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NISM SERIES VI – DEPOSITORY OPERATIONS

CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

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NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

LAST DAY REVISION EXAM 1

Question 1 A demat account for HUF can be opened with joint holders.
(a) FALSE
(b) TRUE

Question 2 Who can make an application for demat of securities.


(a) The Depository
(b) The DP
(c) The holder of the security
(d) The Stock Exchange

Correct Answer 1 FALSE

Answer A demat account for HUF cannot be opened with joint holders.
Explanation

Correct Answer 2 The holder of the security


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 3 When there were physical shares, the proof of transfer was ________.
(a) The registered letter acknowledgement
(b) The endorsement on the physical share
(c) The sellers confirmation letter
(d) All of the above

Question 4 The Delivery Instruction (DI) slip may not contain the settlement number
for which the securities are being transferred to the clearing member
account.
(a) TRUE
(b) FALSE

Correct Answer 3 The endorsement on the physical share

Answer When physical shares are sent for transfer to the company, the company after
Explanation proper verification endorses on the back of the certificate and enters the buyers
name etc.

Correct Answer 4 FALSE

Answer The DI slip should contain the settlement number for which the securities are
Explanation being transferred to the clearing member account.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 5 When dividend cheques are sent to the share holders, its mandatory for
the issuer to print Bank A/c details as received from the Depository.
(a) TRUE
(b) FALSE

Question 6 A ___________ is required by a nominee to give effect to transmission of


shares.
(a) Recurring A/c
(b) Savings A/c with a nationalised bank
(c) Demat A/c
(d) Current A/c with any bank.

Correct Answer 5 TRUE

Correct Answer 6 Demat A/c


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 7 The application for renewal of certificate of the Depository Participant


should be made through ____________.
(a) SEBI
(b) Stock Broker
(c) Depository
(d) Finance Ministry

Question 8 When a client makes a request for closure of accounts, DPs should
provide the SOT to the Client - what does SOT stand for ?
(a) Statement of Transaction
(b) Settlement of Transction
(c) Settlement of Trading
(d) Securities on Termination

Correct Answer 7 Depository

Correct Answer 8 Statement of Transaction

Answer If a client makes a request for closure of accounts, DPs should provide the
Explanation Statement of Transaction (SOT) to the Client for the period from the
beginning of the quarter in which the account is closed till the date of closure.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 9 A DP has to get an internal audit done of the depository operations on a


________ basis by a practicing chartered accountant or a
company secretary.
(a) Monthly
(b) Quaterly
(c) Half Yearly
(d) Yearly

Question 10 Beneficiary Owners account can be opened by RTA's.


(a) FALSE
(b) TRUE

Correct Answer 9 Half Yearly

Correct Answer 10 FALSE


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 11 For all public issues in demat form, the company has to enter into an
agreement with any one of the depository.
(a) TRUE
(b) FALSE

Question 12 In NSDL, a pledgor can substitute the securities offered in a pledge


transaction.
(a) TRUE
(b) FALSE

Correct Answer 11 FALSE

Answer For all public issues in demat form, the company has to enter into an
Explanation agreement with ALL the depositories.

Correct Answer 12 TRUE

Answer In NSDL, a pledgor (borrower) can substitute the securities offered in a pledge
Explanation transaction, if the pledgee (lender) agrees to it.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 13 The ______________ is fully responsible for destruction, mutilation and


cancellation of certificates received and accepted by it for
dematerialization.
(a) Depository Participant (DP)
(b) Depository
(c) Issuer/R&T Agent
(d) Stock Broker

Question 14 The entire process of rematerialisation takes a maximum of 30 days.


