Monday, April 28, 2008

NCFM NSDL - DEPOSITORY OPERATIONS MODULE MOCK TEST PAPERS

NSDL - DEPOSITORY OPERATIONS MODULE

Q1
In stock lending/ borrowing process, what is the transaction fee charged by NSDL to lender's DP for moving securities from lender's account to Authorised Intermediary (AI)'s account? [ 2 Marks ]

(a) 0.05% of the value of securities lent by lender to Intermediary
(b) 0.01% of the value of securities lent by lender to the Intermediary
(c) Rs. 25/- per instruction
(d) No charges
(e) I am not attempting the question

Q2
A DP who is a ______________ should provide to NSDL and SEBI, any details regarding any suspension or termination or defaults or any disputes in relation to its dealing with the clearing corporation within 2 working days. [ 2 Marks ]

(a) clearing corporation
(b) sub- broker
(c) clearing member of a clearing corporation
(d) banker of a clearing corporation
(e) I am not attempting the question

Q3
The account opening form should be signed by __________ in case of minor. [ 1 Mark ]

(a) the guardian
(b) the minor
(c) both of the above
(d) None of the above
(e) I am not attempting the question

Q4
The pay-in and pay-out dates for the settlement calendar is declared [ 1 Mark ]

(a) by SEBI
(b) by NSDL
(c) as per the Securities Contract Regulation Act, 1957
(d) by the respective Stock Exchanges
(e) I am not attempting the question

Q5
The 'statement of account' forwarded to an account holder shows [ 2 Marks ]

(a) details as agreed between the account holder and NSDL
(b) details as agreed between the account holder and the DP
(c) the balance of securities lying to the credit of the account holder as on the last day and also the transactions, if any, done during the period for which the statement is issued
(d) only the balance of securities lying to the credit of the account holder as on the last day of the period for which the statement is issued
(e) I am not attempting the question

Q6
In the context of dividend distribution, what is the full form of ECS? [ 2 Marks ]

(a) Extended Clearing System.
(b) Extended Credit System
(c) Electronic Credit System
(d) Electronic Clearing System
(e) I am not attempting the question

Q7
Is it mandatory for Banks, Financial Institutions, Primary Dealers and Satellite Dealers to subscribe to Commercial Paper (CPs) in Demat form only? [ 2 Marks ]

(a) No, it is not mandatory. CP's can be held in physical form with SEBI approval
(b) No, it is not mandatory. CP's can be held in physical form with RBI approval
(c) Yes, it is mandatory
(d) No, it is not mandatory. CP's can be held in physical form with NSDL approval
(e) I am not attempting the question

Q8
The interest payable on securities lent is _____ [ 2 Marks ]

(a) as per the agreement between the lender, Intermediary and NSDL
(b) as per the agreement between the DP and the lender
(c) as per the agreement between the lender and the Intermediary
(d) as per the agreement between the lender and NSDL
(e) I am not attempting the question

Q9
In case of pledged balance in demat form, the corporate benefits will flow to the ____________ [ 2 Marks ]

(a) pledgee
(b) pledgor
(c) pledgor/ pledgee at the discretion of the parties concerned
(d) pledgor/ pledgee at the discretion of the Issuing Co
(e) I am not attempting the question

Q10
Which of the following Government Securities are available for demat and transfer? [ 2 Marks ]

(a) All securities issued by the Central and State Governments. DP has to merely write to NSDL G-Sec cell and complete some formalities to activate the new security in the Depository system.
(b) Only securities issued by the Central and State Governments after April 1987
(c) Only securities issued by the Central Government
(d) Only securities issued by the State Governments
(e) I am not attempting the question

Q11
As per SEBI requirements, a broker has to deliver shares to the buying investor ________ [ 2 Marks ]

(a) within 5 working days of pay-out
(b) within 36 hours of pay-out
(c) within 48 hours of pay-out
(d) within 24 hours of pay-out
(e) I am not attempting the question

