paper1 software

8/7/2019 paper1 software

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Software paper I

1. The depositories transfer the securities on the pay-out day from the DPaccounts of the....................

(a) The depositories act 1996(b) The Companies act 1956(c) Indian Cnract act 1872(d) Money laundering act 2002

2. Bank Guarantee can be submitted as a(n) ___________ to NSCCL bytrading members.(a) surety.(b) indemnity(c) warranty

(d) additional base capital

3. After the executions of trade, the ----------------- becomes the counterparty to the transaction ensures that funds & securities obligations are met.

a] SEBIb] Clearing Corporationc] NSEd] BSE

4. Which of the following is not true about Mark to Market Margin? [ 2Marks ](a) Mark to market margin is computed on the basis of mark to market lossof a member.(b) Mark to market margin is calculated by marking each transactionin a scrip to the closing price of the scrip at the end of trading(c) Mark to market profit/loss across different securities within the samesettlement is set off to determine the mark to market loss for a settlement.(d) Mark to market loss is the notional loss which the member would incur

in case the cumulative gross outstanding position of the member in somesecurities were closed out at the closing price of the securities(e) I am not attempting this question


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5. Daily margins payable by the trading members in the Cash ma rketconsists of the following:1) Value at Risk (VaR) margin2) Extreme Loss Margin3) Mark to Market Margin4) All of the above

6. Which of the following is come of Limited Physical Market,(a)Anydelivery of shares which bears the last transfer date on or after theintroduction of the security for trading in the LP market is construed as baddelivery.(b)Any delivery in excess of 500 shares is marked as short andsuch deliveries are compulsorily closed-out.(c) The buyer mustcompulsorily send the securities for transfer and dematerialisation, latestwithin 6 months from the date of pay-out.

(a) A is correct(b) B is correct(c) A & B are correct(d) None of the above

7. As per rhe depositories act 1996 he name of the...........appears i therecord of the issuer as registered owner of the securities(a) Depository(b) Broker(c) Custrodian(d) All of the above

8. The NSCCL interposes itself as a central counterparty between thecounterparties to trades and nets the positions so that a member hassecuritywise net obligation to receive or deliver a security and has to eitherpay orreceive funds. True or False?[ 1 Mark ](a) True(b) False

9. Auction Square Up Debit Statement: This report gives details ofunauctioneddeliveries that are squared-up by the Exchange. True or False?[ 2 Marks ](a) True(b) False


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15. Members can submit which of the following as additional base capital toNSCCL. [ 2 Marks ](a) Cash.(b) Bank Guarantee(c) Fixed Deposit Receipts(d) All of the above(e) I am not attempting this question

16. Name the depository from the list given below.(a) NSE(b) NSCCL(c) NSDL(d) RBI

17. NSE has set up Nationa stock exchange investor protection fund underthe..................(a) Bombay Public trust act 1950(b) Indian Contract Act 1872(c) The Cmpanies Act 1956(d) MOneylaunderng Act 2002

18. Mark to market loss is calculated by marking each transaction insecurity to the................ of the security(a) Closing Price(b) Opening Price(c) Any(d) Can't say

19. VaR margin is charged at differential rate on the _____________position of the client.(a) Net outstanding sale(b) Gross outstanding sale

(c) Net Sale(d) Gross Sale


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20. Security for which trading has been discontinued on the Exchange(hereinafter referred to as deleted security), close out shall be at ...............over the official closing price on the last traded day of the 'deleted security'on the Exchange.(a) 5%(b) 10%(c) 20%

(d) 30%

21. Which of the following statement is true?(a) Clearing members are responsible for settling their obligations asdetermined by the NSCCL.(b) Custodian can be a trading member.(c) Clearing members are not required to open a dedicated clearing

account with any of the clearing banks.(d) Custodians are not required to maintain a clearing pool account withthe depositories.

