NCFM DP MODULE 1) In Joint Account if 1st holder died, the securities lying in the Demat account will be transferred

to the surviving holder. a) DP transfers the security after receiving the required documents from surviving holder. b) Issuer/R & T agent transfers the security after receiving the required documents from surviving holder. c) Automatically transfers by NSDL. d) Automatically transfers by DP. Change of address received from Corporate Client, DP do not require a) Minimum any one authorised person have to visit in person to DP b) Proof of new address, with Originals of new address for verify c) Written application signed by all the authorized persons d) Transaction statements of two quarter of Corporate Account. Once the Beneficiary Owner account opened, can the client change address.. a) Yes, prior approval of NSDL. b) No, once opened an account cant be changed the address. c) Yes, by producing written application, proof of new address, transaction statement. e) Prior approval of Reserve Bank of India. Effecting an inter-depository transfer, the client have to give the respective instruction a) To DP with whom they have opened their respective account. b) Directly to NSDL, as it involve transfer settlement from one depository to another. c) Directly to SEBI as inter-depository transfer related to SEBI approval. d) Directly Issuer / R & T Agent as it involves change of register owners. Custody charge charged by NSDL to issuers for upto Rs 5 Crore a) 30,000 b) 20,000 c) 10,000 d) 4,000 Investor holding shares in demat form, dividend will be declared by a) Depository Participant b) SEBI c) Issuer Company d) NSDL Which of the following city do not have a Stock Exchange a) Cuttack b) Guwahati c) Calcutta d) Delhi DP forwards DRF-GS to NSDL within how many days a) 21 b) 15 c) 3

2)

3)

4)

5)

6)

7)

8)

d) 9)

Who is permitted to open a SGL 2 account a) DP registered with NSDL b) RBI c) Any one have SGL 1 account d) None of the above for recall of securities by

10) NSDL charges to Intermediary Lenders/borrower a) 25 b) No fees levied c) 6 d) None of the above 11)

The reason for rejection of dematerialization is correct.. a) Electronic statement received, but physical security not received within 15 days. b) Originals sent, but duplicate certificates already issued. c) Name differs in certificates and demat request form. a) b and c b) a only c) a and c d) a and b Incase of invocation of pledge NSDL charges to participant a) No charges b) 25 c) 0.02% in case pledge amt. 10,000 d) 0.02% Investor can pledge NSC/KVP, as per the rules of a) DOP b) NSDL c) SP d) No such facility for NSC/KVP What a) b) c) d) is the annual fees charged for IDeAS 35,000 10,000 25,000 No charges

12)

13)

14)

15)

Can locked-in Securities be pledged a) Yes, after release from locked b) No, never c) Yes always d) Yes, prior approval of RBI Mr. Amit is a NRI having demat account, wants to sell securities to Resident India a) Company would have sought general permission from RBI b) Permission from NSDL along with RBI c) Permission from SEBI along with RBI d) Needs permission from RBI because, Selling to resident Indian If a DP takes an equity stake in depository then according to extent regulation DP can not , at any time, hold more than ________% a) 5

16)

17)

b) c) d) 18)

25 10 15

For an Intermediary the final approval required from a) RBI b) Ministry of Finance c) Department of Companies Affairs d) SEBI Which of the following details are not mandatory in the DRF-GS, filled by the investor while submitting the securities for dematerialisation ? a) Name of the Security b) Account Number c) ISIN d) Certificate Number Which of the following is not true in case of demat joint account a) After the death of 1st holder security transmitted to surviving holder b) Minor can be a Joint Holder c) Joint Holders can nominate d) Dividend warrants issued by Company shall issued in name of 1st only.

19)

20)

holder 21)

Fungible means a) Different securities of same company can interchangeable b) Freely transferable c) Same securities of a company interchangeable d) Similar securities of different company interchangeable Can securities of more than one company dematerialize through DRF a) b) c) d) Yes, provided the holding pattern is same Yes, at the discretion of Depository Participant No, It can not Yes, at the discretion of issuer/R & T Agent

22) single

23) NSDL

Eligibility criteria for an entity to be a Depository Participant a) Companies Act 1956 b) SEBI (Depository Participant Regulation) 1996 and by laws of c) d) Business Rule of NSDL Depositories Act 1996

24)

For conversion of partly-paid shares to fully paid , NSDL charges ____ per record towards corporate action to Issuer a) Rs. 8 b) Rs. 4 c) Rs. 6 d) No charges The Nifty comprises of ________ (a) 30 scrips (b) 25 scrips (c) 50 scrips (d) 35 scrips

25)

26)

Incase of DRF-GS, DP need not ensure for a) Account Number b) Name of Security c) ISIN d) Certificate number Maximum number of Beneficial Owner (excluding CM) accounts can be opened by a low end server a) 75000 b) 7500 c) 750 d) 75 Empowered to inspect the operation of a DP a) NSDL only b) SEBI and NSDL c) RBI only d) SEBI only Will dematerialization be rejected, if part of certificates in a single DRF pertains to locked-in status a) Yes, at discretion of Issuer/R& T Agent b) Yes, locked status can dematerialize c) Yes, if the lock-in request is share issued to employee under the stock opinion scheme. d) Yes, always Following can be partially dematerialised a) NSC/KVP b) Government Security c) Any security provided and permitted by issuer d) No, No security can be partially dematerialised Depository maintains minimum net worth of rupees a) 50 Crore b) 75 Crore c) 100 Crore d) 500 Crore The DPM in DP end, and the DM at NSDL __________ a) Connecting on real time basis b) Through Stock Exchange c) Through SEBI hub d) Not connected at all Net worth required by a Depository as per SEBI a) 50 Lacs b) No limit c) 500 Crore d) 100 Crore Sub-broker can open a CM account with DP a) Yes, SEBI registered sub-broker b) SEBI registered, personal gurantee affiliated c) No, a sub-broker can not open CM account d) Yes, all sub-broker can, they may have registered with SEBI or not. NSC / KVP having security in demat form can change the address

