Nism 3 A - Compliance - Last Day Revision Test 2

NISM SERIES III A SECURITIES INTERMEDIARIES
COMPLIANCE ( NON FUND ) CERTIFICATION V.IMP LAST DAY REVISION EXAM 2
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LAST DAY REVISION EXAM 2
Question 1
(a)
(b)
(c)
(d)
Question 2
Department of Financial Services administers government policies relating

to ____________.
Public sector banks
Term-lending financial institutions
Life insurance and general insurance
All of the above
As per SEBI (Issue of Capital and Disclosure Requirements - ICDR)

Regulations, a copy of the resolution passed by the board of directors of
the issuer for allotting specified securities to promoters towards amount
received against promoters contribution, before opening of the issue
has to be submitted to _______ .
(a)
(b)
(c)
(d)
SEBI
Stock Exchange
Merchant Banker
AMFI
Correct Answer 1
All of the above
Correct Answer 2
SEBI

Question 3
(a)
(b)
Question 4
(a)
(b)
(c)
(d)
Correct Answer 3
Answer
Explanation
Correct Answer 4
Can SEBI prohibit any company from issuing prospectus, any offer
document, or advertisement soliciting money from the public for the issue
of securities?
Yes
No
As per the SEBI (Prohibition of Fraudulent and Unfair Trade Practices

relating to Securities Market) Regulations, dealing in a security which is
not intended to effect a transfer of beneficial ownership but to serve only
as a device to ________ in the price of such security for wrongful gain or
avoidance of loss.
inflate
depress
cause fluctuations
all of the above
Yes
The Section 11A of the SEBI Act states that without any prejudice to the
provisions of the Companies Act 1956, SEBI may for the protection of
investors prohibit any company from issuing prospectus, any offer document,
or advertisement soliciting money from the public for the issue of securities.
all of the above

Question 5
(a)
(b)
(c)
(d)
Question 6
(a)
(b)
(c)
(d)
As per the SEBI (Custodian of Securities) Regulations, an applicant for

the Custodian of Securities should have a networth of minimum of
Rs 50 lakhs
Rs 5 crores
Rs 25 crores
Rs 50 crores
As per the SEBI (Custodian of Securities) Regulations - every certificate

granted to the applicant as a Custodian of Securities shall be valid for a
period of ______ years from the date of registration or its renewal.
3
5
7
10
Correct Answer 5
Rs 50 crores
Correct Answer 6
Answer
Explanation
Every certificate grated to the applicant as a Custodian of Securities shall be

valid for a period of 3 years from the date of registration or its renewal.

Question 7
(a)
(b)
(c)
(d)
Question 8
(a)
(b)
To effectively implement the KYC guidelines, SEBI notified the ________.

SEBI (KYC Registration Agency) Regulations, 2011
SEBI (Self Regulatory Organization) Regulations, 2004
PMLA, 2002
None of the above
According to the SEBI (Stock Brokers and Sub Brokers) Regulations, the
compliance officer shall immediately and independently report to SEBI
any non-compliance observed by him. True or False ?
TRUE
FALSE
Correct Answer 7
SEBI (KYC Registration Agency) Regulations, 2011
Correct Answer 8
TRUE

Question 9
(a)
(b)
(c)
(d)
Question 10
(a)
(b)
(c)
(d)
As per the SEBI (Prohibition of Fraudulent and Unfair Trade Prac-tices

relating to securities Market) Regulations, in case of fraud, SEBI can
________ the proceeds or securities in respect of any transaction which is
in violation of the SEBI regulations.
Impound
Retain
Both 1 and 2
SEBI does not have any such authority.
As per SEBI (Intermediaries) Regulations, 2008, what is the next step after
receiving the recommendations of the designated authority who is
appointed to enquire and recommend action in case of violation of rules of
the securities market ?
Gives warning to the intermediary dismissing the recommendations
Issues the recommended action without hearing the noticee
issues a show cause notice to the intermediary as to why the recommended
action should not be taken
none of the above
Correct Answer 9
Both 1 and 2
Correct Answer 10
issues a show cause notice to the intermediary as to why the recommended

action should not be taken
Answer
Explanation
The designated authority shall, if there are reasonable grounds to do so, issue a
show-cause notice to the concerned person requiring it to show cause as to why
the certificate of registration granted to it, should not be suspended or cancelled
or why any other action provided in the regulations should not be taken.

