Depository Module Test 2

1. The account opening form should be signed by _________in case of minor.

The guardian
The minor
Both Guardian and Minor
None

2. _____________gives the issuer of debt instrument an option of repaying the

debt at the time earlier than redemption date
Call option
Put option
Either of the above
None of the above

3 RTA can open BO account

RTA cannot open BO account of any category
Only for investor who have applied for IPO of ISIN which is serviced by RTA
Only for foreign investors
Only for investors having balance for ISIN serviced by RTA

4. In case of CDSL while making nomination, signature and photograph of

nominee is not required.
True
False

5. Insurance cover to protect investors in case of failure of DP is

Taken by Depositories
Taken by the DP
Taken by SEBI
Taken by NSE

6. In case of stock lending and borrowing, the security is with intermediary, the
corporate benefits in respect of securities so lent will be enjoyed by
Intermediary will return the security to the lender before the record date (or
reimburse the corporate benefits to the lender if the shares are not
transferred before the due date)
Intermediary
Borrower
DP of the intermediary

7. In case of dormant account, the SOT is to be sent by DP to client in

Quarterly basis
Monthly basis
Half yearly basis
Annually

8. In a DRF the signature needs to be of

All joint holders together
The first holder
Any one of the holder authorised at the time of account opening
Any of the joint holders

9. Power of attorney has to be given on a stamp paper of value

Varies from state to state
Rs.100
Rs.20
Rs.10

10. Can an investor have part of his holding in demat form and retain part of
his holding in physical form?
Yes
No
Physical holding should be three time of his demat form.
Demat holding should be three time of his physical form

11. Can sub-broker open CM account with DP ?

No, sub-broker cannot open CM account.
Yes, SEBI registered sub-broker
SEBI registered, personal guarantee affiliated
Yes, all sub-brokers can, they may have registered or not.

12. Mr. A and Mr. B opened demat account in the order of Mr.B and Mr. A.
while submitting the certificate for demand they came to know that the first
holder was not in the name of Mr.B. the DP advised to submit DRF and
certificate.
Along with Transposition form whereas DRF is signed as per certificate and
transposition form signed as per demat account.
Along with duly executed transfer deed.
Along with Transposition form whereas DRF is signed as per demat account
and transposition form signed as per certificate.
Along with transposition form and duly executed transfer deed.

13. un pledge request can be rejected by pledgee if

All the reasons given below
Pledge quantity not accepted
POA not received from all parties
Holders not acceptable to the pledge

14. Which of the following fields do not form part of DRF

CMBP ID
Type of security
Details of lock in
Quantity to be demated

15. The event that effects the right, obligation and / or interest of the
beneficial owner of the securities held in a depository.
Corporate action
Elections for parliament
Labour strike in Tamilnadu
Bankrupt of DP
16. If the broker has an obligation for auction physical settlement, to whom he
will give delivery of shares
Clearing corporation
NSDL
CDSL
Concerned broker, whose shares could not be delivered to him

17. Depending on the type of commodity, grade, validity, expiry date, name
and location of warehouse, the exchange allots ICIN to each commodity.
True
False

18. The main objective of SEBI act are to

All three mentioned below
Protect the interest of investor
Promote Indian capital market
Regulate Indian capital market

19. Will dematerialization be reject, if part of certificate in single DRF pertains

to lock-in status
Yes, always
Yes, at discretion of issuer/ R&T agent
Yes, if the lock-in request in ‘ shares issued to employee under the stock option
scheme.

20. All BOs opting for the option of BSDA, shall register their mobile numbers
for availing the SMS alert facility for debit transactions. State whether true or
false?
True
False

21. Can shares that are not registered in the name of account holder be
dematerialised?
No, Shares have to be registered in the name of concerned investor.
Yes, at the discretion of issuer/ R&T agent.
Yes, at the discretion of DP
Yes, provided duly filled transfer deed is attached.

22. Depositories as registered owner has

No rights and liabilities
Only voting right
All rights and benefits of the company.

23. DIS stands for

Delivery Instruction Slip
Delivery intent slip
Delivery information slip
Delivery international slip.

