Prelims Syllabus of sebi grade a Exam 2024

SEBI Grade A Exam 2024: Prelims Syllabus Breakdown

Section 1: General Awareness

This section tests your understanding of current affairs, financial markets, and the Indian economy.

1.1 Current Events:

• National: Major political, economic, and social developments in India.
• International: Significant global events, including political, economic, and social issues.
• Business and Economy: Key trends in the Indian and global economies, including macroeconomic indicators, industry performance, and major business deals.
• Financial Markets: Developments in the Indian stock market, bond market, and other financial instruments.
• Science and Technology: Major advancements and breakthroughs in science and technology, with a focus on their impact on society.
• Sports: Important sporting events and achievements, both national and international.
• Culture and Arts: Notable events and developments in Indian and global culture and arts.

1.2 Financial Markets:

• Capital Markets: Understanding of the Indian stock market, including the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), different types of securities (equity, debt, derivatives), market indices, trading mechanisms, and regulatory framework.
• Money Markets: Knowledge of the Indian money market, including interbank lending, treasury bills, commercial paper, and other short-term instruments.
• Foreign Exchange Market: Understanding of the foreign exchange market, including exchange rates, forex derivatives, and the role of the Reserve Bank of India (RBI).
• Mutual Funds: Knowledge of different types of mutual funds, their investment strategies, and regulatory framework.
• Insurance: Understanding of the Indian insurance sector, including life insurance, general insurance, and regulatory framework.
• Financial Institutions: Knowledge of key financial institutions in India, including banks, non-banking financial companies (NBFCs), and financial institutions regulated by SEBI.

1.3 Indian Economy:

• Economic Indicators: Understanding of key macroeconomic indicators, including GDP growth, inflation, unemployment, and fiscal deficit.
• Economic Policies: Knowledge of major economic policies implemented by the Indian government, including monetary policy, fiscal policy, and industrial policy.
• Economic Reforms: Understanding of the economic reforms undertaken in India since 1991, including liberalization, privatization, and globalization.
• Key Sectors: Knowledge of the performance and challenges of key sectors in the Indian economy, including agriculture, industry, and services.
• International Trade: Understanding of India’s international trade, including exports, imports, and trade agreements.

1.4 Financial Institutions and Regulations:

• Reserve Bank of India (RBI): Understanding of the role and functions of the RBI, including monetary policy, financial stability, and regulation of banks.
• Securities and Exchange Board of India (SEBI): Knowledge of the role and functions of SEBI, including regulation of the securities market, investor protection, and market development.
• Insurance Regulatory and Development Authority of India (IRDAI): Understanding of the role and functions of IRDAI, including regulation of the insurance sector.
• Other Financial Regulators: Knowledge of other financial regulators in India, such as the Pension Fund Regulatory and Development Authority (PFRDA) and the National Housing Bank (NHB).

1.5 Static GK:

• Indian Polity: Basic understanding of the Indian Constitution, including fundamental rights, directive principles, and the structure of the government.
• History: Important events and personalities in Indian history.
• Geography: Knowledge of Indian geography, including physical features, climate, and major cities.
• General Science: Basic understanding of science and technology, including physics, chemistry, biology, and environmental science.

Section 2: Quantitative Aptitude

This section tests your ability to solve problems involving numbers, data interpretation, and logical reasoning.

2.1 Number Systems:

• Number Theory: Understanding of different types of numbers, including natural numbers, integers, rational numbers, and irrational numbers.
• HCF and LCM: Finding the highest common factor (HCF) and least common multiple (LCM) of numbers.
• Fractions and Decimals: Operations on fractions and decimals, including addition, subtraction, multiplication, and division.
• Percentages: Calculating percentages, finding percentage increase/decrease, and solving problems involving percentages.
• Profit and Loss: Calculating profit, loss, and profit/loss percentage.
• Simple Interest and Compound Interest: Calculating simple interest and compound interest.
• Ratio and Proportion: Understanding ratios and proportions, and solving problems involving them.
• Average: Calculating the average of a set of numbers.
• Time and Work: Solving problems involving time, work, and efficiency.
• Time and Distance: Solving problems involving time, distance, and speed.

