CAPITAL MARKET (DEALERS) MODULE
Q:1 A trading member shall be deemed guilty of misconduct if he fails to _______ [ 1 Mark ]
(a) submit its audited accounts to the Exchange
(b) pay its subscription, fees, arbitration charges or any other money which
may be due to the exchange
(c) to submit or makes any false or misleading statement in its clearing forms
(d) All of the above
Q:2 The Message Window in the NEAT system allows a user to view messages vbroadcast by the Exchange such as, __________ [1 Mark ]
(a) corporate actions
(b) market news
(c) auctions related information
(d) All of the above
Q:3 100 share of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, settlement should take place on ______ ? [ 2 Marks ]
(a) Wednesday (T+2)
(b) Tuesday (T+1)
(c) Thursday (T+3)
(d) Friday (T+4)
Q:4. ______ is a volume related order condition. [ 2 Marks ]
(a) An order with a limit price condition only
(b) An order with a stop loss only
(c) An order with a Disclosed Quantity (DQ)
(d) None of the above
Q:5 The branch manager receives End of Day reports for _________. [ 2 Marks ]
(a) his own orders only
(b) all dealers under the trading member
(c) all the dealers under that branch
(d) any authorized user
Q:6 The following facility allows the user to have a drop down list of client codes at the account field: [ 2 Marks ]
(a) Client List Master
(b) Client Database Master
(c) Client Code Master
(d) Client Master Maintenance
Q:7 When the user invokes the order entry screen, the field(s) that are (is) taken as default are (is) __________. [ 2 Marks ]
(a) Symbol
(b) Series
(c) Book Type
(d) All of the above
Q:8 In case the security has not been traded on a particular day, ________ at the NSE is to be considered as the closing price.? [ 2 Marks ]
(a) the average closing price for the last one week
(b) the theoretical closing price
(c) the latest available closing price
(d) none of the above
Q:9 Auction is held in PQR for 10,000 shares.
The closing price of PQR on that day was Rs.259.00
The last traded price of PQR on that day was Rs.254.0
The close price of PQR last Friday was Rs.255.00
The previous day's close price of PQR was Rs.264.00
What is the maximum allowable price at which the member can put a sell order
in the auction for PQR? (Assume Price Band applicable for Auction market is +/ -20%) [ 3 Marks ]
(a) Rs. 316.80
(b) Rs. 390. 65
(c) Rs. 364
(d) Rs. 394
Q:10 A trading member on the NSE, has a branch order value of Rs. 950 lakh for his Mumbai branch and Rs. 600 lakh for Delhi branch. Mumbai branch has two users 'X' and 'Y' with user order value limits of Rs. 300 lakh and Rs. 400 lakh
respectively. Delhi branch has one user 'Z' with user order value limit of Rs.
550 lakh. The member applies for a new user at Mumbai. What is the maximum
user order value that can be set for the new user? [ 3 Marks ]
(a) Rs. 100 lakh
(b) Any amount, as there is no restriction on User Order Value
(c) Rs. 250 lakh
(d) Rs. 150 lakh
Q:11 Securities and funds pay out takes place on ______ working days after the trade date. [ 2 Marks ]
(a) ‘T+3’
(b) ‘T+1’
(c) ‘T+2’
(d) within 24 hours of sale
Q:12 NSE has implemented ______________ in compulsory rolling settlement with effect from July 02, 2001. [ 1 Mark ]
(a) securities-based market -wide circuit breakers
(b) index-based market- wide circuit breakers
(c) market- wide based securities-wise circuit breakers
(d) none of the above
Q:13 The clients introduced by an authorised person to a trading member, would be required to deliver securities and make payments directly in the trade name of the trading member. True or False? [ 1 Mark ]
(a) True
(b) False
Q:14 Security wise User Order Quantity Limit (SUOQL) can be modified anytime
during trading hours. True or False? [ 2 Marks ]
(a) True
(b) False
Q:15 ______ can be traded in the Limited Physical Market? [ 1 Mark ]
(a) Illiquid shares
(b) Futures and Options
(c) Odd lots
(d) Government Securities
Q:16 Securities Delivered Statement: This statement provides information on
______? [ 1 Mark ]
(a) delivering centre
(b) total number of shares to deliver for each security
(c) quantity delivered and quantity of shares delivered short
(d) all of the above
Q:17 If a client buys shares worth Rs. 5,25,000 and sells shares worth Rs. 4,75,000 through a broker, then the maximum brokerage payable to broker is ___.
