MODEL PAPER 1

Course Title Capital Market (Dealers) Module ( NCFM Certification)

Total Questions 60
Level Intermediate Level
Negative Marking% 25%
Passing Marks% 50%

Question No. 1
DVP, in the capital market context, stands for____________
Default versus payment
Delivery versus payment
Default versus penalty
Delivery versus penalty
Question No. 2
NSE has set up National Stock Exchange Investor Protection Fund as a ______________
Trust
Company
Reserve
none of the above
Question No. 3
100 shares of Reliance Ltd. are purchased on Monday. Provided there are no holidays in
between, settlement should take place on ______
Wednesday T +2
Tuesday T+1
Thursday T + 3
Friday T +
Question No. 4
Who provides for electronic transfer of securities in the stock market
RBI
Depositories
Clearing Agencies
SEBI
Question No. 5
The status of a security in indicated in the Market Inquiry Screen as P. This indicates that the
security is in the______
Pre-open phase
Purchased
Profit, special
Question No. 6
If a price outside the operational range is entered, the order results in a __________________
Quantity Freeze
Price Freeze
Market Freeze
Security Freeze
Question No. 7
Extreme loss margin is collected on the___________position.
Net open position
Gross open position
outstanding position
net close position
Question No. 8
The primary market issuance is done either through public issues or ________
Secondary markets
FII placements
HNI placements
Private Placement

Question No. 9
___________________allows the user to disclose only a portion of the order quantity to the
market.
An order with a limit price
A stop loss order
An order with a Disclosed Quantity (DQ)
None of the above
Question No. 10
How many copies of Bhav copy files can be stored in the Reports directory at a point time ?
Last seven copies
Last five copies
last ten copies
last six copies
Question No. 11
In case of 20% movement of the index, trading shall be halted for the reminder of the
_________________
Week
Day
Month
Year
Question No. 12
All orders can be modified in the system till the time they do not get fully
_________________& only during market hours.
Auctioned
Traded
Partially traded
Partially auctioned
Question No. 13
Which of the following report gives details related to all the securities traded on that day for
all market ?
Market Indices
Market Statistics
Display Window
Full Message Display

Question No. 14
SEBI has permitted ______ to allot ISIN for demat shares.
NSDL
CDSL
both
none

Question No. 15
Clearing member is required to open a dedicated and settlement account with one of the
clearing banks.
TRUE
FALSE
Question No. 16
allows the user to disclose only a portion of the order quantity to the market
An order with a limit price
A stop loss order
An order with a Disclosed Quantity DQ
None of the above

Question No. 17
The purpose of auction inquiry is to enable the users to view the auction activities for the
______________.
Previous trading day
Current trading day
Bonus shares
Ex-interest shares
Question No. 18
Copy of the advertisement must be submitted to the Exchange within______days before
their issue
30 days
15 days
24 days
7 days
Question No. 19
Which of the following are features of Market Watch Window ?
For each security in the Market Watch, market information is dynamically updated
User has the facility to set up 500 securities in the market watch
The user can view up to 30 securities in one page of the market watch screen
All of the above
Question No. 20
_____is the party who enters on the same side as of the initiator in the auctions process.
Competitor
Initiator
Solicitor
Question No. 21
All auction orders are entered into the ______________?
Auction accumulator book
Auction order matching system
Auction traded book
Auction order book
Question No. 22
In case the net outstanding position in any security is nil, the difference between the buy and
sell values is considered as notional loss for the purpose of calculating the????...payable ?
Volatility Margin
Initial margin
buy margin
mark to market margin
Question No. 23
What does Quick Order Cancellation do ?
Deletes the latest order
Deletes all the outstanding orders
Deletes the oldest order
None of the above
Question No. 24
Security Wise User Order Quantity Limit ( SUOQL) can be modified anytime during trading
hours. True or False ?
TRUE
FALSE
Question No. 25
An advertisement issued by a trading member shall contain_______________
The photograph of the directors of the trading member
The signatures of the directors of the trading member
Addresses of the directors of the trading member
Name and or logo code of National Stock Exchange membership
Question No. 25
An advertisement issued by a trading member shall contain_______________
The photograph of the directors of the trading member
The signatures of the directors of the trading member
Addresses of the directors of the trading member
Name and or logo code of National Stock Exchange membership
Question No. 26
The IPF is maintained by NSE to make good investor claim which may arise out of non
settlement of obligation by _______________
The trading member
the NSCCL
Custodian
Any of the above
Question No. 27
The period after market close during which the users have inquiry access only is
watch period
No delivery period
SURCON ( Surveillance and Control Period)
Question No. 28
Who decided if a security is to be held in dematerialized or physical form ?
Holder of the security
Issues of the security
Depository
All of the above
Question No. 29
The ???.....can be generated by the trading member online.
SEBI registration certificate
Trading Member ID
Trade and Order slips
Only statement A and C
Question No. 30
Which of the following is not a clearing bank of NSCCL ?
HDFC Bank
ICICI Bank
RBI
IDBI Bank
Question No. 31
What is the maximum number of depository accounts that can be opened by an investor ?
1
2
5
There is no restriction on the number of accounts an investor can open
Question No. 32
Suppose, you deposit Rs. 2000 annually in a bank for 5 years and your deposits earn a
compound interest rate of 10%. What will be value of this series of deposits ( an annuity) at
the end of 5 years ? Assume that each deposit occurs at the end of the year
Rs. 12210.00
Rs. 11105.00
Rs. 11000.00
Rs. 10000.00
Question No. 33

In market phases, what is the duration of pre-open session ?