22. The stamp duty on transfer of demat securities has been waived. TrueorFalse?[ 1 Mark ](a) True(b) False

23. Settelementobligaions (delivery/receipt/positions) of members aredetermined by............... neting(a) Multilateral(b) Unilateral(c) Bitalateral(d) None of the above

24. For liquid securities, the VaR margins are based on the ________ ofthe

Security.[ 2 Marks ](a) volatility(b) returns(c) liquidity(d) exposure limit


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25. For liquid securities, the VaR margins are based on the ________ oftheSecurity.[ 2 Marks ](a) volatility(b) returns(c) liquidity(d) exposure limit

26. NSCCL has put in place an on-line exposure surveillance alerts, whichhas been built in, so that both the member & NSCCL are alerted as per preset levels ________a] Reaching 70%, 85%, 95%, 100%b] Reaching 60%, 75%, 80%, 90%c] Reaching 50%, 55%, 65%, 75%

d] Reaching 45%, 55%, 65%, 75%

27. Who moves the securities available in the account of the members tothe NSCCL?(a) Clearing banks(b) Custodians(c) Clearing members(d) Depositories

28. Who provides for electronic transfer of securities in the stock market?(a) RBI(b) Depositories(c) Clearing Agencies(d) SEBI

29. Members can submit which of the following as additional base capital toNECCL.(a) Cash

(b) FD(c) Bank Guanatee(d) All of the above


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30. The maximum amount of claim payable from the IPF to the investor(where the trading member through whom the investor has dealt isdeclared a defaulter) is ________. [ 1 Mark ](a) Rs. 7 lakh(b) Rs. 11 lakh(c) Rs. 17 lakh(d) Rs. 1 lakh(e) I am not attempting this question

31. Securities in T+2 rolling settlement segment are delivered(a) In Demat form(b) In Physial form(c) Any form(d) Can't say

32. NSCCL deals with he clearing and settlementb of securities(a) Traded on NSEIL(b) Traded on any exchange in India(c) Traded on BSE(d) None of the above

33. the penalty points in respect of non-performance of settlement areaccumalated for............... before being levied o a member(a) A month(b) Two month(c) One Week(d) Fortnight

34. In auction process the party who enters on the opposite side of theinitiator is called __.a) Competitorb) Rationalistc) Solicitor

d) Initiator

35. SEBI has permitted ..............to allot ISIN for demat shares(a) NSDL(b) CSDL(c) Both(d) None


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36. In the current scenario, which system is followed for settlement of cashmarket transaction?(a) T+1(b) T+5(c) T+2(d) T day

37. Gross turnover (buy+sell) intraday of the member should not exceed_____ times the base capital.

a] 33 & 1/3.b] 45.c] 55.d] 75

38. In ISIN, what does Code 08 signify?a) Non voting equitiesb) Unsecured Debenturesc) Warrantsd) Step Discount Bonds

39. The _______________ risk arises from the failure of one of the partiesin the transaction.(a) Liquidity Risk(b) Counter party risk(c) Replacement cost risk(d) System risk

40. On the securities.............. delivering members are required to bring insecurities to NSCCL.(a) Pay out day(b) Pay in day(c) Both

(d) Cant say


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41. Which of the following is true about settlement for the Limited PhysicalMarket segment?(a) Delivery of shares in street name and market delivery is treated as gooddelivery.(b) Any delivery less than 500 shares is marked as short and suchdeliveries are compulsorily closed out.(c) Settlement for trades is carried out on a trade for trade basis.

(d) Securities and funds pay in takes place on T+1 working days after thetrade date.

42. Which of the folowing is correct?(a) A depository is an entity where the securities of aninvestor are held in electronic form.(b)Depositories help in the settlement of the dematerialised securities.

(c)The depository runs an electronic file to transfer the securities fromaccounts of the custodians/clearing member to that of NSCCL.(d) All

43. Name the special category of members admitted by NSCCL as clearingmembers.(a) Supporting clearing member(b) Custodians(c) Registered clearing member(d) Professional clearing member

44. Which is the national numbering agency for securities in India?(a) SEBI(b) RBI(c) Companies Act 1956(d) NSEIL

45. Who has permitted NSDL to allot an ISIN for demat shares?a) NSCCL

b) CRISILc) ICICId) SEBI


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46. Upfront margin rates applicable for all securities in Trade for Trade -segment(TT) is ______. [ 2 Marks ](a) 50%(b) 100 %(c) 200%(d) 150%

47. Members can submit which of the following as additional base capital toNSCCL. [ 2 Marks ](a) Cash.(b) Bank Guarantee(c) Fixed Deposit Receipts(d) All of the above