Question 11
(a)
(b)
Question 12
(a)
(b)
(c)
(d)
As per SEBI (Prohibition of Fraudulent and Unfair Trade Practices

relating to securities Market) Regulations, SEBI can, both impound and
retain the proceeds or securities in respect of any transaction which is in
violation or prima facie in violation of these regulations - True or False ?
FALSE
TRUE
Every member of a recognized stock exchange has to maintain and

preserve the Counterfoils or duplicates of contract notes issued to clients
for a period of _____ years
2
5
7
10
Correct Answer 11
TRUE
Correct Answer 12
Answer
Explanation
Every member of a recognized stock exchange to maintain and preserve the

following documents for a period of 2 years:
Members contract books showing details of all contracts entered into by the
member with other members of the same exchange or counterfoils or duplicates
of memos of confirmation issued to such other members.
Counterfoils or duplicates of contract notes issued to clients.
Written consent of clients in respect of contracts entered into as principals.

Question 13
(a)
(b)
(c)
(d)
Question 14
(a)
(b)
Correct Answer 13
Answer
Explanation
Correct Answer 14
Answer
Explanation
A debenture trustee shall pay a sum of Rs. _______ as registration fees at

the time of the grant of certificate by SEBI.
Rs 25 lakhs
Rs 15 lakhs
Rs 10 lakhs
Rs 5 lakhs
As per the SEBI code of conduct for underwriters, an Underwriter is

responsible for the acts or omissions only of its employees and not of
agents in respect to the conduct of its business. State True or False ?
FALSE
TRUE
Rs 10 lakhs
Every debenture trustee shall pay a sum of Rs. 10 lakhs as registration fees at
the time of the grant of certificate by SEBI and shall pay renewal fee of Rs. 5
lakh every three years from the fourth year from the date of initial registration.
FALSE
The Underwriter is responsible for the acts or omissions of its employees and
agents in respect to the conduct of its business.

Question 15
(a)
(b)
(c)
(d)
Question 16
(a)
(b)
(c)
(d)
Correct Answer 15
Answer
Explanation
Correct Answer 16
Answer
Explanation
The annual fees to keep the registration in force as custodian under the
SEBI (Custodian of Securities) Regulations is ____________.
Rs. 10 lakh or 0.00025% of the assets under custody whichever is higher.
Rs 25 lakh or 0.00025% of the assets under custody whichever is higher.
Rs. 10 lakh or 0.00025% of the assets under custody whichever is lower.
Rs 25 lakh or 0.00025% of the assets under custody whichever is lower.
SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to

securities Market) Regulations have been made in exercise of the powers
conferred by __________.
Prevention of Money Laundering Act
Companies Act
Securities Contract ( Regulation ) Act
SEBI Act
Rs. 10 lakh or 0.00025% of the assets under custody whichever is higher.

On being granted the certificate of registration, the Custodian of securities need
to pay registra-tion fee of Rs. 15 lakh to SEBI, and an annual fee of Rs. 10 lakh
or 0.00025% of the assets under custody of the custodian of securities,
whichever is higher.
SEBI Act
The Securities and Exchange Board of India (Prohibition of Fraudulent and
Unfair Trade Practices relating to Securities Market) Regulations, 2003
prohibit fraudulent, unfair and manipulative trade practices in securities.
These regulations have been made in exercise of the powers conferred by
section 30 of the SEBI Act, 1992.

Question 17
(a)
(b)
Question 18
(a)
(b)
(c)
(d)
Fraud includes a willful misrepresentation of truth OR concealment of

material fact, in order that another person may act, to his detriment. State
whether True or False?
FALSE
TRUE
_____________ appoints the Registrar of Companies.

SEBI
Central Government
Company Law Board
RBI
Correct Answer 17
TRUE
Correct Answer 18
Central Government
Answer
Explanation
Pursuant to Section 609(1) of the Companies Act, 1956, the Central

Government has appointed Registrars at different places to discharge the
function of registration of companies.

