MTP 1

Capital Market Dealers Module
1. Which of the following is the purpose of Balance Sheet?

a) To show the operational position of a business.
b) To show the financial position of a business.
c) Both a & b.
d) None of the above.
2. What is the purpose of the Profit & Loss account?

a) To show the financial position for a particular period.
b) To show the profitability position for a particular period
c) To show the financial position as on particular date.
d) To show the profitability position as on particular date.
3. What do you understand by “Time value of the Money”?

a) Different values for a unit of money in different time periods.
b) Same value for a unit of money in same time periods.
c) Different values for a unit of money in same time periods.
d) Same value for a unit of money in different time periods.
4. The ratio of expected return to the standard deviation is called as _______________.

a) Standard deviation ratio
b) Sharpe’s ratio
c) Best Ratio
d) Standard ratio
5. Calculate the value 5 years hence of deposit of Rs.5, 000 made today if the interest rate is 10%.
a) 5082.00
b) 7500.00
c) 8052.55
d) 8082.75
6. What is the present value of Rs. 1,00,000 receivable after 5 years at discount rate of 10%?
a) 60,000
b) 62,902
c) 69092
d) 62092
7. The profits available to the ordinary share holders on a per share basis, after deduction of
taxes are called as _____________________.
a) Earnings per share
b) Dividends
c) Net profits
d) Preference Dividends.
8. What is Price to Earnings Ratio (P/E ratio)?

a) Market price of share / Earnings per share.
b) Earnings per share / Marker price of share.
c) Profits / Earnings ratio.
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9. Financial Leverage ratio is also known as ______________________.

a) Debt x Equity ratio
b) Debt / Equity ratio
c) Equity ratio
d) Debt ratio
10. Which of the following ratio is used to judge the liquidity of a firm?
a) Current assets ratio
b) Profitability ratio
c) Current ratio
d) Debt / Equity ratio
11. The measure of risk (standard deviation) is calculated by ______________.

a) Variance
b) Square Root of variance
c) Square of variance
12. The ratio of Gross Profit margin to net sales is called as ___________________.
a) Net sales ratio
b) Liquidity ratio
c) Profit margin ratio
d) Gross profit ratio.
13. What is the formula for calculating the future value of money?
a) FV=PV x (1+r)t
b) FV=PV x (1+r)
c) FV=PV x (1+t)r
d) FV=PV x (1+t)
14. Which of the following is true about private placements?

a) It is cost & time effective method of raising funds.
b) Not required detailed compliance with formalities
c) Both a & b
d) Only a
15. What is the estimated investor population in India?

a) 15 million
b) 15 to 30 million
c) 30 to 50 million
d) 50 million
16. What is the main reason for Corporates to enter in primary market for Issues?
a) To meet long term capital needs
b) To meet working capital requirement.
c) For expansion of operations.
d) All of the above
e) Only a & b
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17. The market where securities are brought and sold is called as ___________________.
a) primary market
b) secondary market
c) stock exchange
d) none of the above
18. Government Securities are issued and auctioned by ________________.

a) Central Government
b) RBI
c) SEBI
d) Both RBI & SEBI
19. Which of the following is not a market participant?

a) RBI
b) Money lender
c) Merchant Bankers
d) Under writers
20. What do you mean by GDRs?

a) Global Depository Receipts
b) Gold Deposit Receipts
c) Gold Deposit Rates
d) Gross Deposit Receipts
21. What is NCFM?

a) National Certification for Financial Markets
b) NSE’s Certification in Financial Markets
c) National Certification of Financial Markets
d) National Certification in Financial Markets
22. Which of the following is FALSE about Reforms of Securities Market?

a) FIIs have been permitted to invest in all types of securities.
b) Indian Companies have been permitted to raise resources form abroad through issue
of ADRs & GDRs.
c) Indian companies have not been permitted to setup trading terminals abroad
d) Trading platform of Indian exchanges accessible throughout world.
23. Which of the following is TRUE about NEAT?

a) Trading system is called as NATIONAL EXCHANGE FOR AUTOMATED TRADING.
b) It is an order driven system which matches buy & sell orders on price time priority.
c) The system discloses the identity of buyer and seller.
d) All of the above statements
e) Only a & b
24. Derivative trading in India was introduced in _______________________.

a) August 2000
b) June 2000
c) July 2000
d) Sept 2000
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25. Which of the following are considered very safe by the Indian Investors?
a) Mutual Funds
b) Units of UTI
c) Bank Deposits
d) Equity Shares
26. NCFM examination NOT allows the flexibility in terms of ______________

a) Candidates presence
b) Testing centre
c) Testing time
d) Date of Test
27. Which of the following are the statutory powers of SEBI, which are empowered by SEBI Act 1992?
a) protecting the interests of investors in securities
b) promoting the development of securities market
c) regulating the securities market
d) All of the above
28. ________________ deals with issue, allotment and transfer of securities and various
aspects relating to company management.
a) SEBI Act 1992.
b) Companies Act 1956
c) Depositories Act 1996
d) SCRA Act 1956
29. _____________ was passed to provide for the establishment of depositories in securities
with the objective of ensuring free transferability of securities with speed & accuracy.
a) SEBI Act 1992.
d) SCRA Act 1956
30. The governing regulators of securities market are __________________.

a) Department of Economic Affairs, Securities Appellate Tribunal
b) RBI, SEBI
c) Only a
d) Only b
e) Both a & b
31. ________________ provides for direct and indirect control of virtually all aspects of
securities trading and the running of stock exchanges.
a) SEBI Act 1992.
d) SCRA Act 1956
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32. As per section 2 (h) of SCRA Act 1956, securities includes,

a) Shares, scrips, stocks, bonds, debentures, debenture stock
b) Derivatives, government securities, units or any other instrument issued by any
collective investment scheme.
c) Rights & Interests in securities.
d) Only a & b
e) a, b, & c
33. A contract which derive its value from the prices, or index of prices of underlying
securities is known as ___________________.
a) Derivative
b) Options
c) Futures
d) Stock Futures
34. Which of the following are bye-laws of the Stock-Exchange?

a) Opening & Closing of markets
b) Regulation of hours of trade
c) Fixing, altering or postponing the days of settlements
d) Regulation of taravani business
e) All of the above.
35. Which of the following should be comply with, in order to list the securities in an
exchange?
a) Listing agreement
b) Listing Period
c) Listing proposal
d) All of the above
36. SCRA Act 1956 is not applicable to ________________.

a) RBI
b) SEBI
c) DCA
d) DEA
37. Companies aggrieved with refusal of listing by a recognised stock exchange can make
appeal to _____________.
a) RBI
b) SEBI
c) DCA
d) SAT
38. Which of the following is not required for the qualification for membership of recognised
stock exchange?
a) He is of twenty one years of age.
b) He is citizen of India
c) He has compounded with his creditors
d) He has not been convicted of an offence
e) He has not been expelled or declared defaulter.
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39. Every member of a recognised stock exchange has to maintain & preserve the books of
accounts for the period of ____________
a) 2 years
b) 3 years
c) 4 years
d) 5 years
40. Every member of a recognised stock exchange has to maintain & preserve counterfoils or
duplicate of contract notes issued to clients, for the period of ____________
a) 2 years
b) 3 years
c) 4 years
d) 5 years
41. All the intermediaries in the market such as Brokers, Sub-brokers, Underwriters, Merchant
Bankers are required to register with ________________.
a) RBI
b) SEBI
c) NSE
d) DCA
42. Which of the following is/are the functions of SEBI?