10 Minutes
15 Minutes
20 Minutes
25 Minutes
Question No. 34
VAR margin is decided by whom?
Broker
Exchange
Client
SEBI
Question No. 35
The Max number of securities that can be setup in the market watch is
500
200
100
All of the Above
Question No. 36
Who settles the trades executed at NSE ?
NSDL
Clearing Members
SEBI
NSCCL
Question No. 37
The function of ascertaining pay-in or pay-in of brokers who have traded on the stock
exchange is performed by
Stock Brokers
Stock Exchange Forum
NSDL
Clearing Corporation
Question No. 38
The book type for Block Trading Session is _______ and series is_______
OL, BL
OL, BT
RD, D
NT, BT
Question No. 39
One of the best features of NEAT software is that that user has the facility to set up _______
Securities in the market watch.
100
150
500
400
Question No. 40
What is the full form of WAP ?
Wire Application Protocol
Wireless Application Programmer
Wire Application Program
Wireless Application Protocol
Question No. 41
Which is the national numbering agency for securities in India ?
SEBI
RBI
NSDL
NSEIL
Question No. 42
What is the purpose ofMarket Statistics report on the NEAT system ?
To show the trades that was done by the trading member for the current trading day.
To show the market movement information for the current trading day
To show the details related to all the securities traded on a specific day
there is no report as Market Statistics Report
Question No. 43
Every trading member shall deliver the securities purchased to his clients with in _______ of
pay out.
1 day
3 days
48 days
none of the above
Question No. 44
What are the price bands applicable in Capital Market
25
5 and 20
25, 10, 20
None of the above
Question No. 45
__________are orders to buy or sell shares at a stated quantity and price ?
Stop Loss order
Limit Orders
Immediate or cancel order
day order
Question No. 46
A trading member of the NSE has a branch order value of Rs 750 Lac for his Mumbai branch
and Rs 600 Lac for Delhi branch Mumbai branch has two users X and Y with user order value
limits of Rs 200 Lac respectively Delhi branch has one user Z with user order value limit of
Rs 450 Lac The member applies for a new user at Mumbai What is the maximum user order
value that can be set for the new user
Rs. 500 Lac
Any amount as there no restriction on user order value
Rs. 350 Lac
Rs. 150 Lac
Question No. 47
SCRA gives the Central Government jurisdiction over
Stock Exchange
Contracts in securities
Listing of securities on Stock Exchange
All of the above
Question No. 48
The extreme loss margin for any security is_________
5%
1.5 times of the standard deviation of daily logarithmic returns of the security
price of the last six months
higher of A and B
Question No. 49
____________consist of various books types wherein orders are segregated as Regular Lot
Orders, Special Term Orders, Negotiated Trade Orders and Stop Loss Orders depending on
their attributes.
Odd Lot Market
Normal Market
RETDEBT Market
Auction Market
Question No. 50
The owner of securities intending to avail of depository services opens an account with a
depository through a ________________
Depository Participant ( DP)
Sub-Broker
Stock Exchange
Depository
Question No. 51
What does S indicates as status in the Auction Inquiry screen in the NEAT system
Auction is in Solicitor period
System is matching the orders
Auction is deleted
Auction is pending and yet to begin
Question No. 52
The companies refused by the exchange to list can appeal to
SAT
SEBI
Supreme Court
High court in the state where the company has registered office

Question No. 53
In case of NSDL, the members need to give instructions to move the securities to the
settlement account of _____ whereas in case of ______ the members need to ensure that the
necessary quantity of securities is available in their pool account.
NSDL, CDSL
CDSL, NSDL
none
cant say
Question No. 54
After the execution of trade the_________ becomes the legal counter party to the transaction
and ensures that funds and securities obligations are met
SEBI
Clearing Corporation
NSE
BSE
Question No. 55
What is the name of the entity that has facility to set symbol wise user order quantity limit ?
Corporate Manager
Branch Manager
Dealer
All of the above
Question No. 56
Which one the following is true about Block Trading session
no pre-open and post close session case on in the block trades
orders get matched when both the prince and the quantity match for the buy and sell order
the price range applicable for Block Trades is +/- 1%
All of the above
Question No. 57
What is the name of concept designed to achieve sound risk management in the settlement
of interbank payments ?
Real time gross settlement system
Net time gross settlement system
Novation
Real time base settlement system
Question No. 58
The securities market has two segments primary and secondary. Is the above statement
True or False
TRUE
FALSE
Question No. 59
_________Is it compulsory for a trading member to maintain a separate bank account for a
client ?
Yes
No
Optional
cant say
Question No. 60
Which of the following is not the participant in the auction market ?
Initiator
Administrator
Competitor
Solicitor