Question 19
(a)
(b)
Question 20
(a)
(b)
(c)
(d)
Correct Answer 19
Answer
Explanation
Correct Answer 20
Answer
Explanation
SEBI in the interest of the securities market may direct an intermediary to

refund the money or securities collected from the investors, however no
interest will be paid on it - State True or False ?
TRUE
FALSE
______________ must be maintained by a Stock Broker while conducting

his business.
High level of profits
High level of Integrity
Prominence amongst his clients
All of the above
FALSE
The refund can be with or without interest as per the decision of SEBI.
High level of Integrity

As per the Code of Conduct for Brokers - A stock-broker, must maintain high
standards of integrity, promptitude and fairness in the conduct of all its
business.

Question 21
(a)
(b)
(c)
(d)
Question 22
(a)
(b)
(c)
(d)
Correct Answer 21
Answer
Explanation
Correct Answer 22
The certificate of registration granted as a Underwriter, and its renewal is

valid for a period of _____ from the date of its issue to the applicant.
2 years
3 years
5 years
7 years
For SEBI to consider the application of registration as a credit rating

agency of an entity promoted by a company, the promoter shall have a
continuous networth of minimum __________ for the previous five year.
Rs 1 crore
Rs 10 crores
Rs 50 crores
Rs 100 crores
3 years
The certificate of registration so granted and its renewal is valid for a period of
3 years from the date of its issue to the applicant.
An underwriter shall apply for renewal of registration three months prior to the
expiry of the period of the certificate along with the appropriate fees as
provided by in the regulations.
Rs 100 crores

Question 23
(a)
(b)
(c)
(d)
Question 24
(a)
(b)
(c)
(d)
As per SEBI(Debenture Trustees) Regulations, debenture trustee shall

communicate to the debenture holders on _____basis regarding
compliance, defaults, etc. and the action taken regarding it.
Half Yearly
Yearly
Monthly
Every 3 months
The Banker to an issue has to submit the collection figures to the Registrar
to the Issue, the lead manager and the body corporate and such figures
should be submitted within ______ working days from the issue closure
date.
seven
three
six
fifteen
Correct Answer 23
Half Yearly
Correct Answer 24
seven

Question 25
(a)
(b)
(c)
(d)
Question 26
(a)
(b)
(c)
(d)
Correct Answer 25
Answer
Explanation
Correct Answer 26
Answer
Explanation
The capital adequacy requirement to become a Debenture Trustee is

__________ .
Total Assets of Rs 1 crore
Total Assets of Rs 5 crores
Networth of Rs 5 crores
Networth of Rs 1 crore
As per the SEBI (Credit Rating Agencies) Regulations, a Credit Rating

Agency on being granted the registration certificate shall pay to SEBI the
registration fee of Rs. ______ lakhs
5
10
20
25
Networth of Rs 1 crore
As per SEBI (Debenture Trustees) Regulations, capital adequacy requirement
shall not be less than the networth of one crore rupees, provided that a
debenture trustee holding certificate of registration as on the date of
commence-ment of the SEBI (Debenture trustees) (Amendment) Regulations,
2003 shall fulfil the networth requirements within two years from the date of
such commencement.
20
The Credit Rating Agency on being granted the registration certificate shall pay
to SEBI the registra-tion fee of Rs. 20 lakh. Application for renewal can be
made to SEBI three months prior to the expiry of the certificate accompanied
with the renewal fees. The renewal fee is Rs. 10 lakh.

