We analyze the electronic structure of group III-V semiconductors obtained within full potential linearized augmented plane wave (FP-LAPW) method and arrive at a realistic and minimal tightbinding model, parameterized to provide an accurate description of both valence and conduction bands. It is shown that cation sp 3 − anion sp 3 d 5 basis along with the next nearest neighbor model for hopping interactions is sufficient to describe the electronic structure of these systems over a wide energy range, obviating the use of any fictitious s * orbital, employed previously. Similar analyses were also performed for the II-VI semiconductors, using the more accurate FP-LAPW method compared to previous approaches, in order to enhance reliability of the parameter values.Using these parameters, we calculate the electronic structure of III-V and II-VI nanocrystals in real space with sizes ranging upto about 7 nm in diameter, establishing a quantitatively accurate description of the band-gap variation with sizes for the various nanocrystals by comparing with available experimental results from the literature.