2.2 Data Interpretation:

• Tables: Analyzing data presented in tables and answering questions based on the data.
• Graphs: Analyzing data presented in graphs, including bar graphs, line graphs, pie charts, and histograms.
• Data Sufficiency: Determining whether the given information is sufficient to answer the question.

2.3 Logical Reasoning:

• Logical Deduction: Drawing logical conclusions from given statements.
• Syllogisms: Understanding and solving syllogisms.
• Coding-Decoding: Solving problems involving coding and decoding.
• Blood Relations: Understanding family relationships and solving problems based on them.
• Direction Sense: Solving problems involving direction and distance.
• Series: Identifying patterns in series and finding the missing term.
• Analogy: Identifying relationships between words or concepts.

Section 3: Reasoning Ability

This section tests your ability to think critically, analyze information, and solve problems using logic and reasoning.

3.1 Verbal Reasoning:

• Reading Comprehension: Understanding and interpreting passages of text.
• Critical Reasoning: Analyzing arguments, identifying assumptions, and drawing conclusions.
• Verbal Analogies: Identifying relationships between words or concepts.
• Sentence Completion: Completing sentences with the most appropriate word or phrase.
• Para Jumbles: Rearranging jumbled paragraphs to form a coherent passage.

3.2 Non-Verbal Reasoning:

• Spatial Reasoning: Understanding and manipulating spatial relationships.
• Logical Reasoning: Solving problems using logic and reasoning.
• Pattern Recognition: Identifying patterns in figures and sequences.
• Series: Identifying patterns in series and finding the missing term.
• Analogy: Identifying relationships between figures.

Section 4: Financial Markets and Securities Laws

This section tests your understanding of the Indian financial markets and the legal framework governing them.

4.1 Financial Markets:

• Capital Markets: Understanding of the Indian stock market, including the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), different types of securities (equity, debt, derivatives), market indices, trading mechanisms, and regulatory framework.
• Money Markets: Knowledge of the Indian money market, including interbank lending, treasury bills, commercial paper, and other short-term instruments.
• Foreign Exchange Market: Understanding of the foreign exchange market, including exchange rates, forex derivatives, and the role of the Reserve Bank of India (RBI).
• Mutual Funds: Knowledge of different types of mutual funds, their investment strategies, and regulatory framework.
• Insurance: Understanding of the Indian insurance sector, including life insurance, general insurance, and regulatory framework.
• Financial Institutions: Knowledge of key financial institutions in India, including banks, non-banking financial companies (NBFCs), and financial institutions regulated by SEBI.

4.2 Securities Laws:

• Securities and Exchange Board of India (SEBI) Act, 1992: Understanding of the key provisions of the SEBI Act, including the establishment of SEBI, its powers and functions, and the regulatory framework for the securities market.
• Companies Act, 2013: Knowledge of the provisions of the Companies Act relevant to the securities market, including disclosures, corporate governance, and insider trading.
• Depositories Act, 1996: Understanding of the Depositories Act, including the role of depositories, depository participants, and electronic trading.
• Securities Contracts (Regulation) Act, 1956: Knowledge of the provisions of the Securities Contracts (Regulation) Act, including the regulation of stock exchanges and trading activities.
• Foreign Exchange Management Act (FEMA), 1999: Understanding of the provisions of FEMA relevant to the securities market, including foreign investment and repatriation of funds.
• Other Relevant Laws: Knowledge of other relevant laws, such as the Prevention of Money Laundering Act (PMLA), the Insider Trading Regulations, and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

4.3 SEBI Regulations:

• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018: Understanding of the regulations governing the issue of capital by companies, including IPOs, FPOs, and rights issues.
• SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: Knowledge of the regulations governing the listing of securities on stock exchanges, including disclosure requirements and corporate governance practices.
• SEBI (Prohibition of Insider Trading) Regulations, 2015: Understanding of the regulations prohibiting insider trading, including the definition of insider information, penalties for insider trading, and the role of the SEBI in enforcing these regulations.
• SEBI (Mutual Funds) Regulations, 1996: Knowledge of the regulations governing mutual funds, including the structure of mutual funds, investment strategies, and disclosure requirements.
• SEBI (Foreign Portfolio Investors) Regulations, 2019: Understanding of the regulations governing foreign portfolio investors (FPIs), including registration requirements, investment limits, and repatriation of funds.
• SEBI (Securities Lending and Borrowing) Regulations, 2014: Knowledge of the regulations governing securities lending and borrowing, including the purpose of securities lending and borrowing, the role of the SEBI in regulating these activities, and the risks associated with securities lending and borrowing.

