Nism 3 a - Compliance - Last Day Revision Test 1

7/26/2019 Nism 3 a - Compliance - Last Day Revision Test 1

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NISM SERIES III ASECURITIES INTERMEDIARIES

COMPLIANCE ( NON FUND ) CERTIFICATION V.IMP LAST DAY REVISION EXAM 1

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LAST DAY REVISION EXAM 1

Question 1 The Securities Appellate Tribunal - SAT shall not be bound by theprocedure laid down by the Code of Civil Procedure, 1908, but shall be

guided by the principles of natural justice - this provision is as per

_____________.

(a) Contract Act

(b) SEBI Act

(c) Companies Act

(d) PMLA

Question 2 Which bank of India has the responsibility of administering the

monetary policy?

(a) State Bank of India

(b) Central Bank of India

(c) Reserve Bank of India

(d) Bank of India

Correct Answer 1 SEBI Act

Correct Answer 2 Reserve Bank of India


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Question 3 __________ allows the borrowers to lock into interest rates.(a) Forward Rate agreements

(b) Interest Rate swaps

(c) Global Depository Receipts

(d) Both 1 and 2

Question 4 As per SEBI (Delisting of Equity Shares) Regulations, the public

shareholders can participate in the offer and such offer shall remain open

for a minimum period of _____ working days and a maximum period of_____ working days.

(a) 2, 7

(b) 3, 5

(c) 7, 9

(d) 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 amaximum period of 5 working days, during which the public shareholders

have to tender their bids.


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Question 5 SEBI Act states that no person shall sponsor or cause to be sponsored orcarry 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 ?

(a) TRUE

(b) FALSE

Question 6 Under the Code of Conduct, SEBI prescribes Bankers to an Issue against

their participation in ____________.

(a) Price rigging or manipulation

(b) Creation of false market

(c) Passing of unpublished price sensitive information

(d) All of the above

Correct Answer 5 TRUE

Correct Answer 6 All of the above


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Question 7 The Securities and Exchange Board of India (Prohibition of Fraudulentand Unfair Trade Practices relating to Securities Market) Regulations,

2003 prohibits _________ trade practices in securities.

(a) manipulative

(b) unfair

(c) fraudulent

(d) all of the above

Question 8 The Debenture Trustees shall communicate to the debenture holders on____________ basis regarding the compliance of the terms of the issue by

the body corporate, defaults etc and action taken thereof.

(a) monthly

(b) quarterly

(c) half yearly

(d) annual

Correct Answer 7 all of the above

Correct Answer 8 half yearly


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Question 9 As per SEBI (Intermediaries) Regulations, if any rules are violated, theconcerned authority, after considering the representations, can

recommend which of the following action(s) -

(a) Cancellation of certificate of registration

(b) Suspension of certificate of registration for a specified period

(c) Debarring a branch or an office of the noticee from carrying out activities forthe specified period


Question 10 A Depository Participant should redress the grievances of the investors

within _______ days of the receipt of complaint.

(a) 15

(b) 20

(c) 30

(d) 45


Answer

Explanation

Any of the following actions can be recommended -

(i) Suspension of certificate of registration for a specified period;(ii) Cancellation of certificate of registration;

(iii) Prohibiting the noticee to take up any new assignment or contract orlaunch a new scheme for the period specified in the order;(iv) Debarring a principal officer of the noticee from being employed or

associated with any registered intermediary or other registered person for theperiod specified in the order;(v) Debarring a branch or an office of the noticee from carrying out activitiesfor the specified period;(vi) Warning the noticee

Correct Answer 10 30

Answer

Explanation

Depository Participant should redress the grievances of the investors within30 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 grievancespending before it.


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Question 11 As per the Code of Conduct for Prevention of Insider Trading, aCompliance office is responsible for ______________ under the overall

supervision of the partners / proprietors.

(a) monitoring of trades and the implementation of the code of conduct

(b) pre-clearing of all designated employees and their dependants trades

(c) both 1 and 2

(d) none of the above

Question 12 The restrictions on communication under insider trading do not include

communications under ordinary course of law. State whether True orFalse?

(a) FALSE

(b) TRUE

Correct Answer 11 both 1 and 2

Answer

Explanation

As per the SEBI Act, an organisation / firm needs to appoint a complianceofficer who is respon-sible for setting forth policies and procedures andmonitoring adherence to the rules for the preservation of Price SensitiveInformation, pre-clearing of all designated employees and their dependantstrades, monitoring of trades and the implementation of the code of conduct

under the overall supervision of the partners / proprietors.