a) Regulating the business in stock exchanges and other securities market.
b) Promoting investors education and training of Intermediaries.
c) Promoting Insider Trading regulations
d) Only a & b
e) a, b & c
43. Number of Members in the Board of SEBI are _________

a) 3
b) 4
c) 5
d) 6
44. Which of the following punishment(s) is/are imposed by SEBI, for violation of provisions
of SEBI Act 1992?
a) Suspension or Cancellation of registration.
b) Monetary Penalties
c) Either a or b
d) Both a & b
45. Which of the following punishment(s) is/are imposed by SEBI, for contravening any of
provision of SEBI Act 1992?
a) Suspension or Cancellation of registration.
b) Monetary Penalties
c) Either a or b
d) Both a & b
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46. Any person aggri9eved by an order of SEBI can appeal before _________ and incase by
order or decision of SAT may file an appeal to ____________.
a) SAT, High court
b) RBI
c) RBI, High court
d) RBI, SEBI
47. Which of the following is NOT TRUE regarding Capital Adequacy Norms for Brokers?
a) Every Stock Broker is required to maintain Base Minimum Capital
b) Base Minimum Capital to be maintained is stipulated by SEBI
c) The amount of Base Minimum Capital is same for all the exchanges
d) Base Minimum Capital is used for giving exposure/turnover.
48. Which of the following is CORRECT about conditions for granting the certificate by
SEBI to a Stock-Broker?
a) He holds the membership of any Stock Exchange
b) He shall abide by the rules, regulations, Bye-laws of stock exchange
c) He shall pay the amount of fees for registration
d) He shall obtain prior permission of SEBI in case of change in status or constitution
e) All of the above
49. _______________ means any investor buying or selling securities on cash transaction for
a market value not exceeding Rs.50000 in aggregate on any day.
a) Small Investor
b) Retail Investor
c) Individual Investor
d) Institutional Investor
50. Which of the following is NOT a criterion for granting the certificate to a Sub-Broker?
a) He has not been convicted in any offence
b) He is of 21 years of age or more
c) He is not qualified NCFM exam
d) He has atleast qualified 12th standard equivalent examination
51. What is the maximum quantum of punishment imposed on any person found guilty for
Insider Trading?
a) Fine only
b) Imprisonment only
c) Fine or Imprisonment
d) Fine and/or Imprisonment
52. Which of the following is/are prohibited by SEBI (Prohibition of Fraudulent and Unfair
Trade Practices relating to securities market ) regulations, 1995?
a) Dealing in securities in fraudulent manner
b) Market manipulation & Unfair trade practices relating to securities
c) Misleading statements to induce sale or purchase of securities
d) All of the above
e) Only a & b
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53. _______________ is a person whose name is recorded as such with a depository.

a) Beneficial Owner
b) Registered Owner
c) Depository Participant
d) Actual Owner
54. Any information which relates to the financial results of a company and is not generally
known or published by that company is called as ________________.
a) Financial Information
b) Unpublished price sensitive Information
c) Unpublished information
d) Sensitive information
55. As per _________________, a contract is an agreement enforceable by the law.

a) Indian Contract Act 1872
b) SEBI Act 1992
c) SCRA Act 1956
d) Companies Act 1956
56. A certificate under the common seal of a company, specifying the number of shares held
and is prima facie evidence of the title to such shares is called as ____________.
a) Share Certificate
b) Certificate of Shares
c) Shares
d) All of the above
57. A general meeting of a company may be called by giving at least __________ days of
notice in writing.
a) 7
b) 15
c) 21
d) 30
58. The Investor Education & Protection Fund which is utilised for promotion of awareness
amongst the investors and for the protection of interest of investors is credited with
following except,
a) amounts in the unpaid dividend accounts
b) application money received for allotment of any security
c) matured deposits & interest accrued on the amounts on dividends & debentures.
d) contribution made by the Stock Brokers
59. Which of the following entity is entitled for the Rights Issue in respect of securities held
by a Depository?
a) Registered Owner
b) Beneficial Owner
c) Actual Owner
d) Depository Participant
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60. Every Sub-Broker shall pay the registration fees of Rs._______ for first five years and
Rs._______ as long as the certificate remains in force.
a) 5,000 & 1,000
b) 1,000 & 500
c) 1,000 & Nil
d) 5,000 & Nil
61. A penalty of cancellation of registration of a stock broker may be imposed if,

I The Stock-Broker violates any provisions of Insider Trading or Takeover regulations
II. The Stock-Broker found guilty of fraud or is convicted of a criminal offence
III Stock exchange cancels the membership of the Stock-Broker.
a) Only I& II
b) Only II & III
c) Only III
d) I, II & III
62. A Stock-broker or sub-broker shall not buy, sell and deal in securities, unless he holds the
certificate granted by _____________
a) RBI
b) SEBI
c) NSE
d) All of the above
63. A Broker is a person who arranges to buy and sell securities on behalf of _____________.
a) Different exchanges
b) Buyer & Seller
c) Purchaser & Exchange
d) Seller & Exchange
64. Persons or Institutions desirous of securing admission as Trading Members can apply for
any for the following segment groups except,
a) Wholesale Debt Market
b) Capital Market & Wholesale Debt Market
c) Capital Market & Futures and Options
d) Wholesale Debt Market & Futures and Options
65. Which of the following is/are taken into consideration by SEBI for granting registration
to a Stock-Broker?
a) He is eligible to be admitted as Stock-Broker & has the necessary infrastructure.
b) Has any past experience in the business of securities
c) He is being subject to disciplinary proceeding under the rules, regulations & bye-laws
of stock exchange.
d) All of the above
66. Which of the following is/are TRUE in regarding, not admitting a person as a TM?
a) He has not been adjudged bankrupt or a receiver of order in bankruptcy
b) He has been convicted of a criminal offence
c) He has not compounded with his creditors.
d) a & c
e) only b
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67. A Corporate entity shall have, not less than 2 directors as a qualified directors who shall be,
a) atleast graduates
b) atleast graduates & have 1 of year of experience in securities market.
c) atleast graduates & have 2 of years of experience in securities market
d) atleast graduates with NCFM qualification
68. Minimum paid-up capital & Networth required for an entity to apply for membership in
CM and F&O segments is _____________.
a) 30 Lakhs & 50 Lakhs
b) 50 Lakhs
c) 100 Lakhs
d) 30 Lakhs & 100 Lakhs
69. If an Individual member upgrades himself to Corporate Membership, then he should hold
at least _________ of the paid up capital of the proposed corporate.
a) 40%
b) 50%
c) 51%
d) 41%
70. Dominant Promoter group is a group of shareholders of the corporate trading member,
who normally would be individuals not exceeding ___ numbers and would jointly and/or
severally hold not less than ______ of shares or _____ in case of listed companies.
a) 4, 40%, 51%
b) 4, 51%, 40%
c) 3, 51%, 50%
d) 4, 50%, 40%
71. What is the lock-in period of deposits made by the Trading member, who applied for
surrender of Trading Membership?
a) 3 months
b) 6 months
c) 12 months
d) 24 months
72. Which of the following punishment(s) is/are imposed on failing to provide Margin
deposits and / or deposits to meet Capital Adequacy Norms?
a) Expulsion
b) Suspension of Business
c) Fine
d) Expulsion and Fine
73. A sub-broker is a person who intermediates between _____________ & ____________.