Question 27
(a)
(b)
Question 28
(a)
(b)
SEBI in the interest of the securities market may direct an intermediary to

refund the money or securities collected from the investors with or without
interest. State whether True or False?
TRUE
FALSE
Is it required to verify the source of funds as well as wealth of Politically

Exposed Persons ?
Yes
No
Correct Answer 27
TRUE
Correct Answer 28
Yes

Question 29
(a)
(b)
(c)
(d)
Question 30
(a)
(b)
(c)
(d)
Correct Answer 29
Answer
Explanation
Correct Answer 30
If a Credit Rating Agency has to change the rating defination, it can be

done ____________.
only with the prior permission of SEBI
only with the approvals of its shareholders
only at certain periodic intervals
All of the above
A SEBI registered stock broker can become a depository participant

provided the stock broker has a minimum net worth of Rs._____ lakhs
10
25
50
100
only with the prior permission of SEBI

Rating definition, as well as the structure for a particular rating product, shall
not be changed by a credit rating agency, without prior information to SEBI.
50

Question 31
(a)
(b)
Question 32
(a)
(b)
(c)
(d)
Correct Answer 31
Answer
Explanation
Correct Answer 32
Can SEBI prohibit any company from issuing prospectus, any offer
document, or advertisement soliciting money from the public for the issue
of securities? State Yes or No?
Yes
No
Which of the following is not a security as per Securities Contract

Regulation Act (SCRA) ?
Derivatives
Bonds
Bullion
Shares
Yes
The Section 11A of the SEBI Act states that without any prejudice to the
provisions of the Companies Act 1956, SEBI may for the protection of
investors prohibit any company from issuing prospectus, any offer document,
or advertisement soliciting money from the public for the issue of securities.
Bullion

Question 33
(a)
(b)
(c)
(d)
Apart from SEBI Regulations, Bankers to an issue shall abide by the

relevant rules and regulations of _______ .
Indian Bank Association
Central Government
RBI
All of the above
Question 34
Post issue activities, generally co-ordinated by Lead Merchant Banker,

include which of the following?
(a)
(b)
(c)
(d)
Finalisation of the basis of allotment

Deciding on centres for holding conferences of stock brokers, investors, etc.
Processing rematerialisation requests
All of the above
Correct Answer 33
All of the above
Correct Answer 34
Finalisation of the basis of allotment

Question 35
(a)
(b)
Question 36
(a)
(b)
(c)
(d)
Correct Answer 35
Answer
Explanation
Correct Answer 36
Answer
Explanation
As per SEBI (ICDR) Regulation, only audited and consolidated financial

statements need to be prepared in accordance to GAAP. State whether
True or False.
TRUE
FALSE
SEBI was set up under which act ?

Competition Act 2002
SEBI Act 1992
Securities Contract (Regulation) Act 1956
Securities Contract (Regulation) Rules 1957
FALSE
In accordance with requirements of the ICDR, the information required
includes audited consolidated or unconsolidated financial statements prepared
in accordance with Indian GAAP standards.
SEBI Act 1992
The SEBI Act of 1992 was enacted upon to provide for the establishment of a
Board to protect the interests of investors in securities and to promote the
development of, and to regulate, the securities market and for matters
connected therewith or incidental thereto.

Question 37
(a)
(b)
(c)
(d)
Question 38
(a)
(b)
Correct Answer 37
Answer
Explanation
Correct Answer 38
Answer
Explanation
To bring in uniformity in the KYC procedure across intermediaries, the In

Person Verification (IPV) has to be done by which of the foll
intermediaries Stock Brokers
KRAs & Depository Participants
Venture Capital Funds and Collective Investment Schemes
All of the above
Can a common order be passed in respect of a number of noticees where

the subject matter in question is substantially the same or similar in
nature?
Yes
No
All of the above

To bring in uniformity in the KYC procedure across intermediaries, the IPV
requirements for all the intermediaries have been streamlined by SEBI.
Intermediaries registered with SEBI as Stock Brokers, KRAs, Depository
Participants, Mutual Funds, Portfolio Managers, Venture Capital Funds and
Collective Investment Schemes need to mandatorily carry out IPV for all their
clients.
Yes
As per the SEBI (Intermediaries) Regulations - Action in case of default - The
Designated member may pass a common order in respect of a number of
notices where the subject matter in question is substantially the same or similar
in nature.