Q12
A Participant can submit the claim for waiver of transaction fee charged on account of minor attaining majority, to NSDL as per the prescribed format, __________. [ 2 Marks ]

(a) twice a month
(b) once a month
(c) fortnightly
(d) at its option, as no frequency is decided
(e) I am not attempting the question

Q13
Mr. Gupta having beneficiary account with DP1 sells 100 shares of ABC company through broker XYZ who has his clearing member account with DP2. Broker XYZ delivers the same in demat form to the clearing corporation/ house in settlement no. 1999052. The market value of ABC company is Rs. 50/-. What are the transaction charges levied by NSDL to DP1? [ 2 Marks ]

(a) Rs. 2.50 (100*50*0.05/100) i. e. 5 basis points of market value of securities debited from Mr. Gupta's account
(b) 0.50 paise (100*50*0.01/100) i. e. 1 basis point of market value of securities debited from Mr. Gupta's account
(c) Re. 1/- (100*50*0.02/100) i. e. 2 basis points of market value of securities debited from Mr. Gupta's account
(d) Rs. 6/
(e) I am not attempting the question

Q14
Which of the following fields forms a part of the Dematerialisation Request Form (DRF)? [ 1 Mark ]

(a) ISIN
(b) Market Type
(c) CM-BP-ID
(d) Settlement Number
(e) I am not attempting the question

Q15
Can an investor dematerialise odd lot shares? [ 1 Mark ]

(a) Yes, provided Issuer/ its R and T Agent agrees
(b) Yes, provided DP agrees
(c) Yes, always
(d) No
(e) I am not attempting the question

Q16
Which of the following statements is false? [ 2 Marks ]

(a) The sponsors must hold atleast 51% in the Depository company
(b) A Depository company must have a minimum networth of 500 crore
(c) Participant of a Depository can hold its equity capital.
(d) The promoters of a Depository are also known as sponsors
(e) I am not attempting the question

Q17
The function of ascertaining pay-in or pay-out of brokers who have traded on the stock exchange is performed by _________. [ 2 Marks ]

(a) Stock brokers
(b) Stock Exchanges Forum
(c) Clearing Corporation
(d) NSDL
(e) I am not attempting the question

Q18
In the Depository environment, which of the following identity is unique to an investor? [ 2 Marks ]

(a) Client Id together with the client's DP Id
(b) DP Id
(c) Client Id together with the CM-BP-Id of client's broker
(d) Client Id
(e) I am not attempting the question

Q19
The final approval for recognising an entity as a Depository Participant is granted by _____ [ 2 Marks ]

(a) NSDL's Committee for Approving Participants (CAP)
(b) SEBI
(c) Special Committee appointed by SEBI comprising NSDL, NSE, BSE, and persons of eminence from capital market and finance ministry
(d) Ministry of Finance
(e) I am not attempting the question

Q20
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? [ 2 Marks ]

(a) 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
(b) Rs. 0.5/- (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
(c) No charges levied
(d) Re. 1/- subject to minimum of Rs. 1000/- and maximum of Rs. 20,000/- per quarter
(e) I am not attempting the question

Q21
A client has 500 shares of ABC Ltd. in his demat account. He gives pledge creation request to his DP for 250 shares of ABC Ltd. On confirmation of this pledge creation instruction by pledgee, what will happen to the shares of ABC Ltd.? [ 2 Marks ]

(a) All 500 shares of ABC Ltd. will be credited to pledgee's account
(b) 250 shares of ABC Ltd. will be blocked in client's account
(c) All 500 shares of ABC Ltd. will be blocked in client's account
(d) 250 shares of ABC Ltd. will be credited to pledgee's account
(e) I am not attempting the question

Q22
Which of the following statements regarding pledging of securities is false? [ 1 Mark ]

(a) An Intermediary account is opened for the purpose of Pledge and Hypothecation
(b) In case of pledged balance in demat form, the corporate benefits will flow to the pledgor
(c) The credit of pledged securities remains in the account of the pledgor.
(d) For the purpose of pledging of securities, both pledgor and the pledgee must have a beneficiary account with NSDL
(e) I am not attempting the question

