NIFTY 50₹22,500▲125.30(0.56%)•
SENSEX₹74,200▲412.50(0.56%)•
BANK NIFTY₹48,300▼210.40(0.43%)•
TATA MOTORS₹780.00▲12.45(1.62%)•
INFOSYS₹1,520.00▼18.20(1.18%)•
WIPRO₹475.00▲5.60(1.19%)•
RELIANCE₹2,890.00▲34.50(1.21%)•
TCS₹3,650.00▼28.10(0.76%)•
HDFC BANK₹1,580.00▲15.20(0.97%)•
ICICI BANK₹1,120.00▲8.90(0.80%)•
SBI₹820.00▼5.30(0.64%)•
BHARTI AIRTEL₹1,650.00▲22.80(1.40%)•
HUL₹2,380.00▼12.40(0.52%)•
ITC₹445.00▲3.20(0.72%)•
KOTAK BANK₹1,780.00▲14.60(0.83%)•
LT₹3,420.00▼45.20(1.30%)•
AXIS BANK₹1,080.00▲9.50(0.89%)•
BAJAJ FINANCE₹7,200.00▲85.40(1.20%)•
MARUTI₹12,400▼150.00(1.19%)•
ASIAN PAINTS₹2,850.00▲18.90(0.67%)•
HCLTECH₹1,420.00▼16.30(1.14%)•
TITAN₹3,250.00▲42.60(1.33%)•
ADANI PORTS₹1,380.00▼22.40(1.60%)•
POWER GRID₹310.00▲4.80(1.57%)•
NTPC₹365.00▲6.20(1.73%)•
SUNPHARMA₹1,680.00▼8.50(0.50%)•
NIFTY 50₹22,500▲125.30(0.56%)•
SENSEX₹74,200▲412.50(0.56%)•
BANK NIFTY₹48,300▼210.40(0.43%)•
TATA MOTORS₹780.00▲12.45(1.62%)•
INFOSYS₹1,520.00▼18.20(1.18%)•
WIPRO₹475.00▲5.60(1.19%)•
RELIANCE₹2,890.00▲34.50(1.21%)•
TCS₹3,650.00▼28.10(0.76%)•
HDFC BANK₹1,580.00▲15.20(0.97%)•
ICICI BANK₹1,120.00▲8.90(0.80%)•
SBI₹820.00▼5.30(0.64%)•
BHARTI AIRTEL₹1,650.00▲22.80(1.40%)•
HUL₹2,380.00▼12.40(0.52%)•
ITC₹445.00▲3.20(0.72%)•
KOTAK BANK₹1,780.00▲14.60(0.83%)•
LT₹3,420.00▼45.20(1.30%)•
AXIS BANK₹1,080.00▲9.50(0.89%)•
BAJAJ FINANCE₹7,200.00▲85.40(1.20%)•
MARUTI₹12,400▼150.00(1.19%)•
ASIAN PAINTS₹2,850.00▲18.90(0.67%)•
HCLTECH₹1,420.00▼16.30(1.14%)•
TITAN₹3,250.00▲42.60(1.33%)•
ADANI PORTS₹1,380.00▼22.40(1.60%)•
POWER GRID₹310.00▲4.80(1.57%)•
NTPC₹365.00▲6.20(1.73%)•
SUNPHARMA₹1,680.00▼8.50(0.50%)•
NIFTY 50₹22,500▲125.30(0.56%)•
SENSEX₹74,200▲412.50(0.56%)•
BANK NIFTY₹48,300▼210.40(0.43%)•
TATA MOTORS₹780.00▲12.45(1.62%)•
INFOSYS₹1,520.00▼18.20(1.18%)•
WIPRO₹475.00▲5.60(1.19%)•
RELIANCE₹2,890.00▲34.50(1.21%)•
TCS₹3,650.00▼28.10(0.76%)•
HDFC BANK₹1,580.00▲15.20(0.97%)•
ICICI BANK₹1,120.00▲8.90(0.80%)•
SBI₹820.00▼5.30(0.64%)•
BHARTI AIRTEL₹1,650.00▲22.80(1.40%)•
HUL₹2,380.00▼12.40(0.52%)•
ITC₹445.00▲3.20(0.72%)•
KOTAK BANK₹1,780.00▲14.60(0.83%)•
LT₹3,420.00▼45.20(1.30%)•
AXIS BANK₹1,080.00▲9.50(0.89%)•
BAJAJ FINANCE₹7,200.00▲85.40(1.20%)•
MARUTI₹12,400▼150.00(1.19%)•
ASIAN PAINTS₹2,850.00▲18.90(0.67%)•
HCLTECH₹1,420.00▼16.30(1.14%)•
TITAN₹3,250.00▲42.60(1.33%)•
ADANI PORTS₹1,380.00▼22.40(1.60%)•
POWER GRID₹310.00▲4.80(1.57%)•
NTPC₹365.00▲6.20(1.73%)•
SUNPHARMA₹1,680.00▼8.50(0.50%)•
NIFTY 50₹22,500▲125.30(0.56%)•
SENSEX₹74,200▲412.50(0.56%)•
BANK NIFTY₹48,300▼210.40(0.43%)•
TATA MOTORS₹780.00▲12.45(1.62%)•
INFOSYS₹1,520.00▼18.20(1.18%)•
WIPRO₹475.00▲5.60(1.19%)•
RELIANCE₹2,890.00▲34.50(1.21%)•
TCS₹3,650.00▼28.10(0.76%)•
HDFC BANK₹1,580.00▲15.20(0.97%)•
ICICI BANK₹1,120.00▲8.90(0.80%)•
SBI₹820.00▼5.30(0.64%)•
BHARTI AIRTEL₹1,650.00▲22.80(1.40%)•
HUL₹2,380.00▼12.40(0.52%)•
ITC₹445.00▲3.20(0.72%)•
KOTAK BANK₹1,780.00▲14.60(0.83%)•
LT₹3,420.00▼45.20(1.30%)•
AXIS BANK₹1,080.00▲9.50(0.89%)•
BAJAJ FINANCE₹7,200.00▲85.40(1.20%)•
MARUTI₹12,400▼150.00(1.19%)•
ASIAN PAINTS₹2,850.00▲18.90(0.67%)•
HCLTECH₹1,420.00▼16.30(1.14%)•
TITAN₹3,250.00▲42.60(1.33%)•
ADANI PORTS₹1,380.00▼22.40(1.60%)•
POWER GRID₹310.00▲4.80(1.57%)•
NTPC₹365.00▲6.20(1.73%)•
SUNPHARMA₹1,680.00▼8.50(0.50%)•
Mera SIP by Trustner
NISM VII — Securities Operations & Risk Management (2/21)
NISM VII — Securities Operations & Risk Management ~5 min read

