NCFM Compliance Officers (Brokers) Module mock test papers

Compliance Officers (Brokers) Module

Q1
Spot delivery contract means delivery & payment on the ________ [ 2 Marks ]

(a)next day of the contract
(b)same day as the date of the contract
(c)same day as the date of the contract or on the next day
(d)delivery on the date of the contract and payment on the next day
(e)I am not attempting the question

Q2
Fraud as per the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 includes ___________. (Select the odd one). [ 1 Mark ]

(a)general comments made in good faith in regard to the trends in the securities market
(b)a promise made without any intention of performing it
(c)a suggestion as to a fact which is not true by one who does not believe it to be true
(d)an active concealment of a fact by a person having knowledge or belief of the fact
(e)I am not attempting the question

Q3
Principal officer as per SEBI (Portfolio Managers) Regulations, 1993 means ___________ [ 1 Mark ]

(a)a director of the portfolio manager who is responsible for the activities of portfolio
management and has been designated as principal officer by the portfolio manager
(b)a director of the portfolio manager who is not responsible for the activities of portfolio
management but may have been designated as principal officer
(c)a director of the portfolio manager who is responsible for the activities of portfolio management but may not have been designated as principal officer by the portfolio manager
(d)a director of the portfolio manager who is not responsible for the activities of portfolio management and has not been designated as principal officer
(e)I am not attempting the question

Q4
While preparing the CTCL file, the date format should be _________. [ 2 Marks ]

(a)DDMMYY
(b)YYDDMM
(c)DDMMYYYY
(d)YYYYDDMM
(e)I am not attempting the question

Q5
Where the scheme of Corporatisation and demutualisation of a stock exchange is approved, it shall be published __________. [ 2 Marks ]

(a)immediately by the SEBI in the Official Gazette and within 7 days by the Recognised Stock
Exchange in two daily newspapers as specified by the SEBI
(b)within 7 days by the SEBI in the Official Gazette and by the Recognised Stock Exchange in
two daily newspapers as specified by the SEBI
(c)within 7 days by the Recognised Stock Exchange in two daily newspapers as specified by the SEBI
(d)immediately by the SEBI in the Official Gazette and by the Recognised Stock Exchange in
two daily newspapers as specified by the SEBI
(e)I am not attempting the question

Q6
The words and expressions used and not defined in the SEBI Act,1992, shall have the meanings assigned to them as in the ___________. [ 1 Mark ]

(a)SEBI (Disclosure and Investor Protection) Guidelines, 2000
(b)Companies Act, 1956 or the SEBI (Disclosure and Investor Protection) Guidelines, 2000
(c)Securities Contracts (Regulation) Act, 1956 or the Depositories Act, 1996
(d)Companies Act, 1956 or the Industries (Development & Regulation) Act
(e)I am not attempting the question

Q7
State which of the following is true? As per SEBI (Ombudsman) Regulations, 2003, in order to be appointed as an Ombudsman ____________ [ 1 Mark ]

(a)a person should be below thirty five years of age
(b)a person should be above fifty five years of age
(c)a person should be below forty five years of age
(d)a person should be above forty five years of age
(e)I am not attempting the question

Q8
State which of the following is false? SEBI shall take into account the following, for considering the grant of a certificate of registration to a trading or clearing member [ 1 Mark ]

(a)The applicant has financial liabilities payable to the creditors of his company
(b)The applicant is not subjected to disciplinary proceedings
(c)The applicant has adequate infrastructure to effectively undertake his activities
(d)The applicant is eligible to be admitted as a trading member
(e)I am not attempting the question

Q9
The procedure for obtaining registration certificate by the stock brokers, sub-brokers, etc. is __________. [ 1 Mark ]

(a)partly specified in Section 12 and partly determined by the SEBI (Stock Brokers and Sub Brokers) Rules 1992
(b)specified in Section 12 of the SEBI (Stock Brokers and Sub Brokers) Rules 1992
(c)as per the SEBI (Disclosure and Investor Protection) Guidelines, 2000
(d)determined by the SEBI (Stock Brokers and Sub Brokers) Rules 1992
(e)I am not attempting the question

Q10
Underwriting as per the SEBI (Underwriters) Rules, 1993 means ___________. [ 1 Mark ]