a) Investors & Investors
b) Investors & Broker
c) Investors & Exchange
d) Broker & Exchange
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74. What is the percentage of amount to be collected form clients as upfront margin, if the
margin in respect of the client in the settlement works out to be more than 5 Lakhs?
a) 5%
b) 10%
c) 15%
d) 20%
75. Which of the following is FALSE in regarding the contract notes issued by Trading Members?
a) Contract Notes must be issued within 24 hours of the execution of orders
b) Contract Note must contain the details of trade such as trade number, order no, trade time,
security name, quantity, brokerage, settlement no & details of other levies.
c) Contract Note must be duly signed by TM or his authorised signatory
d) Contract Note must be in prescribed format & stamp duty is paid.
e) None of the above
76. The Contract Note should contain name, ___________________ and SEBI registration
number of Trading Member.
a) Registered Office Address
b) Dealing Office Address
c) Registered Office Address as well as Dealing Office Address
d) Registered Office Address and / or Dealing Office Address
77. Every Trading Member shall make payments to his clients or deliver securities purchased
within ______________ of pay-out.
a) T+2 days
b) 2 working days
c) 24 hours
d) 48 hours
78. What is the maximum brokerage chargeable by TM in respect of trades executed in the
securities on Capital Market segment?
a) 1.0%
b) 1.5%
c) 2.0%
d) 2.5%
79. Which of the following is NOT TRUE in relating to brokerage charged by TM?
a) Maximum brokerage is inclusive of brokerage charged by sub-broker.
b) Brokerage shall be charged and indicated separately from the price
c) TM may share brokerage with a person who is a TM or in employment of another TM.
d) Maximum brokerage is exclusive of statutory levies.
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80. Calculate the maximum brokerage chargeable by the TM for the following transactions.
Buy 1000 shares of Scrip A for Rs.50
Sell 500 shares of Scrip A for Rs.60
a) 750
b) 1000
c) 2000
d) 1750
81. Calculate the maximum brokerage chargeable by the TM for client X for the following
transactions.
• Buy 2000 shares of Scrip A @ Rs.120 for client X
• Sell 1000 shares of Scrip A @ Rs.130 for client X
• Buy 2500 shares of Scrip B @ Rs. 50 for client X
• Buy 1500 shares of Scrip B @ Rs. 55 for client Y
a) 12375.00
b) 14437.50
c) 3250.00
d) 1500.00
82. The Sub-broker shall make payments to his clients or deliver securities purchased within
____ of pay-out
a) 24 hours
b) 48 hours
c) 2 working days
d) T+2 days
83. What is the maximum brokerage (in percentage terms) that can be charged by a sub-
broker from his client?
(a) 1.5 %
(b) 2.5 %
(c) The percentage is based on the total turnover of the client and is negotiable
(d) No specific limit is prescribed
84. What is the maximum brokerage chargeable by sub-broker for the following transactions?
* Bought 2000 shares of scrip Z @ Rs.156 * Sold 2000 shares of scrip Z @ Rs. 150
a) 9180
b) 9810
c) 8910
d) 8190
85. Purchase / Sale note is issued by _____________.

a) Stock-Broker
b) Sub-Broker
c) Either a & b
d) Both a & b
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86. Investor’s complaints against the Trading Member in respect of claims / disputes for
transactions on NSE are handled by ________________.
a) Investor Grievance Cell
b) Grievance Cell
c) Complaints Cell
d) Investor Complaints Cell
87. Minimum Number of bank accounts for client funds to be maintained separately are ______
a) 1
b) 2
c) 3
d) No limit
88. The reference for arbitration shall be filed within ___ months from the date of dispute
arose between the parties.
a) 3
b) 4
c) 5
d) 6
89. Which of the following is/are CORRECT about agreement executed as a part of Broker-
Client Relation?
a) TM shall enter into agreement in the specified format
b) The said agreement shall be executed on non-judicial stamp paper of adequate value
c) The agreement shall duly signed by the both parties and the copy of such shall be with TM
d) All of the above
90. The respondent is called upon to file his reply with his list of arbitrators within _________
a) 15 days
b) 30 days
c) 45 days
91. _________number of arbitrators appointed for the claim amount less than 25 Lakhs and
____ for the claim amount is more than 25 Lakhs.
a) 1, 3
b) 1, 2
c) 1, 5
d) 2, 5
92. The arbitration fees is borne by ___________

a) aggrieved party
b) respondent
c) as decided by arbitration panel
d) equally
93. An arbitration award is enforceable under/by ____________
a) Central Government
b) Code of Civil Procedure SEBI Act 1992
c) SEBI
d) RBI
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94. Which of the following, shall a TM obtain prior approval for issuing advertisements in
the media and to comply with code of Advertisement?
a) Exchange
b) RBI
c) SEBI & Exchange
d) SEBI
95. Which of the following not falls under code of conduct of SEBI regulation 1992?
a) Execution of orders
b) Breach of Trust
c) Issuance of Contract Notes
d) Fairness to Clients
96. Which of the following statement(s) is/are true in relation to complying with code of
Advertisement prescribed by the Exchange?
a) TM should designate a person to ensure the correctness of the information given in
any advertisement.
b) The Advertisement should not contain any confusing, misleading or offensive information
c) The advertisement should be free form inaccuracies & contain name and code of NSE
membership
d) The copy of such advertisement should be retained for 1 year.
97. Which of the following conditions are to be fulfilled by the TM for getting permission for
surrendering the membership?
a) clearing off all the dues to the exchange and obtaining no due certificate from SEBI
b) notifying all other TMs of the approval of surrender
c) Issuance of advertisement in two leading dailies
d) All of the above
98. A clause must be mentioned in every contract note:

(a) Client will hold the security blank at the trading member's risk
(b) Client will not hold the security blank at the trading member's risk
(c) Client will hold the security blank at its own risk
(d) Client will not hold the security blank at its own risk
99. The following is the Balance Sheet of ABC Co. Ltd. (Rs.in Crores)
Liabilities Amount Assets Amount
Share Capital 15.00 Fixed Assets 39.00
Reserves & Surplus 8.50 Cash & Bank 00.60
Secured Loans 12.80 Debtors 15.60
Unsecured Loans 22.30 Prepaid Expenses 0.75
Current Liabilities 12.60 Stock 13.20
Long Term Investments 2.05
Total 71.20 71.20
Calculate Debt to Equity ratio from the above the table?

a) 1.49
b) 1.91
c) 0.86
d) 3.06
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100.Calculate current ratio from the above the table?

a) 1.24
b) 2.33
c) 1.44
d) 2.39
101.Which of the following is not currently available in Normal market?

a) Pre-Open phase
b) Opening phase
c) Open phase
d) Market Close
102.Which of the following is CORRECT about SURCON period?
a) It is a Surveillance & Control period after market close.
b) It is the period during which users have inquiry access only.
c) It is the period during which system processes the data for making system available
for the next Trading day.
d) All of the above
e) None of the above
103.Which of the following is the top most level in hierarchy?