(e) I am not attempting this question

48. Schedules of pay-in and pay-out of funds and securities are notifiedby.......................(a) Respective stock exchange(b) NSCCL(c) Any of the above(d) Nne of the above

49. Under T+2 rolling settelment as prevalent in India,all open positions atthe end of a trading date mendatority result n setlement working days later(a) 3(b) 1(c) 2(d) 4

50. What is known as the commission charged by the broker on the tradesdone by the client during the day?a) Charges

b) Penaltiesc) Brokeraged) Fees


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51. Which agency links Clearing Members & NSCCL for funds settlement?(a) Clearing Banks(b) Depositories(c) Clearing members(d) NSE

52. ISIN fro all securities, except government ones, is allotted by:a) NSEb) NSDLc) SEBId) BSE

53. VaR margin is charged at differential rate on the ____________position of the client. [ 2 Marks ]

(a) Gross outstanding sale.(b) Net sale(c) Net outstanding sale.(d) Gross sale.(e) I am not attempting this question

54. The owner of securities intending to avail of depository services opensan account with a depository through a __________(a) depository participant (DP)(b) sub-broker(c) stock exchange(d) depository

55. The member with the funds pay-in obligation is required to have clearfunds in his account on or before _______________ on the scheduled pay-in day. The pay out of funds is credited to the clearing account of themembers on or after ___________ on thescheduled payout day.

a) 11:00 a.m., 01:30 p.m.b) 02:00 p.m., 03:00 p.m.c) 10:00 a.m., 12:00 p.m.d) 12:00 p.m., 01:00 p.m.


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56. Pay-in in the form of highest price prevailing in the NSE from the 1stday of the relevant trading period till the day of closing out or 20% abovethe closing price on the auction day whichever is higher is the case of:a) Failure to give delivery.b) Non rectification/replacement for bad delivery.c) Company objection cases reported as bad delivery.d) All the above

57. The members/custodians make available the required securities in their___________with depository participants (DPs) by the prescribed pay-intime for securities.(a) Clients Account(b) Delivery Account(c) Pool accounts

(d) Receipt Account

58. For each violation of gross exposure limit & intra-day turnover limit, apenalty of Rs. ______ is levied, which is paid by the trading member nextday.a] 1500.b] 1000.c] 5000.d] 2000.

59. Counterparty risk includes.......................(a) Replacement cost risk(b) Operational risk(c) Legal risk(d) System risk

60. This type of provides security wise information:a) Daily obligation statement of custodial trades.b) Daily obligation Statement

c) Final Settlement obligation statementd) Daily obligation statement of no delivery of Securities


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61. As per rhe depositories act 1996 he name of the...........appears i therecord of the issuer as registered owner of the securities(a) Depository(b) Broker(c) Custrodian(d) All of the above

62. In case the net outstanding position in any security is nil, the differencebetween the buy and sell values is considered as notional loss for thepurpose of calculating the __________ payable?(a) Volatility Margin(b) Initial Margin(c) Buy margin(d) Mark to market margin

63. Bad deliveries are required to be reported to the clearing housewithin.........days from the receipt of documents.The delivering member is required to rectify these within days.(a) One, Two(b) Two, Three(c) Two, THree(d) Two, Two

64. Which character in ISIN alphabetic by nature?a) 6b) 1c) 4d) 2

65. Which of the following statement is TRUE?
Statement (A) SEBIhas permitted NSDL to allot ISIN for demat securities (B) ISIN for a securityis allotedanly when the security is admiited to NSDL(a) A is true

(b) B is true(c) Both are true(d) A is true ut B is not


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66. The depositories assist NECCL to pay-in and pay-out..........(a) Securities held in demat form only(b) Securities held in physical form only(c) Both(d) None of the above

67. __________ is the account used by the clearing member to deliversecurities to NSCCL.a) Delivery Accountb) Receipt Accountc) Pool Accountd) All the above

68. In case of a 10% movement in either of these indices, there would be a

one-hour market halt if the movement takes place(a)before 1:00 p.m.(b) before 2:30 p.m.(c)after 2:30 p.m.(d) All of the above