(a)an agreement to subscribe to the securities of a body corporate when the existing shareholders of the body corporate subscribe to the securities offered to them
(b)an agreement to subscribe to the securities of a body corporate when the public subscribe to the securities offered to them
(c)an agreement to subscribe to the securities of a body corporate when the existing shareholders of the body corporate or the public do not subscribe to the securities offered to
them
(d)an agreement to subscribe to the securities of a body corporate when the existing shareholders of the body corporate and the public subscribe to the securities offered to
them
(e)I am not attempting the question

Q11
Who can be penalised u/s 15B of the SEBI Act,1992, for failure to enter into agreement with clients? [ 1 Mark ]

(a)An Investor
(b)An Investor Association
(c)A registered intermediary
(d)FIIs
(e)I am not attempting the question

Q12
Choose the correct statement. Stock-broker is the member of the Stock Exchange but sub-broker is not the member of the Stock Exchange [ 1 Mark ]

(a)No, neither of them are member of the Stock Exchange.
(b)No, the stock broker is not the member of the Stock Exchange, but sub-broker is the
member of the Stock Exchange
(c)No, both the Stock broker and sub-broker are members of the Stock Exchange.
(d)Yes, the stock broker is the member of the Stock exchange, but sub-broker is not the
member of the Stock Exchange.
(e)I am not attempting the question

Q13
A Trading member may appear through a legal practitioner only if the Constituent is represented through a legal practitioner in an Arbitration matter [ 3 Marks ]

(a)TRUE
(b)FALSE
(c)I am not attempting the question

Q14
State which of the following is not a manipulative, fraudulent and unfair trade practice? [ 2 Marks ]

(a)An intermediary not disclosing to his client transactions entered into on his behalf including taking an option position.
(b)An intermediary providing his clients with such information relating to a security as cannot be verified by the clients before dealing in such security.
(c)An intermediary reporting trading transactions to his clients entered into on their behalf in an
inflated manner in order to increase his commsission and brokerage.
(d)An intermediary issuing contract notes
(e)I am not attempting the question

Q15
The SEBI is exempted to comply with the provisions of ____________. [ 1 Mark ]

(a)Securities Contract (Regulation) Act, 1956
(b)Income Tax Act,1961
(c)SEBI Act, 1992
(d)Companies Act, 1956
(e)I am not attempting the question

Q16
Broker, Sub- Broker agreement has been prescribed by _________. [ 1 Mark ]

(a)the SEBI
(b)the RBI
(c)the Central Govt
(d)None of the above
(e)I am not attempting the question

Q17
Which of the following terms is not defined under the Securities Contract (Regulation) Act, 1956? [ 2 Marks ]

(a)Stock Exchange
(b)Government Securities
(c)Commodity Futures
(d)Recognised Stock Exchange
(e)I am not attempting the question

Q18
Which of the following books of accounts is required to be maintained by the member of a Recognised Stock Exchange? [ 1 Mark ]

(a)Register containing names and addresses of other members of the recognised stock exchange
(b)Securities misplaced book
(c)Minutes books of the meetings with other members
(d)Sauda Book
(e)I am not attempting the question

Q19
The SEBI has powers to issue directions to any company in respect of __________. [ 2 Marks ]

(a)matters specified in Section 12A of the SEBI Act
(b)matters specified in Section 11A of the SEBI Act
(c)matters specified in Section 1o of the SEBI Act
(d)matters specified in Section 12 of the SEBI Act
(e)I am not attempting the question

Q20
What is the possible action against a stock broker or a sub broker, for failure to satisfy the net worth or capital adequacy norms, if any, specified by the SEBI? [ 2 Marks ]

(a)Monetary penalty
(b)Action under the Enquiry Proceeding Regulations
(c)Prosecution
(d)None of the above
(e)I am not attempting the question

Q21
What is the liability under SEBI (Stock Broker and Sub-Broker) Regulations, 1992, for contravention of the Act, rules or the regulations ? [ 2 Marks ]

(a)Suspension
(b)Prosecution u/s 24 of the Act
(c)Monetary penalty
(d)None of the above
(e)I am not attempting the question

Q22
Currently, institutional trades on exchanges make the use of _________ [ 2 Marks ]

(a)XTP System
(b)STP System
(c)MTP System
(d)ATP System
(e)I am not attempting the question