27)

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a) b) c) d) 36)

In same Post Office where he has account SP NSDL Any designated PO by DoP

Account holder can sign in an account opening form, a) in English or any language contained in the VIII form, other than that must be attested by a Magistrate or Notary Public or a Special Executive Magistrate b) Only in English c) in any language at his wish d) English or Marathi Charge for Rematerialisation a) Rs. 10 per certificate b) Rs. 25 per certificate c) No charges levied d) None of the above As per SEBI's Securities Lending and Borrowing Scheme, the networth requirement for Lender/Borrower is _________ [ 2 Marks ] (a) 50 crore. (b) 10 crore (c) No such requirement (d) 100 crore Mr. Shah sells 500 shares of ABC Ltd. to Mr. Mehta in a "off market intra DP transfer" at Rs. 118 per share. The closing price of ABC Ltd. at the following segments at stock exchanges on the execution date of this transaction are: AE segment of NSE: 120 Demat segment of BSE: 125 BE segment of NSE: 115 Assume that ABC Ltd. falls under the SEBI list for compulsory settlement in demat form by all categories of investors. Assuming that DP charges 0.04% off market transaction charges on purchase and levies no charges on the sale side, calculate the off market transaction charges charged by NSDL to DP? [ 2 Marks ] a) Rs. 6 b) Rs. 24 c) Rs. 8 d) Rs. 25

37)

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In a Security Certificate X is the 1st holder and Y is the 2nd holder a) An account having Y is the first holder and X is the second holder, can be dematerialized. b) X is the first holder Y is the second holder, can be dematerialised c) Z is the first holder, X is the second and Y is the 3rd, can be demated d) None of the above 41) Resolution by arbitration for disputes between NSDL and its business partners : a) applicable for disputes between NSDL and broker DPs only. b) Not applicable in the NSDL environment. c) Has been prescribed in the NSDL bye-laws. d) applicable for disputes between NSDL and bank DPs only

42)

The number of characters of the 1st holders name can reach upto : a) Any number of characters. b) 135 characters. c) 75 characters. d) 45 characters. For dematerialisation of _____________ a DP has to enter into a separate agreement with the client a) NSC/KVP b) Warehouse Receipts c) US 64 units d) None of the above, a DP does not need to enter into separate agreement. In case of accept/reject of repayment by the intermediary, the lender has to tick the following option on the SLB form a) Confirmation of lending b) Initiate recall from intermediary c) Initiate repay from intermediary d) Confirm recall/repay Who has to open a redemption account with DP a) Intermediary b) Issuer c) Investor d) NSDL Which of the following details are not mandatory in the DRF-GS, filled by the investor while submitting the securities for dematerialisation ? a) Name of the Security b) Account Number c) ISIN d) Certificate Number Can US 64 units issued by different branches of UTI be submitted for dematerialisation with a single DRF ? a) Yes at the discretion of SEBI b) NO c) Yes at the discretion of UTI d) Yes Which of the following provides inter connectivity amongst various depositories in the scenerio of multiple depositories a) Securities Contract Regulation ACT b) S E B I ( Depositories & Participants ) Regulations 1996 c) Operating Manual for Depository d) NSDL Bye-laws What is the upper annual ceiling of custody charges payable by a DP to NSDL who holds assets of average market value of between Rs 200 cr to Rs 400 cr a) There is no such annual ceiling . NSDL charges Rs 4/- per annnum per ISIN (for unlisted securtites which have not paid one timecustody fees) per client account as custody chanrges b) 0.50 lacs c) 2 lacs d) 1 lacs

43)

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45)

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50)

Entry a) b) c) d)

level IT set up keys in the keyboard 95 100 104 120

51)

If the quantity of shares mentioned in the DRF is more than the actual certificates received, the Issuer / its R & T Agent will a) accept / part reject completely at their option b) accept / reject as decided by NSDL as a case to case basis c) reject the demat request completely d) accept part of the request for which certificate are sent and reject the balance In case of public offer wherein the applicant has applied for shares in demat form, the allotment advise / return, the allotment advise / refund warrant will be forwarded to the applicant by a) NSDL b) DP c) Issuer / Registrar of the Issuing company d) SEBI After the repeal of the Capital Issues (Control ) Act 1947 , Indian companies were allowed to access the international capital market through a) Private placement of securities b) issue of 20 year convertible bonds c) Futures & Options d) issue of ADRs & GDRs. Whose statement of account reflects the credit of the shares a) The lenders statement but a lien is marked in favour of the borrower b) A special a/c "Securities Lending Suspense a/c" maintained by NSDL is credirted witht he securities lent c) A special Securities & Lending suspense account maintained by DP is credited with the securities lent d) The borrowers statement reflects the final credit of securities Which of the following statement regarding nominations is false a) Minor can not nominate , but can be a nominee b) NRI can nominate , POA holder can not c) In case of multiple nominations on death of the a/c holder securities will be proportionately divided between the nominees d) Only one nominee can be appointed per account All the activities relating to the issue management , settlement of trade , distribution of G Sec are handled by a) Lead Merchant Bank b) RBI alongwith PDO c) RBI alongwith DoP d) SEBI What Liquid a) b) is the custody fees charged to a DP for demat account holding . Bench mark Exchange Traded Scheme and ware house receipts Rs 1 per year Rs 1 per quarte

52)

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lent 55)

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c) d) 58)