(a) FALSE
(b) TRUE

Correct Answer 13 Issuer/R&T Agent

Correct Answer 14 TRUE


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 15 When a Statement of Transaction (SOT) is given to a client on the closure


of his account, the DP has to mention the words __________ prominently
on this statement.
(a) ACCOUNT SUSPENDED
(b) ACCOUNT CLOSED
(c) ACCOUNT CANCELLED
(d) ACCOUNT DE-ACTIVATED

Question 16 If the third letter in an ISIN no. is 'B' then the security is a _______.
(a) Equity Share
(b) Mutual Fund Unit
(c) State Govt. Security
(d) Central Govt. Security

Correct Answer 15 ACCOUNT CLOSED

Correct Answer 16 State Govt. Security


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 17 Account ______________ means suspending any further transaction from


a depository account.
(a) Suspension
(b) Cancellation
(c) Freezing
(d) Deactivation

Question 18 Brokers of stock exchanges that offer settlement through depository are
required to open a Beneficial Owner Account.
(a) TRUE
(b) FALSE

Correct Answer 17 Freezing

Correct Answer 18 FALSE

Answer Brokers of stock exchanges that offer settlement through depository are
Explanation required to open a 'clearing member account'
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 19 The clearing system attached to the SEBI performs the function of
ascertaining the payin or payout.
(a) TRUE
(b) FALSE

Question 20 Obtaining PAN Card details of all the holders is compulsory for all
categories of demat account holder(s) apart from some exceptions.
(a) TRUE
(b) FALSE

Correct Answer 19 FALSE

Answer The clearing system attached to STOCK EXCHANGE performs the function
Explanation of ascertaining the payin or payout.

Correct Answer 20 TRUE


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 21 The name of the account holder of a demat account can be changed by
making an application on a Rs 100 stamp paper.
(a) TRUE
(b) FALSE

Question 22 When a minor becomes a major, a fresh DP-Client agreement has to be


executed with the Client.
(a) FALSE
(b) TRUE

Correct Answer 21 FALSE

Answer The following changes can be done in an demat account :


Explanation - Standing instruction facility
- Address
- Occupation details
- Nominee details
- Bank details
- PAN Number details
-E-mail addresses
The names of the account holders however, cannot be changed after opening
of demat account.

Correct Answer 22 TRUE


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 23 Separate DRFs have to be submitted for Free and locked-in securities.
(a) FALSE
(b) TRUE

Question 24 A client cannot make request for a change in signature in his DP account.
(a) TRUE
(b) FALSE

Correct Answer 23 TRUE

Answer Separate DRFs have to be submitted for:


Explanation ? Free and locked-in securities;
? Each ISIN;
? Securities locked-in for different reasons;
? Securities of different paid-up value; and
? For each client account.

Correct Answer 24 FALSE

Answer The Client can make a request in writing specifying reasons for change in
Explanation signature.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 25 Government has exempted stamp duty on transfer of securities in


dematerialized form.
(a) FALSE
(b) TRUE

Question 26 In case of transmission of shares to the successors, the successors express


their inability to produce the required documents and if the market
value of the securities held in each of the accounts of the deceased BO as
on the date of application for transmission is not more than Rs. _______ ,
DP may admit the request for transmission.

(a) Rs 50,000
(b) Rs 1 lakh
(c) Rs 2 lakhs
(d) Rs 5 lakhs

Correct Answer 25 TRUE

Correct Answer 26 Rs 5 lakhs


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 27 Which of the below details should be mentioned on a Delivery Instruction


Slip (DI)
(a) Settlement Number
(b) Clearing Member
(c) Market Type
(d) All of the above

Question 28 HUF accounts can be opened with joint holders.


(a) TRUE
(b) FALSE

Correct Answer 27 All of the above

Correct Answer 28 FALSE

Answer HUF accounts cannot be opened with joint holders.


Explanation
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 29 In CDSL, there are option(s) of ______________.


(a) early pay-in
(b) normal pay-in
(c) auto pay-in
(d) All of the above

Question 30 For Pledge, the pledgor and the pledgee must have a beneficial account
with the same depository as inter-depository pledge is presently not
permitted.
(a) TRUE
(b) FALSE

Correct Answer 29 All of the above

Correct Answer 30 TRUE


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 31 The transaction statements can be sent to clients in electronic form if the clients
have agreed to it. In what way can this be done ?
(a) In email form with scanned signature
(b) In email form with digital signature
(c) Only in scanned form
(d) All of the above

Question 32 When appllying for shares in an IPO in demat form, the Client ID needs
to be filled up.
(a) TRUE
(b) FALSE

