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Roots Institute of Financial Markets

RIFM

Practice Book

NSDL-Depository Operations Module



Forward

Welcome to RIFM Thanks for choosing RIFM as your guide to help you in NCFM/CFP Certification. Roots Institute of Financial Markets is an advanced research institute Promoted by Mrs. Deep Shikha CFPCM. RIFM specializes in Financial Market Education and Services. RIFM is introducing preparatory classes and study material for Stock Market Courses of NSE, NISM and CFP certification. RIFM train personals like FMM Students, Dealers/Arbitrageurs, and Financial market Traders, Marketing personals, Research Analysts and Managers. We are constantly engaged in providing a unique educational solution through continuous innovation. Wish you Luck…………… Faculty and content team, RIFM



Our Team

Deep Shikha Malhotra CFPCM

M.Com., B.Ed.

AMFI Certified for Mutual Funds

IRDA Certified for Life Insurance

IRDA Certified for General Insurance

PG Diploma in Human Resource Management

CA. Ravi Malhotra

B.Com.

FCA

DISA (ICA)

CERTIFIED FINANCIAL PLANNERCM

Vipin Sehgal CFPCM

B.Com.

NCFM Certification In Capital Market (Dealers) Module



Neeraj Nagpal CFPCM

B.Com.



NCFM Certification In:

Capital Market (Dealers) Module

Derivatives Market (Dealers) Module

Commodities Market Module

Kavita Malhotra

M.Com. Previous (10th Rank in Kurukshetra University)



Certification in all Modules of CFPCM Curriculum (FPSB India)




Exam Pattern

Test Duration 75 Min.

No. of Questions 60

Maximum Marks 100

Pass % 60

Negative Marking % 25




Index

Chapter No. Title No. of Questions

1 Overview of Capital Markets 104

2 Overview of NSDL 67

3 Business Partners of NSDL 67

4 NSDL Application Software 19

5 Service Standards 10

6 Benefits and Safety 37

7 NSDL Charge Structure 28

8 Account Opening 78

9 Transmission and Nomination 33

10 Dematerialisation 41

11 Trading and Settlement 50

12 Pledge and Hypothecation 26

13 Corporate Actions 27

14 Public Issues 26

15 Debt Instruments and Government Securities 58

16 Warehouse Receipts 10

17 Tax Information Network (TIN) 9

Sample Paper 1 60

Sample Paper 2 60

Sample Paper 3 60



Chapter 1 Overview of Capital Markets

1 The primary function of financial market is to transfer of funds from____ to ____?

Right Option

Public to government

Buyers to sellers

Surplus to deficit (borrower to lender)

Yes

None of the above

2 A financial market consists of?

Right Option

Investors or buyers

Borrowers or sellers

Regulatory bodies

All of the above Yes

3 Indian financial market can be divided in?

Right Option

Money market

Capital market

Both Yes

None

4 The main components of money Market are?

Right Option

Organized market

Unorganized market

Primary market



A) and B) Yes

5 The organized market of money market is dominated by?

Right Option

Central government

Commercial banks Yes

Reserve bank of India

Unit Trust of India

41 The Two depositories have come up to provide instantaneous electronic transfer of securities is?

Right Option

NSDL & NSCCL

CDSL & NSDL

Yes

NSDL & NSE

NSE & BSE

42 In order to testify and certify in the field of financial market operations, NSE has introduced?

Right Option

NCFM

Yes

AMFI

IRDA

All of the above

43 The activities covering issue and underwriting of shares and debentures are regulated by?

Right Option

Underwriters



Merchant bankers

Yes

Both of the above

None of the above

44

The criterion for authorization of Merchant Bankers takes into account several parameters. The parameters include?

