Demat

rrect answers are shown in green. Attempted answers, if wrong, are in red.
Q1
ISIN stands for ______. [ 2 Marks ]

(a) International Securities Identification number
(b) International Securities Identity number
(c) Indian Securities Identity number
(d) Indian Securities Identification number
(e) I am not attempting the question
Q2
Name the odd one out: [ 2 Marks ]

(a) ICRA
(b) BOISL
(c) CARE
(d) CRISIL
Q3
"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:" [ 2
Marks ]

(a) Account freezing is not possible in the NSDL system.
(b) filling up an account freezing form available with the DP D.
(c) "transferring his holdings to a special account called 'e-locker'
where all such securities are held in fiduciary capacity by DP D."
(d) writing to NSDL to freeze his account.
Q4
"As a part of the capital adequacy requirement, the base minimum
capital prescribed by SEBI:" [ 1 Mark ]

(a) varies from exchange to exchange.
(b) is based on the recommendations of the Kaul committee.
(c) is based on the recommendations of the Justice Bhagwati
Committee.
(d) is the same across members of all exchanges.
Q5 "Shyam has 500 shares of ABC Ltd in his beneficial owner account on
12/10/98. He gives a ""Delivery instruction"" on the same day to debit
his account with 600 shares of ABC Ltd with the execution day as
14/10/98. At the end the of the day on 14/10/98 his account shows a
credit of 550 shares. What will happen?" [ 2 Marks ]

(a) "The entire instruction will be cancelled in the system at the
end of the day on 14/10/98, as the account is short by 50 shares."
(b) "500 shares will be debited from his account on 12/10/98, 50
shares on 14/10/98 and the balance instruction will be cancelled."
(c) "The entire instruction will be cancelled in the system on
12/10/98, as the account is short by 100 shares."
(d) "On 14/10/98, 550 shares will get debited and the balance
instruction cancelled."
Q6
"Mr. Buyer has sold 100 shares on the NSE. Both, Mr. Buyer and Mr.
Seller have opened depository accounts with NSDL. Assuming, Mr. Seller
is the buyer of the same shares, the shares will be credited to:" [ 2
Marks ]

(a) Mr. Buyer's account directly by the stock exchange.
(b) Mr. Seller' s account directly by Mr. Buyer.
(c) Mr. Seller's account by the DP of his stock broker on the basis
of an instruction given by that stock broker.
(d) Mr. Buyer's account by the DP of his stock broker on the basis of
an instruction given by that stock broker.
Q7
Can shares that are not registered in the name of the account holder
be dematerialised? [ 1 Mark ]

(a) "Yes, at the discretion of the Issuer/ its R and T Agent."
(b) "No, shares have to be registered in the name of the
concerned investor."
(c) " Yes, at the discretion of the DP."
(d) "Yes, provided a duly filled transfer deed is attached."
Q8
"Every Issuer must enter into an agreement with NSDL for offering its
securities for demat. The following is true with respect to the
statement made." [ 1 Mark ]

(a) "No. Securities which are listed on the NSE are exempt.
However, those which are in the 'Permitted-to-trade segment are not
exempt."
(b) Yes. All Issuers must sign an agreement with NSDL.
(c) "No. Securities issued by the Central and State Governments
are exempt from signing an agreement."
(d) "No. Issuers which have a market capitalisation of more than Rs.
125 Cr. are exempt from signing an agreement."
Q9
Which of the following statements regarding dematerialisation is false?
[ 1 Mark ]

(a) NSDL doesn't charge its DPs for dematerialisation.
(b) Odd lot shares can be dematerialised.
(c) Investor has to pay stamp duty for dematerialisation of
shares.
(d) Shares not registered in the name of the concerned account
holder (street name shares) can't be dematerialised.
Q10
"In an application for opening an account (for corporates/ clearing
members only), which one of the following form part of types of
accounts?" [ 2 Marks ]