4.4 Market Infrastructure Institutions:

• Stock Exchanges: Understanding of the role and functions of stock exchanges, including the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
• Clearing Corporations: Knowledge of the role and functions of clearing corporations, including the National Securities Clearing Corporation Limited (NSCCL) and the Clearing Corporation of India Limited (CCIL).
• Depositories: Understanding of the role and functions of depositories, including the National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL).
• Custodian Banks: Knowledge of the role and functions of custodian banks, including the custody of securities, settlement of trades, and other related services.

4.5 Investor Protection:

• Investor Education: Understanding of the importance of investor education and the role of SEBI in promoting investor awareness.
• Investor Grievances: Knowledge of the mechanisms for redressal of investor grievances, including the SEBI Investor Protection Fund (IPF) and the SEBI Ombudsman.
• Investor Rights: Understanding of the rights of investors, including the right to information, the right to fair treatment, and the right to redressal of grievances.

Section 5: Economy and Financial System

This section tests your understanding of the Indian economy and the financial system.

5.1 Indian Economy:

• Economic Indicators: Understanding of key macroeconomic indicators, including GDP growth, inflation, unemployment, and fiscal deficit.
• Economic Policies: Knowledge of major economic policies implemented by the Indian government, including monetary policy, fiscal policy, and industrial policy.
• Economic Reforms: Understanding of the economic reforms undertaken in India since 1991, including liberalization, privatization, and globalization.
• Key Sectors: Knowledge of the performance and challenges of key sectors in the Indian economy, including agriculture, industry, and services.
• International Trade: Understanding of India’s international trade, including exports, imports, and trade agreements.

5.2 Financial System:

• Banking System: Understanding of the Indian banking system, including commercial banks, cooperative banks, and regional rural banks.
• Non-Banking Financial Companies (NBFCs): Knowledge of the role and functions of NBFCs, including their types, regulatory framework, and their contribution to the financial system.
• Financial Markets: Understanding of the Indian financial markets, including the capital market, the money market, and the foreign exchange market.
• Financial Institutions: Knowledge of key financial institutions in India, including the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI).
• Payment Systems: Understanding of the Indian payment systems, including the National Payments Corporation of India (NPCI) and the Real-time Gross Settlement (RTGS) system.

5.3 Monetary Policy:

• Reserve Bank of India (RBI): Understanding of the role and functions of the RBI, including monetary policy, financial stability, and regulation of banks.
• Monetary Policy Tools: Knowledge of the tools used by the RBI to implement monetary policy, including the repo rate, the reverse repo rate, the cash reserve ratio (CRR), and the statutory liquidity ratio (SLR).
• Inflation Targeting: Understanding of the concept of inflation targeting and the RBI’s inflation target.
• Exchange Rate Management: Knowledge of the RBI’s role in managing the exchange rate.

5.4 Fiscal Policy:

• Government Budget: Understanding of the Indian government budget, including revenue receipts, expenditure, and the fiscal deficit.
• Fiscal Policy Tools: Knowledge of the tools used by the government to implement fiscal policy, including taxation, government spending, and borrowing.
• Fiscal Responsibility and Budget Management (FRBM) Act: Understanding of the FRBM Act and its role in ensuring fiscal discipline.

5.5 Financial Inclusion:

• Financial Inclusion Initiatives: Understanding of the government’s initiatives to promote financial inclusion, including the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Mudra Yojana.
• Digital Financial Services: Knowledge of the role of digital financial services in promoting financial inclusion, including mobile banking, internet banking, and payments banks.

Section 6: Ethics and Integrity

This section tests your understanding of ethical principles and their application in the context of the financial markets.

6.1 Ethical Principles:

• Integrity: Understanding of the importance of integrity in the financial markets, including honesty, fairness, and transparency.
• Objectivity: Knowledge of the importance of objectivity in decision-making, including avoiding conflicts of interest and biases.
• Professionalism: Understanding of the principles of professional conduct, including confidentiality, competence, and diligence.
• Confidentiality: Knowledge of the importance of maintaining confidentiality of information, including client information and market-sensitive data.
• Compliance: Understanding of the importance of complying with laws and regulations, including the SEBI Act, the Companies Act, and other relevant laws.