Right Option

Professional qualification in finance

Infrastructure like adequate office space

Experience & past track record

All of the above

Yes

45 SEBI authorizes merchant banker for an initial period of?

Right Option

4 years

3 years

Yes

2 years

1year

46 Minimum net worth required by merchant bankers is?

Right Option

3 crore

4 crore

5 crore

Yes

6 crore



98 NSDL:

Right Option

Has no role to play in settlement of dematerialised securities that are to be delivered in the unified (erstwhile physical) segments of connected stock exchanges

Replaces the clearing corporation/ house of the exchange that has established electronic connectivity with it

Facilitates settlement of both funds and dematerialised securities

Only plays the role of a facilitator in settlement of dematerialised securities in those exchanges which have established electronic connectivity with it

Yes

99 Tick the true statement:

Right Option

A stock broker having a minimum net worth of Rs. 50 lakh is eligible to join NSDL as a DP irrespective of whether registered with SEBI.

A SEBI registered stock broker having a minimum net worth of Rs. 50 lakh is eligible to join NSDL as a DP.

A SEBI registered stock broker is eligible to join NSDL as a DP. There is no minimum net worth requirement.

A SEBI registered stock broker having a minimum net worth of Rs. Three crore is eligible to join NSDL as a DP.

Yes

100

For a stock exchange/clearing house to settle demat securities, the stock exchange/ house must have a mechanism to ensure payment against delivery or guarantee settlement. This requirement is drawn from:

Right Option

The Byelaws of the respective stock exchanges.

The NSDL Byelaws.

The SEBI (Depository and Participants) Regulations, 1996.

Yes

The Depositories Act, 1996.



101 Which of the following is NOT a part of the Primary Market?

Right Option

Merchant Bankers

Mutual Funds

Exchanges

Yes

Registrars and Transfer Agents

102 An active ________ promotes the growth of the primary market and capital formation.

Right Option

Secondary Market

Yes

Bullion market

Money market

Forex market



Chapter 2 Overview of NSDL

7

“National Securities Depository Limited (NSDL)” “Central Depository Services(India) Limited (CDSL)” Which of the above depository is registered with SEBI?

Right Option

Both are registered

Yes

Only NSDL is registered

Only CDSL is registered

None of above is registered

8

“Before commencing operations, depositories should obtain a certificate of registration and a certificate of commencement of business from NSE” “a company registered under the Companies Act, 1956 and sponsored by the specified category of institutions can set up a depository in India” Which of the above statements is true?

Right Option

Both the statements are True

Both the statements are True

The 1st statement is True and 2nd is False

The 2nd statement is True and 1st is False

Yes

9 Any investor who would like to avail the services of a depository has to enter into an agreement with?

Right Option

Depository

Clearing Corporation

Broker



Depository Participant

Yes

10

In the depository system, every investor subscribing to securities offered by an issuer has an option to receive the securities in?

Right Option

Dematerialised form

Physical form

Any of the above

Yes

Both of the above

11

“He does not have any voting rights or any other rights in respect of those securities” Whom we are talking about in above statement?

Right Option

Registered owner

Yes

Beneficial owner

Both of the above

None of the above

12

As per the section 16 of the act, - “A depository shall indemnify a beneficial owner, any loss caused due to negligence of the depository or its participant”

Right Option

The above statement is completely true

Yes

Depository shall indemnify the negligence of itself

Depository shall indemnify the negligence of its participant only

The statement is not as per section 16

49 The custody fee is payable by Issuer to NSDL on a _______ basis.

Right Option



Monthly

Quarterly

Yearly (calendar year)

Yearly (financial year)

Yes

50 To provide legal counter-party guarantee and eliminate the risk, __________ is created.

Right Option

Disclosure and Risk Management cell

A Settlement Guarantee Fund

Yes

A Market Regulation Committee

An Investor Protection Fund

51 The registered owner of securities held in demat form is:

Right Option

The Depository participant

The Depository

Yes

SEBI

The R&T Agent

52 For which of the following securities partial dematerialisation request can be accepted?

Right Option

NSC/ KVP

Only those government securities which are permitted for the purpose by RBI

Any securities, provided they are permitted to be held so by the Issuing Authority



None of the above, no security can be partially dematerialized

Yes

53

The custody fees (for unlisted securities of Issuers which have not paid one time custody fees) payable by a DP to NSDL is paid _______?