No fees charged 4 per quarter

Confirmation by pledgor / hypothecator for invocation of pledge / hypothecation is required in case of a) pledge b) hypothecation c) both pledge and hypothecation d) pledge or hypothecation as decided by NSDL on case to case basis An approved Intermeiary can open its account with a) Institutional DP only , b) SBI only c) Directly with NSDL only d) Any DP of its choice What a) b) c) d) is the account opening charges levied by NSDL to DP Rs 50 per account opened with DP Rs 50 per account for individuals and Rs 500 for corporates No Charges Rs 500 per account

59)

60)

61)

Is transfer of securities between Pool accounts of different clearing members allowed a) Yes always b) Yes with permission of Exchange c) Yes provided the accounts are with the same DP d) No The physical share certificates are held in the name of Mr A & Mr B . Mr A is the first holder and Mr B is the second holder. In which of the following accounts these shares can be dematerialised a) A First Holder B Second Holder b) B First Holder A First Holder c) A d) B

62)

Ans a) Both A & B b) Only A c) only B d) All A, B , C , D 63) How many post offices are providing demat services for NSC/KVP in Mumbai ? a) 50 b) 45 c) 35 d) All post offices. 64) Maximum number of transactions a DP can conduct per day with a low end server? a) 20000 b) 200 c) 200000 d) 2000 65) stock A trade that is cleared and settled without the participation of a Exchang / Clearing Corporation ?

a) b) c) d) 66)

Rolling settlement Inter depository Off market Market trade

Minimum net worth prescribed for R & T agent as a DP ? a) 50 lacs b) 50 crores c) 100 lacs d) 10 crores Monetary assets of short term values (less than one year) are traded a) b) c) d) Debt Market Money market Stock market Stock exchanges

67) on ?

68) For a company accessing the capital market for the first time required ? a) Approval from companies act 1956. b) Approval from SEBI c) Approval from NSDL d) Approval from Stock Exchange. 69) the Which of the following documents, client has to submit for taking delivery from Warehouse ? a) PDRF b) Ware house receipt c) RRF d) DRF are the parties to the agreement in stock lending borrowing Borrower & Lender directly Borrower, Lender separately with Approved intermediary. Borrower, Lender with NSDL Borrower, Lender, Approved intermediary with NSDL.

70) Who scheme ? a) b) c) d) 71)

Amendment to NSDL Business rules, required approval of ? a) Board of Directors & Approval committee b) SEBI c) SEBI & NSDL Approval committee d) Its Board of directors only. Rolling settlement cycle, Auction trades for short falls a) T+2 b) Next day of settlement. c) Same day of settlement d) After 48 hours of settlement The software with the depository participant is known as a) DM b) DPM c) DP(CC) d) DP(SHR) NCFM DP MODULE ADDITIONAL QUESTIONS & ANSWERS

72)

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1. a. b. c. d. 2. a b. c. d. 3. a. b. c. d. 4.

The agreement for opening an account is signed between NSDL and client NSDL, DP &client DP & the client all the above NSDL charges for dematerialisation to the DP are 0.5% 0.1% No charges 0.01% NSDL charges transaction fees to the participant of the borrower 0.01% 0.02% for period upto 3 months, and if the period extends beyond 3 months, then additional of 0.02%. Rs 25/- per transaction 0.04%

For a new company issuing shares, it is guided by a. SEBI regulations b. guidelines issued by Dept.of company affairs c. No guidelines d. RBI guidelines For physical shares sent for transmission-cum-demat, the client has to submit a. Notarised death certificate and the certificates to the DP b. facility is not available currently c. Transmission form and notarised death certificate to the issuer along with the certificates. d. Transmission form and Letter of no objection along with physical share certificates to the Registrar. For transferring the shares from one account to another , the client has to submit a. Delivery instruction for off market trades b. No instruction is required c. Delivery instruction Slip (same for both off market & market trades) d. Delivery out instruction Novation was first introduced by a. BOISL b. NSCCL c. OTCEI d. CSE a. b. c. d. NSE trading terminal is known as BOLT NEST terminal NEAT terminal VSAT The net worth to be maintained by a depository at all times is Rs.50 crores Rs.100 crores

5.

6.

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9.

a. b.

c. d. 10. a. b. c. d. 11.

Rs.25 crores Rs. 10 crores Can odd lot shares be dematerialised Never Yes, with the permission of the issuer Always At the companies discretion

In case of recall of shares from the borrower, the intermediary has to submit which of the following form. a. Confirmation of lending b. Initiate Recall from borrower c. Lender forwards recall request to his DP d. Initiate repay to lender In case of broker as a partnership firm, the account has to be opened a. in the name of any of the partners b. in the name of all the partners c. in the name of the partnership firm d. in the name as registered with the stock exchange In case of a pledge/hypothecation, both the parties should have an account a. with the same DP b. with any DP of their choice c. Both accounts should be with Pledgor DP d. None of the above NSE is a. b. c. d. a. b. c. d. registered as association of persons a company registered under the Companies Act registered as a trust with tax exemption a company registered as stock exchange

12.

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The software with the depository participant is known as DM DPM DP(CC) DP(SHR)

16.

Shares transferred in the depository are free from stamp duty, which translates into a saving of a. 0.5% b. 0.05% c. 1% d. 0.75% Mr.A.Mehta & Mrs. A.Mehta , joint holders of 200 US 64 units, 100 on joint basis & 100 on either or survivor basis want to dematerialise all the 200 units. a. They can dematerialise all the 200 units through the a/c in the name of Mr.A.Mehta as the first holder & Mrs. A.Mehta as second holder with a undertaking that the facility of either or survivor will be applicable only to 100 units. b. They will need to open two different accounts in the name of Mr.A.Mehta as the first holder and Mrs.A.Mehta as second holder, one on joint basis and one on either or survivor basis

17.

c. d. 18.