Securities Products — Equity, Debt, Derivatives, MFs

Securities products span four broad buckets: EQUITY (shares that represent ownership), DEBT (bonds and debentures that represent a loan), DERIVATIVES (contracts...

Definition

Four Product Families

Securities products span four broad buckets: EQUITY (shares that represent ownership), DEBT (bonds and debentures that represent a loan), DERIVATIVES (contracts whose value derives from an underlying), and POOLED PRODUCTS (mutual funds, ETFs, AIFs, REITs). Each has its own risk/return profile, regulatory framework and settlement cycle.

In Simple Words
💡

Equity shares represent fractional ownership — shareholders have voting rights and claim on residual profits. Preference shares sit between equity and debt — fixed dividend but no voting. Debt instruments (bonds, debentures, commercial paper, T-bills) are loans to the issuer with fixed coupons and face value. Derivatives (futures, options, swaps) derive value from an underlying. Pooled products — mutual funds, ETFs, AIFs, REITs, InvITs — aggregate investor money for professional management. Within IFSC (GIFT City), equity shares of foreign companies, currency derivatives and interest-rate derivatives trade in foreign currency; shares of Indian companies are NOT allowed.

🏢
Equity = Ownership

You own a fractional slice of the company

📜
Debt = IOU

You're the lender; issuer owes you principal + interest

⚖️
Derivative = Bet

No direct ownership — you're speculating on price movement

🧺
MF = Basket

Pooled investment managed by professionals

Real-Life Scenario

A Practical Example

📊
Priya
Real-Life Scenario

Priya's portfolio:
• 100 Reliance shares (EQUITY) — she owns 100/(~14 Bn) of RIL
• ₹10 Lakh in G-Sec 7.26% 2034 (DEBT) — govt owes her coupons every 6 months
• 5 Nifty call options (DERIVATIVE) — bet on Nifty rising
• ₹15 Lakh in HDFC Flexicap Fund (MF) — HDFC AMC manages it
• 50 units of Embassy REIT (REIT) — she owns a slice of commercial real estate

Each bucket has different taxation (LTCG for equity, accrual taxation for debt, business income for F&O, capital gains for MF units, hybrid for REIT) and different settlement rules.

Key Points to Remember

What Makes This Important

💰
Equity: common (voting + residual) vs preference (fixed dividend, no voting)
🤖
Debt: bonds, debentures, commercial paper, T-bills, G-Secs
🪙
Derivatives: futures, options, swaps — on equity / index / currency / commodity
⚖️
Pooled: mutual funds, ETFs, AIFs, REITs, InvITs
🎯
IFSC (GIFT City) allows foreign-denominated trading — NOT Indian equity
🧠
Preference shares: can be convertible / non-convertible, cumulative / non-cumulative
⏸️
Taxation varies by product: equity LTCG/STCG, debt slab rate, F&O business income
FAQs

Frequently Asked Questions

Functionally similar — both are debt instruments. Legally in India: "bond" typically refers to government or PSU debt, while "debenture" refers to corporate debt. Debentures can be secured or unsecured; government bonds are sovereign-guaranteed.

Test Your Knowledge

🧠 Quick Quiz

2 questions to check your understanding

2
Questions
Question 1 of 2

Fractional ownership in a company is represented by _____.

Summary Notes

Key Takeaways

4 product families — equity, debt, derivatives, pooled
IFSC = foreign-currency only, no Indian equity
Each family has different tax + settlement regime
Related Topics

Continue Learning

📖
Securities Market — Primary vs Secondary
→
📖
Market Intermediaries — Brokers, Sub-Brokers, APs
→
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Securities Market — Primary vs Secondary
Securities Products — Equity, Debt, Derivatives, MFs — NISM VII — Securities Operations & Risk Management