(a) NRI- Repatriable.
(b) OCB.
(c) NRI- Non-Repatriable.
(d) HUF.
Q11
Can locked in securities be dematerialised? [ 2 Marks ]

(a) No.
(b) "Yes, provided lock in reason is promoters quota in public issues"
(c) "Yes, always irrespective of lock in reason"
(d) "Yes, provided lock in reason is employees quota under stock
option scheme"
Q12
" DVP, in the capital market context, stands for:" [ 2 Marks ]

(a) default versus payment.
(b) delivery versus payment.
(c) default versus penalty.
(d) delivery versus penalty.
Q13
"If a DP goes bankrupt, what happens to the dematerialised holdings of
investors with the DP?" [ 2 Marks ]

(a) The assets of the investor may be used for paying off the
creditors of the DP.
(b) "The appointed ""court receiver"" has the discretion to dispose
off the assets of the investor in the manner he deems fit."
(c) "NSDL has the discretion to dispose off the assets of the investor
in the manner it deems fit."
(d) "The investor can opt for rematerialisation or open his
account with another DP and transfer his holdings."
Q14
"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. Broker PQR gets credit of
the same in his account with DP4 in settlement no. 1999052. The
market value of ABC company is Rs. 500/-. What are the transaction
charges levied by NSDL to DP4 as applicable from May 1, 2002?" [ 2
Marks ]

(a) "Re. 1/- subject to minimum Rs. 1000/- and maximum Rs.
5,000/- per quarter."
(b) Rs. 25/- (100*500*0.05/100) i. e. 5 basis points of market value
of securities credited to broker PQR clearing member account from
clearing corporation/ house.
(c) "Rs. 0.50 (100*50*0.01/100) i. e. 1 basis point of market value of
securities credited to broker PQR clearing member account from
clearing corporation/ house, subject to minimum Rs. 2000/- and
maximum Rs. 20,000/- per quarter."
(d) No charges.
Q15
"Bank particulars captured in the depository account opening form, are
of relevance for which of the following related activities?" [ 1 Mark ]

(a) Transferring shares to the CM pool account.
(b) Stock lending and borrowing
(c) Cash corporate actions
(d) Off-market transfers.
Q16
Book building: [ 1 Mark ]

(a) "is used by stock exchanges for trading as it is more efficient
than the traditional open outcry system."
(b) is used by speculators to artificially increase share prices.
(c) "is used in the public issue process for efficient price and
demand estimation for the Issuer."
(d) is used by bookies in horse racing.
Q17
Can a delivery instruction for transferring shares from a beneficiary
account to a CM pool account be canceled? [ 2 Marks ]

(a) "Yes, but only prior to the execution date indicated in the
delivery instruction"
(b) Yes always
(c) Never
(d) "Yes, but only after the execution date indicated in the delivery
instruction"
Q18
"In case of a partnership firm, the beneficial owner account will be
opened in the name of:" [ 2 Marks ]

(a) the partnership firm.
(b) any partner(s).
(c) all the partners.
(d) any of the above.
Q19
"If beneficial owner opts for demat securities in the public issue
application form then, the probability of allotment of the shares:" [ 1
Mark ]

(a) remains same.
(b) decreases.
(c) depends on the no. of applications he has submitted asking for
demat shares.
(d) increases.
Q20
What is the main purpose of bank account details in account opening
form? [ 2 Marks ]

(a) For DP to debit the savings bank account for charges on the
services enjoyed.
(b) For the purpose of income tax authorities.
(c) For safe distribution of cash corporate actions.
(d) For NSDL to debit the savings bank account for charges on the
services enjoyed.
Q21
UTI: [ 2 Marks ]

(a) is the largest mutual fund in the world.
(b) was set by an act of Parliament in India.
(c) "has floated only one mutual fund scheme till date viz., UNIT-64,
but the same happens to be the most popular."
(d) is the self-regulatory body for mutual funds.
Q22
Which of the following provides for inter-connectivity amongst various
depositories in the scenario of multiple depositories? [ 1 Mark ]