Any one of above, at their option Not applicable. US64 units do not have the facility of either or survivor basis

The Indian Depositories Act, 1996 a. Does not mandate a single depository b. Mandates a single depository c. Mandates maximum of two depositories d. None of the above a. b. c. d. The securities which are eligible for demat? All securities Listed securities Securities for which the ISIN has been activated in the depository Securities which are trading in NSE

19.

20.

For an intermediary a/c, the agreement is signed between; a. The intermediary & the DP b. The intermediary & the depository c. Lender and Borrower d. The DP & the Depository The networth required for a NBFC to act as a DP on behalf of any other person is a. Rs. 50 crores b. Rs.100 crores c. Rs. 5 crores d. Rs.10 crores Before screen based trading , the difference in buying / selling price & reporting price to the client / SE was known as a. Badla b. Gala c. DVP d. Inter Trade A DP has to send the shares for dematerialisation within how many days of receipt of shares a. 7 days b. 15 days c. 21 days d. 30 days a. b. c. d. a. b. c. d. a. b. How many scrips constitute Nifty 5 scrips 9 scrips 50 scrips 95 scrips How many scrips constitute Midcap index 100 30 200 50 scrips SEBI is An autonomous body Body under the ministry of finance

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c. Established by an act of Parliament d. Biggest stock exchanges in India The regulatory body for plantation companies is a. SEBI b. RBI c. Central Govt. d. None of the above a. b. c. d. Statement of holding at the end of the day will carry Only the holding at the end of the day Both the transactions and the holdings Only the transactions for the day None of the above

28.

29.

Which are the documents to be sent in case of joint a/c for transmission a. Transmission form along with fresh account opening application b. Transmission form along with a copy of notarised death certificate to transmit the securities lying in the account of the deceased to the account of the surviving holders. c. Only Transmission form d. No Objection Certificate(s) from all the legal heir(s) who do not object to such transmission along with death certificate. Can lock in shares be pledged a. No, lock-in shares cannot be pledged b. Yes, always irrespective of lock-in reason c. Yes as per the NSDL Bye Laws d. None of the above a. b. c. d. a. b. c. d. Unit 64 is Open ended close ended either neither Insider trading regulations is formulated by SEBI Concerned Stock Exchange RBI Clearing Corporation

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33.

a. b. c. d. a. b. c. d. by a.

Credit of pledge appears in the account of Pledgee Pledgor Neither Individual VSAT stands for Very Small Aperture Terminal Very Small Aptitude Terminal Very Small Aptitude Test Very Simple Aperture Test In case of Govt. securities monetary benefits distributed directly RBI

34.

35.

b. a. b. 36. a. b. c.

NSDL

DP after receiving benefits from NSDL Central Govt.

Any amendments to NSDL bye laws come into effect after approval from BODs of NSDL approval from Executive committee of NSDL approval from BODs and approval from SEBI one day prior to the commencement of rule. d. Approval from Executive committee of SEBI If the client insists the broker to deliver in physical form, and the broker delivers it in demat form, whom should the client approach a. NSDL b. SEBI c. He should insist the broker to deliver in physical form d. He should open a Demat a/c and get them rematerialised a. b. c. d. a. b. c. d. a. b. c. d. To dematerialise Govt Securities one has to open an a/c with RBI NSDL Any DP Institutional DP A DP can lodge insurance claim how many times 1 time 2 times 5 times no limits Who cannot be a sponsor for a depository FII Broker Mutual Fund NBFCs

37.

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The agreement between a DP and a client is a. Universal b. Varies from DP to DP c. Stated in NSDL byelaws d. At the discretion between the client and the DP a. b. c. d. a. b. c. d. a. b. c. d. What should be the net worth of a custodian 1 Crore 10 lacks 50 lacks 50 Crores Minimum subscription % in public issues is 50% 90% 80% 75% Which of the following fields do not form a part of the DRF Type of security Details of lock in CM-BP ID Quantity to be demated

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45. a. b. c. d. 46.

An investor can open a depository a/c with NSDL DP of his choice SEBI None of the above

Long term capital assets means a. Shares & securities if it is held for more than one year b. Shares & securities if it is held less than one year c. Securities held for more than 5 years d. None Under the securities lending scheme , the interest payable on the securities lent is as per agreement between a. Lender and intermediary b. borrower and intermediary c. Lender borrower intermediary d. NSDL and the borrower When a pledgee initiates invocation on a certain share the invocation will be based on a. Face value of the share b. Closing price of invocation execution date c. Any of the above d. Date of creation of pledge a. b. c. d. Market type indicates Settlement No Trading segment ISIN None What are NSDL charges to his DP for account opening Nil charges Depends on DPs charges to clients 0.02% 0.04% The Chairman & Managing Director of NSDL is SH Khan DR Mehta Ajay kumar Banerjee C. B. Bhave The Chairman of SEBI is PS Subrahmanium D.R.Mehta Damodaran G.N.Bajpai

47.

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50. a. b. c. d. 51. a. b. c. d. 52. a. b. c. d. 53.

The most perfect method of inter depository transfer that SEBI has approved a. CM should have a clearing account in CDSL and NSDL b. NSDL & CDSL should have their own respective account with each other c. none of the above d. Either of above

54.