69. Mark to market Margin is.......................(a) A notional loss which a trading member wold incur(b) Actul loss which a trading member wold incur(c) Both(d) None of the above

70. NSCCL becomes the legal counterparty to the net settlementobligations ofevery member. This principle is called ______. [ 1 Mark ](a) notation(b) settlementfullfillment(c) novation'(d) obligation guarantee


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71. At the end of the trade cycle, the trades are _______ to determine theobligations of the trading members to deliver securities/funds as persettlement schedule. [ 2 Marks ](a) grossed(b) aggregated(c) netted(d) offset

72. What are the timings for trading?a) 10:00 a.m. - 6:30 p.m.b) 11:00 a.m. - 5:30 p.m.c) 09:55 a.m. - 3:30 p.m.d) 10:00 a.m. - 3:30 p.m.

73. The depositories transfer the securities on the pay-out day from the DPaccounts of the....................(a) The depositories act 1996(b) The Companies act 1956(c) Indian Cnract act 1872(d) Money laundering act 2002

74. The Depository transfers the securities from the pool accounts ofmembers/custodians to the ________________.(a) pool account of the clearing agency(b) settlement account of the clients(c) delivery Account(d) settlement account of the clearing agency

75. 16 Memberwise Margin Payment Status Report is a _________?(a) Weekly report.(b) Monthly report.(c) Daily report.(d) None of the above

76. Minimum net worth requirement for a member of NSE to trade in CashMarket & Future & Option segment is__________a] 100 Lakhs.b] 125 Lakhs.c] 50 Lakhs.d] 75 Lakhs.


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77. The amount in unpaid dividend accounts of companies shall betransferred to the: ____. [ 2 Marks ]

(a) Dividend Equalisation Reserve(b) Investor Education and Protection Fund(c) Investor Protection Fund(d) General Revenue Account of the Central Government(e) I am not attempting this question

78. If the seller defaults in paying in the securities the NSCCL debits theclearing memberwith an amount, is known as______________a) Clearing Settlementb) Valuation Debit

c) Accounts Settlementd) none of the above

79. MTM & VAR margins are calculated on ____________basis.a] Daily.b] Monthly.c] Weekly.d] Quarterly

80. Who provides counterparty guarantee for all trades executed onNSEIL?(a) Clearing Banks(b) depo Stores(c) NSCIL(d) NSCCL

81. Margin in T+2 rolling settlement is payable by the trading memberson............... basis(a) T+1

(b) T+2(c) T+3(d) T+4


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82. With effect from April 1, 2003 the settlement cycle moved from ?(a) T+2 to T+1(b) T+3 to T+2(c) T+2 to T+3(d) T+5 to T+3

83. For liquid securities, the VaR margin covers ________ losses.(a) three day.(b) two day(c) one-day.(d) five day.

84. Fixed Deposit Receipts (FDRs) issued by approved banks can besubmitted as

a(n) ___________ to NSCCL by trading members. [ 2 Marks ](a) surety.(b) indemnity(c) warranty(d) additional base capital

85. NSCCL uses services of _________ to transfer demat securities [ 1Mark ](a) depositories(b) clearing Banks(c) share transfer agents(d) custodians(e) I am not attempting this question

86. A variant of counter party risk is _________ [ 2 Marks ](a) Value at Risk(b) Liquidity Risk(c) Market Risk(d) (A) and (C)

87. FTP (File Transfer Protocol) is process through:a) VASTb) VSATc) VATSd) VSAS


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88. The online position monitoring system generates aers when themembers reaches the following levels of the allowed gross exposure limis.(a) 70%, 85%, 95% and 100%(b) 70%, 85%, 90% and 100%(c) 70%, 80%, 95% and 100%(d) 70%, 80%, 90% and 95%

89. Gross exposure for a member, across all securities in rollingsettlements, is computed as absolute_______________.a] Buy value.b] Sell Value.c] Auction value.d] Buy value- sell value

90. The numbering structure for securities in NSDL is of 12 digit alphanumeric string. The first two characters represent..........(a) Issue Type(b) Country Code(c) Security Code(d) Company Identity