Question 39
(a)
(b)
(c)
(d)
Question 40
(a)
(b)
Correct Answer 39
Answer
Explanation
Correct Answer 40
Answer
Explanation
A Merchant Banker has to disclose its track record for a period of _______
from the date of listing for each public issue managed by the merchant
banker.
5 Financial Years
4 Calendar years
3 Financial Years
4 Financial Years
A member of a recognised stock exchange can enter into a contract as a

principal with another member who is also a member of a recognised
stock exchange after obtaining his consent - True or False ?
TRUE
FALSE
3 Financial Years
As per SEBI, the merchant bankers shall disclose the track record of the
performance of the public issues managed by them.
The track record shall be disclosed for a period of three financial years from
the date of listing for each public issue managed by the merchant banker. This
information should be made available on the website and a reference to the
same should be made in the offer document.
TRUE
Section 15 of SCRA provides that no member of a recognised stock exchange
shall in respect of any securities enter into any contract as a principal with any
person other than a member of a recognised stock exchange, unless he has
secured the consent or authority of such person and discloses in the note,
memorandum or agreement of sale or purchase that he is acting as a principal.

Question 41
(a)
(b)
(c)
(d)
Question 42
The certificate of registration as Underwriter is valid for a period of how

many years ?
2
3
5
10
As per Securities Contracts (Regulation) Rules - SCRR, the trading

members of the stock exchanges are required to maintain the counterfoils
or duplicates of contract notes issued to clients for how many years?
(a)
(b)
(c)
(d)
1
2
3
5
Correct Answer 41
Correct Answer 42
Answer
Explanation
Rule 15(2) od SCRR requires every member of a recognized stock exchange to

maintain and preserve the following documents for a period of 2 years:
Members contract books showing details of all contracts entered into by the
member with other members of the same exchange or counterfoils or duplicates
of memos of confirmation issued to such other members.
Counterfoils or duplicates of contract notes issued to clients.
Written consent of clients in respect of contracts entered into as principals.

Question 43
(a)
(b)
(c)
(d)
Question 44
(a)
(b)
As per the SEBI (Underwriters) Regulations - code of conduct, the

underwriters shall not be a party to or instrumental for ____________.
creation of false market
price rigging or manipulation
passing of unpublished price sensitive information in respect of securities
which are listed and proposed to be listed in any stock exchange to any person
or intermediary.
All of the above
Any person aggrieved by an order of the SEBI may prefer an appeal to the
Securities Appellate Tribunal within a period of 60 days from the date on
which a copy of the order made by SEBI has been received by such person.
True or False ?
TRUE
FALSE
Correct Answer 43
All of the above
Correct Answer 44
FALSE
Answer
Explanation
An appeal shall be filed within a period of 45 days and not 60 days.

(Any person aggrieved by any decision of the Securities Appellate Tribunal
may file an appeal to the Supreme Court within 60 days).

Question 45
(a)
(b)
(c)
(d)
Question 46
(a)
(b)
(c)
(d)
__________of SEBI act relates to defaults by mutual funds(MFs) and

prescribes penalties.
Section 15A
Section 15B
Section 15C
Section 15D
In case of buy-back, the company shall ensure that all the securities
bought back are extinguished within ____ days of the last date of
completion of buy-back.
4
6
7
15
Correct Answer 45
Section 15D
Correct Answer 46

Question 47
(a)
(b)
(c)
(d)
Question 48
(a)
(b)
(c)
(d)
Correct Answer 47
Answer
Explanation
Correct Answer 48
As per SEBI (Substantial Acquisition of Shares & Takeovers - SAST)

Regulations, within how many days a merchant banker has to make an
open offer before making the public announcement of entering into an
agreement for acquisition of shares or voting rights ?
4 working days
7 working days
15 working days
30 working days
Which of the following come under the scope of compliance ?

Checklists
Compliance's and redressing investor grievances
Minutes of Board Meeting
All of the above
4 working days
The acquirer company is required to appoint a SEBI registered Merchant
Banker, as a manager to the open offer before making the public
announcement.
The public announcement shall be made by the merchant banker not later than
4 working days of entering into an agreement for acquisition of shares or
voting rights or deciding to acquire shares or voting rights.
Compliance's and redressing investor grievances

Question 49
(a)
(b)
Question 50
(a)
(b)
(c)
(d)
Correct Answer 49
Answer
Explanation
Correct Answer 50
State True or False - The SEBI Act vests SEBI with the power to issue the
certificate of registration to Securities MArket Intermediaries.
TRUE
FALSE
Any person aggrieved by any decision or order of the Securities Appellate