Q23
To dematerialise government securities, NSDL has to take prior approval of _____ [ 2 Marks ]

(a) SEBI and RBI both
(b) SEBI
(c) RBI
(d) Issuing government authority
(e) I am not attempting the question

Q24
Does NSDL provide the facility of transmission along with dematerialisation of physical securities? [ 2 Marks ]

(a) No.
(b) Yes, but only for Nifty and BSE sensex scrips, provided the deceased was holding the securities jointly with other holder(s).
(c) Yes, for all the securities available for dematerialisation with NSDL, provided the deceased was holding the securities jointly with other holder(s).
(d) Yes, always
(e) I am not attempting the question

Q25
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 the DP to Mr. Shah? [ 2 Marks ]

(a) Rs. 6
(b) Rs. 25
(c) No charges levied
(d) Rs. 10
(e) I am not attempting the question

Q26
Which of the following fields in account opening form are mandatory?
a. Bank details .
b. PAN.
c. Type of Account. [ 1 Mark ]

(a) a, b and c
(b) a only
(c) a and b only
(d) a and c only
(e) I am not attempting the question

Q27
In the International Securities Identification Number (ISIN), the first two letters stand for which of the following? [ 2 Marks ]

(a) The country code.
(b) The term of the security.
(c) Name of the company
(d) The type of the security
(e) I am not attempting the question

Q28
As per the DP-Client Agreement, can a DP revise the charges levied to its clients? [ 1 Mark ]

(a) Yes, with minimum 30 days notice to the client
(b) Yes, with minimum 15 days notice to the client
(c) No.
(d) Yes, without any notice to the client
(e) I am not attempting the question

Q29
What is the minimum annual transaction fees payable by a DP to NSDL? [ 2 Marks ]

(a) Rs. 2.5 lakh
(b) Rs. 1 lakh
(c) Rs. 5 lakh
(d) Rs.1.5 lakh
(e) I am not attempting the question

Q30
For a Non Banking Finance Company seeking to act as a DP on behalf of others, the minimum networth required as prescribed by SEBI is _________. [ 1 Mark ]

(a) Rs. 10 Crore
(b) Rs. 100 Lakh
(c) Rs. 50 Crore
(d) Rs. 50 Lakh
(e) I am not attempting the question

Q31
Which of the following will not be a part of the PDRF? [ 2 Marks ]

(a) Account holder name
(b) ISIN
(c) Unit of measurement
(d) Name of the commodity
(e) I am not attempting the question

Q32
In an application for opening an account (for corporates/ clearing members only), which one of the following does not form a part of types of accounts? [ 1 Mark ]

(a) Bank
(b) NRI-Repatriable
(c) Body Corporate
(d) Trust
(e) I am not attempting the question

Q33
A DP is an entity who is registered with SEBI ______ [ 1 Mark ]

(a) under the provisions of the SEBI (Depositories & Participants) Regulations, 1996
(b) under the provisions of the Companies Act 1956
(c) under the provisions of the Securities Contract Regulation Act, 1956
(d) under provisions of Securities and Exchange Board Of India (Self Regulatory Organizations) Regulations, 2004
(e) I am not attempting the question

Q34
A broking member registered as a partnership firm, should open its clearing member account with a DP in the _________ [ 1 Mark ]

(a) name of any partner(s)
(b) name registered with SEBI
(c) name of all the partners
(d) all of the above
(e) I am not attempting the question

Q35
Which of the following is a non-cash corporate action? [ 1 Mark ]

(a) Interest Payments
(b) Dividends
(c) Rights Issue
(d) None of the above
(e) I am not attempting the question

Q36
If the unit holder opts for either or survivor basis in case of his US64 units, the demat request pertaining to them can be: [ 2 Marks ]

(a) processed through the same a/c that he has for his other holdings in demat form with a undertaking that this facility is available only for US64 units
(b) processed through a separate a/c that he opens for US64 units on either or survivor basis
(c) Any one of the above, at his option
(d) Not applicable. US64 units do not have the facility of either or survivor basis
(e) I am not attempting the question