a) Corporate Manager
b) Branch Manager
c) Dealer
d) User
104.Which of the following is lowest level in hierarchy?

a) Corporate Manager
b) Branch Manager
c) Dealer
d) User
105.The NEAT system supports an order driven market, wherein order match on the basis of ___.
a) time priority
b) price priority
c) time – price priority
d) price – time priority
106.What do you mean by abbreviation of word NEAT?

a) National Exchange for Automated Trading
b) National stock Exchange’s Automated Trading.
c) Both a& b
d) None of the above
107.Which of the following is NOT TRUE about Corporate Manager?

a) Corporate Manager receives the End of day reports for all branches
b) Corporate Manager can set Branch Order Value limits for all branches
c) Corporate Manager can set Order Value limits for the dealers of his hierarchy can
modify orders for his all branches & dealers.
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108.Which of the following is CORRECT about Branch Manager?

a) Branch manager can view orders of all users of his branch.
b) Branch manager can set up order limits for a dealer of his branch
c) Branch Manager is placed under Corporate Manger.
d) Only a & b
e) a, b & c
109.Which of the following order & trade related activities is NOT available to a Dealer?
a) can view order & trade related activities of oneself.
b) can perform order & trade related activities of oneself.
c) cannot have access to information of the dealers under the same branch
d) can set order value limits for oneself.
110.The user is automatically disabled if _________ attempts are made by a user with
incorrect password.
a) 1
b) 2
c) 3
d) 4
111.__________ displays the permissible price band for a security for the current trading day.
a) Price Range
b) Daily Price Range
c) Market Watch
d) Market by Price
112.Which of the following is CORRECT regarding Market Watch screen in NEAT?

a) the purpose of market watch window is to setup and view trading details of securities
that are of interest to users.
b) For each security, market information such as best buy price, best sell price, last
traded price, etc. are displayed.
c) Market watch screen is the focal area for the users.
d) Only a & c
e) a, b & c
113.Which of the following option displayed on invoking log-off screen?

a) permanent sign-off & temporary sign-off
b) permanent sign-off & exit
c) permanent sign-off, temporary sign-off & exit
d) exit only
114._____________ enables the user to view messages broadcast by the Exchange such as
corporate actions, market news, auction related information, order modification, order
cancellation ect.
a) Ticker window
b) Message window
c) Market watch window
d) Market message window
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115.Which of the following symbol is used to indicate that a security is Ex-Bonus?

a) Bonus
b) Ex-B
c) XB
d) EB
116.Which of the following is NOT a purpose of Market By Price in NEAT system?

a) MBP enables to view outstanding order in the market
b) The order appears in a Price/ Time priority with BEST PRICED at the top.
c) It displays information of number of buy orders, sell order price, gross orders etc.
d) It displays permissible price band for a security
e) It displays market type, symbol, series, total traded quantity, LTP, % change in LTP.
117.____________ shows all the activities that have been performed on any order belonging to
that user.
a) Market Watch window
b) Activity Window
c) Activity Log
d) Message Log
118.Which of the following term displayed in activity log to indicate that the order was cancelled?
a) AC
b) OC
c) ORC
d) OX
119._________________ is a feature available in the system to get instantaneous market

information on a desired security
a) Snap Quote
b) Market Movement
c) Activity Window
d) Market Watch
120.Which of the following symbol is displayed in Auction Inquiry to indicate “Auction is Over”?
a) S
b) M
c) F
d) X
121._____________ is a facility for setting up the securities in the market watch screen and
also to setup the user’s own portfolio.
a) Market Watch
b) Security / Portfolio list
c) Market By Price
d) Basket Trading
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122.Which of the following is FALSE about the facilities of Online Backup?

a) this facility is used to take back-up of all order and trade related information
b) this facility is used to generate contract notes
c) this facility generates two ASCII files namely order.txt & trade.txt
d) this facility can only be availed by logging into NEAT system only.
123.Which of the following is not a supplementary function of NEAT system?

a) Report selection & Online Backup
b) Full Message display
c) Most Active Securities
d) Activity Log
124.What do you mean by the message code “AUC” in full message display option?
a) Auction Order/Trade messages
b) Auction Market messages
c) Auction Securities messages
d) Auction initiated
125.____________ window allows the corporate manager & branch manager to specify the
number of copies to be printed for each report.
a) Report Print selection
b) Report selection
c) Print selection
d) Report Print window
126.The branch order value limit set on 20th March for a branch X is 250 Lakhs. A dealer has
entered orders worth Rs.220 Lakhs of which 60 Lakhs got traded, orders worth 85 Lakhs of
the remaining orders, are GTC orders. The dealer has cancelled orders worth 20 Lakhs, which
are of GTC orders. What will be the Branch order value limit available on 21st March?
a) 250 Lakhs
b) 165 Lakhs
c) 85 Lakhs
d) 185 Lakhs
127.The branch order value limit set on 1st May for a branch X is 180 Lakhs. A dealer has entered
orders worth Rs.120 Lakhs for branch A of which 90 Lakhs got traded, orders worth 15
Lakhs of the remaining orders are GTC orders. What will be the Branch order value limit
available for the Branch X on 2nd May?
a) 165 Lakhs
b) 185 Lakhs
c) 180 Lakhs
d) 60 Lakhs
128.Investment Ltd. a trading member on NSE has a branch order limits of Rs.900 Lakhs for
its Vijayawada branch & Rs.800 Lakhs for vizag branch. Vijayawada branch has 3 users
A, B & C with user limits of 300, 250 & 150 Lakhs respectively. Vizag branch has 2
users X & Y with user limits of 400 & 280 Lakhs respectively. The member applied for
new user at vizag branch. What is the maximum user order value available for new user?
a) 120 Lakhs c) 200 Lakhs
b) 320 Lakhs d) 280 Lakhs
Page 18 of 53
129.Financial Services Ltd. is a trading member on NSE is having two branches each at Madras
& Bangalore with branch order value limits of 700 Lakhs and 650 Lakhs respectively.
Madras branch has 3 users A, B & C with user limits of 300, 250 & 150 Lakhs. Vizag
branch has 2 users X & Y with user limits of 200 & 280 Lakhs. The member applied for new
user at Madras branch. What is the maximum user order value available for new user?
a) No order limit available
c) 170 Lakhs
d) 150 Lakhs
e) 120 Lakhs
130.______________ facility allows the user to have a drop down list of client codes and to
modify, add, upload nor delete clients.
a) Client Master
b) Client Maintenance window
c) Client Master Maintenance
d) Client Manager window
131.The order attribute selection enables the user to set default parameters for two fields
PRO/CLI/WHS and _________ Id fields in the order entry screen.
a) Client
b) Member
c) Custodial Participant
d) Institutional
132.When an order enters the trading system, it is an________ order. It tries to find a match
on other side of the books. If it finds a match, a trade is generated & if not the order
becomes a ________ order and sits in _____________ book.
a) Active, Passive, Order
b) Passive, Active, Trade
c) Active, Passive, Trade
133.The following are the different order books available in Capital Market segment except,
a) Regular Lot Book & Odd Lot book
b) Special Terms Book & Stop Loss book
c) Negotiated Trade Book & Auction order book
134.Which of the following is NOT TRUE about Stop Loss Book in NEAT system?
a) SL orders entered into market when the LTP for that security reaches the trigger price
b) Before triggering, the order participates in matching
c) Untriggered stop loss order are stacked in stop loss book
d) Stop Loss orders can be either a market or limit order
Page 19 of 53
135.Which of the following is CORRECT relating to Special Term Book?