Q23
Exchange can revise the price bands of a specific security by way of ________. [ 2 Marks ]

(a)only through a broadcast message
(b)announcing through info vendors
(c)public notice
(d)issuing circular
(e)I am not attempting the question

Q24
As per SEBI (Portfolio Managers) Regulations, 1993, state which of the following is false? Investment of funds of the client by a portfolio manager can be made in ____________. [ 1 Mark ]

(a)trade bill
(b)certificate of deposit
(c)commercial paper
(d)Any or all of the above
(e)I am not attempting the question

Q25
State which of the following is true, as per the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002? [ 2 Marks ]

(a)An officer who has conducted an inspection in respect of alleged violation by an intermediary
shall be appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(b)An officer who has dealt in the matter of alleged violation by an intermediary shall be
appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(c)No officer who has dealt in the matter of alleged violation by an intermediary shall be
appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(d)An officer who has conducted an investigation in respect of alleged violation by an intermediary shall be appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(e)I am not attempting the question

Q26
State which of the following is not a price sensitive information as per the SEBI (Prohibition of Insider Trading) Regulations, 1992? [ 1 Mark ]

(a)Expansion plans
(b)Change in the Board of Directors of the company
(c)Issue of securities
(d)Amalgamation
(e)I am not attempting the question

Q27
Exchange Traded Interest Rate Derivates has been introduced in Indian Financial Market by ________. [ 2 Marks ]

(a)NSCCL
(b)NSDL
(c)RBI
(d)SEBI
(e)I am not attempting the question

Q28
State which of the following is true? As per the SEBI (Prohibition of Insider Trading) Regulations, 1992 ___________ [ 2 Marks ]

(a)A listed company is required to intimate to stock exchanges information received
pertaining to initial disclosure and continuous disclosures within 5 days of receipt thereof
(b)A listed company is required to intimate to stock exchanges information received pertaining to initial disclosure and continuous disclosures within 7 days of receipt thereof
(c)A listed company is not required to intimate to stock exchanges information received pertaining to initial disclosure and continuous disclosures
(d)A listed company is required to intimate to stock exchanges information received pertaining to initial disclosure and continuous disclosures within 2 days of receipt thereof
(e)I am not attempting the question

Q29
State which of the following is false? A stock broker or sub-broker shall be liable for prosecution under Section 24 of the SEBI Act if he ____________ [ 2 Marks ]

(a)fails to pay penalty imposed by the adjudicating officer
(b)indulges in insider trading in violation of SEBI (Prohibition of Insider Trading) Regulations, 1992
(c)acts as an unregistered sub-broker or deals with an unregistered sub-broker
(d)violates SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market)
Regulations, 2003
(e)I am not attempting the question

Q30
In demat environment, a security can have a distinctive number [ 2 Marks ]

(a)TRUE
(b)FALSE
(c)I am not attempting the question

Q31
A Clearing Member of a particular sub-segment can clear deals through ________. [ 3 Marks ]

(a)the Clearing Corporation of that particular sub-segment
(b)any Clearing Corporation
(c)Clearing Corporation of the National Stock Exchange only
(d)None of the above
(e)I am not attempting the question

Q32
Collective Investment Scheme means __________. [ 1 Mark ]

(a)investment by investors in more than one scheme at the same time
(b)contributions or payments by investors, which are pooled and utilised for
product / property scheme or arrangement, managed on behalf of investors
(c)investment scheme run by mutual funds
(d)investment made by investors collectively
(e)I am not attempting the question

Q33
Details of Clients in the F&O Segment, having order value of more than Rs. 1 lakh, have to be furnished to the Exchange as per ________. [ 1 Mark ]

(a)Details are not required to be furnished
(b)SEBI guidelines
(c)Income Tax guidelines
(d)RBI guidelines
(e)I am not attempting the question

Q34
An appeal against the order or decision of the SAT shall be made within __________. [ 1 Mark ]

(a)45 days from the receipt of the order
(b)60 days from the receipt of the order
(c)40 days from the receipt of the order
(d)50 days from the receipt of the order
(e)I am not attempting the question

Q35
Exposure of Settlement Guarantee Fund to any single bank shall not be ___________. [ 3 Marks ]

