Capital Markets — Prelims Strategy
Prelims Strategy
For Prelims, a strong conceptual foundation combined with an updated understanding of current affairs is paramount for Capital Markets. Begin by mastering the basic definitions: primary vs. secondary market, equity vs.
debt vs. derivatives, and the roles of key institutions like SEBI, BSE, NSE, NSDL, and CDSL. Pay close attention to the SEBI Act, 1992, and the Securities Contracts (Regulation) Act, 1956, noting their core provisions and amendments.
Focus on the functions and powers of SEBI, as these are frequently tested. Memorize key terms like IPO, FPO, QIP, dematerialization, insider trading, and circuit breakers. Crucially, stay updated with recent developments and reforms.
Questions often target new market instruments (REITs, InvITs), regulatory changes (T+1 settlement, ESG disclosures), and initiatives like the Social Stock Exchange. Understand the differences between FII and FPI, and their impact on the economy.
Practice MCQs that test conceptual clarity and factual recall, paying attention to 'trap' options that often confuse similar-sounding terms or misattribute functions to different regulators. Vyyuha's Exam Radar indicates a rising trend in questions related to SEBI's regulatory actions and investor protection measures, so prioritize these areas.