Right Option

On a semi-annual basis

On an annual basis

On a quarterly basis

Yes

On a monthly basis

54 Can shares that are not registered in the name of the account holder be dematerialised?

Right Option

"Yes, at the discretion of the Issuer/ its R and T Agent."

"No, shares have to be registered in the name of the concerned investor."

Yes

“Yes, at the discretion of the DP."

"Yes, provided a duly filled transfer deed is attached."



Chapter 4

NSDL Application Software

2

This module is used to create/modify Client Account details and to check Statement of Holding/Transaction report.

Right Option

Client Back up

Client Maintenance

Yes

Client Info

All of the above

3

Transfer of securities from one market type/settlement number to a future market type/settlement number within a Clearing Member Settlement Account is known as?

Right Option

Inter-settlement instruction

Yes

Intra-settlement instruction

Receipt-In instruction

Auto Delivery Out Instruction

4

Transfer of securities from one market type/settlement number in a Clearing Member Settlement account to a future market type/settlement number of another Clearing Member Settlement account is known as?

Right Option

Pool to Pool instruction

Yes

Pool to account instruction

Pool to settlement instruction

Pool Receipt instruction



5

The receipt of securities from the stock exchange in the Clearing Member Settlement account as Pay-out is known as?

Right Option

Receipt-Delivery instruction

Receipt-In instruction

Yes

Receipt-Pool instruction

Receipt-Transfer instruction

6 Delivery of securities by a Clearing Member to the CC/CH before the pay-in date is known as?

Right Option

Irreversible delivery out instruction

Yes

Irreversible delivery in instruction

Irreversible delivery account instruction

Irreversible delivery pool instruction

14

“________ is an external Security device which is used for application heartbeat authentication and storage of the key required by the Participants operations.”

Right Option

DONGLE

Yes

RONGLE

PONGLE

TONGLE

15

“________ is an external Security device which is used for application heartbeat authentication and storage of the key required by the Participants operations.”

Right Option



DONGLE

Yes

RONGLE

PONGLE

TONGLE



Chapter 6 Benefits and Safety

8. In the case of physical shares, stamp duty of ____ is payable on transfer of shares.

Right Option

1%

2%

5%

0.5%

Yes

9. Delay in transfer of securities expose the investors to _______

Right Option

High transaction cost

Opportunities cost

Yes

Bad delivery

All of the above

10.

In the depository environment, once the securities are credited to the investors account on pay out, he becomes the _______ of the securities.

Right Option

Registered owner

Legal owner

Yes

Both of the above

None of the above

11. if the investors miss a book closure, the securities are not good for delivery and the investor would also stand

Right Option



to loose his ______

Bonus shares

Corporate entitlements

Yes

Right issue

Securities only

12.

With the introduction of electronic form of settlement, Indian Capital markets have moved from 15 day long settlement cycle to ________ settlement cycle

Right Option

T+2

Yes

T+3

T+1

Same day

31

The Depository account that an Approved Intermediary opens for the purpose of carrying on the business of securities lending and borrowing is called _______.

Right Option

Lending and Borrowing account

Intermediary account.

Yes

Clearing Member account.

Beneficial owner account.

32 The Delivery Instruction Slip is to be submitted by the investor to his DP in _________.

Right Option

Duplicate, one extra for acknowledgement

Yes

No such requirement



Single copy

Triplicate, one for acknowledgement and other for sending to NSDL

33 Name the odd one out:

Right Option

ICRA

BOISL

Yes

CARE

CRISIL

34 "As a part of the capital adequacy requirement, the base minimum capital prescribed by SEBI:

Right Option

Varies from exchange to exchange

Yes

Is based on the recommendations of the Kaul committee

Is based on the recommendations of the Justice Bhagwati Committee

Is the same across members of all exchanges

35

"Is it true that according to SEBI's April 6, 1998 directive demats shares will be treated as good delivery in the physical segments of stock exchanges connected to NSDL?"