Answer

Explanation

The restrictions do not apply to any communication required in the ordinary

course of business or under any law.


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Question 13 ____________ is defined as any person who is, or was, connected with acompany or is deemed to have been connected with the company and

who is reasonably expected to have access to unpublished price sensitive

information in respect of securities of the company

(a) Stock Broker

(b) Custodian

(c) Insider

(d) Depository Participant

Question 14 As per the Prevention of Money Laundering Act, whoever commits the

offence of money-laundering shall be liable to fine which may extend to

Rs. _____ in addition to imprisonment.

(a) Rs 10 lakhs

(b) Rs 25 Lakhs

(c) Rs 5 lakhs

(d) Rs 1 lakhs

Correct Answer 13 Insider

Correct Answer 14 Rs 5 lakhs

Answer

Explanation

Whoever commits the offence of money-laundering shall be punishable withrigorous imprisonment for a term which shall not be less than 3 years but

which may extend to 7 years and shall also be liable to fine which may extendto Rs. 5 lakhs.


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Question 15 As per SEBI (Stock Brokers and Sub Brokers) Regulations, what type ofpenalty can be imposed on a stock broker if he fails to pay the penalties

imposed by an adjudicating officer ?

(a) Monetary penalties

(b) prosecution and imprinsonment

(c) both monetary penalties and imprinsonment

(d) None of the above

Question 16 Currency Derivative excludes __________.(a) Interest Swaps

(b) Futures

(c) Swaps(d) Options

Correct Answer 15 both monetary penalties and imprinsonment

Correct Answer 16 Interest Swaps

Answer

Explanation

Currency Derivatives are contracts between buyers and sellers, whose valuesare 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


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Question 17 As per the SEBI (Underwriters) Regulations, the capital adequacyrequirement to become an underwriter should be _______.

(a) total networth of Rs 20 lakhs

(b) total networth of Rs 50 lakhs

(c) total assets of Rs 20 lakhs

(d) total assets of Rs 50 lakhs

Question 18 As per the SEBI ((Issue of Capital and Disclosure Requirements - ICDR)

regulations, a Merchant Banker has to monitor which of the follprocedures post the issue.

(a) the flow of application from collecting bank branches

(b) processing of the applications including the application form for ASBA

(c) dispatch of security certificates and re-fund orders are completed andsecurities are listed.


Correct Answer 17 total networth of Rs 20 lakhs\

Answer

Explanation

The capital adequacy requirement to become an underwriter should not beless than the networth of Rs. 20 lakh.



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Question 19 The debenture trustee shall comply with the award of Ombudsmanpassed under the Securities and Exchange Board of India (Ombudsman)

Regulations, 2003. State whether True or False?

(a) TRUE

(b) FALSE

Question 20 As per the SEBI (Buyback of Securities) Regulations, the Merchant

Banker has to send the final report to SEBI within _____ days from the

date of closure of the buy-back offer.(a) 10

(b) 15

(c) 25

(d) 30


Correct Answer 20 15


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Question 21 A merchant banker provide service(s) related to ______.(a) Underwriting

(b) Mergers and Aquisitions

(c) Issue of securities of a company


Question 22 A Debenture Trustee has forgotten to inform SEBI of an action taken by

some other regulator for non-compliance on him. Is it an offence as per

the code of conduct of SEBI (Debenture Trustees) Regulations ?(a) Yes

(b) No


Correct Answer 22 Yes

Answer

Explanation

As per the Code of Conduct for the Debenture Trustees, the DebentureTrustee has to ensure that SEBI is promptly informed about any action, legalproceeding, etc., initiated against it in respect of any material breach or non-

compliance by it, of any law, rules, regulations, directions of SEBI or of anyother regulatory body.


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Question 23 The SEBI (Prohibition of Insider Trading) Regulations, 1992 seek togovern the conduct of the person(s), defined as 'Investor', in respect of

securities of a company listed on a stock exchange - State True or False ?

(a) TRUE

(b) FALSE

Question 24 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 offerdocument 3 - Processing Refunds 4 - Obtaining Shareholders resolutions

for the issue

(a) 1 and 3

(b) 3 and 4

(c) 1 and 2

(d) 2 and 4

Correct Answer 23 FALSE

Answer

Explanation

The SEBI (Prohibition of Insider Trading) Regulations, 1992 seek to governthe conduct of the person(s), defined as INSIDER, in respect of securities ofa company listed on a stock exchange.