(a) Operational manual for depositories
(b) NSDL Business Rules.
(c) NSDL Bye-Laws.
(d) "SEBI (Depositories and Participants) Regulations, 1996."
Q23
"A broker (clearing member) gives delivery to clearing corporation/
house instruction to its DP. What will be the movement of the shares?"
[ 2 Marks ]

(a) "Broker's (clearing members) pool account will be debited and
buying client's account will be credited."
(b) "Broker's (clearing members) pool account will be debited and
his delivery account will be credited."
(c) "Broker's (clearing members) beneficial owner account will be
debited and his pool account will be credited."
(d) "Broker's (clearing members) pool account will be debited and
DP's house account will be credited."
Q24
Novation means [ 2 Marks ]

(a) creation of new and complex derivative instruments.
(b) guarantee of each outstanding position by the stock exchange.
(c) "clearing corporation is the legal counter party to each trade
for settlement purposes and hence, leading to elimination of
counter party risk from the system."
(d) guarantee of settlements by the clearing corporation/ house
given to a stock exchange.
Q25
"In a share application form, if an applicant applies for part
subscription in demat form and part in physical form, then" [ 2 Marks ]

(a) the form will be treated as valid but all shares will be issued in
demat form
(b) "the form will be treated as valid and the shares will be issued
as per the request in the form."
(c) the form will be treated as invalid and rejected.
(d) the form will be treated as valid but all shares will be issued in
physical form
Q26 "Is it true that according to SEBI's April 6, 1998 directive demat shares
will be treated as good delivery in the physical segments of stock
exchanges connected to NSDL?" [ 2 Marks ]

(a) "Yes, for all category of investors."
(b) No.
(c) "Yes, for all category of investors but only at NSE and BSE."
(d) "Yes, but only for institutional investors."
Q27
Eligible securities for inter-depository transfers are: [ 2 Marks ]

(a) Securities which are available for trading at NSE and BSE.
(b) securities which are admitted for dematerialisation on both
the depositories.
(c) securities which are announced by SEBI for compulsory
settlement in demat form on stock exchanges connected to the
depository for all institutional investors.
(d) securities which are announced by SEBI for compulsory
settlement in demat form on stock exchanges connected to the
depository for all categories of investors.
Q28
An investor holding shares in demat form will get his bonus entitlement
in: [ 1 Mark ]

(a) demat form.
(b) physical form.
(c) any of the above at the choice of the Issuing Co.
(d) demat/ physical form at his option.
Q29
"An investor submits 10 share certificates of RPL, all in market lot of 50
shares for dematerialisation to his DP. The face value of the share is
Rs. 10/-. Assuming that DP charges 0.2 % of the face value of securities
for dematerialisation, calculate dematerialisation charges by NSDL to
the DP.:" [ 1 Mark ]

(a) Rs. 1.
(b) No charges.
(c) Rs. 10.
(d) Rs. 100.
Q30
"On death of any of the joint holder(s), securities lying to the credit of
the joint account can be transmitted in the name of surviving holder(s).
What is the procedure for the same?" [ 1 Mark ]

(a) "The surviving joint holder(s) to have an account in their
name(s). They should submit anotarised death certificate to the Issuer/
its R and T Agent along with transmission form."
(b) "On submission of notarised death certificate along with
transmission form to the Issuer/its R and T Agent, the deceased holders
name will be deleted from the existing account."
(c) "On submission of notarised death certificate along with
transmission form to the DP, the deceased holders name will be
deleted from the existing account."
(d) "The surviving joint holder(s) to have an account in their
name(s). They should submit a notarised death certificate to DP
along with transmission form."
Q31
"According to SEBI requirements, securities, forming a part of the SEBI
specified compulsory list wherein delivery in demat form is mandatory
for all categories of investors, can be delivered in physical form in the
stock exchanges connected to NSDL. This requirement is applicable to:"
[ 1 Mark ]