a) Special Term orders are those orders which have special term attribute attached to it.
b) Special term order scans the orders existing in special terms as well as regular lot book
c) Special terms can be MF or AON.
d) All of the above
136.AT OPENING PRICE (ATO) is a price, arrived at by system at the end of _______ phase.
a) Pre-open
b) Opening
c) Open
d) Market Close
137.Which of the following statement(s) is /are NOT TRURE about Trade Modifications?
a) Approval form Exchange is must for trade modification
b) The quantity for trade modification must be lower than original trade quantity.
c) The dealer can request for trade modification for any trades of his branch.
d) The user can request for trade modification by using the function key provided.
138.Auctions are initiated by the ____________ on behalf of Trading members for settlement
related reasons.
a) RBI
b) SEBI
c) Exchange
d) Solicitor
139.Which of the following statement(s) is/are FALSE relating to Auction Market?

a) Competitor orders are the orders, which compete with initiator’s orders.
b) After completion of competitor period, the solicitor period starts.
c)
d) Order matching takes place after initiator period.
e) Competitor & Solicitor period for any auction are set by the exchange
140.Member X places a buy order for 1000 shares of AAC @ Rs.450 per share. Member Z
places a sell order for 2000 shares of ACC @ Rs.425 per share. Assume that no orders
were available at that time. At what price the trade will take place?
a) 1000 shares of ACC will get traded at Rs.450 per share
b) 2000 shares of ACC will get traded at Rs.425 per share
c) 1000 shares of AAC will get traded at Rs.450 per share
d) No trade takes place.
141.Mr. Rohit placed a sell order for 500 shares of Reliance @ Rs.250 per share. Later Raj
placed a buy order of 1000 shares @ Rs.245 per share. At what price the trade will
execute and for what quantity?
a) No Trade will take place.
b) 500 shares of Reliance @ Rs.245 per share
c) 500 shares of Reliance @Rs.250 per share
d) 1000 shares of Reliance @ Rs.247.50 per share
Page 20 of 53
142.Auction is held in Wipro for 1000 shares. The closing price of Wipro at that day was Rs.450,
the last traded price on that day was Rs.460 and the price on last trading day was Rs.470.
The price band applicable for Wipro is +/- 20%. What is the maximum price allowable to
put a sell order?
a) 500
b) 564
c) 540
d) 552
143.Which of the following statement is NOT CORRECT regarding Bhav Copy?

a) Bhav Copy is downloaded in reports directory on daily basis.
b) It is downloaded immediately after market close time.
c) Only last seven Bhav copy files are stored in reports directory.
d) Bhav copy file comes with file extensions .ms & .md
144.Which of the following indicator is displayed for a security, when the company for the
security announces Extraordinary General Meeting (EGM)?
a) XO
b) XE
c) XD
d) XB
145.Internet trading on NSE started from ___________

a) January 2000
b) February 2000
c) March 2000
d) April 2000
146.Wireless Application Protocol (WAP) was launched in November 2000. This provides
access to its order book through the hand held devices, which uses WAP technology. It is
very useful to retail investors who are mobile and want to trade from any place.
147.What is a Trades Done Today report/file?
a) It is a file, which shows the details of the trading activities of the Trading Member
b) It gives the details of trades done today by all dealers of the TM.
c) It shows the details of order & trade related activities of the TM.
d) Only a & b Only a & c
148.Which of the following is/are NOT TRUE about Order log in NEAT system?
a) Order log gives the report, which shows the activity log of the orders for all dealers of TM.
b) Order log shows the details of the orders which are entered & modified
c) Order log comes with a file extension cld/bld.
149.Which of the following is/are TRUE about Order/Trade slips generated in NEAT system?
a) Trade & order slips are generated on-line
b) Various order/trade slips are confirmation/modification/cancellation/rejection slips.
c) Members can also take print of confirmation slips at the end of day from reprint option.
d) Members are required to keep the trade confirmation slips for a period stipulated by NSE.
e) All of the above.
Page 21 of 53
150.Which of the following validation checks are performed to verify competitor & solicitor orders?
I For a competitor order - the auction in which order is desired is in competitor period
II For a solicitor order-the auction in which order is desired is either in competitor or solicitor
period
III Auction order entry in auctions, which are yet to in pending state or which or cancelled is
prohibited.
a) Only I & II
b) Only I & III
c) All of the above statements
d) None of the above statements
151._________ is a party who enters on the opposite side as of the initiator.

a) Competitor
b) Exchange
c) Initiator
d) Solicitor
152.Which of the following indicator is displayed when a scrip goes ex-dividend on a trading day?
a) XB
b) XD
c) X*
d) ED
153.Which of the following indicator is displayed against a security, if that security comes
along with rights?
a) XR
b) CR
c) ER
d) X*
154.Which of the following check(s) is/are performed by the NEAT before a trade is effected?
Statement I - The security in which trade is to be effected is not suspended form operations.
Statement II – Trading members involved in trade are not suspended form operations.
Statement III – Turnover limits for the trading members involved are not exceeded.
a) All the three
b) only I & II
c) only II
d) only I & III
155.When a request for trade cancellation is rejected by the exchange a ____________ slip is
generated at the trader’s workstation.
a) Trade cancellation
b) Rejection of Trade
c) Trade Rejection
d) Trade Cancellation Rejection
Page 22 of 53
156.What is the minimum allowable price to place a buy order in auction for ZEE , if the closing
price of ZEE on that day was Rs.120, previous day’s closing price was Rs.140
LTP was Rs.140 and the price on last day was Rs.125 (Price Band for auction market is 20%)
a) 118
b) 112
c) 126
d) 30
157.______________ report gives the details related to all the securities traded on that day
and information regarding Open, High, Close, Previous Close & % change.
a) Market watch
b) Full message
c) Market Statistics
d) Market Inquiry
158.Which of the following option enables a user to cancel multiple outstanding orders in
various trading books?
a) Order Cancellation
b) Quick Order cancellation
c) Multiple Order cancellation
d) Multiple cancellation
159.Which of the following is generated when a request for order modification is place in NEAT?
a) Order confirmation slip
b) Order modification slip
c) Trade modification slip
d) Order request slip
160.Which of the following is FALSE in regarding order cancellation in NEAT system?

a) Order cancellation can be done during trading hours by selecting the function key.
b) Order cancellation is available for all book types.
c) User can cancel auction initiator & competitor orders in auction market
d) Order cancellation not allowed for NT that has not resulted as an alert.
161.Which of the following statement(s) is/are FALSE about Order Modifications?

a) Corporate Manger cannot modify order details such that it exceeds the branch order
value limit set for the day
b) Order modification can be performed by a TM who is deactivated by the exchange.
c) A corporate manager can modify his own trades as well as orders of all dealers of TM.
d) All of the above
162.Branch order value limit can be set by ________________

a) Branch manager
b) Corporate manager
c) Either of a & b
d) Both of a & b
Page 23 of 53
163.An order that has no specified condition associated with it is called as ________ order
a) Regular Lot
b) Negotiated Trade
c) Special Terms
d) Stop Loss
164.Order entry is not possible for a security in normal market, if the security is ________
from trading or _________ to trade.
a) suspended, defaulted
b) suspended, not eligible
c) not permitted, suspended
d) defaulted, not eligible
165.If a security is not eligible to trade in the normal market, a message “_______________”
is displayed on order entry screen.
a) security not eligible to trade
b) security not permitted to trade
c) security suspended from trading
d) security defaulted to trade.3
166.Which of the following is NOT CORRECT about negotiated trades?