Right Option

"Yes, for all category of investors."

Yes

No

"Yes, for all category of investors but only at NSE and BSE."

"Yes, but only for institutional investors."



36 Which of the following can appoint a nominee?

Right Option

Body Corporate

Individual

Yes

Trust

FI



Chapter 7 NSDL Charge Structure

4

The annual custody fees of NSDL will be charged every year, on a financial year basis and shall be payable by ________of that financial year.

Right Option

1 March

30 March

1 April

30 April

Yes

5.

If an issuer fails to pay the annual custody fees of NSDL by the due date, the Depository may charge interest @ _____ p.a. on the amount, from the due date of payment till the payment is received by the Depository.

Right Option

10%

12%

Yes

15%

20%

6. An Issuer may pay a one-time custody fee to NSDL at the rate of _______

Right Option

0.02%

0.03%

0.04%

0.05%

Yes



7. Five Basis points means ________.

Right Option

5%

0.5%

Yes

.5%

50%

8. An Issuer of unlisted securities shall pay a joining fee of ______

Right Option

Rs. 10000

Rs. 15000

Rs. 20000

Yes

Rs. 25000

18. The admission fee for IDEAS and SPEED-e is _______

Right Option

Nil and 2 Lac respectively

Yes

2 Lac and 1 Lac respectively

1 Lac and Nil respectively

2 Lac and Nil respectively

19. The Participant will charge the investors a fee of not more than ________ per freeze instruction.

Right Option

Rs.100

Rs.125

Yes

Rs.130



Rs.150

20.

The following charges will be levied by NSDL on the DPs towards demat services for warehouse receipts.

Details Charges Payable

Transaction Charges -------

Remat request [delivery for commodities]

-------

Pledge charges - Pledge Creation

-------

Pledge closure & Invocation

------

Right Option

5,50,25, Nil respectively

Yes

5,25, Nil, 50 respectively

25,5,50, Nil respectively

Nil,5,50,25 respectively

21

Mr. Gupta having beneficiary account with DP1 sells 100 shares of ABC company through broker XYZ who has his clearing member account with DP2. Broker XYZ delivers the same in demat form to the clearing corporation/house in settlement no. 1999052. Mr. Sharma having beneficiary account with DP3 buys the same through broker PQR who has his clearing member account with DP4. The market value of ABC company is Rs. 50/-. What are the transaction charges levied by NSDL to DP3?

Right Option

Rs. 0.50 (100*50*0.01/100) i. e. 1 basis point of market value of securities credited to Mr. Sharma's account.

Re. 1/- (100*50*0.02/100) i. e. 2 basis points of market value of securities credited to Mr. Sharma's account.

Rs. 10/-.

No charges. Yes



Chapter 8 Account Opening

3

There are three types of demat accounts which can be opened with a depository participant, they are __________________

Right Option

Beneficiary Account

Clearing Member Account

Intermediary Account

All of the above

Yes

4 A Beneficiary Account is an _______________________?

Right Option

Ownership account

Yes

Transitory accounts

Clearing Account

None of the above

5 The Clearing Member Account and Intermediary Account are _________________

Right Option

Ownership account

Yes

Transitory accounts

Beneficiary account

None of the above

6 A Clearing Member Account is opened by a broker or a Clearing Member for the purpose of ______________

Right Option



Clearing of trades

Settlement of trades

Yes

Order punching of trade

Any of the above

7

A __________________ is legally entitled for all rights and liabilities attached to the securities (i.e. equity shares, debentures, government securities, etc.) held in that account.