(a) there is no such SEBI requirement.
(b) physical deliveries wherein the number of shares are less
than 500.
(c) "physical deliveries valued at less than Rs. 25,000/- or 500
shares whichever is less."
(d) all physical deliveries.
Q32
"Mr. Sharechandani, an NRI based in Singapore has purchased 1000
shares of XYZ in March 1995 on a repatriable basis. If he wishes to
transfer the shares to his broker on sale:" [ 2 Marks ]

(a) he will have to produce the copy of the necessary RBI
permission to his DP.
(b) he will need to take special permission from SEBI to do so and
then produce the same to DP.
(c) The treaty between India and Singapore exempts Mr.
Sharechandani from producing any permission.
(d) No permission is required for NRIs. He can transfer the same
freely.
Q33
"Which of the following documents is not a valid proof of address (POA)
for opening demat account?" [ 2 Marks ]

(a) Pan Card
(b) Passport
(c) Voter Identity Card
(d) Bank Passbook
Q34
"The route to the depository, as per the Depositories Act, 1996, is:" [
2 Marks ]

(a) "dematerialisation or immobilisation, at the option of the
Issuer."
(b) "dematerialisation or immobilisation, at the option of the
depository."
(c) dematerialisation.
(d) immobilisation.
Q35
"""Fungible"" means, as shares would not have distinguishing features
such as distinctive nos., certificate nos. etc.:" [ 2 Marks ]

(a) same securities of a company are interchangeable.
(b) they are freely transferable.
(c) similar securities of different companies are interchangeable.
(d) different securities of same company are interchangeable.
Q36
"The account that an Clearing Member needs to open to dematerialise
its own securities, is called _ account in NSDL system:" [ 1 Mark ]

(a) Beneficial owner.
(b) Clearing member.
(c) Intermediary.
(d) Investor.
Q37
Which of the following options are available in case of freezing of a
demat account? a. Freeze for debits only b. Freeze for credits only c.
Freeze for debits as well as credits [ 2 Marks ]

(a) b only
(b) a and c
(c) b and c
(d) a only
Q38
Which of the following can appoint a nominee? [ 2 Marks ]

(a) Body Corporate.
(b) Individual.
(c) Trust.
(d) FI.
Q39
All dematerialised securities are: [ 1 Mark ]

(a) mandatorily registered in the name of the individual investor.
(b) registered both in the name of the individual investor and the
depository.
(c) mandatorily registered in the name of the depository.
(d) registered in the name of either the depository or the individual
investor.
Q40
Which of the following places does not have a stock exchange? [ 2
Marks ]

(a) Delhi.
(b) Calcutta.
(c) Guwahati.
(d) Cuttack
Q41
"To dematerialise government securities, NSDL has to take prior
approval of:" [ 2 Marks ]

(a) SEBI and RBI both.
(b) RBI.
(c) SEBI.
(d) Issuing government authority.
Q42
"Physical securities registered in the name of more than three joint
holders, can be dematerialised by:" [ 2 Marks ]

(a) "sending the same for registration in the name of three or less
jointholders and then dematerislising them. They cannot be directly
dematerialised in the name of more than three jointholders."
(b) writing to NSDL and NSDL will decide on a case to case basis.
(c) opening an account in the name of first three joint holders for
the purpose of dematerialising these securities.
(d) opening an account in the name of all the jointholders which
account can be used only for the purpose of dematerialising these
securities and delivering the same on sale.
Q43
Resolution by arbitration for disputes between NSDL and its business
partners: [ 1 Mark ]

(a) is applicable for disputes between NSDL and bank DPs only.
(b) is not applicable in the NSDL environment.
(c) is applicable for disputes between NSDL and broker DPs only.
(d) has been prescribed in the NSDL Bye-Laws.
Q44
NSDL: [ 2 Marks ]