6.2 Ethical Dilemmas:

• Conflicts of Interest: Understanding of the nature of conflicts of interest and how to avoid them.
• Insider Trading: Knowledge of the ethical implications of insider trading and the legal consequences of engaging in insider trading.
• Market Manipulation: Understanding of the ethical implications of market manipulation and the legal consequences of engaging in market manipulation.
• Fraudulent Activities: Knowledge of the ethical implications of fraudulent activities in the financial markets and the legal consequences of engaging in fraudulent activities.

6.3 Code of Conduct:

• SEBI Code of Conduct: Understanding of the SEBI Code of Conduct for market intermediaries, including brokers, dealers, and investment advisors.
• Professional Codes of Conduct: Knowledge of the codes of conduct of professional bodies, such as the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI).

6.4 Ethical Decision-Making:

• Ethical Frameworks: Understanding of different ethical frameworks, including utilitarianism, deontology, and virtue ethics.
• Ethical Decision-Making Process: Knowledge of the steps involved in making ethical decisions, including identifying the ethical issue, gathering information, considering alternatives, and making a decision.

Section 7: Financial Reporting and Analysis

This section tests your understanding of financial reporting and analysis.

7.1 Financial Statements:

• Balance Sheet: Understanding of the balance sheet, including its components, such as assets, liabilities, and equity.
• Income Statement: Knowledge of the income statement, including its components, such as revenue, expenses, and profit.
• Cash Flow Statement: Understanding of the cash flow statement, including its components, such as cash flows from operating activities, investing activities, and financing activities.
• Statement of Changes in Equity: Knowledge of the statement of changes in equity, including its components, such as share capital, retained earnings, and other equity components.

7.2 Financial Ratios:

• Liquidity Ratios: Understanding of liquidity ratios, such as the current ratio and the quick ratio, which measure a company’s ability to meet its short-term obligations.
• Solvency Ratios: Knowledge of solvency ratios, such as the debt-to-equity ratio and the times interest earned ratio, which measure a company’s ability to meet its long-term obligations.
• Profitability Ratios: Understanding of profitability ratios, such as the gross profit margin, the operating profit margin, and the net profit margin, which measure a company’s profitability.
• Activity Ratios: Knowledge of activity ratios, such as the inventory turnover ratio and the accounts receivable turnover ratio, which measure a company’s efficiency in managing its assets.

7.3 Financial Analysis:

• Trend Analysis: Understanding of trend analysis, which involves analyzing financial data over time to identify trends and patterns.
• Comparative Analysis: Knowledge of comparative analysis, which involves comparing the financial performance of a company to its peers or to industry averages.
• Common-Size Analysis: Understanding of common-size analysis, which involves expressing financial data as a percentage of a base figure, such as total revenue or total assets.
• Valuation Analysis: Knowledge of valuation analysis, which involves estimating the intrinsic value of a company using various valuation methods, such as discounted cash flow analysis and relative valuation.

7.4 Financial Reporting Standards:

• Indian Accounting Standards (Ind AS): Understanding of the Indian Accounting Standards (Ind AS), which are the accounting standards used in India.
• International Financial Reporting Standards (IFRS): Knowledge of the International Financial Reporting Standards (IFRS), which are the accounting standards used by many countries around the world.
• Accounting Principles: Understanding of the basic accounting principles, such as the going concern principle, the matching principle, and the accrual principle.

7.5 Financial Reporting Practices:

• Corporate Governance: Understanding of the principles of corporate governance, including transparency, accountability, and responsibility.
• Disclosure Requirements: Knowledge of the disclosure requirements for financial reporting, including the requirements of the SEBI Act and the Companies Act.
• Auditing: Understanding of the role of auditing in ensuring the accuracy and reliability of financial statements.