(a)more than 10% of total liquid assets forming part of SGF
(b)no limits
(c)more than 50% of total liquid assets forming part of SGF
(d)more than 15% of total liquid assets forming part of SGF
(e)I am not attempting the question

Q36
The Clearing Corporation cannot suo moto annul any deal [ 2 Marks ]

(a)TRUE
(b)FALSE
(c)I am not attempting the question

Q37
The SEBI Act came into force on _________. [ 1 Mark ]

(a)30th January,1992
(b)1st January,1992
(c)15th January,1992
(d)1st February,1992
(e)I am not attempting the question

Q38
When shall SEBI reject the scheme of Corporatisation and Demutualisation of a Recognised Stock Exchange? [ 2 Marks ]

(a)In the interest of trade and also in the public interest after giving the concerned
Recognised Stock Exchange an opportunity of being heard.
(b)On its own without giving the concerned Recognised Stock Exchange an opportunity to be
heard
(c)When the concerned Recognised Stock Exchange has not produced the required documents
and supportings
(d)None of the above.
(e)I am not attempting the question

Q39
The application for the recognition or renewal of recognition of a Stock Exchange as per the SC(R)R, 1957 is made in _________. [ 2 Marks ]

(a)Form A-I
(b)Form C
(c)Form C-I
(d)Form A
(e)I am not attempting the question

Q40
Under the SC(R)R, 1957, what shall be the status of the members nominated by SEBI on the governing bodies of the Recognised Stock Exchange? [ 2 Marks ]

(a)Same status but powers differ in some respect from those exercised by the other members of the governing body
(b)Different status and powers from the other members of the governing body
(c)Status superior to that of the other members of the governing body
(d)Same status and powers as other members of the governing body
(e)I am not attempting the question

Q41
As per section 17A of the SC(R)R, 1957, the periodical returns to be submitted by every Recognised Stock Exchange shall contain __________. [ 2 Marks ]

(a)number of shares delivered through the clearing house
(b)any matter specified by the SEBI
(c)the number of securities listed and delisted during the previous three months
(d)All of the above
(e)I am not attempting the question

Q42
Surrender of Membership by a Trading Member has to be approved by ___________. [ 1 Mark ]

(a)the Exchange
(b)the Clearing Member
(c)the RBI
(d)All of the above
(e)I am not attempting the question

Q43
Which of the following statements is true? [ 2 Marks ]

(a)Fraudulent or unfair trade practice does not includes any act amounting to arriving at a
fair of price of a security
(b)Fraudulent or unfair trade practice does not include any act amounting to manipulation of price
of a security.
(c)Manipulation of price of security is not a fraudulent practice
(d)Fraudulent or unfair trade practice does not include any omission amounting to manipulation of price of a security
(e)I am not attempting the question

Q44
The term 'Contract' is defined under the Securities Contract (Regulation) Act, 1956 as ________. [ 2 Marks ]

(a)a contract for or relating to the purchase or sale of commodities
(b)a contract for or relating to the purchase or sale of real estate instruments
(c)a contract for or relating to the purchase or sale of securities
(d)None of the above.
(e)I am not attempting the question

Q45
Short sale means a sale of security _________. [ 3 Marks ]

(a)where the seller sells his shares within a short period after he purchased the same shares
(b)where the seller does not have an exercisable & unconditional right on the shares
(c)where the buyer has no right on sale of securities
(d)where the sale takes place within a short period
(e)I am not attempting the question

Q46
The Fund constituted under the SEBI Act,1992, for meeting expenses and crediting sums received by SEBI is named as ___________. [ 1 Mark ]

(a)Securities and Exchange Board of India General Fund
(b)Consolidated Fund of India
(c)SEBI General Receipt and Expenditure Fund
(d)Consolidated General Fund of Securities and Exchange Board of India
(e)I am not attempting the question

Q47
Co-operative societies can be clearing members [ 2 Marks ]

(a)False, except in certain conditions.
(b)TRUE
(c)FALSE
(d)True, except in certain conditions
(e)I am not attempting the question

Q48
Exchange furnishes turnover details to SEBI [ 1 Mark ]

(a)FALSE
(b)TRUE
(c)I am not attempting the question

Q49
State which of the following is false, as per the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002? [ 1 Mark ]