(a) 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.
(b) replaces the clearing corporation/ house of the exchange that
has established electronic connectivity with it.
(c) facilitates settlement of both funds and dematerialised
securities.
(d) only plays the role of a facilitator in settlement of
dematerialised securities in those exchanges which have established
electronic connectivity with it.
Q45
"The DP must ensure that clearing members have given the necessary
pay-in instruction (i.e.instruction for transfer from the CM pool to the
CM delivery) to effect settlement,:" [ 2 Marks ]

(a) Not applicable. No instruction is required for this process.
(b) after the NSDL deadline time for pay-in for the concerned
exchange.
(c) no deadline. Can be given at any time.
(d) at least before NSDL deadline time for pay-in for the
concerned exchange.
Q46
Dematerialisation is the: [ 2 Marks ]

(a) process of converting physical shares into electronic shares
(b) process of selling electronic shares
(c) process of converting electronic shares into physical shares
(d) process of transferring electronic shares from one account to
another account
Q47
Tick the true statement: [ 2 Marks ]

(a) "A stock broker having a minimum networth of Rs. 50 lakh is
eligible to join NSDL as a DP irrespective of whether registered with
SEBI."
(b) "A SEBI registered stock broker having a minimum networth of
Rs. 50 lakh is eligible to join NSDL as a DP."
(c) "A SEBI registered stock broker is eligible to join NSDL as a DP.
There is no minimum networth requirement."
(d) "A SEBI registered stock broker having a minimum networth of
Rs. Three crore is eligible to join NSDL as a DP."
Q48
"If an investor requests for demat securities in case of public issue
without having a depository account, then" [ 2 Marks ]

(a) "Issuer/ R and T Agent will open the account on behalf of the
investor and credit it with allotted shares."
(b) NSDL will open the account on behalf of the investor and credit
it with allotted shares.
(c) Allotted shares will be issued in physical form.
(d) DP will open the account on behalf of the investor and credit it
with allotted shares.
Q49
DP forwards certificates received for dematerialisation along with DRF
to: [ 2 Marks ]

(a) NSDL.
(b) Issuer/its R and T Agent.
(c) both of the above.
(d) none of the above as the DP directly gives an electronic credit
to the investor.
Q50
The credit of pledged securities remains in the account of______ [ 1
Mark ]

(a) the pledgor.
(b) the pledgee.
(c) "both, the pledgor and the pledgee."
(d) None of the above. It will lie in pledge account (maintained in
NSDL system for all pledge transactions).
Q51
Can locked -in securities be dematerialised? [ 2 Marks ]

(a) "Yes, provided lock-in reason is promoters' quota in public
issues."
(b) "Yes, provided lock-in reason is employees' quota under stock-
option scheme."
(c) "Yes, always irrespective of lock-in reason."
(d) No.
Q52
On rematerialisation the share certificates are: [ 2 Marks ]

(a) issued by Issuer/ its R and T Agent and forwarded to investor
through DP.
(b) issued by Issuer/ its R and T Agent and forwarded to investor
through NSDL.
(c) "issued by Issuer/ its R and T Agent and forwarded to investor
directly by Issuer/ its R and T Agent."
(d) issued by NSDL and forwarded to investor directly by NSDL.
Q53
"Mr. P has 500 shares of a company in his account with DP D. He
pledges these shares with bank B. He now gives a transfer (debit)
instruction to his DP D to transfer 200 of these shares to his broker R.
Assuming no additional credits are expected into P's account with DP
D:" [ 2 Marks ]

(a) The instruction will fail as there is no sufficient quantity of
free shares.
(b) "DP D will release the pledge to the extent of 200 shares and
transfer to broker R as free balance."
(c) Not applicable. Demat shares cannot be pledged.
(d) The shares will be transferred to broker R on the given
execution date as pledged balance.
Q54
The depository account that an investor opens is called as: [ 2 Marks ]