91. Which of the following agencies assigns ISINs to the securities inIndia?(a) SEBI(b) ANNA(c) NSDL(d) Stock Exchanges

92. NSCCL Pay-out demat securities to the members in the........... fromwhere these are transferred to the............... of the menbers.(a) Delivery account, pool account(b) pool account, Delivery account(c) pool account, Bank account

(d) None of the above

93. Who contributes to he settlement guarantee fund?(a) Clearng members(b) Trading members(c) NSCCL(d) All of the above


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94. NSCCL uses services of _________ to transfer funds(a) depositories(b) clearing Banks(c) share transfer agents(d) custodians

95. The IPF is maintained by NSE to make god investor claim which mayarise out of non settlement of obligations by..................(a) The trading Member(b) The NSCCL(c) Custodian(d) Any of the above

96. Incase of any shortfall in margin, the members are not permitted to_______ with immediate effect(a) accept new clients.(b) accept margins from clients.(c) trade(d) none of the above

97. Daily margins are payable on...........(a) T+1 day basis(b) T+2 day basis(c) T+3 day basis(d) None of the above

98. Margin in T+2 rolling settlement is computed..............(a) At client level(b) At branch level(c) At trading members level(d) None all of the above

99. In FTP members can access the file during off trading hours, through:a) Extranetb) Intranetc) Internetd) Lease line


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100. The War rae is applied to determine value at risk-based margin.(a) Net exposure(b) Gross exposure(c) Both(d) None of the above

101. Under T+2 rolling settlement trades executed oMOnday are settled onthe succeedinng(a) Wednesday(b) Thrusday(c) Tuesday(d) Friday

102. Which is the settlement system followed by NSCCL with effect from

April 1, 2003? [ 2 Marks ](a) Daily Settlement(b) T+2 rolling settlement(c) Account Period Settlement(d) T+3 rolling settlement.(e) I am not attempting this question

103. Bank Guarantee can be submitted as a(n) ___________ to NSCCL bytrading members.(a) surety.(b) indemnity(c) warranty(d) additional base capital

104. The NSCCL settles the trades executed on the exchange with the helpof.............(a) Clearing Members(b) Clearing Banks(c) Custodians

(d) DepositoriesAns. (All of the above)

105. One of the Custodial Trade Reports is the ___________ [ 1 Mark ](a) Client Obligation Report(b) Custodial Trade Pending Confirmation(c) Clearing Member Report


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106. Which risk can be eliminated by having a central clearing corporationas a counterparty to alltrades?(a) Principal risk(b) Third Party risk(c) Counter party risk(d) System risk

107. NSCCL pays-out demat securities to the members in the __________from where these are transferred to the ____________ of the members. [2 Marks ](a) Clients Account, Pool Account

(b) Pool Account, Clients Account(c) Delivery Account, Pool Account(d) Receipt Account, Delivery Account(e) I am not attempting this question

108. Which of the following is not a clearing bank of NSCCL?(a) HDFC Bank(b) ICICI Bank(c) RBI(d) IDBI Bank

109. What is the name of the company set up by NSE in order to promotedematerializationof securities?a) BSEb) NSCCLc) CDSLd) NSDL

110. NSCCL downloads the data for the day file in DAT by this time:a) 8:00 pmb) 6:30 pmc) 8:30 pmd) 6:00 pm


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111. Under T+2 rolling settlement, pay-in of funds and securities takesplace ______________________.(a) on 2nd working day after trade date(b) on 1st working day after the trade date(c) on the trading day(d) on 1st and 2nd working day respectively after the trade date.

112. The IPF is maintained by NSE to make god investor claim which mayarise out of non settlement of obligations by..................(a) The trading Member(b) The NSCCL(c) Custodian(d) Any of the above

113. The daily obligation report is downloaded at the ___________to eachClearing Member?(a) beginning of the trading day(b) end of the month(c) end of the trading day(d) beginning of the month

114. NSE has set up Nationa stock exchange investor protection fund asa..........................(a) Trust(b) company(c) Reserve(d) None of the above

115. NSCCL uses services f the.............to transfer funds relating tosecurities transactions(a) Custodians(b) Depositories(c) Clearing Banks


116. NSCCL uses services f the.............to transfer funds relating tosecurities transactions(a) Custodians(b) Depositories(c) Clearing Banks