Correct Answer 24 1 and 2

Answer

Explanation

The Lead Manager is not involved in obtaining shareholders resolution and

the Bankers manage the refunds etc.


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Question 25 When any loss is caused to the beneficial owner due to negligence of thedepository or depository participant, the depository shall indemnify

the____________.

(a) Stock Broker

(b) Beneficial Owner

(c) Depository Participant


Question 26 As per SEBI Code of Conduct for Sub-Brokers, a sub broker can give arecommendation to his clients when _______________.

(a) he has got it verified from his broker

(b) he has reasonable grounds for believing that the recommendations is suitablefor such a client

(c) he has entered into an legal agreement with his client which absolves him ofany legal problems in case the client suffers losses


Correct Answer 25 Beneficial Owner

Correct Answer 26 he has reasonable grounds for believing that the recommendations is suitablefor such a client

Answer

Explanation

A sub-broker shall not make a recommendation to any client who might beexpected to rely thereon to acquire, dispose of, retain any securities unless hehas rea-sonable grounds for believing that the recommendations is suitable for

such a client upon the basis of the facts.


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Question 27 A sub-broker shall enter into a tripartite agreement with __________before he commences dealing in securities.

(a) stock broker and SEBI

(b) client and Stock Exchange

(c) client and the main stock broker

(d) SEBI and Stock Exchange

Question 28 The responsibility of administering the Partnership Act, 1932, the

Companies Act, 1951 and the Societies Registration Act , 1980 is vestedwith _________.

(a) FMC

(b) SEBI

(c) DEA

(d) MCA

Correct Answer 27 client and the main stock broker

Answer

Explanation

As per the Code of Conduct for Sub-Brokers - A sub-broker shall enter into a

tripartite agreement with his client and the main stock broker indicating therights and obligations of the stock broker, sub-broker and such client of thestock broker.

Correct Answer 28 MCA

Answer

Explanation

The Ministry of Corporate Affairs (MCA) is mainly concerned with theadministration of the Companies Act, 1956 and other allied acts, rules andregulations pertaining to the corporate sector.Itis also vested with the responsibility of administering the Partnership Act,1932, the Companies (Donations to National Funds) Act, 1951 and Societies

Registration Act, 1980.


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Question 29 Where any intermediary fails to comply with the conditions ofregistration or contravenes any of the provisions of the securities laws,

the designated member can pass a order against the intermediary. Who

can become a designated member ?

(a) Chairman of SEBI

(b) Whole time member - SEBI

(c) both 1 and 2


Question 30 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.

(a) 50 lakhs

(b) 1 crore

(c) 2 crores

(d) 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 imposedfor failure to maintain books of account or recordsRs.1 crore or Rs.1 lakhfor each day of default, whichever is less.


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Question 31 All of the following are functions of SEBI, under SEBI Act of 1992,except _________ .

(a) Prohibiting insider trading of securities

(b) Promoting and regulating self regulatory organizations

(c) Regulating the business in other securities markets but not in stock exchange

(d) Regulating substantial acquisition of shares and take over of companies

Question 32 Under the Prevention of Money Laundering Act 2002 (PMLA), Banks

and Financial Institution should ___________.(a) maintain a record of all transactions

(b) verify and maintain the records of the identity of all its clients

(c) Both 1 and 2


Correct Answer 31 Regulating the business in other securities markets but not in stock exchange



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Question 33 As per the SEBI (Credit Rating Agencies) Regulations, the certificate ofregistration as credit rating agency is valid for a period of _____ years.

(a) 2

(b) 3

(c) 5

(d) 7

Question 34 Securities which are held for less than 12 months before sale are

considered ___________ investment as per Income Tax Act.(a) Long Term

(b) Medium Term

(c) Short Term

(d) Day Trading

Correct Answer 33 3

Correct Answer 34 Short Term


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Question 35 Every Depository Participant should put in place an adequatemechanism for _____the internal accounting controls.

(a) Reviewing

(b) Monitoring

(c) Evaluating


Question 36 As per the SEBI (Prohibition of Insider Trading) Regulations, all

__________of the firm who intend to deal in the securities of the clientcompany shall pre-clear the transactions as per the pre-dealing

procedure as prescribed in the regulations.