(a) broker account.
(b) intermediary account.
(c) beneficiary account.
(d) clearing member account.
Q55
Settlement in the NSE is based on: [ 2 Marks ]

(a) multilateral netting on both funds and securities side.
(b) "multilateral netting with respect to funds and bilateral gross
positions with respect to funds."
(c) bilateral netting on both funds and securities side.
(d) real time gross settlement.
Q56
Which of the following statements regarding dematerialisation is false?
[ 1 Mark ]

(a) Investor has to pay stamp duty for dematerialisation of
shares.
(b) NSDL doesn't charge its DPs for dematerialisation.
(c) Odd lot shares can be dematerialised.
(d) "Shares not registered in the name of the concerned account
holder (street name shares) can't be dematerialised."
Q57
"In case an investor opts for allotment in demat form in case of
bonus/rights issue without opening a depository a/c,:" [ 1 Mark ]

(a) the issuing co. will maintain holdings in their suspense account
till investor opens account.
(b) his entitlements will be issued in physical form.
(c) his entitlements will be issued in demat form and credited to
suspense a/c maintained by the DP.
(d) his entitlements will be issued in demat form and NSDL will open
an a/c for the investor.
Q58
"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:" [ 1 Mark ]

(a) The Byelaws of the respective stock exchanges.
(b) The NSDL Byelaws
(c) "The SEBI (Depository and Participants) Regulations, 1996."
(d) "The Depositories Act, 1996."
Q59
The custody fee is payable by Issuer to NSDL on a _______ basis. [ 2
Marks ]

(a) quarterly
(b) yearly (calendar year)
(c) yearly (financial year)
(d) monthly
Q60
Which of the following doesn't form part of Pledge/ Hypothecation
form? [ 1 Mark ]

