “Buy” from either firm as a guarantee of a positive return
Why it is wrong: A recommendation is not a guaranteed outcome.
Answer: C. Rating labels are meaningful only in the context of the firm’s published convention, including benchmark, expected-return threshold and time horizon. A label alone should not be compared mechanically across research providers. Remember: Always interpret a research rating using the provider’s stated convention and horizon.
Hint, shown before you answer in practice mode: Common mistake: Comparing recommendation words across firms without reading their definitions.
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Q4A report gives a target price based on three years of forecasts. Which addition would most improve the report’s analytical quality?
Option A. A list of only the positive catalysts that could push the price up
Why it is wrong: Only positive catalysts create an unbalanced presentation.
Option B. A promise that the target price will be reached within the three years
Why it is wrong: Target prices are estimates, not promises.
Option C. Removal of all alternative scenarios so the message stays simple
Why it is wrong: Alternative scenarios can be useful for understanding uncertainty.
Option D. Key assumptions, risks, catalysts and what could break the thesis — Correct answer
Answer: D. A strong report should expose the assumptions behind its valuation and discuss both upside drivers and material risks, including what evidence would cause the analyst to revisit the thesis. This makes the research testable rather than promotional. Remember: Good research is falsifiable: it states the assumptions and evidence that would change the conclusion.
Hint, shown before you answer in practice mode: Common mistake: Writing a persuasive narrative without specifying what could make it wrong.
XV-094hardconceptual
Q5Which checklist is most likely to improve the completeness of an equity research report?
Option A. The current share price and one technical indicator, no more
Why it is wrong: It omits most elements needed for a complete research report.
Option B. Thesis, assumptions, financials, valuation, risks and disclosures — Correct answer
Option C. Management's latest investor presentation, used on its own
Why it is wrong: Management material is only one input and should not replace independent analysis.
Option D. A target price on its own, with no explanation behind it
Why it is wrong: A target price without basis is not a complete research report.
Answer: B. A structured checklist helps ensure that the report covers the core analytical chain from thesis and evidence through forecasts, valuation, risks and disclosures. Remember: A checklist improves consistency by reducing the chance that important analytical or disclosure elements are omitted.
Hint, shown before you answer in practice mode: Common mistake: Treating a target price as a substitute for the research process.
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Q6A research house uses the rating 'Outperform'. What should the report do to make this rating useful and comparable to readers?
Option A. Leave the term undefined, because all firms use the same meaning for it
Why it is wrong: Rating conventions vary across firms.
Option B. Define only the analyst's name, qualifications and registration number
Why it is wrong: Analyst identity does not define the rating.
Option C. State only the current share price on the date the report is issued
Why it is wrong: Current price alone does not explain the convention.
Option D. Define the return threshold, benchmark and time horizon behind it — Correct answer
Answer: D. Rating terms are meaningful only when the reader knows the return threshold, benchmark and time horizon to which they refer. Remember: Research ratings must be defined, not assumed.
Hint, shown before you answer in practice mode: Common mistake: Comparing ratings from different research houses without checking their definitions.
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Q7A report's target price depends heavily on long-term margin and discount-rate assumptions. Which addition most improves the report's analytical transparency?
Option A. A sensitivity or scenario table for the key assumptions — Correct answer
Option B. Removing all assumptions from the report to keep it short
Why it is wrong: Assumptions should be stated rather than hidden.
Option C. Publishing only the most optimistic case for the stock
Why it is wrong: A one-sided case reduces transparency.
Option D. Replacing valuation analysis with management quotations
Why it is wrong: Management commentary cannot replace independent valuation work.
Answer: A. Sensitivity and scenario analysis show how dependent the valuation conclusion is on uncertain assumptions and help readers assess the range of plausible outcomes. Remember: Good research makes important assumptions visible and tests their impact.
Hint, shown before you answer in practice mode: Common mistake: Presenting a single precise target price without showing material assumption risk.
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Qualities of a Good Research Report: common questions
How many practice questions are there on Qualities of a Good Research Report?
7 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 16 practice topics for NISM Series XV, which has 150 questions in total.
Are these real NISM Series XV questions on Qualities of a Good Research Report?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
Does negative marking apply to NISM Series XV?
Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1-mark question that is 0.25 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Legal and Regulatory Environment
15 questions on Legal and Regulatory Environment. Its quiz opens on that unit.
Open Legal and Regulatory Environment