24. In case of stock lending and borrowing, it is the duty of ______________

to collect the value of lenders entitlements to the corporate benefits from the
borrower and pay the same to the lender.
Intermediary
DP to the lender
NSDL
SEBI.

25. Clearing member is require to give the__________________to the

participant for securing lying with the same CM account but different
settlement pocket.
Inter-settlement instruction
Market settlement
Off market instruction
Pool to pool instruction

26. The code of conduct of corporate sector in relation to the issue, allotment
and transfer of securities, disclosure to be made in public issue is prescribed as
under
Company Act 1956
SEBI act 1992
Company Law Board.
Capital issues control Act 1947

27. An institution engaged in providing financial services, where not less than
75% of equity is jointly or severally held by these institutions can start a
Depository.
True
False.

28. Effecting an inter-depository instruction, the client have to give the

respective instructions
To the DP to whom they have opened their respective account.
Directly to NSDL, as it involves transfer settlement of one depository to
another.
Directly to SEBI as inter-depository transfer related to SEBI approval.
Directly issuer/ R&T agent as it involves change in registered owners.

29. In case of CDSL, the DRF used for dematerialisation is the same for G-sec
as used for other securities
TRUE
False

30. Securities to be transferred to or from a BO account only on receipt of

instruction from the beneficiary owner.
True
False

31. An active ____________ promotes the growth of primary market and

capital formation.
Secondary market
Bullion market
Money market
Forex market
32. In CDSL, the CM can choose his clearing accounts with one DP and open
the same with another DP without need of any approval of CDSL.
TRUE
False

33.Off market trades are

Trades that are not settled through CC/CH
Trades done after market hours
Trades that are settled through CC/CH
None of the above.

34. An investor has to open separate account for free shares and lock-in shares
No
Yes
Only if he is an NRI
Only if is a bank.

35. SEBI act, 1992establishes SEBI with statutory power for

Protecting the interest for investors in securities
Promoting the development of securities market
Regulating the security market.
All the above

36. A pledge can substitute the securities offered in a pledge transaction with
out receiving any consent from the pledgee.
False
True

37. Though the beneficial ownership of jointly held securities vest in all joint
holders, communication of joint depository account are provided to _______.
First holder
All the holders
Registered holders
All the above.
38. In case death of single holder, who has not given nomination , the
successor should produce
A succession certificate
Letter of administration
A probate of will
All the above

39. A CC/CH who wish to become a DP has to have a networth of

Rs. 5 crore
Rs.3 crore
Rs. 50 crores
They can’t become DP

40. A residential Indian has purchased shares in India in Physical form and
then goes to abroad. If he want his shares to be demated, which type of demat
account should open?
NRI Repatriable
HUF
Resident ordinary
Corporate

41. A CC/CH of a stock exchange shall be permitted to open beneficiary

accounts for clients
True
False

42. A locked-in security cannot be invoked before lock-in is released?

True
False

43. What is the maximum time for remat for R&T Agent
30 days from the day R&T agent receives the request
15 days from the day R&T agent receives the request
30 days from the day DP receives the request
15 days from the day DP receives the request
44. An account that an approved intermediary needs to open to dematerialised
its own securities is called in NSDL system
Intermediary
Beneficial Owner
Clearing owner
Investor

45. A foreign bank opening in India can open BO account?

Yes
No
If allowed by RBI
If allowed by SEBI

46. Self declaration of High court or Supreme Court Judges gives the new
address can be considered as proof of address in respect of their own
accounts.
TRUE
False

47. ____________ refers to trade in government security wherein both the

parties have beneficiary account with the same depository
Depository trades
Government trade
RBI trades
Off market trades

48. Which of the following does not form part of DRF

Exchange name
Client id
ISIN
Company name
49. A Client A has DP account with DP B. His holding as on 31/3/2008:
Reliance-100, Infosys- 100. He gives instruction on the same day to close the
account. What happen?
A) He cannot close his account
B) He can close his account by rematerializing all his holding
C) He can close his account by transferring the balance to the credit of another
account opened by the same account holder either with same participant or
another participant.
D) Either B or C.