Q37
What is the annual fee charged to a Depository Participant subscribing for IDeAS facility of NSDL? [ 1 Mark ]

(a) Rs.10,000
(b) Rs. 1 crore
(c) Rs. 35,000
(d) Rs. 50 lakh
(e) I am not attempting the question

Q38
There can be maximum of _______ nominee (s) per demat account [ 2 Marks ]

(a) 3
(b) 2
(c) 1
(d) 5
(e) I am not attempting the question

Q39
The BSE Sensex comprises of ________ [ 2 Marks ]

(a) 30 scrips
(b) 25 scrips
(c) 50 scrips
(d) 35 scrips
(e) I am not attempting the question

Q40
If beneficial owner opts for demat securities in the public issue application form then, the probability of allotment of the shares _______ [ 1 Mark ]

(a) Decreases
(b) increases.
(c) depends on the no. of applications he has submitted asking for demat shares
(d) remains same
(e) I am not attempting the question

Q41
In an application for opening an account (for individuals only), which one of the following does not form a part of types of accounts? [ 1 Mark ]

(a) Ordinary resident
(b) HUF
(c) NRI-Non-Repatriable
(d) FII
(e) I am not attempting the question

Q42
Which scrips have to be compulsorily settled in demat form by all categories of investors with effect from January 4, 1999? [ 2 Marks ]

(a) Scrips falling under the list issued by SEBI for this purpose
(b) Scrips of all public limited companies
(c) All scrips joined NSDL
(d) All listed scrips
(e) I am not attempting the question

Q43
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, ________ [ 1 Mark ]

(a) he will need to take special permission from SEBI to do so and then produce the same to DP
(b) no permission is required for NRIs. He can transfer the same freely
(c) the treaty between India and Singapore exempts Mr. Sharechandani from producing any permission
(d) he will have to produce the copy of the necessary RBI permission to his DP
(e) I am not attempting the question

Q44
In stock lending/ borrowing process, what is the transaction fees charged by NSDL to Intermediary's DP for moving securities from Intermediary's account to borrower's account? [ 2 Marks ]

(a) Rs. 25/- per instruction
(b) 0.01% of the value of securities lent by Intermediary to the borrower
(c) No charges
(d) 0.05% of the value of securities lent by Intermediary to the borrower
(e) I am not attempting the question

Q45
In case of government securities sent for dematerialisation, the DP will endorse the certificates ____ [ 2 Marks ]

(a) by writing 'Surrendered for Dematerialisation' on the front of the certificate.
(b) by writing 'Tendered for Cancellation and credit to SGL A/c No. BYSL0838 of NSDL, Mumbai' on the reverse of the certificate
(c) by writing 'Surrendered for Dematerialisation' on the reverse of the certificate
(d) by writing 'Surrendered to RBI for dematerialisation' on the reverse of the certificate
(e) I am not attempting the question

Q46
Which of the following instructions from the Pledge/ Hypothecation form, should be used by a pledgor (after repayment of loan) to get the pledged shares back as free balances? [ 1 Mark ]

(a) Invoke the pledge/ hypothecation
(b) Confirm the creation of pledge/ hypothecation
(c) Close the pledge/ hypothecation
(d) Create the pledge/ hypothecation
(e) I am not attempting the question

Q47
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) facilitates settlement of both funds and dematerialised securities
(c) replaces the clearing corporation/ house of the exchange that has established electronic connectivity with it
(d) only plays the role of a facilitator in settlement of dematerialised securities in those exchanges which have established electronic connectivity with it
(e) I am not attempting the question

Q48
The Warehouse Receipts are identified by ________. [ 2 Marks ]

(a) CID for Warehouse Receipts
(b) WRIN
(c) PDRF
(d) ISIN for Warehouse Receipts
(e) I am not attempting the question

Q49
What is 'shut period'? [ 2 Marks ]