Right Option

Registered owner Account

Client Account

beneficiary account holder

Yes

Any of the above

8 A beneficiary account can be in the name of _________________?

Right Option

Individual

Corporate

Minor

All of the above

Yes

30 When a minor client does attain its maturity, if guardians are appointed by court?

Right Option

18

20

21 Yes



22

31 When a minor client does attain its maturity, if account is represented by natural guardians?

Right Option

18

Yes

20

21

22

32 When a minor client attains maturity, a fresh DP client agreement takes place.

Right Option

True

Yes

False

33 A partnership firm can open a account with depository in the same manner as company.

Right Option

True

False

Yes

34

In case of a partnership firm all the partners of the firm can sign as joint holders, and a joint Account may be opened in the name of the partners.

Right Option

True

Yes

False

35 NSDL Business Rules make it clear that opening a depository account in the name of a partnership firm

Right Option



will be treated as non-compliance with the Business Rules, and will be punishable with penalty points.

True

Yes

False

56

"Mr. M is holding securities with DP D. Since he is scheduled to relocate to Dubai on a special assignment and expects to be away for quite a while, he wishes to lock (freeze) his account. He can do so by:"

Right Option

Account freezing is not possible in the NSDL system.

Filling up an account freezing form available with the DP D

Yes

"Transferring his holdings to a special account called 'e-locker' where all such securities are held in fiduciary capacity by DP D."

writing to NSDL to freeze his account

57

"In an application for opening an account (for corporates/ clearing members only), which one of the following form part of types of accounts?"

Right Option

NRI- Repatriable

OCB

Yes

NRI- Non-Repatriable

HUF

58 "In case of a partnership firm, the beneficial owner account will be opened in the name of:"

Right Option

The partnership firm

Any partner(s)

Yes

All the partners



Any of the above



Chapter 11 Trading and Settlement

1

The Facility of transfer of securities from one account to another at the instruction of the account holder is provided by __________?

Right Option

DP

Custodian

NSCCL

NSDL

Yes

2 In order to transfer security, which of the below have to give instruction?

Right Option

Transferor

Transferee

Both of the above

Yes

None of the above

3

Any trade that is cleared and settled without the participation of a clearing corporation is called _________

Right Option

Off-market trade

Yes

After Market Trade

Offline trade

Any of the above

4 Exchange of money for the off-market transactions are Right Option



also handled with the depository system.

True

False

Yes

5 A market trade is one that is settled through participation of a ___________

Right Option

Exchange

Broker

SEBI

Clearing Corporation

Yes

6

Transfer of securities towards settlement of transactions done on a stock exchange is called settlement of market transaction.

Right Option

True

Yes

False

30 An instruction to move securities from one settlement to another settlement which is called?

Right Option

Intra - settlement

Transfer

inter – settlement

Yes

Any of the above

31

[IDeAS] enables the clearing members to view details of their clearing member settlement accounts directly on the Internet. Data available include:

Right Option



Balance lying in CM settlement account

Transactions for securities delivered by the CM to CC [pay-in]

Transactions for securities delivered by CC to CM [pay-out]

Yes

All of the above

32 A CM may give only written instruction to its participant to credit its settlement account.

Right Option

True

False

Yes

33 Account in NSDL can be?

Right Option

Clearing a/c

Beneficiary a/c

Any of the above

Yes

Both of the above

34 " DVP, in the capital market context, stands for:"

Right Option

Default versus payment

Delivery versus payment

Yes

Default versus penalty

Delivery versus penalty

48 State whether the given statement is true or false: “If adequate balances do not exist in the account, then delivery instruction will wait for adequate balances till

Right Option



the end of the execution day”.

True

Yes

False

49

If a broker gives ________ of his clients to Clearing Corporation /Clearing House, then payout securities are directly credited in the clients account by the Clearing Corporation/Clearing House.