(a) Directors

(b) Officers

(c) Designated Employees





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Question 37 Which of the following is NOT an activity performed by the bankers toan issue?

(a) Payment of dividend or interest warrant

(b) Collection of securities transaction tax

(c) Acceptance of application monies

(d) Acceptance of call monies

Question 38 As per the SEBI (KYC Registration Agency-KRA) Regulations, SEBI

shall grant an initial registration to the KRA which shall be valid for aperiod of _____ years from the initial date of its issue to the applicant.

(a) 3

(b) 4

(c) 5

(d) 6

Correct Answer 37 Collection of securities transaction tax

Answer

Explanation

Securities Transaction Tax (STT) is collected by the Stock Brokers.

Correct Answer 38 5


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Question 39 The employees of Custodian cannot be engaged in any other activitycarried on by the Custodian - State True or False ?

(a) TRUE

(b) FALSE

Question 40 Is the Stock broker required to pre-intimate SEBI about shifting the

location where it keeps its books of accounts. State Yes or No?

(a) Yes

(b) No


Answer

Explanation

In cases where the custodian of securities is carrying on any activity besidesthat of acting as custodian of securities, then, he should ensure that the

activities relating to his business as custodian of securities is separate andsegregated from all other activities.Also the officers and employees engaged in providing custodial services shallnot be engaged in any other activity carried on by him.

Correct Answer 40 No


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Question 41 If an Stock Broker is giving an investment advice in a publicly accessiblemedia, it should necessarily be accompanied by ___________.

(a) disclosure from all the employees of the stock broking firm about theirinterest in the recommended stock

(b) disclosure from the person giving the advice about his interest in therecommended stock

(c) disclosure from the compliance officer of the stock broking firm about theirinterest in the recommended stock


Question 42 A sub broker is recommending some shares to his clients irrespective of

the technical and financial aspects of these shares. His commission is

based on the volume these clients do in stock trading. Is this a fraud as

per the rules of SEBI (Prohibition of Fraudulent and Unfair Trade

Practices relating to securities Market) Regulations ?

(a) Yes

(b) No

Correct Answer 41 disclosure from the person giving the advice about his interest in therecommended stock


Answer

Explanation

As per SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating tosecurities Market) Regulations - encouraging the clients by an intermediary to

deal in securities solely with the object of enhancing his brokerage orcommission is a fraud.


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Question 43 Under the Securities Contracts (Regulation) Rules, 1957 - every memberof a recognized stock exchange is required to maintain and preserve the

journals for ______ years.

(a) 1

(b) 2

(c) 3

(d) 5

Question 44 Financial Markets includes _________ .

(a) Stock / Equity Markets

(b) Currency Markets

(c) Bond / Debt Markets

(d) All of the Above

Correct Answer 43 5

Answer

Explanation

Under Rule 15(1) every member of a recognized stock exchange is required tomaintain 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 receivedand delivered.

Correct Answer 44 All of the Above


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Question 45 As per the SEBI (Credit Rating Agencies) Regulations, the certificaterenewal fee of a credit rating agency is _______.

(a) Rs 5 lakhs

(b) Rs 10 lakhs

(c) Rs 25 lakhs

(d) Rs 50 lakhs

Question 46 According to the SEBI (Issue of Capital and Disclosure Requirements)

Regulations, the minimum subscription to be received in an issue shallnot be less than ________ of the offer through offer document.

(a) 75%

(b) 80%

(c) 90%

(d) 95%

Correct Answer 45 Rs 10 lakhs

Answer

Explanation

The Credit Rating Agency on being granted the registration certificate shallpay to SEBI the registration fee of Rs. 20 lakh.Application for renewal can be made to SEBI three months prior to the expiryof the certificate accompanied with the renewal fees which is Rs. 10 lakh. Theperiod of validity of the certificate granted to the Credit Rating Agency isthree years

Correct Answer 46 90%


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Question 47 As per the Depositories Act, the penalty for failure to redressinvestors grievances after having been called upon to do so by SEBIwithin the specified time period is Rs ________ or Rs.1 lakh for each day

of default, whichever is less.

(a) One Crore

(b) Two Crores

(c) Five Crores

(d) Ten Crores

Question 48 __________ includes all offences under Part A and Part B (without the

threshold) that has cross border implications.

