NISM-Series-VIII: Equity Derivatives Mock Test Part 2

#1. Self auction, for internal shortages of securities, is the process followed by_______

NSE

MCX

BSE

All of the above

#2. Register of transaction the (Sauda book) of a stock broker has to be maintained for a period of_______ years as required by SC(R)R

2 Years

3 Years

5 Years

7 Years

#3. In Normal Settlement, Bad delivery reporting happens on_________

T + 3

T + 4

T + 5

T + 6

#4. An Investor who has short-term financial need may choose to invest primarily in:

Equities for better return

Property for high value

Gold for better appreciation

Bonds for steady return

#5. Initial Margin is the margin levied by the exchange in the equity segment.

False

True

#6. What is the action taken when there is a failure on part of the broker to deliver the se-curities?

Sale

Auction

Trade Cancelled

None of the above

#7. Instruments used for raising in international markets are ________

ADR & GDR

FCCB

ECB

All the above

#8. Closing price for a futures contract shall be calculated on the basis of _______

Theoretical price of the futures contract

The last half an hour weighted average price of the contract

Previous days close price of the contract

None of the above

#9. Units of a mutual fund can be purchased by investing a pre- determined amount periodically. This is called:

Systematic Investment plan

Systematic Withdrawal plan

Systematic Dividend plan

Dividend reinvestment plan

#10. Novation is carried out by ________

Clearing members

Clearing Corporation

Stock Exchange

SEBI

#11. The clearing members confirm their trades by _______ to the clearing corporation.

11.00 a.m. on T day

11.00 a.m. on T+1

11.00 a.m. on T+2

None of the above

#12. For the clients having outstanding obligations on the settlements date , the stock broker may retain the securities/meet obligations for next ________ trading days.

3

5

7

14

#13. If a public is heavily overly subscribed

The issue price be low

The number of shares allotted to each investor will be low

The listing price will be higher

The amount raised will be higher

#14. _________ is a process whereby a stock broker and custodian bring in money and/or securities to the clearing House

Pay-out

Pay-in

Clearing

None of the above

#15. Which of the following is true?

The stock broker can transfer the fund from own account to the clients accounts and vice versa.

The stock broker can transfer funds from own account to the clients accounts and vice versa at only certain circumstances allowed by SEBI

The stock broker cannot transfer funds from own account to the clients accounts at all

The stock broker can transfer funds from his own account to the clients accounts ,but the reverse is not possible.

#16. The document that confirms a trade executed on the stock exchange is called

Confirmation slip

Delivery note

Contract note

Delivery instruction slip

#17. Foreign Company can raise capital in India through _________

ADR

GDR

IDR

None of the above

#18. The Clearing bank credits the settlements accounts of the members maintained with the Bank after _______

2 p.m. on the last date of settlement period

3 p.m. on the last date of settlement period

3:30 p.m. on the last date of settlement period

None of the above

#19. Receipt accounts are used to transfer securities from pool accounts to clearing agency’s account

True

False

#20. What should the clients do if he does not want to issue or get cheques for daily settlement of his contracts?

Instruct the clients to issue cheques every week

Get running authority letter from broker

Issue Running Authority letter to the broker

Nothing can be done

#21. Who are the non-members of the exchange present in the panel of arbitrators?

Retired Judges

Chartered Accountants

Advocates

All of the above

#22. If the claim is above Rs.25 Lakhs in an arbitration, then the deposit that the has to be paid if the claim is made within 6 months is __________

Rs. 17,500 plus 0.2% amount above Rs. 25 lakh subject to a maximum of Rs. 30,000

Rs.12,500 plus 0.2% amount above Rs. 25 lakh subject to a maximum of Rs. 30,000

Rs . 17,500 plus 1.2% amount above Rs. 25 lakh subject to a maximum of Rs. 30,000

None of the above

#23. The stock exchange has to ensure that the process of appointment of arbitrator(s) is completed within 30 days from the date of the receipts of application from the applicant

True

False

#24. The total exposure of the broker towards the margin trading facility should not exceed the borrowed funds and 25 percent of his net worth.

True

False

#25. The purchased securities will be credits in ________

Client account

Broker account

Any of the above

None of the above

#26. Proof of insurance cover has to be submitted by a broker to the exchange by ________

By 31 Dec yearly

By 31 July yearly

By 31 March yearly

None of the above

#27. Trade Enrichment can happen only after order matching.

True

False

#28. Which company was the first to raise equity through IDR ?

UCO Bank

Standard Chartered Bank

UBS

Barclays

#29. Clearing members to take membership with the _________

Clearing Agencies

Exchange

Brokers

Depositories

#30. The settlement of derivative trades is done either on T+0 or on T+1 working day basis except final settlement in the currency derivatives segment which takes place on a T+2 basis.

False

True

NISM-Series-VIII: Equity Derivatives Mock Test Part 2

#1. Self auction, for internal shortages of securities, is the process followed by_______

#2. Register of transaction the (Sauda book) of a stock broker has to be maintained for a period of_______ years as required by SC(R)R

#3. In Normal Settlement, Bad delivery reporting happens on_________

#4. An Investor who has short-term financial need may choose to invest primarily in:

#5. Initial Margin is the margin levied by the exchange in the equity segment.

#6. What is the action taken when there is a failure on part of the broker to deliver the se-curities?

#7. Instruments used for raising in international markets are ________

#8. Closing price for a futures contract shall be calculated on the basis of _______

#9. Units of a mutual fund can be purchased by investing a pre- determined amount periodically. This is called:

#10. Novation is carried out by ________

#11. The clearing members confirm their trades by _______ to the clearing corporation.

#12. For the clients having outstanding obligations on the settlements date , the stock broker may retain the securities/meet obligations for next ________ trading days.

#13. If a public is heavily overly subscribed

#14. _________ is a process whereby a stock broker and custodian bring in money and/or securities to the clearing House

#15. Which of the following is true?

#16. The document that confirms a trade executed on the stock exchange is called

#17. Foreign Company can raise capital in India through _________

#18. The Clearing bank credits the settlements accounts of the members maintained with the Bank after _______

#19. Receipt accounts are used to transfer securities from pool accounts to clearing agency’s account

#20. What should the clients do if he does not want to issue or get cheques for daily settlement of his contracts?

#21. Who are the non-members of the exchange present in the panel of arbitrators?

#22. If the claim is above Rs.25 Lakhs in an arbitration, then the deposit that the has to be paid if the claim is made within 6 months is __________

#23. The stock exchange has to ensure that the process of appointment of arbitrator(s) is completed within 30 days from the date of the receipts of application from the applicant

#24. The total exposure of the broker towards the margin trading facility should not exceed the borrowed funds and 25 percent of his net worth.

#25. The purchased securities will be credits in ________

#26. Proof of insurance cover has to be submitted by a broker to the exchange by ________

#27. Trade Enrichment can happen only after order matching.

#28. Which company was the first to raise equity through IDR ?

#29. Clearing members to take membership with the _________

#30. The settlement of derivative trades is done either on T+0 or on T+1 working day basis except final settlement in the currency derivatives segment which takes place on a T+2 basis.

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