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SMART DISHA ACADEMY (Chandkheda, Ahmedabad)

Capital market and Derivative market (dealers) module Test- 2019

NAME: ___________________________________________ Date:

Q1. A stock broker means a member of…………..

a) SEBI b) Any exchange c) A recognized stock exchange d) Any stock exchange

Q2. ……………. obligation the depositories to maintain ownership records of securities and effect changes in such
records electronically at the behest of the owner of the securities.

a) The depositories Act,1996 c) The Securities contract(Regulation) Act,1956

b) The SEBI Act,1992 d) The companies Act, 1956

Q3. If a client has sold 10000 shares of a scrip @ Rs.50, what is the maximum brokerage that the client can be

a) Rs.2500 b) Rs.12500 c) Rs.7500 d) No limit

Q4. Which of the following is true with respects to SUB AGENT?

a) The agent is not responsible to the principal for the acts of the sub-agent.
b) The sub-agent is not responsible for his acts to the principle except in case of fraud of willful wrong
c) All of the above
d) Only 2 is true.

Q5. When the issuer makes an issue of securities select group of persons not exceeding 49 then it is called as

a) Right issue b) Private placement c) Public issue

Q6. NSCCL has put in place an online exposure surveillance alerts, which has been built in ,so that both the
member & NSCCL are alerted as per preset levels………..

a) Reaching 70%, 85%, 90%, 95%, 100% c) Reaching 50%, 55%, 65%, 75%, 85%
b) Reaching 60%, 75%, 80%, 85%, 90% d) Reaching 45%, 55%, 65%, 75%

Q7. Rs.100 lakh is the ………… for a corporate member in capital market and F&O segment of NSEIL?

a) Maximum net worth c) Maximum base capital

b) Minimum base capital d) Minimum net worth

Q8. Two buy orders enter into the system and are unmatched: 1) 200 shares @ Rs.72.75 at time 10:30 a.m. 2)
300 shares @ Rs.72.75 at time 10:31 a.m. Which order will get a priority for getting executed?

a) Order no.1 b) Order no.2 c) Both will have equal priority d) None

Q9. The depository transfers the securities from the pool account of members/custodians to the…………

a) Pool account of the clearing agency c) Delivery account

b) Settlement account of the clients d) settlement account of the agency
Q10. The purpose of market by price is to enable the user to view

a) Outstanding orders in the market aggregated at each price

b) Market price of the selected scrip
c) Last traded price of the selected trip

Q11. When the user invokes the order entry screen, the field (s) that are (is) taken as default are (is)

a) Symbol b) Series c) Book type d) All of the above

Q12. The book type for retail debt market is……..

a) A b) B c) C d) RD

Q13. An advertisement released by a reading member can contain a recommendation regarding purchase or sale
of any particular share or security of any company True or False?


Q14. Every CM is required to open a.

a) Dedicated settlement a/c c) Dedicated current a/c

b) Dedicated saving a/c d) All of the above

Q15. Promisory notes are identified the security code…… ISIN number.

a) 4 b) 5 c) 6 d) 9

Q16. Which is the following is true about rolling settlement?

a) In ‘T+X’ rolling settlement, ‘T’ is the trade date and ‘X’ is the number of business days after trade date on
which settlement takes place.
b) NSE does not provide an option to settle trades in demat securities on rolling basis
c) For arriving at the settlement day, all intervening holidays such as bank holidays are included.