Sample Tables

Table 1: Key Macroeconomic Indicators

Indicator	Description
GDP Growth	The rate of change in the value of goods and services produced in an economy over a period of time.
Inflation	The rate of increase in the general price level of goods and services in an economy.
Unemployment Rate	The percentage of the labor force that is unemployed.
Fiscal Deficit	The difference between the government’s total revenue and its total expenditure.
Current Account Deficit	The difference between a country’s exports and imports of goods and services.

Table 2: Financial Ratios

Ratio	Description
Current Ratio	Measures a company’s ability to meet its short-term obligations.
Quick Ratio	Measures a company’s ability to meet its short-term obligations using only its most liquid assets.
Debt-to-Equity Ratio	Measures a company’s financial leverage, or the amount of debt it uses to finance its assets.
Times Interest Earned Ratio	Measures a company’s ability to cover its interest expense with its earnings before interest and taxes (EBIT).
Gross Profit Margin	Measures a company’s profitability on its sales.
Operating Profit Margin	Measures a company’s profitability on its operating activities.
Net Profit Margin	Measures a company’s profitability on its overall operations.
Inventory Turnover Ratio	Measures how efficiently a company manages its inventory.
Accounts Receivable Turnover Ratio	Measures how efficiently a company collects its receivables.

Frequently Asked Questions (FAQs) and Short Answers for SEBI Grade A Exam 2024 Prelims Syllabus

General Awareness:

Q1: What are the key macroeconomic indicators to focus on for the exam?
A1: GDP growth, inflation, unemployment rate, fiscal deficit, and current account deficit.

Q2: How can I stay updated on current events for the exam?
A2: Read reputable news sources, follow financial publications, and utilize online resources like news aggregators.

Q3: What are the major financial institutions regulated by SEBI?
A3: Stock exchanges, mutual funds, depositories, and investment advisors.

Quantitative Aptitude:

Q4: What are the essential topics in number systems for the exam?
A4: Fractions, decimals, percentages, profit and loss, simple and compound interest, ratio and proportion, and averages.

Q5: How can I improve my data interpretation skills for the exam?
A5: Practice analyzing tables, graphs, and charts, and focus on understanding the data presented.

Q6: What are some common logical reasoning question types?
A6: Syllogisms, coding-decoding, blood relations, direction sense, series, and analogies.

Reasoning Ability:

Q7: How can I improve my reading comprehension skills for the exam?
A7: Practice reading passages, identifying key ideas, and answering comprehension questions.

Q8: What are some tips for solving critical reasoning questions?
A8: Analyze arguments, identify assumptions, and draw logical conclusions.

Q9: What are some common non-verbal reasoning question types?
A9: Spatial reasoning, pattern recognition, series, and analogies.

Financial Markets and Securities Laws:

Q10: What are the key provisions of the SEBI Act, 1992?
A10: Establishment of SEBI, its powers and functions, and the regulatory framework for the securities market.

Q11: What are the major regulations governing the issue of capital by companies?
A11: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Q12: What are the key provisions of the SEBI (Prohibition of Insider Trading) Regulations, 2015?
A12: Definition of insider information, penalties for insider trading, and the role of SEBI in enforcing these regulations.

Economy and Financial System:

Q13: What are the major economic reforms undertaken in India since 1991?
A13: Liberalization, privatization, and globalization.

Q14: What are the key tools used by the RBI to implement monetary policy?
A14: Repo rate, reverse repo rate, CRR, and SLR.

Q15: What are the major initiatives taken by the government to promote financial inclusion?
A15: PMJDY and Mudra Yojana.

Ethics and Integrity:

Q16: What are the key ethical principles relevant to the financial markets?
A16: Integrity, objectivity, professionalism, confidentiality, and compliance.

Q17: What are some common ethical dilemmas faced in the financial markets?
A17: Conflicts of interest, insider trading, market manipulation, and fraudulent activities.

Financial Reporting and Analysis:

Q18: What are the key components of a balance sheet?
A18: Assets, liabilities, and equity.

Q19: What are the major financial ratios used in financial analysis?
A19: Liquidity ratios, solvency ratios, profitability ratios, and activity ratios.

Q20: What are the key accounting standards used in India?
A20: Indian Accounting Standards (Ind AS).

Note: These are just a few examples of frequently asked questions. The actual questions asked in the exam may vary. It is important to study the entire syllabus thoroughly and practice mock tests to prepare for the exam.