Correct Answer 31 In email form with digital signature

Answer The transaction statements can be provided electronically, provided an


Explanation agreement in the prescribed format has been executed with the clients for this
and adequate security measures have been taken.
SEBI allows the DP's to provide transaction statements and other documents
under Digital Signature, as governed under Information Technology Act, 2000

Correct Answer 32 TRUE

Answer The Client ID is a part of the Demat A/c no and needs to be filled up in the
Explanation IPO Apllication form.
The shares alloted in the IPO will be directly credited to the Demat A/c.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 33 An investor in government securities holding electronic balances in the


depositories SGL-2 account can convert them into physical certificates
by the process of rematerialisation.
(a) FALSE
(b) TRUE

Question 34 Voters ID cannot be accepted as an ID proof for opening Demat A/C.


True or False ?
(a) TRUE
(b) FALSE

Correct Answer 33 TRUE

Answer An investor in government securities holding electronic balances in the


Explanation depositories SGL-2 account can convert them into physical certificates by the
process of rematerialisation.
For this, an application has to be made to the depository, through the DP, in
the Rematerialisation Request Form (RRF-GS).
On receipt of the RRF-GS, the DP checks the form for completeness,
correctness and validity and also sees if sufficient free balance is available. If
the form is found to be in order and there is sufficient balance, the DP accepts
the RRF-GS and intimates the request to the depository.

Correct Answer 34 FALSE

Answer The foll ID proofs are accepted for Opening a Demat Account : Passport,
Explanation Voter ID Card, Driving license, PAN card with photograph.
Also Identity card/document with applicant’s Photo, issued by a) Central/State
Government and its Departments, b) Statutory/Regulatory Authorities, c)
Public Sector Undertakings, d) Scheduled Commercial Banks, e) Public
Financial Institutions, f) Colleges affiliated to Universities, g) Professional
Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and h)
Credit cards/Debit cards issued by Banks are accepted.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 35 As per the bye laws of Depository, an application to become a DP should


contain the business history of the applicant of atleast 5 years.
(a) TRUE
(b) FALSE

Question 36 Of the below, which trades are not settled through off market route ?
(a) Derivative deals on a stock exchange
(b) Deals between a client and a sub broker
(c) Deals between two institutions
(d) Deals in debt instruments

Correct Answer 35 FALSE

Answer The applicant should furnish information and details of its business history for
Explanation a minimum period of THREE years or from the date of its inception, if less
than three years.

Correct Answer 36 Derivative deals on a stock exchange

Answer In Derivatives trading, there is no delivery of securities involved. So there is


Explanation no off market transfer of securities.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 37 Nominations can be made by individuals for Beneficiary Accounts held


jointly.
(a) FALSE
(b) TRUE

Question 38 Corporate Actions affect only the ________ of the securities.


(a) Borrower
(b) Beneficial Owner
(c) Depository Participant
(d) All of the Above

Correct Answer 37 TRUE

Answer Nomination can be made only by individuals holding beneficiary owner accounts on their
Explanation own behalf singly or jointly. .

Correct Answer 38 Beneficial Owner

Answer Corporate actions affect the beneficial owners ie. the holders of the securities.
Explanation
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 39 A Demat Requisition Form ie. DRF can be rejected by a Registrar and
Transfer agent if __________________.
(a) The signatures in their records do not match with that on DRF
(b) The securities to be Dematted are not attached with DRF
(c) The ISIN number of the security is wrongly mentioned
(d) All of the above.

Question 40 Who are required to give Inter-settlement Instructions to the Participants


for securities lying within a same Clearing Member account but in
different settlement pocket.
(a) RBI
(b) NSDL
(c) Clearing Members
(d) Clearing Corporation

Correct Answer 39 All of the above.

Correct Answer 40 Clearing Members


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 41 A DP can collect Rent and Taxes on behalf of a Commodity Exchange.