Q17. Is order cancellation and order modification allowed for orders entered in the retail debt market segment.

a) False b) True

Q18. The authorized person is not allowed to have trading relationship with the clients they introduced.

a) True b) False

Q19. In activity log, the details are shown in……order.

a) Chronological order b) Reverse Chronological order c) None of the above

Q20. Clearing and settlement of trades and risk management are central functions of NSCCL.

a) False b) True

Q21. What is the present value of Rs.100 payable 3 years hence, if the interest rate is 10% p.a?

a) Rs.715.31 b) Rs.1100 c) Rs.1000 d) Rs.751.31

Q22. A snap quote window of the NEAT screen displays only those securities which are already set up on the
market watch window?

a) True b) False
Q23. A registered sub-broker, holding registration granted by SEBI on the recommendation of a trading set up
on the market watch window?

a) A stock exchange directly

b) Any member broker of the stock exchange
c) c) The member broker under whom the sub-broker had registered
d) any member broker of any stock exchange

Q24. The orders with…….attribute disclose only a part of the total order quantity to the market.

a) Immediate or cancel (IOC) c) Disclosed quantity (DQ)

b) Stop Loss (SL) d) None of the above

Q25. If a client buys shares worth rs.525000 and sells worth rs.475000 through a broker, then the maximum
brokerage payable to broker is……..

a) Rs.25000 b) Rs.15000 c) Rs.10000 d) Rs.20000

Q26. Which of the following issue securities in the primary market?

a) Government of India b) State government c) Companies d) All of the above

Q27. Acid test ration equals

a) Current Assets/Current Liabilities c) Current Assets –(Inventory + Prepaid expenses))/Current Liabilities

b) (Current Assets- Inventory) /Current Liabilities d) Quick Assets – Current Liabilities

Q28. The current market price of a share is Rs.100. Its face value is Rs.10. A 100% dividend would mean a
dividend yield of……..

a) 100% b) 10% c) 50% d) 75%

Q29. Penalty levied to a member for 1st instance of margin shortfall is

a) 0.07% per day b) 0.007% per day c) 0.17% per day d) 7% per day

Q30. A person is deemed to be a connected person if such person…

a) Is an intermediary, trustee company, Asset management company

b) An official of a stock exchange or of clearing house
c) Is a merchant banker, share transfer agent
d) All of the above

Q31. The owner of securities intending to avail of depository services opens an account with a depository
through a………….

a) Depository participant (DP) b) Broker c) Stock exchange d) Depository

Q32. Find the value of Rs.50000 deposited for a period of 3 years at the end of the period when the interest is
10% and continuous compounding is done

a) Rs.67,493.00 b) Rs.57,493.00 c) Rs.767,493.00

Q33. The status of security in indicated in the market inquiry screen as ‘P’. This indicates that the security is in

a) Pre-open phase b) Purchased c) Profit, special

Q34. If the current ratio is 1.5 : 1 and current liabilities are Rs.50000; current assets would be:

a) 50000 b) 75000 c) 25000 d) 125000

Q35. No person shall be admitted as trading member of a recognized stock exchange if he has been adjusted
bankrupt or a receiver order in bankruptcy has been made against him or he has been proved to be insolvent
even though he has obtained his final discharge. True or false?

a) True b) False

Q36. Surveillance and control (SURCON) is that period after market close during which, the users have……….

a) Order entry access c) Trade modification access

b) Trade cancellation access d) Inquiry access

Q37. Market movement screen cannot produce any movement chart for

a) Odd Lot market b) RETDEBT c) Auction market d) Normal market

Q38. The objective of the Depositories Act, 1996 is?

a) Marketing securities of public limited companies freely transferable

b) Dematerializing the securities in the depository mode
c) Providing for maintenance of ownership records in a book entry form
d) All of the above

Q39. DGP should hold less than ………….% of shares (in case it is not listed) in the trading member corporate at
the time of admission as well as subsequently at all points of time.

a) 41 b) 51 c) 50 d) 40

Q40. Which agency links clearing members & NSCCL for funds settlement?

a) clearing banks b) Depositories c) Clearing members d) NSE

Q41. A stock-broker shall not create false market either singly or in concert with others or indulge in any act
detrimental to the investor’s interest or which leads to interference with the fair and smooth functioning of the
market. True or False?

a) False b) Partially true c) True d) Only if he is a large stock broker

Q42. Which one the following is true about Block Trading session?