(a) Part A of the Prevention of Money-Laundering Act

(b) Part B of the Prevention of Money-Laundering Act

(c) Part C of the Prevention of Money-Laundering Act


Correct Answer 47 One Crore

Correct Answer 48 Part C of the Prevention of Money-Laundering Act


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Question 49 All the stock exchanges in India have same bye laws and these have to beapproved by SEBI - True or False ?

(a) TRUE

(b) FALSE

Question 50 Every debenture trustee shall pay a renewal fee of Rs. 5 lakh every three

years within ______ days of being intimated by SEBI.

(a) 5 days

(b) 15 days(c) 30 days

(d) 45 days

Correct Answer 49 FALSE

Answer

Explanation

The Stock Exchange bye laws lay down rules regarding the admission oftrading members, listing requirements, fees, suspension of admission etc etc

and differ from exchange to exchange but these have to be in conformity withthe 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.

Correct Answer 50 15 days

Answer

Explanation

Every debenture trustee shall pay a sum of Rs. 10 lakhs as registration fees atthe time of the grant of certificate by SEBI and shall pay renewal fee of Rs. 5lakh every three years from the fourth year from the date of initialregistration.

The renewal fee shall be paid within 15 days of being intimated by SEBI.


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Question 51 As per the Securities Contract (Regulation) Act, the Central Government/ SEBI has the powers to prescribe admission criteria and qualifications

for members of a Stock Exchange - True or False ?

(a) TRUE

(b) FALSE

Question 52 The Stock Brokers are required to adhere to a code of conduct apart

from the rules and regulations - True and False ?

(a) TRUE(b) FALSE


Answer

Explanation

SC(R)A covers around 31 Sections. Sections 3 to 12 are specifically related tovarious aspects of stock exchange recognition. The Central Government(Powers are exercisable by SEBI also) has the powers to prescribe admissioncriteria and qualifications for members.


Answer

Explanation

A stock broker or its sub broker needs to adhere to a particular code ofconduct as prescribed in the schedule II of the regulations.


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Question 53 Which Act currently deals with matters relating to foreign exchange,external trade and payments for promoting the orderly development and

maintenance of foreign exchange market in India.

(a) FERA

(b) FEMA

(c) RBI Act

(d) MCX

Question 54 The renewal fee to keep the registration in force as credit rating agency is____.

(a) Rs 5 lakh

(b) Rs 10 lakh

(c) Rs 20 lakh

(d) Rs 25 lakh

Correct Answer 53 FEMA

Answer

Explanation

The Foreign Exchange Management Act (FEMA), 1999 deals with mattersrelating to foreign exchange etc. This act replaced the old Foreign ExchangeRegulation Act (FERA).

Correct Answer 54 Rs 10 lakh

Answer

Explanation

The Credit Rating Agency on being granted the registration certificate shallpay 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.


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Question 55 As per the SEBI (Certification of Associated Persons in Securities Markets)Regulations, 2007, a certificate is valid for a period of ______ year(s) fromthe date of grant of certificate or revalidation as the case may be.

(a) 1

(b) 2

(c) 3

(d) 5

Question 56 A relationship manager of a stockbroking firm has advised his clients tobuy some stocks without doing proper research as his commission is

based on the brokerage he generates. Is this a fraud as per SEBI rules ?

(a) Yes

(b) No

Correct Answer 55 3


Answer

Explanation

Dealing in securities shall be deemed to be a fraudulent or an unfair trade

practice if it involves encouraging the clients by an intermediary to deal insecurities solely with the object of enhancing his brokerage or commission.


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Question 57 Any person connected with the proceeds of crime and projecting it as____________ shall be guilty of the offence of money-laundering as per

the Prevention of Money-Laundering Act, 2002.

(a) untainted property

(b) stolen property

(c) illegal property

(d) embezzled property

Question 58 Failure to exercise due skill, care and diligence by a Stock Broker willlead to __________ as per the provisions of SEBI (Stock Brokers and Sub

Brokers) Regulations.

(a) Prosecution

(b) Monetary Penalty

(c) Both 1 and 2

(d) None of the Above

Correct Answer 57 untainted property

Answer

Explanation

As per the Prevention of Money-Laundering Act, 2002 (PMLA) - Who-everdirectly or indirectly attempts to indulge, or knowingly assists or knowingly isa party or is actually involved, in any process or activity connected with theproceeds of crime and projecting it as untainted property shall be guilty of theoffence of money-laundering.

Correct Answer 58 Monetary Penalty

Answer

Explanation

Failure to exercise due skill, care and diligence by a Stock Broker will leadonly to Monetary Penalty.

