Nism 3 A - Compliance - Last Day Revision Test 1
Nism 3 A - Compliance - Last Day Revision Test 1
Nism 3 A - Compliance - Last Day Revision Test 1
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TEST DETAILS The SECURITIES INTERMEDIARIES COMPLIANCE ( NON FUND ) CERTIFICATION EXAM is a 100 mark
exam with 60% as passing marks. In all 100 questions will be asked with 0.25% negative marking for Wrong
Answers. The time duration is 2 hours.
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(a)
(b)
(c)
(d)
Question 2
(a)
(b)
(c)
(d)
Correct Answer 1
SEBI Act
Correct Answer 2
Question 3
(a)
(b)
(c)
(d)
Question 4
(a)
(b)
(c)
(d)
2, 7
3, 5
7, 9
4,7
Correct Answer 3
Both 1 and 2
Correct Answer 4
3, 5
Answer
Explanation
The offer shall remain open for a minimum period of 3 working days and a
maximum period of 5 working days, during which the public shareholders
have to tender their bids.
Question 5
(a)
(b)
Question 6
(a)
(b)
(c)
(d)
Correct Answer 5
TRUE
Correct Answer 6
Question 7
(a)
(b)
(c)
(d)
Question 8
(a)
(b)
(c)
(d)
Correct Answer 7
Correct Answer 8
half yearly
Question 9
(a)
(b)
(c)
(d)
Question 10
(a)
(b)
(c)
(d)
Correct Answer 9
Answer
Explanation
Correct Answer 10
Answer
Explanation
30
Depository Participant should redress the grievances of the investors within
30 days of the re-ceipt of complaint and keep the depository informed about
the number and nature of grievances redressed by it and number of grievances
pending before it.
Question 11
(a)
(b)
(c)
(d)
Question 12
(a)
(b)
Correct Answer 11
Answer
Explanation
Correct Answer 12
Answer
Explanation
both 1 and 2
As per the SEBI Act, an organisation / firm needs to appoint a compliance
officer who is respon-sible for setting forth policies and procedures and
monitoring adherence to the rules for the preservation of Price Sensitive
Information, pre-clearing of all designated employees and their dependants
trades, monitoring of trades and the implementation of the code of conduct
under the overall supervision of the partners / proprietors.
TRUE
The restrictions do not apply to any communication required in the ordinary
course of business or under any law.
Question 13
(a)
(b)
(c)
(d)
Question 14
(a)
(b)
(c)
(d)
Correct Answer 13
Insider
Correct Answer 14
Rs 5 lakhs
Answer
Explanation
Question 15
(a)
(b)
(c)
(d)
As per SEBI (Stock Brokers and Sub Brokers) Regulations, what type of
penalty can be imposed on a stock broker if he fails to pay the penalties
imposed by an adjudicating officer ?
Monetary penalties
prosecution and imprinsonment
both monetary penalties and imprinsonment
None of the above
Question 16
(a)
(b)
(c)
(d)
Correct Answer 15
Correct Answer 16
Interest Swaps
Answer
Explanation
Currency Derivatives are contracts between buyers and sellers, whose values
are to be derived from the underlying assets, i.e. the currency amounts.
These are risk management tools in the forex and money markets. These may
be options or futures or swaps
Question 17
(a)
(b)
(c)
(d)
Question 18
(a)
(b)
(c)
(d)
Correct Answer 17
Answer
Explanation
Correct Answer 18
Question 19
(a)
(b)
Question 20
(a)
(b)
(c)
(d)
Correct Answer 19
TRUE
Correct Answer 20
15
Question 21
(a)
(b)
(c)
(d)
Question 22
(a)
(b)
Yes
No
Correct Answer 21
Correct Answer 22
Yes
Answer
Explanation
As per the Code of Conduct for the Debenture Trustees, the Debenture
Trustee has to ensure that SEBI is promptly informed about any action, legal
proceeding, etc., initiated against it in respect of any material breach or noncompliance by it, of any law, rules, regulations, directions of SEBI or of any
other regulatory body.
Question 23
(a)
(b)
Question 24
(a)
(b)
(c)
(d)
Correct Answer 23
Answer
Explanation
Correct Answer 24
Answer
Explanation
The Lead Merchant Banker carries out which of the following activities :
1 - Capital structuring and formalities such as compo-sition of debt and
equity, type of instruments, etc 2 - Drafting and design of the offer
document 3 - Processing Refunds 4 - Obtaining Shareholders resolutions
for the issue
1 and 3
3 and 4
1 and 2
2 and 4
FALSE
The SEBI (Prohibition of Insider Trading) Regulations, 1992 seek to govern
the conduct of the person(s), defined as INSIDER, in respect of securities of
a company listed on a stock exchange.