a) No pre-open and post close session case on in the block states

b) Orders get matched when both the prince and quantity match for the buy and sell order
c) The price range applicable for block trades is +/- 1%
d) All of the above

Q43. The…….. shows ll the activities that have been performed on any order belonging to that user.

a) Trade log b) Activity Log c) Outstanding order d) None of the above

Q44. Nifty index drops by 15% at 3:00 p.m. market will be halted……

a) By half an hour b) For remainder of the day c) For ten minutes d) For fifteen minutes
Q45. Which of the following is Not true about corporate securities market reforms?

a) The secondary market overcome the geographical barriers by moving to screen based trading
b) Counter-party risk is borne by investors
c) The trading cycle in the stock exchange follow rolling settlement
d) The practice of allocation of resources among different competing entities as well as its terms by a central
authority was discontinued

Q46. …………………..price is the price for orders after the orders get triggered from the stop loss book

a) Limit b) Trigger

Q47. A depository participant………….

a) Is an investor who buys/sells shares through the depository

b) Trades in the dematerialized shares
c) Destroys the shares certificates and makes a credit entry for his clients
d) Is an agent of the depository and takes physical share certificates from his clients and sends them for

Q48. The trading members can participant in the exchange initiated auctions by entering orders as a………

a) Participant b) Initiator c) solicitor d) None of the above

Q49. In case of a 10% movement of nifty there would be a one hour market half if the movement takes place

a) 1:00 PM b) 2:00 PM c) 3:00 PM d) 12:00 PM

Q50. An Indian company or any other company which, in respect of its income liable to tax, has made prescribed
arrangements for declaration & payment of dividends within India is called as……………..

a) Domestic company b) Public company c) Private company d) Widely held company

Q51. ABC Bank Ltd. Has a policy of continuous compounding of fixed assets. Abhishek has deposited Rs.60000 at
the interest rate of 12% for 3 years. How much would his deposit his grow up to at the end of the term?

a) Rs.82,068.81 b) Rs.87.730.80 c) Rs.77047.12 d) Rs.85,999.97

Q52. Buyback orders are identifies in the MBP screen by an………………..

a) Asterisk (*) b) A star c) Hyphen d) None of the above

Q53. On which day and at what time, trade details are available for verification?

a) On T day, 19:00 hours IST c) On T day, 14:00 hours IST

b) On T+1 day, 19:00 hours IST d) None of the above

Q54. No price bands are applicable on scrip’s on which derivatives products are available or scrip’s included on
which derivatives products are available.

a) The statement is correct b) The statement is false c) Price band is applicable for all securities

Q55. Quantity freeze- lesser of

a) 0.5% issue size b) 25000 shares c) Rs.2.5 crores d) All of the above
Q56. The reference for arbitration should be field within ………months from the date when the dispute arose
between the paries.

a) 12 b) 6 c) 3 d) 1

Q57. In limited physical market, orders get matched when……….in the buy and sell order

a) Only price is same c) Only quantity is same

b) Price and quantity is same d) Stop loss is specified as order condition

Q58. The maximum brokerage that a trading member can charge is

a) 1% b) 2.5% c) 1.5% d) No limit

Q59. What does “X” indicate as a status in the ‘Auction Inquiry’ in the NEAT system?

a)System is matching the orders c) Auction is deleted

b) Auction is over d) Auction is pending and yet to begin

Q60. Non-custodial institutional trades are identified by use participant code.



1. C 49. A
2. A 50. A
3. B 51. D
4. D 52. A
5. B 53. A
6. A 54. A
7. D 55. D
8. A 56. B
9. D 57. B
10. A 58. B
11. C 59. C
12. D 60. C
13. B
14. A
15. D
16. A
17. B
18. A
19. A
20. B
21. D
22. B
23. C
24. C
25. A
26. D
27. C
28. B
29. A
30. D
31. A
32. A
33. A
34. B
35. A
36. D
37. C
38. D
39. B
40. A
41. C
42. D
43. B
44. B
45. B
46. A
47. D
48. C