Who provides the legal frame work for the establishment functioning and dealings in securities , but only the securities of the Companies to be dealt in the depository mode a. Depository Act 96 b. SEBI regulations c. NSDL byelaws d. None of the above NSCCL is a wholly owned statutory body of a. NSE b. BSE c. SEBI d. RBI The depository Act came into force on a. 10 August 96 b. 20 September 95 c. 10 December 96 d. None of the above What is the difference in a pledge and hypothecation a. No there is no difference at all b. In pledge, the pledgor cannot confirm the invocation from his DPM but in hypothecation, it is the opposite c. In pledge the pledged security is in the favour of the hypothecatee d. Both 2 and 3 options mentioned above is the perfect difference between a pledge and hypothecation The biggest user of the electronic clearing service (ECS) system is a. UTI b. IDBI c. SBI d. NSE In case of any corporate actions of commercial paper, a flat fee at the rate of Rs. ___________ shall be charged by the issuer a. 10000 b. 20000 c. 5000 d. Nil What do you mean by concentrated margin a. It is margin imposed by NSE on broker for trading in selected basket of scrips with high volatility b. It is a margin imposed by a broker on client for the services rendered c. It is a margin imposed by NSDL to the DP for the average value of the demat securities held d. None of the above In case of conversion of shares from non pari passu shares to pari passu shares, the settlement fee is a. 0.02% b. 0.04% c. Depends on case to case as per NSDL guidelines d. No fee shall be charged Each participant shall pay to the depository a non refundable entry fee of

55.

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a. b. c. d. 63.

Rs.10000 Rs.25000 Rs.100000 No entry fee

64.

The minimum security balance required for opening an account is a. an investor can have a zero balance b. it depends upon DP to DP c. None of the above d. Either of the above DPs are approved by a. SEBI b. NSDL c. RBI d. Securities appellate Tribunal In stock lending scheme a. Partial repayment and partial recall is allowed b. There is no partial repayment accepted c. There is no partial recall accepted d. None of the above Who signs surrendered for demat in the share certificates for Demat? a. NSDL b. DP c. ISSUER/RST Agent d. None of the above Securities of the beneficial owners should not get commingle with each other nor it should get mix with the DPs own beneficiary a/c is a good example of a. NSDL byelaws b. NSDL business rules c. SEBI DPs Regulations d. Depository Act 1996 Investors grievances should be solved by the depository within a. 30 days b. 31 days c. 14 days d. None of the above The Mkt Capitalisation of a company will be determined on the basis of the Avg Mkt Price for a period of ______weeks preceding the date on which the Company agrees to pay the one time custody fee. a. 25 b. 24 c. 26 d. 21 NSDL provides depository services to investors & CMs through DPs a. NSDL does not charge anything to investors b. NSDL does not charge anything to CMs c. NSDL charges only its DPs d. All of the above NSDL levies all its charges on its DPs. A DP in turn can a. Levy the same charge on its client

65.

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b. c. d. 72.

Load on a profit margin restricted. to max 4 BPs The charges of the DPs are specified by SEBI DPs are free to charge their clients on their own

Mr.X sold 100 shares of Infosys to Mr Y. This is an off market trade. Both X & Y are in the same DP. Y gives a letter to DP stating that he shall bear Xs charges what will NSDL charge the DP (@10000) a. Rs.200 b. Rs.400 c. Nil d. None of the above NSDL charges for off market trade a. 2BP of value of Net receipts to the account b. 2 BP of value of Net Delivery from the account c. 2 BP of value of net securities d. Rs 6/Mr.X owns 40000 shares of GE shipping . He surrenders the shares for demat to his DP. The DP charges him Rs.2 per certificate which cost him Rs.800/-. He disputes saying that since NSDL does not levy any charge he need not pay anything. a. He is right, DP should not make profits on simple investors b. He is right. He can appeal to Consumer court c. He is bound by the agreement executed by him while opening the a/c d. None of the above Cipla wants to remat its entire ESOP holdings aprox.3 million shares. At the current value of Rs.100 per share the company will pay:- Mkt lot is 100 shares a. Rs.300,000 b. Rs.30,00,000 c. Will be based on Tariff charged by the DP d. None of the above Arun pledges shares with stanchart 100 shares of Infosys. Arun receives money from Stanchart. Arun wishes to sell 50 shares @ 11000. He pays partial amount to Stanchart. Stanchart releases 50 shares to Arun. Arun cannot pay rest of the money. Stanchart gives due notice & invokes 50 shares, Price @ 11200. What will be total charge billed by NSDL ?. a. Rs.1120 b. Rs.560 c. Rs 25/d. None of the above Loans against Demat shares in a bank are maximum available to the tune of a. Rs.10 lakh b. Rs.20 lakh c. Rs.25 lakh d. Rs.50 lakh For the purpose of calculating date of transfer and period of holding in respect of demat shares. a. FIFO method applies b. LIFO method applies c. NIFO method applies

73.

74.

75.

76.

77.

78.

d. 79.

Weighted Average method

FIFO method will be applied in respect of a. Physical securities b. Demat securities c. US64 unit securities d. All of the above NSDLs central system comprises an a. AMD Mainframe b. HP V9000 RISC Server c. IBM Mainframe d. None of the above NSDL Central system is situated at a. 28th Floor PJ Towers, Dalal street b. NSE Complex, Mahindra towers c. Trade World, Lower Parel d. Overseas place connected via ISDN Line A disaster back up site is a. A web site which provides web users with software b. A backup server with equal capabilities of the actual server set up at a remote location c. A server used only for taking backup of the actual server, but no operation possible d. None of the above Growmore financials is a Broker firm . They are interested in becoming a DP Can they a. Approach SEBI with an application for setting up a DP b. Approach NSDL with an application for setting up a DP c. Approach BSE with an application for setting up a DP d. Approach NSE with an application for setting up a DP Geofit Securities is a DP Mr.X is the manager of Geofit securities. He believes in that he can access any other DPs database through the NSDL network. a. Mr.X is right, all BPs are connected by Network to NSDL & can access each other's DB b. Mr.X is right, NSDL system provides him with an option of directly communicating with other dps c. Mr.X is wrong, No DPs can talk directly with each other. There is no provision in the system d. None of the above A counter check in place by NSDL is a. Contacting certain clients of certain DPs & confirming their balances orally b. Sending out statements of holdings of some clients on a random basis to ensure that all communications are being released to the customers by the DP c. Sending representatives to DPs to check the balances of certain customers d. None of the above Insurance cover to protect investors in case of failure of DPs is a. Taken by SEBI

80.