50. Freezing of the account can be done

If the written instruction is received from the client requesting to freese the
account.
If the electronic request is made by the client to the DP or depository in the
prescribed manner.
If the order is received by DP or depository from the State or central
government
All the above

51. Demat request form received by the DP must be forwarded to R&T agent
within a period of
7 days
5 days
Same day
No time at DPs convenience

52. A DP may register a transfer of securities to or from beneficial owners

account only on receipt of instruction from the beneficiary owner
True
False
53. Is mandatory for BO to maintain minimum balance of securiites
No
Yes
Depends of depository participant
Depends of type of securities

54. Which of the following is true in case of off market transaction?

Only full balance is considered
Part balance is considered
The consideration depends of the type of ISIN.

55. The following cannot be beneficiary owner of the securities account

A proprietary account
A Foreign institutional investor
A personal aged below 18 years
A trust

56. What is the maturity period of Treasury Bill.

Upto one year
Upto 6 months
Upto 3 months
More than 10 years

57. Physical securities registered jointly in name of more than three joint
holders, can be dematerialised by:
Opening an account in the name of all joint holders which can be used only
for the purpose of dematerialising these securities and delivering the same
on sale.
By writing to NSDL and NSDL will decide on case to case basis
Opening an account in the name of first three joint holders for the purpose of
dematerialising the securities.
Sending same for registration in the name of three or less than three joint
holders and then dematerialising them. They cannot be dematerialised in the
name of more than three joint holders.
58. Organised money market is a type of
Capital market
Primary market
Secondary market
None of the above.

59. Do dematerialised shares have distinctive numbers

No, all demat shares are fungible.
Yes, all demat shares have distinctive numbers.
Demat shares with some DPs have distinctive numbers.
Demat shares of some companies have distinctive numbers.

60. PAN is not compulsory for

PAN is required for all accounts
Minor
Trust
FII

61. Participants are required to report suspicious transactions, within

establishment ________of suspicion to Director, Financial Intelligence unit-
India.
7 working days
15 working days
3 working days
1 working day

62. which of the following is not true in case of demat joint account
Minor can be a joint holder
After the death of first holder securities are transmitted to surviving holder
Joint holders can nominate
Dividend warrants issued by the company issued in the name of first holder
only.
63. All the activities related to issue of government securities _________
through public Debt office.
RBI
SEBI
Depository

64. For registering as DP, the application should be submitted to _______

TO depository, who will in turn send it to SEBI after evaluation.
Separately to SEBI and Depository.
To depository who will evaluate and register as DP.
Directly to SEBI and copy send to depository for information only.

65. Transmission is used in case of

Death of the account holder
Sale of securities by holder
Shifting account from one DP to another
For pledge of securities with bank for loan.

66. who dematerialises Government securities

Depositories (NSDL & CDSL)
The appointed R&T agent
Karvy consultants
NSE

67. Which are the documents to be sent in case of joint account transmission?
Transmission form along with a copy of notarised death certificate to
transmit the securities lying in the account of deceased to the account of
surviving holders.
Only transmission form
Transmission form along with fresh account opening form
NOC from all the legal heirs who do not object such transmission along with
death certificate.
68. while opening a joint account, permanent address details are to be
obtained for,
All the holders
First and second holder
Only first holder
As per instruction of the holder

69. An issuer may offer demat facility for its debt instruments by sending a
request to depositories detailing the type of instruments, along with a letter of
intent.
TRUE
FALSE

70. Which scrips have to be compulsorily settled in demat form by all

categories of investors with effect from January 4, 1999?
Scrips falling under the list issued by SEBI for the purpose.
Scrips of all public limited companies
All scrips joined NSDL
All listed scrips

71. who among the following cannot nominate a nominee.

Non individuals
HUF
Holder of power of attorney
All of the above

72. Freez of the account can be done

If the request is received by the depository from DP or client
If the orders are passed by Disciplinary action committee
If the DP becomes insolvent, bankrupt
All of the above

73. State whether the statement is true or false. For the pledge or
hypothecation of securities, the pledgee and pledgor can have their account
with DPs under different depositories.
False.
True.

74. Which of the following statement is false?

A Depository company must have minimum networth of Rs. 500 crores
The sponsor must have atleast 51% in the depository company
Participant of depository can hold its equity capital
The promoters of a depository are known as sponsors

75. on rematerialisation the certificates are:

Issued by the issuer or its R&T agent directory to the investor.
Issued by NSDL and forwarded to investor directly
Issued by the issuer/ its R&T agent and forwarded to the investor through DP
Issued by the issuer/ its R&T agent and forwarded to the investor through
NSDL.