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117. In caseof NSDL the members need to give instructions to move thesecurities to the settlement account of ...........whereas in case of........ themembers need to ensure that the necessary quantity of securities areavailable in their pool account.(a) NSDL, CDSL

(b) CDSL, NSDL(c) None(d) Can't say

118. ___________ assumes the counter party risk of each member andguaranteesfinancial settlement. [ 2 Marks ]

(a) SEBI(b) Central Depository Services Ltd. (CDSL)(c) The National Depository Services Ltd. (NSDL)(d) The National Securities Clearing Corporation Ltd. (NSCCL)

119. Securities and funds pay in takes place on ______ working days afterthe trade date.(a) T+3(b) T+1(c) T+2(d) within 24 hours of sale

120. One of the Custodial Trade Reports is the ___________(a) Client Obligation Report(b) Trades Rejected by Custodian Report(c) Clearing Member Report(d) None of the above

121. The name of the ________appears in the records of the issuer as

registered owner of demat securities.(a) depository(b) actual owner(c) beneficial owner(d) depository participant


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122. NSCCL uses services of.............. to transfer demat securities(a)clearing Banks(b) Custodians(c Depositories(d) None of the above

123. Which of the following functions a branch manager can perform on theNEAT system [ 2 Marks ](a) The branch manager can receive the End of Day reports for the tradingfirm.(b) The branch manager can view and perform order and trade relatedactivities for the trading firm.(c) The branch manager can view and perform order and trade relatedactivities and receive the End of Day reports for all dealers under that

branch.(d) The branch manager can receive the End of Day reports of all thebranches of the trading firm.(e) I am not attempting this question

124. NSE has set up Nationa stock exchange investor protection fund asa..........................(a) Trust(b) company(c) Reserve(d) None of the above

125. Who settles the trades executed at NSE?(a) NSDL(b) Clearing members(c) SEBI(d) NSCCL

126. All Additional Base Capital (ABC) given in the form of cash /

FDR/BGs from approved Banks (hereinafter referred to as 'CashComponent') should be atleast...........of the capital in respect of everytrading member.(a) 50%(b) 55%(c) 60%d) 80%


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127. Which account is used by the clearing members to interface with hisclient.a) Pool Accountb) Delivery Accountc) Receipt Accountd) All the above

128. A broker is an intemediary who arranges to buy and sell securities onbehalf of...................(a) Clients(b) NSE(c) Custodian(d) Cleaerng Members

129. Clearing is offered by NSCCL to its clearing members the facility offunds settlement through how many clearing banks.a) 15b) 8c) 16d) 13

130. Which organization provides for maintenance of ownership records ina book entry form?a) BSEb) NSCCLc) Depositoriesd) NSE

131. Deals executed on behalf of the following entities are considered asinstitutional deals_____a] Financial Institutions.b] SEBI registered FIIs & Mutual Funds.c] Banks.

d] All of the above.

132. How many characters are there in ISIN?a) 14b) 12c) 11d) 10


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133. Which of the following is true about rolling settlement?

(a) In T+X rolling settlement, T is the trade date and X is thenumber of business days after trade date on which settlement takesplace.(b) NSE does not provide an option to settle trades in demat securities onrolling basis.(c) For arriving at the settlement day, all intervening holidays such as bankholiday are included.(d) None of the above statements are true.

134. Which risk arises if one of the parties in trade transaction does notsettle the account on date butlater?

(a) Liquidity risk(b) Principal risk(c) Replacement cost risk(d) Third party risk

135. IPF stands for.....................(a) Investor Protection fund(b) Investor provident fund(c) Investment protection fund(d) None of the above

136. What is the code allotted as security type for UnsecuredDebentures?a) 05b) 13c) 01d) 08


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137. Which of the following statements is not true about Mark to MarketMargin?(a) Mark to market margin is computed on the basis of mark to marketloss of a member.(b) Mark to market margin is calculated by marking each transaction in ascrip to the closing price of the scrip at the end of trading.(c) Mark to market loss is the notional loss which the member wouldincur in case the cumulative gross outstanding position of themember in some securities were closed out at the closing price of thesecurities.(d) Mark to market profit/loss across different securities within the samesettlement is set off to determine the mark to market loss for a settlement.


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