81.

82.

83.

84.

85.

86.

b. c. d. 87.

Taken by DPs Taken by NSE Taken by NSDL

The upper limit on an insurance claim is a. 1 crore b. 5 crores c. 20 crores d. Unlimited Under the NSDL insurance scheme claims allowed are a. Maximum 5 claims per annum b. unlimited, for an amount less than 1 crore c. Unlimited d. none of the above NSDL investor protection fund take care of claims a. less than 1 crore b. less than 1.5 lakh c. less than 90000 d. No such limit For the purpose of carrying out & effecting settlement NSDL is currently linked to a. NSE, BSE b. 10 stock exchanges across the country c. 12 stock exchanges across the country d. 22 stock exchanges across the country Off market trades are a. Trades done after market hours b. Trades settled through the CC/CH c. Trades not settled through CC/CH d. None of the above Which of the following fields in an instruction need not match the receipt in instruction. a. Date of Execution b. Client Id c. Remarks d. ISIN no Execution date refers to the date of a. Date on which NSDL executes Corporate actions b. Date on which an instruction has to be executed c. Deadline specified by SEBI w.r.t.instructions d. None of the above In an off market trade the selling client receives the sales proceeds from buying client through a. The NSDL systems b. The buyer pays NSDL who in turn pays the seller c. The payment mechanism is outside the depository system d. None of the above Which of the following is not an off market trade a. Client delivering his shares to the pool account of his broker b. Broker effecting payout to his client

88.

89.

90.

91.

92.

93.

94.

95.

c. d. 96.

An individual pledging shares with the bank All of the above

What instruction is used by an investor for transferring shares from one beneficiary account to another beneficiary account where the SI is marked as No a. Delivery instruction ( it is common for both Market & off market trades) b. Delivery instructions for off market trades c. Receipt Instructions d. No instructions as SI for receipt will serve the purpose A rolling market trade has to be settled in a. T+1day b. T+5 days c. Every Monday d. T+2 A market trade is a. Trade settled through CC / CH b. Trade not settled through CC / CH c. Trade done in Demat segment d. None of the above Payin of securities refer to a. Receipt of securities from CC / CH b. Delivery of securities to CC / CH c. Transfer of securities from client to broker d. None of the above Payout of securities refer to a. Gross receipt of securities from CC/CH for a settlement b. Gross deliverables of securities to CC/CH for a settlement c. Net receivables of securities from CC / CH for a settlement d. None of the above For effecting a payin through the CC/CH broker needs to a. Inform NSDL about his obligation for the settlement b. Provide a Delivery by client instruction to his DP to effect payin c. Provide a Delivery to CC instruction to his DP to effect payin d. None of the above Following is not a component of NSDL CM account a. CM Pool a/c b. CM Delivery a/c c. CM Receivable a/c d. None of the above At the time of payin the securities are delivered to the CC / CH from a. CM Delivery A/c b. Client beneficiary account directly c. Through an off market transaction d. None of the above X is a CM. Y is his client. Y has an obligation to deliver 100 shares of Reliance for a particular settlement. The deadline for payin is 3.00

97.

98.

99.

100.

101

102.

103.

104.

pm. Y transfers the balance after 3.00 PM. What will happen to Xs obligation a. Xs obligation will be auctioned off at 3.00 pm as the shares are not delivered by him in time b. NSDL provides a window for Late pay in after the deadline time by.payment of late fees c. Y can deliver in the consequent settlements d. None of the above 105. What instruction will a CM use to deliver shares to a client from the pool account a. Account transfer instruction b. Delivery Instruction by CM on Pay-out c. Receipt in instruction d. None of the above What option will the DP use in DPM for effecting a transfer between two beneficiaries within the same DP a. Off market transfer b. Intra DP transfer c. Inter DP transfer d. Account transfer Which of the following transactions are automatic and do not require the CM to give an instruction a. Transfer of securities from CM Dely A/c to CC/CH b. Transfer of securities from CC/CH to CM receipt in account c. Both of the above d. none of the above X transfers 1000 shares of Infosys to his broker for sale. What will NSDL charge X ? a. 2 basis points b. 4 basis points c. nil d. None of the above In India the route to the depository is a. Immobilization b. Dematerialisation c. Custody d. None of the above Mr.X holds hundred shares of a scrip which is not admitted in the depository. What can he do to get his shares into Demat ? a. Write to NSDL to create a security in their system b. Write to SEBI to introduce the security in the depository c. The shares cannot be converted to demat as the security has not been admitted to the depository d. None of the above Mr.X and Mrs.X hold 100 shares of Satyam. Can their shares be admitted for demat in an account held by MrX singly. a. Yes, Mr.X is a joint holder in their shares b. Yes, but Mrs.X will have to sign on the DRF c. No, demat is possible only through the account where the holding pattern matches the names on the certificates d. None of the above

106.

107.

108.

109.

110.

111.

112.

Securities in the name of X&Y can be admitted for demat in an account of Y&X respectively as joint holders. a. Yes, both are joint holders, the order does not matter b. Yes, in case of either or survivor, the order does not matter c. No, a separate account of X&Y needs to be opened for the purpose d. None of the above

113.