(a) TRUE
(b) FALSE

Question 42 Identify the incorrect bracketed portion of the sentence: (Accounts


opened) (under agreement with DPs) shall hold (electronic
warehouse receipts)(along with other securities).
(a) Alongwith other securities
(b) Accounts opened
(c) Agreement with DPs
(d) Electronic warehouse re-ceipts

Correct Answer 41 TRUE

Answer DPs may make their own business/contractual agreement with the commodity
Explanation exchanges/warehouse owners, as they deem fit, including terms and conditions
related to collection of rent, etc.
If DPs are required to collect any charges/tax/rent on behalf of commodity
exchange / warehouse, DPs may have to ensure that such function has
adequate legal basis.

Correct Answer 42 Alongwith other securities


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 43 In case where a state or the central government is the issuer, the
depository reconciles the records of the dematerialised securities with
the statement provided by the RBI on a ________ basis
(a) Hourly
(b) Daily
(c) Weekly
(d) Monthly

Question 44 It is possible for investors to transpose names of the joint holders


alongwith the process of dematerialisation through their DPs
(a) TRUE
(b) FALSE

Correct Answer 43 Daily

Correct Answer 44 TRUE

Answer The process of effecting changes in the order of joint names appearing on a
Explanation security certificate is called Transposition
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 45 Where there is an objection from any member of the HUF, transmission
of securities held in the beneficial owner account should be effected only
on the basis of a Decree by a competent Court or the Deed of Partition.
(a) TRUE
(b) FALSE

Question 46 In case of Government Securities, The DP must ensure that changes in the
beneficial owner's accounts, such as change in bank details, change of
address, etc., are updated well in advance of the ___________.
(a) due date of interest payment
(b) shut Period
(c) redemption payment due date
(d) All of the above

Correct Answer 45 TRUE

Correct Answer 46 All of the above


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 47 When an application is made to transfer Government Securities (G-Secs)


in SGL form to Depository account, the clients signature on the DRF-GS
need be verified wit that on the account opening form.
(a) FALSE
(b) TRUE

Question 48 The pledgor gives the Pledge closure request to _________.


(a) Depository
(b) Depository Participant
(c) Pledgee
(d) SEBI

Correct Answer 47 TRUE

Correct Answer 48 Depository Participant

Answer Steps for Pledge closure procedure :


Explanation 1.Pledgor repays the loan to Pledgee
2. Pledgor gives a Pledge Closure request to his DP
3. Pledgor's DP forwards the request to Depository
4. The Depository forwards this request to Pledgee's DP
5. The Pledgee's DP confirms with the Pledgee with a Pledgee Closure
Confirmtion Form
6. This is intimated to Depository and the Pledgor's DP
7. Pledgor's DP intimates about this to the Pledgor.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 49 The depository’s G-Sec cell rejects the dematerialisation requests in


case ________ rejects the transfer on account of signature mismatch.
(a) SEBI
(b) RBI
(c) NSDL/CDSL
(d) Depository Participant

Question 50 There are two Depositories in India that provides all the Depository
services.
(a) FALSE
(b) TRUE

Correct Answer 49 RBI

Answer The depository’s G-Sec cell also rejects the dematerialisation requests in case
Explanation RBI rejects the transfer on account of signature mismatch or in case the
signatories are not registered with RBI.

Correct Answer 50 TRUE

Answer The two Depositories are NSDL and CDSL.


Explanation
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 51 For the requests of rematerialisation, which of the following are definitely
required ?
(a) The request has to be made by the beneficial owner
(b) There has to be sufficient balance of securities in the account
(c) Both 1 and 2
(d) None of the above

Question 52 Its the duty of the depository to announce the record date for every
corporate action.
(a) FALSE
(b) TRUE

Correct Answer 51 Both 1 and 2

Answer Rematerialisation is the process of issuing physical securities in place of the


Explanation securities held electronically in the book-entry form with the depository. Is
basically reverse of dematerialisation.
A beneficial owner holding securities with a depository can get his electronic
holding converted into physical holding at any time. The owner should make a
request to the Issuer or its R&T Agent through his DP in the prescribed
Rematerialisation Request Form (RRF).
On receipt of RRF, the DP checks whether sufficient free /lock-in balance of
the securities sought to be rematerialised is available in the account of the
client. If sufficient balance is available, the DP accepts the RRF and
communicates the request to the depository through the DP system.