Tribunal may file an appeal to the Supreme Court within ______ days
from the date of communication of the decision or order of the SAT to
him.
30
60
75
90
TRUE
Section 12 of SEBI Act vests SEBI with the power to issue the certificate of
registration without which no stockbroker, sub-broker, share transfer agent,
banker to an issue, trustee of trust deed, registrar to an issue, merchant banker,
underwriter, portfolio manager, investment adviser or such other intermediary
who may be associated with the securities market shall buy, sell or deal in
securities.
60

Question 51
(a)
(b)
(c)
(d)
Question 52
(a)
(b)
Correct Answer 51
Answer
Explanation
Correct Answer 52
Answer
Explanation
The guaranteeing of trades done on an registered securities market is done

by ____________.
Nationalised Banks
Clearing House
Merchant Bankers
The Stock Broker who executes the trade
An intermediary cannot sponsor or cause to be sponsored or carry on or

caused to be carried on any venture capital funds or collective investment
schemes including mutual funds if the same does not obtain a certificate of
registration from the SEBI - True or False ?
TRUE
FALSE
Clearing House
Clearing House is the intermediary which performs two important functions:
a) aggregating transactions over a trading period, netting the positions to
determine the liabilities of members and ensures movement of funds and
securities to meet respective liabilities; and
b) guarantee those trades, in the event of default by either buyer or seller.
TRUE
As per the rules of registration of Intermediaries, SEBI can suspend or cancel a
certificate of registration after giving the person concerned a reasonable
opportunity of presenting his case if he sponsors any venture capital funds or
collective investment schemes including mutual funds if the same does not
obtain a certificate of registration from the SEBI.

Question 53
(a)
(b)
Question 54
(a)
(b)
(c)
(d)
All the employees, directors etc of the intermediary need to strictly adhere
to the Code of Conduct as prescribed in the SEBI Regulations. State
Whether True or False?
TRUE
FALSE
___________ carries out the inspection and investigation of the books and
accounts maintained by the members of the Stock Exchange.
the respective Stock Exchange
Economic Offence Wing
Ministry of Finance
None of the above
Correct Answer 53
TRUE
Correct Answer 54
None of the above
Answer
Explanation
Regulation 19 of the SEBI (Stock Brokers and Sub-Brokers) Regulations gives

the SEBI Board the right to inspect.
SEBI may appoint inspecting authority to undertake inspection of the books of
account, other records and documents of the stock brokers, with or without
notice.

Question 55
(a)
(b)
(c)
(d)
Question 56
(a)
(b)
(c)
(d)
As per the Code of Conduct for the Debenture Trustees, a Debenture

Trustee is responsible for the acts or omissions of its __________ in respect
to the conduct of its business.
Employees
Agents
Both 1 and 2
None of the above
Whenever there is a violation of any regulations, the designated authority

issues a show cause notice. The show-cause notice shall specify the period
,not exceeding _________, within which reply should be submitted in
written representation along with documentary evidence, if any, in
support of the representation to the designated authority.
7 days
15 days
21 days
30 days
Correct Answer 55
Both 1 and 2
Correct Answer 56
21 days

Question 57
(a)
(b)
(c)
(d)
Question 58
(a)
(b)
(c)
(d)
Correct Answer 57
Answer
Explanation
Correct Answer 58
Answer
Explanation
The Department of Disinvestment is concerned with which of the following

options?
Pension Regulation and Reforms
Direct Taxes
Disinvestment of Public Sector units
All of the above
_______ is the central nodal agency responsible for receiving, processing,

analyzing and disseminating information regarding suspicious financial
transactions in order to support anti-money laundering efforts.
Financial Intelligence Unit - India (FIU-I)
Economic Offence Wing (EOW)
SEBI
RBI
Disinvestment of Public Sector units

Department of Disinvestment oversees, among other things, all matters relating
to the disinvestment of Central Government equity from Central Public Sector
undertakings.
The department is also concerned with the financial policy relating to the
utilization of proceeds of disinvestment.
Financial Intelligence Unit - India (FIU-I)