In a DRF the signature needs to be of a. Any of the joint holders b. all the joint holders together c. The first holder d. any one of the holders authorised at the time of account opening 114. Mr.X submits 100 shares of Asian Paints to his DP for demat. On scrutinizing it is found that the shares are under lockin. The DP returns the client citing so. Are they correct in doing so a. Yes, lockin shares cannot be surrendered for demat b. No, the shares under lockin can be dematerialised , provided the fact of lockin is mentioned on the DRF c. Yes, lockin shares can be dematerialised only after the lockin period is over d. None of the above Mr.X submit 1000 shares of Prism Cement for demat. In the DRF he makes a mistake while entering the DNR details. The DP accepts the shares & DRF : Is it right a. Yes, DNR details are not entered in the DPM system hence are not verified by R&T agents b. In a depository all securities are fungible hence a mistake in the DNR details can be overlooked c. The R&T agent will reject the DRF citing mismatch in the DNR details d. None of the above ISIN for a security is allocated to an Issuer by a. RBI b. NSDL c. BSE d. SEBI Mr.X submits 100 shares of Satyam for demat. He notes down the DRN nos of the shares. When he gets credit of the demat into his account, he inquires with his DP about the DNR details. DP has to inform him that a. NSDL forgot to put in DNR details in the system and they should be contacted b. The DNRs Nos do not appear in the statement but the depository maintains a track of DNR nos c. Once the shares are dematerialised, they become fungible, ie, they lose their identity, hence there can be no DNR nos d. None of the above If a unitholder opts for either or survivor basis in case of his US64 units, the demat requests pertaining to them can be a. processed through the same account that he has for his other holdings in demat form with an undertaking that this facility is available only for US64 units b. Processed through any one of the above

115.

116.

117.

118.

c. d. 119.

Not applicable, US64 units do not have the facility of either or survivor basis None of the above

A client submits a repurchase form for US64 units held in demat to his DP. The DP directs the client to the nearest UTI office to submit the form. Is the DP right? a. Yes, repurchase forms have to be submitted by the client to the UTI for US64 units held in demat form b. No, the DP must accept the repurchase request and generate a RRN and submit this to the UTI office c. Either of the above, depending on the preference of the client d. None of the above If in a lot of 1000 shares sent for demat, 900 shares are found to be fraudulently issued and 100 in order, the R&T agent will a. Return 1000 shares to the DP b. Return 100 shares to the DP & destroy 900 shares c. Reject 900 shares in NSDL system and process 100 shares d. None of the above What is the time limit specified by SEBI for demat a. 7 days from date of receipt of physical request from DP b. 15 days from date of receipt of physical request from DP c. 30 days from date of receipt of physical request from DP d. NO time limit is specified by SEBI What is the maximum permissible time limit for remat as allowed by SEBI a. 7days from date of receipt of physical request from DP b. 15 days from date of receipt of physical request from DP c. 30 days from date of receipt of physical request from DP d. No time limit is specified by SEBI, depends on R&T agents load Will an investor opting for remat get back his original share certificates a. Yes, the underlying securities are immobilized, it is possible to track DNR nos. b. No. the registrar has a large pool of DNR Nos. So he need not know the particular trail of their certificate c. Since demat shares are fungible the investor gets back the same certificate nos. that he submitted d. None of the above After the processing of dematerialising the registered owner is a. SEBI b. NSDL c. Investor d. R&T Agent A scrip is available only in CDS and not in NSDL. An investor demats his holding in CDS and tries to transfer his balance to his NSDL account a. The transaction will go through b. The transaction will fail as the security is not admitted in NSDL c. Such a situation is not possible as NSDL & CDS have same securities admitted to them

120.

121.

122.

123.

124.

125.

d. 126.

None of the above

Following cannot be a reason for rejection of demat a. Shares not received as per DRF b. The a/c holder name does not match with that on the security because of fathers name as initial is present c. Incorrect holder's name d. All of the above Mr X has recently bought 100 shares of Reliance in physical. Can he lodge these shares in street names for dematerialising in these names a, No, the certificates have to be sent for transfer and the physical certificates when received back after transfer must be submitted b. Yes Reliance offers T cum Demat services for physical shares, hence the physical shares can be sent for transfer and upon receipt of option letter a DRN can be sent a. Yes, the physical certificates along with the TD duly executed must be submitted to the DP accompanied with a DRF form b. None of the above For a new company issuing shares, it has to follow a. SEBI regulations b. Guidelines issued by DCA c. No guidelines d. RBI guidelines BSE trading terminal is known as a. BOLT b. NEAT c. NEST d. DPM Settlement a. b. c. d. guarantee fund was introduced by BOISL NSCCL OTCEI CSE

127.

128.

129.

130.

131.

Can a Main Broker become a DP a. No b. Yes c. At the Discretion of his exchange d. At the Discretion of NSDL When will a delivery instruction fail a. When the client does not have adequate number of shares in his account b. When the client has not paid the dues to the DP c. When the client has not paid his dues to the broker d. As per the discretion of the exchange When a Clearing member gives a delivery out instruction which transaction takes Place a. Shares move form pool account to clearing corporation b. Shares move form pool account to delivery account c. Shares move from beneficiary account to pool account d. Shares move form client account to pool account

132.

133.

134.

Who is authorised to sign the Delivery Instruction slip for the transfer of shares from the pool account to Clearing House a. Individual seller b. Buyer c. Buyers Clearing Member d. Sellers Clearing Member Which a. b. c. d. brokers can become a DP SEBI approved SEBI approved brokers with minimum net worth of Rs. 50 lacs Brokers with minimum net worth of Rs. 50 lacs irrespective of SEBI approval Any broker

135.