Correct Answer 52 FALSE

Answer The issuer ie. the company determines and announces the record date for the
Explanation corporate actions like dividend, bonus issues etc.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 53 The aggregate value of the securities of the beneficial owners, held in
dematerialized form through a stockbroker DP, cannot be more than ___
times the net worth of the stockbroker.
(a) 30
(b) 50
(c) 70
(d) 100

Question 54 State True or False - The process of Clearing Corporation transferring


the securities to the broker's settlement-account for the quantity of
securities purchased by them on behalf of their clients is known as 'pay-
in'.
(a) TRUE
(b) FALSE

Correct Answer 53 100

Correct Answer 54 FALSE

Answer It is known as PAY OUT.


Explanation
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 55 An investor has to compulsorily fill in the Bank details when filling up the
IPO application form.
(a) TRUE
(b) FALSE

Question 56 The documents have to be sent to ___________, if the shares are in


physical form.
(a) SEBI
(b) the Stock Exchange in which the share is traded
(c) the company
(d) NSDL or CDSL

Correct Answer 55 FALSE

Answer The Bank Alc details are not needed as the DP will capture these details from
Explanation the Demat account of the applicant.

Correct Answer 56 the company


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 57 A nomination, substitution shall be invalid if the details of the securities


entered in the nomination forms does not match those in the records of
the Participant.
(a) TRUE
(b) FALSE

Question 58 The details of Nomination and Date of Birth are required only of _______
.
(a) Clearing Members Account
(b) Corporate Account
(c) Individual Owner Account
(d) None of this

Correct Answer 57 TRUE

Answer The Client(s) may make a nomination of his/their account in favour of any
Explanation person by filing with the relevant Participant.
A nomination, substitution shall be valid only if:
• it is submitted to the Participant by the rightful Client(s).The nomination
form has to be signed by all holders. A POA holder cannot nominate.
• it is in the prescribed format (format is given by the depository to the
participant).
• it is duly signed by Client(s).
• it is properly signed and witnessed.
• signature of the Client(s) tally with the specimen signature records.
• the details of the securities entered in the nomination forms match those in
the records of the Participant. CDSL Nomination form does not have provision
for mentioning securities. Nomination is applicable to entire holding.
• the photograph of the Nominee is annexed to the nomination form.
• the Nominee has signed the nomination form and guardian in case of the
nominee being a minor.

Correct Answer 58 Individual Owner Account


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 59 For dematerialization of Govt. securities the investor has to fill up


__________.
(a) WIG - GS
(b) DIP - GS
(c) DRF - GS
(d) GID - GS

Question 60 The Client-Participant agreement is a standard agreement and is


approved by
(a) Depositories
(b) SEBI
(c) Stock Exchange
(d) Stock Brokers

Correct Answer 59 DRF – GS

Answer Remember - Demat request form for dematerializing government securities is


Explanation different and is called "DRF - GS".

Correct Answer 60 SEBI


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 61 Nomination be made by individuals for Beneficiary accounts held jointly


or singly.
(a) TRUE
(b) FALSE

Question 62 A certificate of registration is valid for a period of five years from the date
of application.
(a) TRUE
(b) FALSE

Correct Answer 61 TRUE

Correct Answer 62 FALSE

Answer Remember - the certificate is valid for 5 years from the date of ISSUE and not
Explanation application.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 63 Incidents of theft, forgery etc have increased due to the introduction of
depository system in India.
(a) TRUE
(b) FALSE

Question 64 In case of Rematerialisation request, the R&T has to complete the process
in ____ days.
(a) 15
(b) 20
(c) 30
(d) 31

Correct Answer 63 FALSE

Answer With the introduction of depository system in India the problem of theft,
Explanation forgery, mutilation of certificates etc. has been completely eradicated.