76. The procedure for delivery and receipt of debt instruments is same as that
involved for equity shares.
TRUE
FALSE

77. which of the following is not an off market trade.

All individual shares pledging with the bank
Client delivering shares to the pool account of his broker
Broker effecting payout to the client
All the above

78. FII can open demat account

Only if are registered with SEBI
Through their indian counterparts
Only if they are Mauritius based.

79. To dematerialise Government securities, NSDL has to take the approval of

RBI
SEBI
RBI and SEBI both
Issuing government authority

80. the function of ascertaining pay-in and pay-out of brokers who have
traded on the exchange is performed by.
Clearing Corporation
Stock exchange
Stock exchange Forum
NSDL

81. which of the following details can be changed after opening a demat
account
Father/ husband’s name
PAN details
Nominee details
All the above

82. A______ can hold more than 5% of equity in a depository

Depository Participant
R&T agent
Sponsor
Promoters.

83. The length of demat account ( DP Id- client ID)

16
10
8
32

84. a new company issues shares worth Rs.9.5crore to the public. In such case
which of the following is true?
Securities are issued either in physical or demat form, but traded only in
demat form.
Securities are issued in physical form, but traded only in demat form.
Securities are issued demat form, but traded only in physical form.
Securities are issued either in physical form, but traded only in physical form.

85. When do we call pledge transaction is complete

When the confirmation advice is entered in the DP system.
SEBI approves the proposal
When the depository gives the nod.
None of the above.

86. The depository allocates unique identity codes to the securities issued by
the issuer. Such code is called ISIN.
True
False

87. Client – participant agreement is a standard agreement approved by

SEBI
NSDL
DCA
CDSL

88. Which of the following reasons results in rejection of dematerialisation

request
A) The certificates are fake
B) The certificates send have court injection against them
c)certificates are in the name of other than that of mentioned on DRF
A, B and C only.
A only
A and B only.
A and C only.

89. Is it True that according to SEBIs directive April 6, 1998 demat shares will
be considered as good in physical segments of Stock Exchange connected to
Depositories?
Yes, for all categories of investors
No
Yes, for all categories of investors, But only in NSE and BSE.
Yes, but only for institutional investors.

90. HUF account cannot be opened with joint holders

True
False

91. Which option provides an investor of demanding repayment on debt

instruments at a time earlier than final redemption date?
PUT option
CALL option
Early payin option
Auto delivery pay out option.

92. If the lender has unilateral option to appropriate his account the
transaction is called ________
Pledge
Hypothecation
Both pledge and hypothecation

93. client- Participant agreement is a standard agreement approved by_____.

SEBI
Depository
RBI
Department of Economic Affairs.

94. Who will maintain a close liasion with other departments of participant,
the other participant and other enforcement agencies and other institutions
which involve Anti Money Laundering Measures.
Principal Officer
Compliance officer
Nodal Officer
Branch Manager

95. PDRF is acronym for_______

Physical Delivery request form
Physical Deposit request form
Physical deposit Remat form

96. Separate DRF has to be submitted for :

Each ISIN, free and lock-in securities and securities lock-in for different
reasons
Free and Locked- in securities
Each ISIN only
Securities locked-in for different reasons

97. If the third character is mentioned as A, what does it indicate?

Central Government is the issuer
State Government is the issuer
Unit issued by Mutual fund
Issuer is a Banking company

98. Depository shall

Have voting right in respect of the securities held by its beneficiary owners
Have voting right in respect of the securities held by its registered owners
Both the above two

99. In case of demat request, it the certificates not received by R&T agent in
time
Demat request will be closed by R&T agent. DP / client may forward
certificates for dematerialisation with demat request form to R&T agent with
new DRN.
R&T agent may retain DRN and return the certificates
R&T agent may process the demat request of the investor by giving a warning.

100. What kind of account is needed by nominee to give effect to the transmission of
shares?

a) Saving account
b) Demat account
c) Salary account
d) Current account