(a) It is the period applicable to government securities, during which RBI will not register transfer of securities
(b) It is the period during which a company shall stop registering transfer of the securities
(c) It is the period during which the Stock Exchanges will not operate
(d) It is the period when NSDL shuts it operations
(e) I am not attempting the question

Q50
As per NSDL backup policy _______ [ 1 Mark ]

(a) a DP has to take two copies of backups ; one copy has to be preserved at a remote site away from the operations and another on the site itself.
(b) a DP has to take only one copy of backup which has to be preserved at a remote site away from the operations
(c) a DP has to take only one copy of backup which has to be preserved on the site of its operations
(d) None of the above
(e) I am not attempting the question

Q51
The charges for dematerialisation of securities related services to be paid by the investors are levied by _______ [ 1 Mark ]

(a) the R&T agent
(b) NSDL
(c) SEBI
(d) the Depository Participant
(e) I am not attempting the question

Q52
What are transaction charges levied by NSDL to its DP for off market transfers? [ 2 Marks ]

(a) Rs. 8/- per debit instruction
(b) 2 basis points of market value of securities to the buyer
(c) 10 basis points of face value of securities to the seller
(d) Rs. 6/- per debit instruction
(e) I am not attempting the question

Q53
GDR; [ 2 Marks ]

(a) is a vehicle through which Indian Companies can raise funds domestically under SEBI's guidelines for book building
(b) is the modified CRR directive issued by RBI
(c) is used by banks for meeting SLR requirements
(d) is a financial instrument used by Indian Companies to raise funds abroad.
(e) I am not attempting the question

Q54
To ascertain whether a SGL account is registered with PDO at RBI, Mumbai, which of the following shall be the prefix to the SGL account number? [ 2 Marks ]

(a) BY
(b) BO
(c) MU
(d) MUM
(e) I am not attempting the question

Q55
The Approved Intermediary for securities lending and borrowing has to be registered with _______. [ 2 Marks ]

(a) SEBI
(b) Department of Company Affairs
(c) Ministry of Finance
(d) RBI
(e) I am not attempting the question

Q56
In the Depository system, when the investor has multiple Depository accounts, the method adopted by Income Tax Authorities for calculation of capital gains will be _______ [ 2 Marks ]

(a) Depository Participant wise
(b) globally, for securities held in all the accounts taken together
(c) at the discretion of the tax authorities
(d) account wise
(e) I am not attempting the question

Q57
An investor is holding 100 shares in physical form. The company issues 1:1 bonus. Can investor opt for bonus in demat form? [ 2 Marks ]

(a) Yes, bonus shares are always issued in demat form irrespective of the form in which the original shares were held
(b) No, the bonus shares will be issued in physical form
(c) Cannot say. Bonus shares will be issued in such form as thought fit by the Issuer
(d) Yes, by writing to the Issuer or its Registrar & Transfer Agent giving his DP Id, Client ID & Client Name
(e) I am not attempting the question

Q58
As per SEBI's Securities Lending and Borrowing Scheme, the networth requirement for an Approved Intermediary is _________ [ 2 Marks ]

(a) 50 crore.
(b) 10 crore
(c) 25 crore
(d) 100 crore
(e) I am not attempting the question

Q59
The transaction statements are sent by DP to _______. [ 1 Mark ]

(a) NSDL for onward delivery
(b) the investor / clients directly
(c) the broker of the client/ investor
(d) None of the above as the transaction statements are sent directly by NSDL
(e) I am not attempting the question

Q60
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. 25
(b) Rs. 23
(c) Rs. 24
(d) Rs. 6
(e) I am not attempting the question


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

6 comments:

Anonymous said...

please provide answers also

ramya said...

damn where are answers

jeeva said...

if u can provide answers tat wil be more helpful...

vijay kr. gupta said...

vERY USEFUL AND FRIENDLSY

Anonymous said...

Without answers what will be use

Mahammad javeed said...

hai sir,,,am preparing for NSDL exam

plz if u have any mock test papers with answers plz frwrd to me

my mail is md.javeed.amp@gmail.com