Correct Answer 64 30

Answer R&T Agent undertakes that the dematerialization and rematerialisation


Explanation requests are processed within 15 and 30 days respectively.
However, the period may be relaxed by the depositories in case of bulk
dematerialization requests
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 65 At the time of delivery of warehouse receipts, client initiates a remat


request through the DP using the __________ .
(a) Physical Delivery Request Form (PDRF).
(b) Special Delivery Request Form (SDRF)
(c) Demat Request Form – Warehouse Receipt (DRF-WR)
(d) Either 1 or 2

Question 66 Companies should mandatorily print the ____________ details furnished


by the Depositories on the dividend cheques.
(a) The broker code thro' whom the shares were bought
(b) The bank a/c details of the share holder
(c) The ISIN No. of the company
(d) All of the above

Correct Answer 65 Physical Delivery Request Form (PDRF).

Answer Remember its - Physical Delivery Request Form (PDRF)


Explanation

Correct Answer 66 The bank a/c details of the share holder


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 67 In case of Commodity Exchanges - Accounts opened under the agreement


shall hold only electronic warehouse receipts and cannot be mixed up
with securities.
(a) FALSE
(b) TRUE

Question 68 As per PMLA, records of services need to be preserved for _______ years
(a) 1 year
(b) 5 years
(c) 10 years
(d) 25 years

Correct Answer 67 TRUE

Answer Since the legal status of warehouse receipts is different from that of securities,
Explanation it is necessary for DPs to enter into a separate agreement with
members/investors, seeking to open a demat account for the purpose of
holding and dealing in electronic warehouse receipts.

Correct Answer 68 10 years


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 69 Each debt security has a unique identification called IPIN.


(a) TRUE
(b) FALSE

Question 70 If the pledgor fails to discharge his obligations under the agreement of
pledge or for any other reason, the pledgee may invoke the pledge as per
the pledge agreement, Bye-Laws of the depository and SEBI regulations.
(a) TRUE
(b) FALSE

Correct Answer 69 FALSE

Answer Each debt security has a unique identification called ISIN.


Explanation

Correct Answer 70 TRUE


Answer If the Pledgor ie. the borrower fails to discharge his obligations, the Pledgee
Explanation ie. lender can claim the ownership of the concerned securities as per the terms
of pledge, the bye laws of Depository and Sebi rules.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 71 Dated securities have a maturity period of ___________ .


(a) Less than one year
(b) More than one year
(c) Between six months to one year
(d) Usually more than 5 years

Question 72 The Facility for unilateral closure (Unpledge) of Pledge by the Pledgee has
also been provided by the depositories.
(a) FALSE
(b) TRUE

Correct Answer 71 More than one year

Answer Dated Securities have a maturity period of more than one year. Treasury Bills
Explanation have a maturity period of up to one year.

Correct Answer 72 TRUE

Answer The Facility for unilateral closure (Unpledge) of Pledge by the Pledgee has
Explanation also been provided by the depositories. In this case, the pledgee submits an
instruction in the prescribed form to its DP to initiate unilateral closure of
pledge / hypothecation.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 73 Corporate benefit(s) like _____________ are accrued to the pledger.


(a) Bonus Shares
(b) Rights Shares
(c) Dividends
(d) All of the above

Question 74 Before commencing operations, depositories should obtain a certificate of


registration and a certificate of commencement of business from ______ .
(a) SEBI
(b) RBI
(c) Stock Exchanges
(d) Major stake holders of the depositories

Correct Answer 73 All of the above

Answer Ownership of the pledged securities remains with the pledgor (borrower) ie.
Explanation the person who has taken a loan and given his securities as a pledge - until the
pledge is invoked.
Hence, all corporate benefits - cash and non-cash - like dividends, bonus,
rights etc., will accrue to the borrower.

Correct Answer 74 SEBI


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

Question 75 In case of IPO, when does the Depository credit the shares to the allottees
account.
(a) On the Allotment Date
(b) On the Execution Date
(c) On the Record Date
(d) On the Book Closure date

Correct Answer 75 On the Execution Date

Answer On allotment, the Issuer / its R&T agent provides the details of successful
Explanation allottees to the depository and the execution date when the securities should be
credited to the beneficial owners accounts.
NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

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)


NISM SERIES VI – DEPOSITORY OPERATIONS
CERTIFICATION V.IMP LAST DAY REVISION EXAM 1