Nsdl Questions

orrect answers are shown in green. Attempted answers, if wrong, are in red.

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


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


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


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


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


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


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


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


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


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


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


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/


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


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


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


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


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


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


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


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


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


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


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


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: 120Demat segment of BSE: 125BE segment of NSE: 115Assume 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


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


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


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


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


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


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


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


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


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


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

(a) Interest Payments

(b) Dividends

(c) Rights Issue



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


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


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

(a) 3

(b) 2

(c) 1

(d) 5


Q39 The BSE Sensex comprises of ________ [ 2 Marks ]

(a) 30 scrips

(b) 25 scrips

(c) 50 scrips

(d) 35 scrips


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


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


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


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


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


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


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


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


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

(a) CID for Warehouse Receipts

(b) WRIN

(c) PDRF

(d) ISIN for Warehouse Receipts


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


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



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


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


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.


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


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


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


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


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


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


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


orrect 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


Q2 Name the odd one out: [ 2 Marks ]

(a) ICRA

(b) BOISL

(c) CARE

(d) CRISIL

(e) I am not attempting the questionQ3 "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.

(e) I am not attempting the questionQ4 "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.

(e) I am not attempting the questionQ5 "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."

(e) I am not attempting the questionQ6 "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.

(e) I am not attempting the questionQ7 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."

(e) I am not attempting the questionQ8 "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."

(e) I am not attempting the questionQ9 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.

(e) I am not attempting the questionQ10 "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.

(e) I am not attempting the questionQ11 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"

(e) I am not attempting the questionQ12 " 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.

(e) I am not attempting the questionQ13 "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.

(e) I am not attempting the questionQ15 "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.

(e) I am not attempting the questionQ16 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.

(e) I am not attempting the questionQ17 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"

(e) I am not attempting the questionQ18 "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.

(e) I am not attempting the questionQ19 "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.

(e) I am not attempting the questionQ20 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.

(e) I am not attempting the questionQ21 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."

(e) I am not attempting the questionQ23 "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."

(e) I am not attempting the questionQ24 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.

(e) I am not attempting the questionQ25 "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

(e) I am not attempting the questionQ26 "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."

(e) I am not attempting the questionQ27 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.

(e) I am not attempting the questionQ28 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.

(e) I am not attempting the questionQ29 "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."

(e) I am not attempting the questionQ31 "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.

(e) I am not attempting the questionQ32 "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.

(e) I am not attempting the questionQ33 "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

(e) I am not attempting the questionQ34 "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.

(e) I am not attempting the questionQ35 """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.

(e) I am not attempting the questionQ36 "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.

(e) I am not attempting the questionQ37 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.

(e) I am not attempting the questionQ39 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.

(e) I am not attempting the questionQ40 Which of the following places does not have a stock exchange? [ 2 Marks ]

(a) Delhi.

(b) Calcutta.

(c) Guwahati.

(d) Cuttack

(e) I am not attempting the questionQ41 "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.

(e) I am not attempting the questionQ42 "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.

(e) I am not attempting the questionQ43 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.

(e) I am not attempting the questionQ44 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.

(e) I am not attempting the questionQ45 "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.

(e) I am not attempting the questionQ46 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

(e) I am not attempting the questionQ47 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."

(e) I am not attempting the questionQ48 "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.

(e) I am not attempting the questionQ49 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.

(e) I am not attempting the questionQ50 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).

(e) I am not attempting the questionQ51 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.

(e) I am not attempting the questionQ52 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.

(e) I am not attempting the questionQ53 "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.

(e) I am not attempting the questionQ54 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.

(e) I am not attempting the questionQ56 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."

(e) I am not attempting the questionQ57 "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.

(e) I am not attempting the questionQ58 "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."

(e) I am not attempting the questionQ59 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

(e) I am not attempting the questionQ60 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.


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