(a) Closure date
(b) Details of securities.
(c) Bank account details
(d) Agreement No.
Which of the following is NOT a part of the Primary Market?
Merchant Bankers
Mutual Funds
Exchanges [Correct answer NOT selected]
Registrars and Transfer Agents
2. An active ________ promotes the growth of the primary market and capital formation.
secondary Market [Correct answer NOT selected]
bullion market
money market
forex market
3. _______________ aims at streamlining settlement process by transfer of ownership of
securities electronically by book entry without making the securities move from person to
person.
Companies Act, 1956
Depositories Act, 1996 [Correct answer NOT selected]
SEBI Act, 1992
SCRA, 1956
4. ________ has powers to register and regulate all market intermediaries in the securities
market and also to penalize them.
RBI
Depositories
SEBI [Correct answer NOT selected]
IRDA
5. With the introduction of depository system in India theft, forgery, mutilation of
certificates became more prominent.
True
False [Correct answer NOT selected]
6. During the time when there was no demat of securities, for transfer of securities,
__________ was evidence of change of ownership.
Endorsement of physical security [Correct answer NOT selected]
Proof of Delivery
Letter of acknowledgement from the transferee
7. Can either of the account holders sign in case of a depository account as is the case
with a bank account?
Yes
No [Correct answer NOT selected]
8. DP has to be registered with
Depository
Exchanges
None of the above
9. For registering as a DP, the application should be submitted to __________.
separately to Depository and SEBI
to Depository, who will in turn forward it to SEBI after evaluation [Correct answer NOTselected]
to Depository who will in evaluate and register the DP
directly to SEBI and a copy should be sent to Depository for information only
10. After Depository receives an application for registering as a DP, it evaluates and
forwards the application to SEBI within _______.
30 days [Correct answer NOT selected]
15 days
45 days
90 days
11. As per PMLA, records of services need to be preserved for _______ years.
1
5
7
10 [Correct answer NOT selected]
12. Are Certificates of deposits eligible for dematerialization as per SEBI (Depositories &
Participants) Regulations, 1996?
Yes [Correct answer NOT selected]
No
13. Client-Participant agreement is a standard agreement approved by
RBI
DCA
Depositories
14. Only a guardian can open a depository account for a minor.
True [Correct answer NOT selected]
False
15. In the event of the death of a joint holder, the balance lying in the account can be
transmitted, on request of the surviving holders, to a new account to be opened by the
surviving holders
False
16. The beneficial owners name in the account can even be changed after the account has
been opened. State whether True or False?
False
17. Nomination of shares is a provision under which act?
Companies (Amendment) Act 1999 [Correct answer NOT selected]
SEBI Act
Depositories Act 1996
SCRA 1956
18. Can nomination be made by individuals for Beneficiary accounts held jointly or
singly?
No
19. What kind of account is required by a nominee to give effect to the transmission of
shares?
Savings Account
Demat Account [Correct answer NOT selected]
Salary Account
Current Account
20. For transmission of securities to the account of the new Karta from the account of the
deceased Karta, the surviving members through the new Karta shall make a joint
application to the DP.
False
21. Only those securities whose ____________has been activated by the depository, can
be dematerialised in the depository system
ISIN [Correct answer NOT selected]
WAP
IIP
22. Who can make a request for demat of the security?
Company
Registered holder of the security [Correct answer NOT selected]
Depository
Depository Participant
23. It is possible for investors to transpose names of the joint holders alongwith the
process of dematerialisation through their DPs
False
24. Within how many days of request for remat of securities should the client receive the
physical securities
45 days
30 days [Correct answer NOT selected]
7 days
15 days
25. Transfer due to a transaction done on a person to person basis is called ___________
transaction.
Off Market [Correct answer NOT selected]
Market
Sub-Market
Intra-Market
26. 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 the end of the
execution day.
False
27. If a broker gives ________ of his clients to Clearing Corporation /Clearing House, then
pay-out securities are directly credited in the clients account by the Clearing Corporation
/Clearing House.
Names and PAN Nos
Pay-out breakup [Correct answer NOT selected]
Identities
PAN Numbers and DP IDs
28. 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?
Exchange
Clearing House
Depository
Clearing Member [Correct answer NOT selected]
29. If the lender needs concurrence of the borrower for appropriating securities to his
account, the transaction is called ____________?
Pledge
Hypothecation [Correct answer NOT selected]
Either of the above
None of the above
30. State whether the given statement is true or false: For pledging and hypothecation of
securities, the pledgee and the pledgor can have their account with DPs under the
different depository.
True
31. When do we call that a Pledge transaction is completed?
When SEBI approves the proposal
When the depository gives its nod
When the confirmation advice is entered in the DP system [Correct answer NOTselected]
None of the above
32. From who does the DP receives the pledge closure request?
Pledgor [Correct answer NOT selected]
Depository
Pledgee
None of the above
33. Which of the following is a "Cash Corporate Actions"?
Corporate Benefits
Dividend [Correct answer NOT selected]