Right Option

Names and PAN Nos

Pay-out breakup

Yes

PAN nos and DP ids

Identities

50

Who is required to give the Inter-settlement Instructions to the Participants for securities lying within a same CM account but in different settlement a pocket.

Right Option

Exchange

Clearing House

Depository

Clearing Member

Yes



Chapte 13 Corporate Actions

3 Who facilitate the execution of corporate action

Right Option

Exchange

NSCCL

SEBI

NSDL

Yes

4 From distribution point of view, corporate actions can be?

Right Option

Cash and non-cash

Yes

Monetary and non monetary

Special and general

Any of the above

5

In case of _______ depository merely provides information to the Issuer about the persons entitled to receive corporate benefits.

Right Option

Non cashed Corp. actions

General Corp. Action

Cash corp. action

Yes

All of the above

6 In case of ________ depository may facilitate the distribution of corporate benefits

Right Option



Non cashed Corp. actions

Yes

General Corp. Action

Cash corp. action

All of the above

7 Which of the following can be affected by a corp. action?

Right Option

Registered Owner

Beneficial Owner

Yes

Any of the above

Both of the above

8 The cut-off date on which issuer announces corporate action is also called ______________

Right Option

Record date

Book Closure

Yes

Both of the above

None of the above

18 What is the main purpose of bank account details in account opening form?

Right Option

For DP to debit the savings bank account for charges on the services enjoyed

For the purpose of income tax authorities

For safe distribution of cash corporate actions

Yes

For NSDL to debit the savings bank account for charges on the services enjoyed



19 An investor holding shares in demat form will get his bonus entitlement in:

Right Option

Demat form

Physical form

Any of the above at the choice of the Issuing Co.

Demat/ physical form at his option

Yes

20

Can an investor holding dematerialised securities, apply for ECS facility in case of cash corporate benefits?

Right Option

No, this facility is not available in case of dematerialised securities.

Yes, however investor has to provide MICR code to the DP.

Yes

Yes, but only for sensex scrips and by a written request to the Issuing Co.

Yes, by a written request to NSDL, provided the Issuing Co. is providing this facility.

21 "If an investor requests for demat securities in case of public issue without having a depository account, then"

Right Option

"Issuer/ R and T Agent will open the account on behalf of the investor and credit it with allotted shares."

NSDL will open the account on behalf of the investor and credit it with allotted shares.

Allotted shares will be issued in physical form.

Yes

DP will open the account on behalf of the investor and credit it with allotted shares.



Chapter 15 Debt Instruments and Government Securities

9 The instrument descriptor in the NSDL indicates _____________

Right Option

Name of the Issuer

Redemption date

Face Value

All of the above

Yes

10 The descriptor 'ICICI BANK LIMITED SR-B98 14.25 UMD 14FB05 FVRS1LAC, 1 lac indicates __________

Right Option

Face Value

Yes

Redemption Value

Coupon rate

Dividend Yield

11 The descriptor 'ICICI BANK LIMITED SR-B98 14.25 UMD 14FB05 FVRS1LAC, 14.25 indicates __________

Right Option

Face Value

Redemption Value

Coupon rate

Yes

Dividend Yield

12 The descriptor 'ICICI BANK LIMITED SR-B98 14.25 UMD 14FB05 FVRS1LAC, 14FB05 indicates __________

Right Option

Issue Date

Redemption date

Yes

Coupon date



Call/Put date

13 While Admission of Debt Instrument to the NSDL System a tripartite agreement is signed between __________

Right Option

NSDL, DP, Issuer

NSDL, Exchange, R& T Agent

NSDL, R & T Agent, Broker

NSDL, R & T Agent, issuer

Yes

14

The manner of operation of debt instrument in the depository is identical to that which is followed for the equity segment.

Right Option

True

Yes

False

47 During Short Period RBI can register transfer of securities?

Right Option

True

Yes

False

48

The trades where both the parties have their beneficial accounts with the same depository, they are called ______________?