1 and 2
The Lead Manager is not involved in obtaining shareholders resolution and
the Bankers manage the refunds etc.
Question 25
(a)
(b)
(c)
(d)
When any loss is caused to the beneficial owner due to negligence of the
depository or depository participant, the depository shall indemnify
the____________.
Stock Broker
Beneficial Owner
Depository Participant
None of the above
Question 26
As per SEBI Code of Conduct for Sub-Brokers, a sub broker can give a
recommendation to his clients when _______________.
(a)
(b)
(c)
(d)
Correct Answer 25
Beneficial Owner
Correct Answer 26
Answer
Explanation
Question 27
(a)
(b)
(c)
(d)
Question 28
(a)
(b)
(c)
(d)
Correct Answer 27
Answer
Explanation
Correct Answer 28
Answer
Explanation
Question 29
(a)
(b)
(c)
(d)
Question 30
(a)
(b)
(c)
(d)
As per the Depositories Act, the penalty for failure to maintain books of
account or records is Rs.1 lakh for each day of default or Rs ______,
which ever is less.
50 lakhs
1 crore
2 crores
5 crores
Correct Answer 29
both 1 and 2
Correct Answer 30
1 crore
Answer
Explanation
Section 19A of the Depositories Act lays down the penalties to be imposed
for failure to maintain books of account or records Rs.1 crore or Rs.1 lakh
for each day of default, whichever is less.
Question 31
(a)
(b)
(c)
(d)
Question 32
(a)
(b)
(c)
(d)
All of the following are functions of SEBI, under SEBI Act of 1992,
except _________ .
Prohibiting insider trading of securities
Promoting and regulating self regulatory organizations
Regulating the business in other securities markets but not in stock exchange
Regulating substantial acquisition of shares and take over of companies
Correct Answer 31
Regulating the business in other securities markets but not in stock exchange
Correct Answer 32
Both 1 and 2
Question 33
(a)
(b)
(c)
(d)
Question 34
(a)
(b)
(c)
(d)
Securities which are held for less than 12 months before sale are
considered ___________ investment as per Income Tax Act.
Long Term
Medium Term
Short Term
Day Trading
Correct Answer 33
Correct Answer 34
Short Term
Question 35
(a)
(b)
(c)
(d)
Question 36
(a)
(b)
(c)
(d)
Correct Answer 35
Correct Answer 36
Question 37
(a)
(b)
(c)
(d)
Question 38
(a)
(b)
(c)
(d)
Correct Answer 37
Answer
Explanation
Correct Answer 38
Question 39
(a)
(b)
Question 40
(a)
(b)
Correct Answer 39
Answer
Explanation
Correct Answer 40
TRUE
In cases where the custodian of securities is carrying on any activity besides
that of acting as custodian of securities, then, he should ensure that the
activities relating to his business as custodian of securities is separate and
segregated from all other activities.
Also the officers and employees engaged in providing custodial services shall
not be engaged in any other activity carried on by him.
No
Question 41
(a)
(b)
(c)
(d)
Question 42
(a)
(b)
Correct Answer 41
disclosure from the person giving the advice about his interest in the
recommended stock
Correct Answer 42
Yes
Answer
Explanation
Question 43
(a)
(b)
(c)
(d)
Question 44
(a)
(b)
(c)
(d)
Correct Answer 43
Answer
Explanation
Correct Answer 44
5
Under Rule 15(1) every member of a recognized stock exchange is required to
maintain and preserve the following books of account and documents for a
period of 5 years:
Register of transactions (Sauda book).
Clients ledger.
General ledger.
Journals.
Cash book.
Bank pass-book.
Documents register showing full particulars of shares and securities received
and delivered.
Question 45
(a)
(b)
(c)
(d)
Question 46
(a)
(b)
(c)
(d)
Correct Answer 45
Answer
Explanation
Correct Answer 46
Rs 10 lakhs
The Credit Rating Agency on being granted the registration certificate shall
pay to SEBI the registration 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 which is Rs. 10 lakh. The
period of validity of the certificate granted to the Credit Rating Agency is
three years
90%
Question 47
(a)
(b)
(c)
(d)
Question 48
(a)
(b)
(c)
(d)
__________ includes all offences under Part A and Part B (without the
threshold) that has cross border implications.
Part A of the Prevention of Money-Laundering Act
Part B of the Prevention of Money-Laundering Act
Part C of the Prevention of Money-Laundering Act
None of the above
Correct Answer 47
One Crore
Correct Answer 48
Question 49
(a)
(b)
Question 50
All the stock exchanges in India have same bye laws and these have to be
approved by SEBI - True or False ?
TRUE
FALSE
Every debenture trustee shall pay a renewal fee of Rs. 5 lakh every three
years within ______ days of being intimated by SEBI.