Rights
Bonus
34. "Non-cash corporate actions" involves which of the following?
All benefits other than monetary benefits [Correct answer NOT selected]
Monetary Benefits
Both monetary as well as non-monetary benefits
35. Record Date for a Corporate Action is announced by:
Exchanges
Issuers [Correct answer NOT selected]
Depository
Shareholders
36. During distribution of dividends, companies should mandatorily print the bank
account details furnished by the Depositories on the payment instruments.
False
37. Public limited companies are required to make the public offer only in dematerialised
form in case the offer is more than ____ crore.
Rs. 10 crore [Correct answer NOT selected]
Rs. 25 crore
Rs. 15 crore
Rs. 50 crore
38. Issuer shall be required to enter into agreement with all the _______________ before
coming out with a public offer.
Depositories [Correct answer NOT selected]
Depository Participants
Investors
SEBI
39. Can SEBI issue guidelines pertaining to public issues?
No
40. The securities offer in the public offer can only be traded in the stock exchange in
demat form?
False
41. Who resolves the mismatch during dematerialisation of government securities?
Depository Participant [Correct answer NOT selected]
Depositories G-Sec cell
SEBI
RBI
42. State whether the statement is true or false: An investor in government securities
holding electronic balances in the depositories SGL-1 account can convert them into
physical certificates by the process of dematerialisation.
True
43. RBI does not register transfer of securities during ________.
Closure Period
Shut Period [Correct answer NOT selected]
Lock Period
Enclose Period
44. What is the maturity period of Treasury Bills?
Upto One year [Correct answer NOT selected]
Upto 3 months
Upto 6 months
More than 10 years
45. Identify the incorrect underlined portion of the sentence: Accounts opened under
agreement with DPs shall hold electronic warehouse receipts along with other securities.
Alongwith other securities [Correct answer NOT selected]
Accounts opened
Agreement with DPs
Electronic warehouse receipts
46. State True or False: DPs are free to add any more terms and conditions to the
agreement to the extent they are not contradictory to the terms and conditions of the
model agreement.
False
47. Which of the following Statement is False?
The depositories also provide depository facility to the commodity exchanges for settlement of trades pertaining
to warehouse receipts for commodities
The legal status of warehouse receipts is different from that of securities
DPs are free to add any more terms and conditions to the agreement to the extent they are not contradictory to
the terms and conditions of the model
For electronic trading of warehouse receipts, a DRF- WR portion has to be filled by the client [Correct
answer NOT selected]
48. PDRF is the acronym for__________?
Physical Delivery Request Form [Correct answer NOT selected]
Physical Deposit Request Form
Physical Deposit Remat Form
Physical Delivery Remat Form
49. Who shall be a Qualified Financial Institution?
Resident in a country that is a member of Financial Action Task Force
Member of a group which is a member of Financial Action Task Force
Both of the above [Correct answer NOT selected]
None of the above
50. Which of the following statement is incorrect as far as Eligibility Criteria for Qualified
DP is concerned?
DP shall have net worth of Rs. 100 crore or more [Correct answer NOT selected]
DP shall obtain prior approval of SEBI before commencing the activities relating to opening of accounts of QFI
DP shall be either a clearing bank or clearing member of any of the clearing corporations
DP shall have appropriate arrangements for receipt and remittance of money with a designated Authorised
Dealer (AD) Category - I bank
51. DPs shall have net worth of Rs. 50 crore or more. State whether True or False?
False
52. Resident in a country that is a signatory to IOSCOs MMOU or a signatory of a bilateral
MOU with SEBI also qualifies the criteria as a QFI. State whether True or False?
False
53. Under RGESS, New Retail Investors will be eligible for additional tax benefit upto
Rs.25,000 under Section 80CCG upto a maximum investment Rs.50,000 made in eligible
securities. State whether True or False?
False
54. Eligible investor will be required to submit specified form to the Depository Participant
at the time of account opening or designating his/her existing demat account for taking
the benefits under RGESS. State whether True or False?
False
55. Investors do not wish certain securities credited to their demat accounts to be
considered for the RGESS, then they will be required to submit declaration in a prescribed
format within ______ month from the date of transaction?
5
2
3
56. The Depository will furnish a quarterly statement of the eligible securities invested in
or traded through the RGESS demat account to the investor. State whether True or False?
True
57. What is the eligibility criterion for opening a Basic Services Demat Account (BSDA)?
The individual shall have only one BSDA in his/her name across all depositories.
Value of securities held in the demat account shall not exceed Rupees Two Lakhs at any point of time
Both of the Above [Correct answer NOT selected]
None of the above
58. Electronic statements of the BSDA sent to Beneficial Owners are charged at the rate of
Rs. 25 per statement. State whether True or False?
True
59. How many Delivery Instruction Slips (DIS) are issued to the BOs at the time of
opening the BSDA?
1
3
4
60. All BOs opting for the facility of BSDA, shall register their mobile number for availing
the SMS alert facility for debit transactions. State whether True or False?
False
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