Right Option

Depository trade

Yes

RBI Trades

Clearing trades

Mutual trades

49 The trade where only one party to the trade has account Right Option



with a depository and the counterpart has an SGL account with another approved entity or RBI itself. They are called ____________?

Depository trade

RBI Trades

Yes

Clearing trades

Mutual trades

50 Procedure for transfer of government securities within NSDL is exactly similar to that of transfer of equity shares.

Right Option

True

Yes

False

51 "To dematerialise government securities, NSDL has to take prior approval of:"

Right Option

SEBI and RBI both

RBI

Yes

SEBI

Issuing government authority



Chapter 16 Warehouse Receipts

2 The legal status of warehouse receipts is same as from that of securities.

Right Option

True

False

Yes

3

Accounts opened for warehouses receipt with DP under this agreement shall hold only electronic warehouse receipts and cannot be mixed up with other securities.

Right Option

True

Yes

False

4

Can DPs make their own business/contractual agreement with the commodity exchanges/warehouse owners, as they deem fit.

Right Option

Yes

Yes

No

After permission from SEBI

After approval of commodity exchange

5 ISIN for securities, in the same way ________ for commodities.

Right Option

CID

IDC

Yes

DIC



ICD



Sample Paper 1

7 The activities covering issue and underwriting of shares and debentures are regulated by?

Right Option

Underwriters

Merchant bankers

Yes

Both of the above

None of the above

8 Credit rating agencies appraise the performance of issuers of instruments like?

Right Option

Equity instrument like shares

Debt instrument like bonds

Yes

Fixed income instruments like FMP

All of the above

9

“National Securities Depository Limited (NSDL)” “Central Depository Services(India) Limited (CDSL)” Which of the above depository is registered with SEBI?

Right Option

Both are registered

Yes

Only NSDL is registered

Only CDSL is registered

None of above is registered

10 The promoters of a depository are also known as its?

Right Option

Directors



Sponsors

Yes

Major shareholders

Any of the above

11 Where the loss is caused due to the negligence of a DP, the depository shall?

Right Option

Bear the loss itself

Recover it from DP

Yes

No indemnity is provided in this case

Loss will be distributed equally to DP and Depository

12

“The securities held with NSDL may be used as collateral to secure loans and other credits by the clients.”

Right Option

The statement is true

Yes

The statement is false

Securities as a collateral deposit is not permitted by SEBI

The statement is true NSDL is replaced by CDSL

13 “Business Partner System” is?

Right Option

DPM – DP, DPM – SHRs & DPM – CC

Yes

DPM – CC, DPM – DM & DPM – CC

DPM – SHRs, DPM – CC, DPM – DP

All of the above



39

Mr. Gupta having beneficiary account with DP1 sells 100 shares of ABC company through broker XYZ who has his clearing member account with DP2. Broker XYZ delivers the same in demat form to the clearing corporation/ house in settlement no. 1999052.The market value of ABC company is Rs. 50/-. What are the transaction charges levied by NSDL to DP2?

Right Option

Rs. 2.50 (100*50*0.05/100) i. e. 5 basis points of market value of securities debited from broker XYZ clearing member account to clearing corporation/ house.

Rs. 0.50 (100*50*0.01/100) i. e. 1 basis point of market value of securities debited from broker XYZ clearing member account to clearing corporation/ house

Re. 1/- (100*50*0.02/100) i. e. 2 basis points of market value of securities debited from broker XYZ clearing member account to clearing corporation/ house

No charges.

Yes

40 If a client executes trade on Monday, then pay in for trade will be on?

Right Option

Monday

Tuesday

Wednesday

Yes

None of the above

41

NSDL provides SMS Alert facility for demat account holders whereby they can receive alerts regarding ____________

Right Option

All Debits (transfers)

Credits for IPO, sub-division and bonus

Failed instructions



All of the above

Yes

53 The treatment for physical and demat security, while allotment is far different.

Right Option

True

False

Yes

54

Whenever a corporate action is announced, the Issuer / its R&T Agent, informs ______ about the proposed corporate action.