FIU-I is an independent body reporting directly to the Economic Intelligence
Council headed by the Finance Minister and is the central nodal agency
responsible for receiving, processing, analyzing and disseminating information
regarding suspicious financial transactions in order to support anti-money
laundering efforts

Question 59
(a)
(b)
(c)
(d)
Question 60
(a)
(b)
(c)
(d)
Which of the following is/are considered critical reporting for a

Compliance Officer ?
Money Laundering Activities
Submission of books of accounts
Submission of sauda books
All of the above
The objective of the SEBI (Prohibition of Insider Trading) Regulation is to

prohibit insider from ___________ on matters relating to insider trading?
Dealing
Counselling
Communicating
All of the above
Correct Answer 59
Money Laundering Activities
Correct Answer 60
All of the above

Question 61
(a)
(b)
Question 62
Self Regulatory Organisations need to conform to the conditions as laid

down under SEBI (Intermediaries) Regulations, 2008 - State True or False
?
FALSE
TRUE
A KYC Registering Agency (KRA) need not have a electronic connectivity

in order to establish interoperability with KRA's - State True or False ?
(a)
(b)
TRUE
FALSE
Correct Answer 61
FALSE
Answer
Explanation
Correct Answer 62
Answer
Explanation
For recognition as an SRO, certain conditions have to be met as prescribed

under the SEBI (Self Regulatory Organizations) Regulations, 2004.
FALSE
KRA has to have a electronic connectivity in order to establish interoperability
with other KRA's.

Question 63
(a)
(b)
(c)
(d)
Question 64
(a)
(b)
(c)
(d)
Correct Answer 63
Answer
Explanation
Correct Answer 64
Answer
Explanation
Which of these organisations are not covered under PLMA ?

Mutual Funds
Manufacturing Firms taking Fixed Deposits for business expansion
Stock Brokers
Sub Brokers
As per SEBI (Depositories and Participants) Regulations code of conduct,

a Depository Participant shall not make untrue statements or suppress any
material fact in any __________ furnished to SEBI.
Information
Reports
Documents
All of the above
Manufacturing Firms taking Fixed Deposits for business expansion

The PMLA ie. Prevention of Money Laundering Act covers all Financial
Intermediaries, and this includes Mutual Funds, Stock and Sub Brokers.
All of the above

A Participant shall not make any untrue statement or suppress any material fact
in any documents, reports, papers or information furnished to SEBI.

Question 65
(a)
(b)
(c)
(d)
The functions of SEBI as per the SEBI Act includes __________.

Promoting and regulating self-regulatory organisations
Regulating substantial acquisition of shares and take-over of companies
Regulating the business in stock exchanges and any other securities markets
All of the above
Question 66
Dealing in securities shall be deemed to be a fraudulent or an unfair trade

practice if it involves fraud and may include an intermediary promising a
certain price in respect of buying or selling of a security to a client and
___________.
(a)
waiting till a discrepancy arises in the price of such security and retaining the
difference in prices as profit for himself.
promising an opposite transaction at a different price to another client
promising an opposite transaction at a different price at a later date to same
client
all of the above
(b)
(c)
(d)
Correct Answer 65
All of the above
Correct Answer 66
waiting till a discrepancy arises in the price of such security and retaining the
difference in prices as profit for himself.

Question 67
(a)
(b)
(c)
(d)
Question 68
(a)
(b)
(c)
(d)
Correct Answer 67
Answer
Explanation
Correct Answer 68
Answer
Explanation
As per Section 19A of the Depositories Act, the penalty for delay in
dematerialization or issue of certificate of securities is Rs. _____ per day or
Rs 1 crore which ever is less.
25000
50000
1 lakh
3 lakhs
Which following is/are deemed to be price sensitive information ?

Issue of securities or buy back of securities
Amalgamation, mergers or takeovers
Periodic financial results of the company
All of the above
1 lakh
Penalties for delay in dematerialization or issue of certificate of securities is Rs.
1 crore or Rs.1 lakh for each day of default, whichever is less.
All of the above
Price sensitive information is any information which if published, is likely to
materially affect the price of securities of that company.
The following are deemed to be price sensitive information:
- Periodic financial results of the company.
- Intended declaration of dividends (both interim and final).
-Issue of securities or buy back of securities.
-Any major expansion plans or execution of new projects.
-Amalgamation, mergers or takeovers.
- Disposal of the whole or substantial part of the undertaking.
-Any significant changes in policies, plans or operations of the company.