For violations like Manipulations and Insider Trading etc, the penalty can beboth Monetary and Prosecution.


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Question 59 ________________ supervises three professional bodies - the Institute ofChartered Accountants of India (ICAI), the Institute of Company

Secretaries of India (ICSI) and the Institute of Cost and Works

Accountants of India (ICWAI)

(a) MCA

(b) SEBI

(c) FM

(d) RBI

Question 60 Under ___________, offences are considered as money laundering if the

total value of such offences is Rs 30 lakh or more.

(a) Part A of PMLA

(b) Part B of PMLA

(c) Part C of PMLA


Correct Answer 59 MCA

AnswerExplanation

MCA - Ministry of Corporate Affairs

Correct Answer 60 Part B of PMLA

Answer

Explanation

The offences under Prevention of Money-Laundering Act are classified underPart 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 valueof 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.


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Question 61 The 'Public Areas' in an organisation deal with advice on _________.(a) Sales

(b) Marketing

(c) Investments


Question 62 As per the SEBI (Stock Brokers and Sub Brokers) Regulations, a sub-

broker should submit to the SEBI or to _________ such books, special

returns, correspondence, documents and papers as may be required.

(a) Trading Member

(b) Company Law Board

(c) Income Tax

(d) stock exchange with which it is registered


Answer

Explanation

As per SEBI (Prohibition of Insider Trading) Regulations, to prevent themisuse of confidential information the organisation shall adopt a ChineseWall policy which separates those areas of the organisation which routinely

have access to confidential information, considered insider areas from thoseareas which deal with sale/ marketing/investment advice considered asPublic Areas.

Correct Answer 62 stock exchange with which it is registered


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Question 63 Who amongst the following collates data on subscriptions regardingprimary issuances?

(a) Registrars

(b) Banks

(c) Venture Capital Funds

(d) Custodians

Question 64 As per the Code of Conduct for Bankers to an Issue, the banker to an

issue shall _________.(a) ensure that where a complaint is not remedied promptly, the investor is

advised of any further steps which may be available to the investor under theregulatory system.

(b) ensure that inquiries from investors are adequately dealt with.

(c) ensure that grievances of investors are redressed in a timely and appropriatemanner


Correct Answer 63 Registrars

Correct Answer 64 all of the above


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Question 65 Assistance in underwriting tie up in primary issues is done by _______.(a) Depositories

(b) Transfer Agents

(c) Registrars

(d) Merchant Bankers

Question 66 Where any intermediary fails to comply with any of the conditions of

registration a show cause notice is issued to him as per the SEBI

(Intermediaries) Regulations. Can the designated authority, after givingan hearing to the noticee, just warn him to be more careful in future ?

Yes or No ?

(a) Yes

(b) No

Correct Answer 65 Merchant Bankers


Answer

Explanation

The designated authority can recommend any of the following actions:(i) Suspension of certificate of registration for a specified period;(ii) Cancellation of certificate of registration;(iii) Prohibiting the noticee to take up any new assignment or contract(iv) Debarring a principal officer(v) Debarring a branch or an office of the noticee from carrying out activitiesfor the specified period;

(vi) Warning the noticee.


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Question 67 The post issue activities of a lead merchant banker includes -(a) holding conferences of stockbrokers and investors to market the issue

(b) processing the rematerialistion requests

(c) finalisation of the basis of allotment


Question 68 In case of Stock Brokers, the In-Person Verification (IPV) can be carried

out by __________

(a) Authorised Person

(b) Sub Brokers

(c) Both 1 and 2


Correct Answer 67 finalisation of the basis of allotment

Answer

Explanation

Holding of conferences is a pre issue function and processing ofrematerialisation is a function of the Depository / Registrar.



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Question 69 If an Intermediary is debarred or suspended, the intermediary shall -(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 itscustody, without any additional cost to such client

(c) undertake any new assignment during the period of such debarment orsuspension.


Question 70 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

(a) 1 & 2

(b) 2 & 3

(c) 3 & 4

(d) 1 & 4

Correct Answer 69 allow its clients to withdraw or transfer their securities or funds held in itscustody, without any additional cost to such client

Correct Answer 70 2 & 3


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Practice Question Banks also available for :

NISM

NISM Series I: Currency Derivatives Certification ExamNISM 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 3 a - Compliance - Last Day Revision Test 1

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