(a)If the enquiry officer has recommended a minor penalty, the Chairman cannot impose
major penalty
(b)If the enquiry officer has recommended a minor penalty, the Member of SEBI can impose major penalty subject to giving notice to the intermediary to make a written submission.
(c)If the enquiry officer has recommended a minor penalty, the Chairman of SEBI can impose
major penalty subject to giving notice to the intermediary to make a written submission.
(d)I am not attempting the question

Q50
The Books of accounts and documents shall be maintained and preserved by the members of a Recognised Stock Exchange for a period of _______ [ 2 Marks ]

(a)four years
(b)five years
(c)three years
(d)two years
(e)I am not attempting the question

Q51
No trading member shall be eligible to continue or be nominated on the Executive Committee of a stock exchange, if ________. [ 2 Marks ]

(a)his certificate of registration as a stock broker has been cancelled by the Securities and Exchange Board of India or he has been expelled by the Exchange
(b)if his certificate of registration as a stock broker or his trading rights have been suspended by the Securities and Exchange Board of India or the Exchange
(c)if he falls in the category of Notified Persons as per the Special Courts (Trial of Offences Relating to Transaction in Securities) Act, 1992 and two years have not elapsed from the date the member is denotified under the said Act
(d)All of the above
(e)I am not attempting the question

Q52
State which of the following is false? As per SEBI (Prohibition of Insider Trading) Regulations, 1992, SEBI has the right to investigate and inspect the books of accounts of an insider or any other person specified therein under Section 11 of the SEBI Act, 1992, for the following purposes [ 2 Marks ]

(a)To investigate into the books to verify any errors
(b)To investigate into the books on complaints received from intermediaries on the allegations of insider trading
(c)To investigate the books suo moto on the basis of its own knowledge or information in its
possession in order to protect the interest of investors in securities against breach of these
regulations.
(d)To investigate into the books on complaints received from investors of allegations of insider
trading
(e)I am not attempting the question

Q53
As per the SEBI (Ombudsman) Regulations, 2003, a panel of persons, out of which, a person may be appointed as Stipendiary Ombudsman shall remain in force for a period of ___________. [ 2 Marks ]

(a)five years
(b)three years
(c)two years
(d)four years
(e)I am not attempting the question

Q54
New securities can be admitted as per NSE (CM Segment) Trading Regulation ________. [ 2 Marks ]

(a)Part A
(b)Part B
(c)Part C
(d)None of the above
(e)I am not attempting the question

Q55
To whom can an appeal be made if a recognised stock exchange has delisted the securities of a listed company? [ 2 Marks ]

(a)High Court
(b)Central Government
(c)Supreme Court
(d)Securities Appellate Tribunal
(e)I am not attempting the question

Q56
As per the SEBI (Underwriters) Regulations, 1993, an underwriter whose application for renewal of certificate has been refused ____________. [ 1 Mark ]

(a)cannot continue to act as an underwriter even for existing commitments underwritten during
the validity period of the certificate
(b)shall continue to act as an underwriter for a period of 30 days from the date of receipt of the
communication from the SEBI
(c)shall continue to act as underwriter
(d)cease to act as underwriter from the date of receipt of the communication from the SEBI
(e)I am not attempting the question

Q57
The Securities and Exchange Board of India may require, further information or clarifications, regarding the dealings in securities, to consider the application for grant of certificate of registration to a stock broker. For this purpose, the following can appear on behalf of the applicant [ 1 Mark ]

(a)any employee of the company
(b)Principal officer of the company.
(c)a shareholder of the company
(d)Auditor of the company
(e)I am not attempting the question

Q58
Model format of Risk Disclosure documents has been prescribed by SEBI for the trading members to give to all clients mandatorily [ 2 Marks ]

(a)FALSE
(b)TRUE
(c)I am not attempting the question

Q59
Rolling segment is different from Trade to Trade segment [ 2 Marks ]

(a)FALSE
(b)TRUE
(c)I am not attempting the question

Q60
Under Rule 10 of Securities Contract (Regulation) Rules, 1957, maximum how many persons can be nominated on the governing body of the Recognised Stock Exchange? [ 2 Marks ]

(a)Five
(b)Four
(c)Three
(d)Seven
(e)I am not attempting the question


--------------------------------------------------------------------------------