a) to enter negotiated trade order details, NT should be selected.
b) It is optional for a trading member to enter counter party TM Id.
c) Approval of exchange is must for negotiated trades.
d) Two trading members can negotiate a trade outside the exchange.
167.__________ order allows the user to bur or sell a security as soon as the order is released
into the system.
a) Immediate or Cancel
b) Cancel
c) Minimum Fill
d) All or None
168._________ order allows the user to specify minimum quantity for which order should be traded
a) Immediate or Cancel
b) Minimum Quantity
c) Disclosed Quantity
d) Minimum Fill
169.What do you mean by message code “SPD” in full message display screen?
a) system messages
b) security suspension messages
c) suspension messages
d) scrip details.
Page 24 of 53
170.Which of the below given statement is FALSE in relation to user order limit set up?
a) Corporate manager can set order value limits for all dealers of a TM
b) Corporate manger can set branch order value limits without assigning user order value limits
c) User order value limit cannot be set as unlimited, if branch order value limit is set as
specific value.
d) Cumulative value of user order limits shall not exceed the corresponding branch order
value limit.
171.______________ is a facility, where the user can generate order file in a specific format
outside the trading system and upload the file into NEAT system.
a) outside order entry
b) online order entry
c) offline order entry
d) order entry
172.Which of the following is the purpose of BASKET TRADING?

a) to create offline order entry file for all securities
b) to create online order entry file for all securities
c) to create online order entry file for selected portfolio
d) to create offline order entry file for selected portfolio
173.Which of the following message appears first when an order is place & trade executed
for that order?
a) Trade confirmation
b) Order confirmation
c) Both a & b
174.Which of the following windows is not displayed on trader workstation screen?

a) Full message window
b) Inquiry window
c) Market watch
d) Message window
175.Which of the following are special features of Market Watch screen?

A – Market Watch screen can be sorted alphabetically
B – The User has a facility to set up 500 securities in whole and 50 securities in one page
of Market watch screen
C – An indication for corporate actions for a security is available in market watch.
a) only A
b) only A & B
c) only A & C
d) A, B & C
Page 25 of 53
176.The branch manager cannot view outstanding orders for ________________

a) all dealers of all branches
b) all clients of his branch
c) own user Id
d) all dealers of his branch
177.________________ is an order that has been entered by user but which has not been
completely traded or cancelled.
a) pending order
b) outstanding order
c) cancelled order
d) executed order
178.Which of the following is not a special feature of MBP in NEAT system?
a) Regular lot & special terms orders can be viewed in MBP.
b) Only orders for best 5 prices can be viewed in MBP
c) The status of security, be it in pre-open phase or suspended is indicated in MBP screen
d) Untriggered stop loss order will be displayed in MBP screen.
179.Which of the following screen gives the snap shot for a particular security, for time
intervals parameterised by the exchange?
a) Market statistics
b) Market watch
c) Activity log
d) Market movement
180.Which of the following symbol in Activity Log is associated with sell order to indicate a match?
a) B
b) S
c) M
d) O
181.In Auction Inquiry, the symbol _______ displayed to denote “Auction is over”.
a) S
b) M
c) F
d) X
182.No delivery period for a security is displayed in ____________ option.
a) security information
b) security descriptor
c) security analysis
d) security window
183.Which of the following is FALSE about corporate action indicator in Market watch
screen of NEAT system?
a) ‘XD’ is displayed for a security, which goes ex-dividend.
b) Ex indicator appears till the end of no delivery period in which security goes ex-benefit.
c) ‘C*’ appears for a security with “cum rights”
d) If a security goes ex-benefit without having no delivery period period, ex indicator is
displayed only on ex date.
Page 26 of 53
184.Which of the following window in NEAT, is used to view the trade details of a dealer?
a) Trade inquiry
b) Market inquiry
c) Market trades
d) Previous trades
185.Which of the following option is used to set up order value limit for a user?
a) User order value limit
b) Branch order value limit
c) Order value limit
d) User order limit
186.Any order below or above 20% over the base price of securities included in indices
comes to the exchange as ____________
a) Price freeze
b) Quantity freeze
c) Order freeze
d) Trade freeze
187.S&P CNX Defty consists of _____________.

a) 50 securities expressed in Rupees
b) 50 securities expressed in Dollars
c) 50 securities expressed in Pounds
d) 50 securities
188.Which are the following is CORRECT about order limits option in NEAT system/
a) It is used to specify maximum value per order and maximum quantity per order that
can be entered in NEAT.
b) It is used as a safety measure against any error during data entry of orders.
c) ‘Unlimited’ can be set in “Order quantity” field.
d) All of the above.
189.The best buy price, best sell price, last traded price etc. of a security are displayed in ___
a) Market watch
b) Market Inquiry
c) Market By Price
d) Inquiry window
190.Which of the following is/are the features of Temporary Sign-Off option in log-off application?
A – This feature allows the users to disallow the use of trading software without logging off
B – It is automatically activated when the user is inactive for 5 minutes.
C – During temporary sign-off, the application continues to receive all market updates.
a) only A & B
b) only B & C
c) A,B & C
d) Only C
Page 27 of 53
191.In Market Inquiry window, the symbol “P” indicates that the security is ____________.
a) Suspended
b) Permitted to trade
c) in pre-open phase
d) in opening phase
192.Which of the following screen displays information of NSE indices and their 52 weeks
high, 52 weeks low, up moves, down moves & market capitalization?
a) Market Index Broadcast
b) Multiple Index Broadcast & Graph
c) Market Index window
d) Market Movement window.
193.The book in which limit orders are stored and all market orders are crossed against the
limit orders sitting in that book and is visible to all market participants is _________
a) OECLOB
b) OECLB
c) OEELOB
d) Order book
194.The purpose of _____________ is to provide with facility of buying & selling securities
that comprised the index.
a) Basket Trading
b) Buy Back trades
c) Index trading
d) Market watch
195.Which of the following combination of orders is valid?

a) DQ & AON
b) IOC & DAY
c) SL & MF
d) GTC & GTD
196.Orders for which price is determined by the system is called as _____________

a) limit order
b) market order
c) system order
d) special order
197.Closing prices of securities traded on a day can be had from ___________

a) Online Back-up
b) Security Information
c) Reports
d) Bhav Copy
Page 28 of 53
198.Which of the following is/are TRUE about trade confirmations slips generated in NEAT?
a) Trade confirmation slip is generated when a trade takes place
b) Trade confirmation slip gets printed with a unique trade number
c) Neat system broadcasts a message to entire market displaying the details of trade.
d) All of the above
e) Only a & c.
199.An order, which is cancelled automatically during the day, is called as _________.
a) Limit order
b) Market order
c) Day order
d) GTC order
200.Suresh & Co. has a branch in Hyderabad with branch order value of Rs. 800 Lakhs. It
has 2 users A & B with user order value limits of Rs.150 & 250 Lakhs respectively. The
company applied for 2 users C & D for the branch. What are the user order value limits
available for new users?
a) 100 & 300 Lakhs
b) 200 & 200 Lakhs
c) 300 & 100 Lakhs
201.How may depositories are there in India?

a) 2
b) 3
c) 85
202.What do you mean by NSDL?

a) National Securities Depository Limited
b) NSE’s Security Depository Limited
c) National Stock Depository Limited
d) National Securities Depositories Limited
203.Which of the following statement(s) is/are TRUE about dematerialisation of shares?