(a)
(b)
(c)
(d)
5 days
15 days
30 days
45 days
Correct Answer 49
FALSE
Answer
Explanation
Correct Answer 50
Answer
Explanation
The Stock Exchange bye laws lay down rules regarding the admission of
trading members, listing requirements, fees, suspension of admission etc etc
and differ from exchange to exchange but these have to be in conformity with
the provisions of the SC(R)A, 1956, SC(R)R, 1957 and the SEBI Act, 1992.
Such bye laws framed by the stock exchanges need to be approved by the
SEBI.
15 days
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.
The renewal fee shall be paid within 15 days of being intimated by SEBI.
Question 51
(a)
(b)
Question 52
(a)
(b)
TRUE
FALSE
Correct Answer 51
TRUE
Answer
Explanation
Correct Answer 52
Answer
Explanation
Question 53
(a)
(b)
(c)
(d)
Question 54
(a)
(b)
(c)
(d)
Correct Answer 53
Answer
Explanation
Correct Answer 54
Answer
Explanation
The renewal fee to keep the registration in force as credit rating agency is
____.
Rs 5 lakh
Rs 10 lakh
Rs 20 lakh
Rs 25 lakh
FEMA
The Foreign Exchange Management Act (FEMA), 1999 deals with matters
relating to foreign exchange etc. This act replaced the old Foreign Exchange
Regulation Act (FERA).
Rs 10 lakh
The Credit Rating Agency on being granted the registration certificate shall
pay to SEBI the registration 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 and the renewal fee is Rs.
10 lakh.
Question 55
(a)
(b)
(c)
(d)
Question 56
(a)
(b)
Correct Answer 55
Correct Answer 56
Yes
Answer
Explanation
Question 57
(a)
(b)
(c)
(d)
Question 58
Failure to exercise due skill, care and diligence by a Stock Broker will
lead to __________ as per the provisions of SEBI (Stock Brokers and Sub
Brokers) Regulations.
(a)
(b)
(c)
(d)
Prosecution
Monetary Penalty
Both 1 and 2
None of the Above
Correct Answer 57
untainted property
Answer
Explanation
Correct Answer 58
Answer
Explanation
Question 59
(a)
(b)
(c)
(d)
Question 60
(a)
(b)
(c)
(d)
Correct Answer 59
Answer
Explanation
Correct Answer 60
Answer
Explanation
MCA
MCA - Ministry of Corporate Affairs
Part B of PMLA
The offences under Prevention of Money-Laundering Act are classified under
Part A, Part B and Part C of the Schedule.
Under Part A, offences include counterfeiting currency notes.
Under Part B, offences are considered as money laundering if the total value
of such offences is Rs 30 lakh or more.
Part C includes all offences under Part A and Part B (without the threshold)
that has cross-border implications.
Question 61
(a)
(b)
(c)
(d)
Question 62
(a)
(b)
(c)
(d)
Correct Answer 61
Answer
Explanation
Correct Answer 62
As per the SEBI (Stock Brokers and Sub Brokers) Regulations, a subbroker should submit to the SEBI or to _________ such books, special
returns, correspondence, documents and papers as may be required.
Trading Member
Company Law Board
Income Tax
stock exchange with which it is registered
Question 63
(a)
(b)
(c)
(d)
Question 64
(a)
(b)
(c)
(d)
Correct Answer 63
Registrars
Correct Answer 64
Question 65
(a)
(b)
(c)
(d)
Question 66
(a)
(b)
Correct Answer 65
Merchant Bankers
Correct Answer 66
Yes
Answer
Explanation
Question 67
(a)
(b)
(c)
(d)
Question 68
(a)
(b)
(c)
(d)
Correct Answer 67
Answer
Explanation
Correct Answer 68
The post issue activities of a lead merchant banker includes holding conferences of stockbrokers and investors to market the issue
processing the rematerialistion requests
finalisation of the basis of allotment
all of the above
Both 1 and 2
Question 69
(a)
allow its clients to withdraw or transfer their securities or funds held in its
custody, charging the clients for such transactions
(b)
allow its clients to withdraw or transfer their securities or funds held in its
custody, without any additional cost to such client
(c)
(d)
Question 70
(a)
(b)
(c)
(d)
The RBI's main banking functions are : 1. Issue good quality currency
notes and coins 2. Act as a banker to the Government and manages
issuances of Central and State Government Securities. 3. Act as a banker
to the banks by maintaining the banking accounts of all scheduled banks.
4. Formulate fiscal policies
1&2
2&3
3&4
1&4
Correct Answer 69
allow its clients to withdraw or transfer their securities or funds held in its
custody, without any additional cost to such client
Correct Answer 70
2&3
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)