Right Option

SEBI

NSCCL

NSDL

Yes

NSE



Sample Paper 2

4 Which of the following places does not have a stock exchange?

Right Option

Delhi

Calcutta

Guwahati

Cuttack

Yes

5 The only difference between equity and debt instrument is _______________.

Right Option

Debt instrument provide Call/put option

Debt instrument has a limited life

Yes

Debt instrument have fixed rate & interest

Debt instrument are not prone to market risk.

6

For a stock exchange/clearing house to settle demat securities, the stock exchange/ house must have a mechanism to ensure payment against delivery or guarantee settlement. This requirement is drawn from:

Right Option

The Byelaws of the respective stock exchanges.

The NSDL Byelaws.

The SEBI (Depository and Participants) Regulations, 1996.

Yes

The Depositories Act, 1996.

7 The cut-off date on which issuer announces corporate action is also called___________

Right Option



Record date

Book Closure

Yes

Both of the above

None of the above

8 Existing securities are traded in _____.

Right Option

Primary market

Secondary market

Yes

Money market

Barter exchange

9

___________ means investor has an option of demanding repayment on the debt instrument at a time earlier than the final redemption date.

Right Option

Put Option

Yes

Call Option

Buy Back

Surrender

24

The sponsor(s) of the depository have to hold at least _____ percentage of the equity capital of the depository company.

Right Option

40%

50%

51%

Yes



None of the above

25 Five Basis points means ________.

Right Option

5%

0.5%

Yes

.5%

50%

26 Who are the institutions that sponsored the setting up of NSDL in India?

Right Option

NSE, UTI & IDBI

Yes

BSE, UTI & SEBI

NSE, AIG & IDBI

NSE, AIG & SEBI

27 Where the loss is caused due to the negligence of a DP, the depository shall?

Right Option

Bear the loss itself

Recover it from DP

Yes

No indemnity is provided in this case

Loss will be distributed equally to DP and Depository

28 Online Tax Administration System (OLTAS) is used for ___________

Right Option

Daily uploads of tax deposits

Yes

Weekly uploads of tax deposits



Monthly uploads of tax deposits

Quarterly uploads of tax deposits

59 CMs are identified in the system through their___________

Right Option

CM-DP-ID

CM-BP-ID

Yes

CM-CP-ID

CM-AP-ID

60 The complete depository software of NSDL is called as?

Right Option

NEST

Yes

ODIN

NEAT

None of the above



Roots Institute of Financial Markets (RIFM)

“Every effort has been made to avoid any errors or omission in this book. In spite of this error may creep in. Any mistake, error or discrepancy noted may be brought to our notice, which, shall be taken care of in the next printing. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to anyone of any kind, in any manner, therefrom. ROOTS Institute of Financial Markets, its directors, author(s), or any other persons involved in the preparation of this publication expressly disclaim all and any contractual, tortuous, or other form of liability to any person (purchaser of this publication or not) in respect of the publication and any consequences arising from its use, including any omission made, by any person in reliance upon the whole or any part of the contents of this publication. No person should act on the basis of the material contained in the publication without considering and taking professional advice.



Helpful Books from RIFM

RIFM PROVIDES AN ON LINE ACCESS TO ITS STUDENTS, FOR A FAST AND QUICK REVISION

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Also available—Study Notes and Practice Books for CFP Modules (Printed copy) Study Notes (Detailed Study notes as per FPSB syllabus) Cost Rs. 1000/- Per Module Practice Books (about 800 Questions per Module) Cost Rs. 1000/- Per Module

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Roots Institute of Financial Markets (RIFM)

1197 NHBC Mahavir Dal Road. Panipat. 132103 Haryana. Ph.99961-55000, 0180-2663049 email: [email protected]

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