[ 2 Marks ]
(a) Rs. 25,000
(b) Rs. 15,000
(c) Rs. 10,000
(d) Rs. 20,000
Q:18 An advertisement released by a trading member can contain a recommendation regarding purchase or sale of any particular share or security of any company.
True or False? [ 2 Marks ]
(a) True
(b) False
Q:19 No payment for transaction in which a Trading Member is taking position as a principal will be allowed to be made from the client’s account ? [ 2 Marks ]
(a) True, unless his clients approves the payment
(b) True
(c) True, only if his clients are making payments on time
(d) False
Q:20 The Trading Members shall keep the dematerialised securities of Constituents in a separate beneficiary account distinct from the beneficiary account maintained for holding their own dematerialised securities. True or False?
[ 1 Mark ]
(a) True
(b) False
Q:21 A portfolio contains securities with the expected return as follows:-
Security Probability Return
A 30 10
B 40 12
C 30 15
What will be the expected return of the portfolio? [ 1 Mark ]
(a) 12.80
(b) 23
(c) 12.30
(d) 14.70
Q:22 ___________ assumes the counter party risk of each member and guarantees
financial 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)
Q:23 What does 'OM' indicate as an activity in the 'Activity Log' screen in the NEAT
system? [1 Mark ]
(a) Order Matched
(b) Order Cancelled
(c) Trade Modified
(d) Order Modified
Q:24 One of the requirements for admission to membership on the NSE is to pass
an on-line examination under NSE’s Certification in Financial Markets (NCFM).
[ 1 Mark ]
(a) True
(b) False
Q:25 Where a recognised stock exchange acting in pursuance of any power given to it by its bye-laws, refuses to list the securities of any company, the company shall be entitled to be furnished with reasons for such refusal and the company may appeal to the _________ against such refusal. [ 1 Mark ]
(a) SEBI
(b) recognized stock exchange
(c) Securities Appellate Tribunal (SAT)
(d) High Court
Q:26 Surveillance and Control (SURCON) is that period after market close during which, the users have _______ only. [ 1 Mark ]
(a) order entry access
(b) trade cancellation access
(c) trade modification access
(d) inquiry access
Q:27 A stock-broker shall not encourage sales or purchases of securities with the sole object of generating brokerage or commission. Is the above statement True or False, under the Code of Conduct Guidelines prescribed under SEBI (Stock Brokers & Sub- brokers) Regulations, 1992. [ 2 Marks ]
(a) True
(b) False
Q:28 At the end of the trade cycle, the trades are _______ to determine the obligations of the trading members to deliver securities/funds as per settlement schedule. [ 2 Marks ]
(a) grossed
(b) aggregated
(c) netted
(d) offset
Q:29 The NSCCL interposes itself as a central counterparty between the counterparties to trades and nets the positions so that a member has security wise net obligation to receive or deliver a security and has to either pay or receive funds. True or False? [ 1 Mark ]
(a) True
(b) False
Q:30 For liquid securities, the VaR margins are based on the ________ of the
Security. [ 2 Marks ]
(a) volatility
(b) returns
(c) liquidity
(d) exposure limit
1 (d) 21 (c)
2 (d) 22 (d)
3 (a) 23 (d)
4 (c) 24 (a)
5 (c) 25 (c)
6 (d) 26 (d)
7 (d) 27 (a)
8 (c) 28 (c)
9 (a) 29 (a)
10 (c) 30 (a)
11 (c)
12 (b)
13 (a)
14 (a)
15 (c)
16 (d)
17 (a)
18 (b)
19 (b)
20 (a)
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