Statement I - NSDL provides electronic transfer of securities
Statement II - More than 99% of turnover is settled in demat form.
Statement III - All actively traded scrips are held, traded & settled in demat form.
a) Only B & C
b) Only A & C
c) Only A & B
d) A, B & C
204._____________determines the funds/securities obligations of the trading members and

ensures that trading members meet their obligations.
a) Stock Exchange
b) NSE
c) NSDL
d) NSCCL
Page 29 of 53
205.Which of the following is NOT CORRECT about NSCCL & its functioning?
a) NSCCL provides platform for its trading members.
b) NSCCL is responsible for post trade activities of Stock exchange.
c) Clearing & Settlement of trades & Risk management are its central activities
d) It determines obligations of members and collects & maintains margins, base capital
and other funds
206.______________ are responsible for clearing & settling the trades of his associate
trading members & institutional clients.
a) Clearing Members
b) Professional Clearing Members
c) Custodians
d) Trading Members
207.Which of the following is FALSE about depositories and its role in settlement of trades?
a) Depositories help in settlement of dematerialised securities.
b) Every trading member is required to maintain a clearing pool account with the depositories.
c) Every Clearing member is required to make available the required securities in the
designated account on settlement day
d) The depository runs an electronic file to transfer the securities from accounts of CM to
that of NSCCL.
208.Every Clearing Member is required to open a dedicated clearing account with _________
of the clearing banks.
a) 1
b) 2
c) 3
d) None
209.Rolling settlement was introduced in India by __________

a) NSE
b) BSE
c) OTCEI
d) HSE
210.Which of the following banks is empanelled in the list of Clearing Banks by NSCCL?
a) State Bank of India
b) Punjab National Bank
c) Bank of India
d) Syndicate Bank.
211.Under T+2 rolling settlement, Pay-in & Pay-out takes place on _____________
a) same day
b) trade + 2th day
c) trade + 2th working day
Page 30 of 53
212.The clearing member pools all his client deliveries in __________ account before
making a delivery to NSCCL.
a) Pool
b) Delivery
c) Receipts
d) Beneficiary
213.NSCCL gives pay-out to the clearing member in _________ account from where it is
transferred to the pool account of Clearing members?
a) Pool
b) Delivery
c) Receipts
d) Beneficiary
214.Which of the following account is used by Clearing Members to deliver securities to NSCCL?
a) Pool
b) Delivery
c) Receipts
d) Beneficiary
215.Base Minimum Capital (BMC) requirement is utilised towards ______________
a) exposure / turnover
b) margin payment
c) both a & b
d) either a & b
216.Additional Base Capital (ABC) is utilised towards ___________

a) exposure / turnover
b) margin payment
c) both a & b
d) either a & b
217.Gross Intra Day turnover (Buy + Sell) of a member shall not exceed ________ times of
capital available with NSCCL.
a) 33
b) 33.33
c) 33.5
d) 8.5
218.If a member deposits 165 Lakhs with NSCCL as free capital, then the member can avail
___________ of turnover on a trading day.
a) 54.99 Crores
b) 33 Crores
c) 15 Crores
d) 50 Crores
219.Gross Exposure of a member shall not exceed ______ times of free base capital upto
Rs.1 Crore and ____ times of capital in excess of Rs.1 Crore.
a) 8.5, 10
b) 8.5, 8.5 crores+10
c) 8.5, 8.5+10
d) 8.5, 8.5
Page 31 of 53
220.If a member deposits 350 Lakhs as free capital with NSCCL, then Gross exposure
allowed is _______
a) 28 crores
b) 43.5 crores
c) 17 crores
d) 33.5 crores
221.The gross exposure at a particular point of time for a TM was Rs.1678 Lakhs and the TM
got the message of violation of gross exposure limits. What is the amount of deposit
made by the member?
a) 182.8 lakhs
b) 185 lakhs
c) 170 lakhs
d) 192.6 lakhs
222.Which of the following options is/are correct about exposure limit violations by members?
a) Members exceeding the gross exposure limit are not permitted to trade with
immediate effect.
b) Members shall bring in additional base capital resulting in enhanced gross exposure limit
c) Penalty of Rs.5000 is levied for each violation of gross exposure limit and the penalty
amount can be paid any day
d) Only a & b
e) a, b & c
223.Early pay-in of securities / funds will help in members in ______________.
a) computation of margin payable
b) re-computation of margin payable
c) margin payable
d) gross exposure available
224.The margins payable by member comprises of _____________.

a) Mark to Market margin & Value at Risk based margin
b) Mark to Market margin, Value at Risk based margin & Intraday Turnover
c) Mark to Market margin, Value at Risk based margin & gross exposure
d) All of the above
225.Which of the following is NOT true about Mark to Market margins?

a) It is a notional loss, which a client would incur on his cumulative net outstanding
positions in all securities.
b) It is calculated by multiplying the difference between the close price and price
c) MTM profits across different securities within settlement are not allowed.
d) MTM profits across different settlements are not allowed.
226.The rate which is applied to gross exposure to determine the Value at Risk based margin
is called as __________.
a) Var Rate
b) Close-out rate
c) Market rate
d) Price band
Page 32 of 53
227.Which of the following funds, is used to complete the settlement incase a trading
member fails to meet settlement obligations?
a) Investor Protection Fund
b) Settlement guarantee fund
c) Settlement fund
d) Settlement protection fund
228.Margins are calculated for members, security wise on a ________ basis across clients.
a) Gross
b) Net
c) Outstanding
d) Delivery
229.No delivery period for a security is set up by ___________

a) the issuer of that security
b) exchange
c) SEBI
d) NSCCL
230.The time gap between two book closures / record dates shall be __________.
a) 15 days
b) 25 days
c) 30 days
d) 60 days
231.What do you mean by ISIN?

a) International Share Identification Number
b) Indian Securities Identification Number
c) International Shares Identification Number
d) International Securities Identification Number
232.Which of the following statement(s) is/are TRUE about ISINs?