136.

In case a company declares a Right Issue, who dispatches the option letter to the existing share holders a. NSDL b. SEBI c. R & T Agent or the Company itself d. Credit rating agency which has allocated credit rating to the company On what is Capital Gain Tax levied a. Net value of shares held in Demat a/c b. Income gained after sale of shares c. Profit made after sale of shares d. Total profit made in a year by sale of shares What a. b. c. d. is market type Exchange Settlement no CM-BP Id Physical, Rolling, etc (Trading Segment)

137.

138.

139.

Which Securities can be transferred from one Depository to another a. Securities approved by SEBI b. Only those which are admitted in NSDL and CDSL c. Only those which are admitted in CDSL d. Only those which are admitted in NSDL How many pool accounts can a broker have a. One per DP b. One per exchange per DP c. One per Exchange d. As many as he wants Through which medium do DPs and NSDL communicate with each other a. Through SEBI b. Through Exchanges c. Through Star Network d. On Real Time basis Who Dematerializes Govt. Securities a. The appointed R & T Agent b. NSDL c. Karvy Consultants d. NSE

140.

141.

142.

143.

Can an individual refuse to accept the shares in demat form a. No b. He has to notify NSDL c. Yes. In that case the broker has to get physical share. d. He has to notify SEBI What a. b. c. d. are a/c opening charges Nil Rs. 25 Rs. 50 Depends upon the net worth of his account

144.

145.

Which of the following forms a part of DRF a. Name of the exchange b. Settlement c. CM-BP Id d. Lock in reason NSDL a. b. c. d. Proprietary firm Trust Public Sector Undertaking Public Limited Company

146.

147.

Under what circumstances can a Delivery instruction be cancelled a. If the instruction is under reversible status b. If the broker has that particular obligation c. If the instruction is under irreversible status d. When the instruction is released When can a corporate become an NSE member a. If it suffices all the terms and conditions of SEBI b. Any one can become a member c. At the discretion of NSE d. If it is in Demat Which of the following does not form a part of DRF a. Client Id b. ISIN c. Company name d. Exchange name Which of the following does not form a part of the delivery instruction slip a. Settlement b. CM-BP Id c. Exchange in which the shares are traded d. ISIN Pick the odd one out a. Options b. Futures c. Forward d. Debentures Pick the odd one out a. Individual account

148.

149.

150.

151.

152.

b. c. d. 153.

Pool account Receipt in account Current account

In case of Remat, the registrar will transfer the Share Certificates into whose name a. NSDL b. Client c. DP d. Company If a broker has obligation for auction-physical settlement, to whom will he give the delivery of the shares a. NSDL b. Clearing Corporation c. CDSL d. Concerned broker, whose shares could not be delivered on time by him How many sub-brokers can a main broker have a. As many as he wants b. One per exchange c. Only those who have an account with the same DP as his d. Only one How many accounts can an individual have in the same name a. One account per DP b. One account per name c. Any number of a/cs in one DP d. Any number of a/cs in one or more DPs What a. b. c. d. is the maximum time for Remat for R & T agents 15 days from the day he receives the request 30 days from the day R&T receives the request 15 days from the day the DP receives the request 30 days from the day the DP receives the request

154.

155.

156.

157.

158.

What is the maximum interest a DP can charge to its client in case he fails to pay his dues a. 24% pa b. 12% pa c. no limit d. 8% If a client pledges his shares but fails to pay his debts a. The shares are invoked in the pledgors account b. The shares are confiscated by NSDL and the debts are paid by them c. The pledge is closed and the clients beneficiary account is suspended for debit d. Debts are required form the clients savings account In case an individual has many accounts in different DPs how do the tax authorities calculate the tax a. Tax is calculated account wise b. Tax is calculated per DP per individual c. Tax is calculated per exchange d. At the discretion of the Tax Authorities

159.

160.

161.

Which act governs the transfer of shares form one account to another a. NSDL Bye-Laws b. Depository Act 1996 c. SEBI Guide-lines d. Under Companies Act 1956 Corporate benefits for government securities go to a. NSDL b. SEBI c. Client d. None of the above A Resident India purchase shares in India in physical form and then goes abroad. If he now wants his shares to be Demated, which type of Demat account should he open. a. HUF b. Resident ordinary c. Corporate d. NRI Repatriable Which of the following does not require "Witness"? a. DP Client Agreement. b. DP Nomination Form. c. Indemnity by DP for missed Certificates. d. Freeze / Defreeze Form. Schedule of Charges to be signed by the Client because: a. of NSDL Bye-Law. b. of SEBI's stipulation. c. to get confirmation from the clients that they read the schedule of charges. d. it forms part of DP Client Agreement. Which among the following categories can not have a joint account? a. a minor individual / HUF. b. Corporates. c. a major resident individual. d. a major non-resident individual. In the T+2 settlement, a client sold some scrips in NSE on 22/01/2004 which falls on Thursday. Monday 26th January 2004 is a holiday on account of Republic Day. When will be the Pay-in of securities for the trading done on 22/01/2004? a. Friday, 23/01/2004. b. Saturday, 24/01/2004. c. Monday, 26/01/2004. d. Tuesday, 27/01/2004. The basic condition for creating a Pledge is that: a. both the pledgor and the pledgee should have demat account with the same DP. b. only the pledgor should have a demat account for creating a Pledge and not the pledgee. c. the pledgor and pledgee can have demat account in any DP connected to NSDL. d. either the pledgor or the pledgee can have demat account with a DP connected to NSDL whereas the other can have a demat account with a DP connected to CDSL

162.

163.

164.

165.

166.

167.

168.