Question 69
(a)
(b)
(c)
(d)
Question 70
(a)
(b)
Correct Answer 69
Answer
Explanation
Correct Answer 70
Interest rate futures can have the underlying as ___________.

Government Securities
T Bills
Both 1 and 2
None of the above
As an integral part of Client Due Diligence, an intermediary has to verify

the customer identity using reliable, independent source documents, data
or in-formation - True or False ?
TRUE
FALSE
Both 1 and 2
Interest-rate Futures are contracts in which the underlying asset is a debt
security, like futures on Treasury Bills (T-Bills), Commercial Paper (CP) or
Government Securities.
TRUE

Practice Question Banks also available for :
NISM
NISM Series I: Currency Derivatives Certification Exam
NISM Series V A: Mutual Fund Distributors Certification Exam
NISM Series VI: NISM Series VI - Depository Operations Certification Exam
NISM Series VII: Securities Operations and Risk Management
NISM Series VII: Equity Derivatives Certification Exam
NISM Series III A: Securities Intermediaries Compliance certification Exam
NISM Series X A : Investment Adviser (Level 1) Certification Exam
NISM Series X B: Investment Adviser (Level 2) Certification Exam
NCFM
NCFM Financial Markets: A Beginners Module
NCFM Capital Market (Dealers) Module
NCFM Derivative Market (Dealers) Module
BSE
Certificate on Security Market (BCSM)


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NISM SERIES III A SECURITIES INTERMEDIARIES

COMPLIANCE ( NON FUND ) CERTIFICATION V.IMP LAST DAY REVISION EXAM 2

NISM SERIES III A SECURITIES INTERMEDIARIES

LAST DAY REVISION EXAM 2

Department of Financial Services administers government policies relating

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All of the above

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As per the SEBI (Custodian of Securities) Regulations, an applicant for

As per the SEBI (Custodian of Securities) Regulations - every certificate

Every certificate grated to the applicant as a Custodian of Securities shall be

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To effectively implement the KYC guidelines, SEBI notified the ________.

SEBI (KYC Registration Agency) Regulations, 2011

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As per the SEBI (Prohibition of Fraudulent and Unfair Trade Prac-tices

issues a show cause notice to the intermediary as to why the recommended

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As per SEBI (Prohibition of Fraudulent and Unfair Trade Practices

Every member of a recognized stock exchange has to maintain and

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SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to

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Fraud includes a willful misrepresentation of truth OR concealment of

_____________ appoints the Registrar of Companies.

Pursuant to Section 609(1) of the Companies Act, 1956, the Central

NISM SERIES III A SECURITIES INTERMEDIARIES

SEBI in the interest of the securities market may direct an intermediary to

______________ must be maintained by a Stock Broker while conducting

High level of Integrity

NISM SERIES III A SECURITIES INTERMEDIARIES

The certificate of registration granted as a Underwriter, and its renewal is

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As per SEBI(Debenture Trustees) Regulations, debenture trustee shall

NISM SERIES III A SECURITIES INTERMEDIARIES

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As per the SEBI (Credit Rating Agencies) Regulations, a Credit Rating

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SEBI in the interest of the securities market may direct an intermediary to

Is it required to verify the source of funds as well as wealth of Politically

NISM SERIES III A SECURITIES INTERMEDIARIES

If a Credit Rating Agency has to change the rating defination, it can be

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only with the prior permission of SEBI

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Apart from SEBI Regulations, Bankers to an issue shall abide by the

Post issue activities, generally co-ordinated by Lead Merchant Banker,

Finalisation of the basis of allotment

All of the above

Finalisation of the basis of allotment

NISM SERIES III A SECURITIES INTERMEDIARIES

As per SEBI (ICDR) Regulation, only audited and consolidated financial

SEBI was set up under which act ?