A - NSDL allots ISINs for demat as well as physical shares.
B - The ISINs allotted by NSDL does not any point of time breach the uniqueness of ISIN
of physical form
C - ISIN for a security is allotted when the security is admitted to NSDL.
a) only A
b) only A & C
c) only B & C
d) All of the above statements
233.The conversion of electronic form of security into physical form is called as ________.
a) Dematerialisation
b) Rematerialisation
c) Materialisation
d) Hypothecation
Page 33 of 53
234.The name of the ______________ appears in the record of the depository.

a) Depository Participant
b) Depository
c) Beneficial Owner
d) Registered Owner
235.Investor Protection Fund has been set up as a trust under _______________

a) SEBI Act 1992
b) SCRA Act 1956
c) Bombay Public Trust Act 1950
d) Investor Trust Act 1996
236.The ______________ has all the rights & obligations associated with securities
a) Beneficial Owner
b) Depository
c) Registered Owner
d) Depository Participant
237.The maximum amount of compensation / claim payable form the Investor Protection
Fund is __________.
a) 2 lakhs
b) 5 lakhs
c) 10 lakhs
d) no maximum limit
238.Which of the following is utilised to settle claims of such investors where the trading
member through whom the investor dealt has been declared defaulter
a) Settlement guarantee fund
b) Settlement fund
c) Investor protection fund
d) Investor protection & education fund
239. Calculate Var margin on the positions given in the following table?
Particualrs Scrip A Scrip B Scrip C Scrip D
Open positions ( Buy-Sell) -16000 28000 -12000 -17000
Var Rate applicable 25% 15% 10% 30%
a) 4500
b) 14500
c) 15500
d) 15400
Page 34 of 53
240.Calculate Var margin on the positions given in the following table?
Particualrs Scrip X Scrip Y Scrip Z

Buy 60000 80000 42000
Sell 52000 120000 22000
Var Rate applicable 15% 25% 30%
a) 16000
b) 17200
c) 12700
d) 18000
241.The purpose of ___________ functionality is to provide information to the market about

the buy-back trades executed from the start of the buy-back period till current trading day.
a) Buy-Back Trades
b) Normal Market
c) Limited Physical Market
d) Buy-Back Market
242.Which of the following is FALSE about RETDEBT orders?

a) RETDEBT orders can be entered into the system by selecting the RETDEBT order book
b) These orders scan only the RETDEBT order book for potential matches.
c) If no suitable match is found, the order stored in the book as passive orders.
d) To enter orders in the RETDEBT market, the book type is to be selected is R.
243.Which of the following happens, if index or sensex moves 20% in upward/downward

direction?
a) trading will be halted for ½ hour
b) trading will be halted for 2 hours
c) trading will be halted for the remaining day
d) trading will continue
244.What is the price band applicable for securities in auction market?

a) 10
b) 15
c) 20
245.Which of the following statement(s) is/are TRUE about salient features of Limited
Physical Market?
A. Trading is conducted in the odd lot market (market type O) with book type OL & series BT
B. Order quantity should not exceed 500 shares & settlement for all trades are done on
a trade for trade basis & delivery obligations arise out of each trade
C. Price bands applicable in Limited Physical Market are same as those applicable in
Normal market.
a) Only A & B
b) Only B & C
c) Only B
d) A,B & C
Page 35 of 53
246.What is the permitted lot size in Retail Debt Market (RETDEBT)?

a) 1
b) 5
c) 10
d) 100
247.How many banks have been empanelled by NSCCL, in the list of clearing banks/
a) 8
b) 9
c) 10
d) 12
248.Which of the following steps is/are taken by NSCCL on account of settlement fund shortages?
A. Trading may not be permitted
B. Securities payout with held.
a) Only A
b) Only B
c) Both A & B
d) Either A or B
249. Which of the following for, the penalties are charged to members?
a) Failure to fulfill funds shortages
b) Margin shortages
c) Security Deposit shortages
d) All of the above
250. All shortages not bought-in are closed out at the highest price between the ______ of the
trading till the day of squaring-off on the auction day plus ___________.
a) First day , 20%
b) Last day & 20%
c) First day & 5% / 10% / 20%
d) last day & 5% / 10% / 20%
251. What is the percentage of upfront margin to be collected for securities covered under
Group II?
a) 5%
b) 10%
c) 20%
d) 30%
252.What is the Gross Exposure multiple (GE) for securities covered under Group III?
a) 1 time
b) 2 times
c) 3 times
d) 8.5 times
253. Which of the following report in clearing software provides security-wise information
on daily purchases & sales and their value?
a) Daily obligation statement
b) Final obligation statement
Page 36 of 53
c) Purchase & Sales statement

d) Daily purchases & sales statement
254.Which of the following not appears in the Daily Obligation statement?

a) Settlement number
b) Client Code
c) Daily sales
d) Daily purchases
255. ____________ report contains information of all custodial trades which are not
confirmed by Custodians as of the day.
a) Custodial statement
b) Custodial trades pending confirmation
c) Custodial trades pending
d) Custodial trades confirmation pending
256. ___________ provides information on delivering centre, receiving centre, number of

shares to deliver for each security and also the code of receiving entity.
a) Delivery statement Final
b) Delivery statement
c) Securities Deliverable statement
d) Securities statement
257. __________ provides details about the transactions effected in trading members clearing
account at the clearing bank.
a) Daily Funds statement
b) Daily Funds Summary statement
c) Funds statement
d) Funds Summary statement
258. Which of the following statement provides the break up for each debit & credit
appearing in daily funds statement?
a) Daily Funds statement
b) Funds Statement
c) Funds Summary statement
d) Daily Funds Summary statement
259.Which of the following statement provides details of the auctioned deliveries for which
valuation price exceeds the auction trade price?
a) Auction square up debit statement
b) Auction square up credit statement
c) Auction square up difference statement
d) Auction statement
260.Which of the following not appears in securities delivered statement?

a) quantity of shares to be delivered by constituent
b) quantity of shares delivered
c) quantity of shares delivered short
d) quantity of shares to deliver
Page 37 of 53
261. __________ report provides amount of margin payable & amount of exposure & MABC
available.
a) Consolidated Margin report
b) Margin report
c) Detailed margin report
d) Daily Margin report
262. Which of the following report gives a listing of all securities in NO DELIVERY for a
particular settlement type and settlement numbers?
a) No Delivery statement
b) No Delivery Securities statement
c) No Delivery Period statement
d) No Delivery report
263.Private company means a company which has a minimum paid-up capital of _______or
such higher paid-up as may be prescribed by its articles.
a) 1 Lakh
b) 5 Lakhs
c) 10 Lakhs
d) 50 Lakhs
264. Which of the following is not treated as a Public Company?

a) Company which is not a private company
b) Company which has a minimum paid-up capital of 5 Lakhs rupees.
c) Private company which is a subsidiary of a company which is not a private company
d) Company which is formed by 2 number of persons
265.Which of the following conditions must be satisfied by the company before buying back
its own shares?
A. The buy-back must be authorised by its articles
B. Special resolution to be passed in general meeting of the company authorising buy-back
C. The buy-back shall be or equal to or less than 25% of the total paid up capital.
D. All the shares for the buy-back may or may not be fully paid up.
a) only A & B
b) only B, C & D
c) only A, B & C
d) only A, B & D
266.As per Public Debt Act 1944, ____________ means a security, created and issued by the
Government for the purpose of raising public loan.
a) Public Security
b) Government Security
c) Public Loan
d) Government Instrument
Page 38 of 53
267.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
268. A share held in a company or any other security listed in a recognised stock exchange in
India or a unit of UTI, which is held for more than 12 months form the date of its
purchase is called as ___________
a) Capital Asset
b) Short term capital asset
c) Long term capital asset
d) Fixed asset.
269.Which of the following is not included in ‘DIVIDEND’ as per section 2(22) IT Act, 1961?
a) Distribution made to its shareholders by way of bonus to the extent to which the
company possesses accumulated profits.
b) Distribution made to its shareholders of a company on its liquidation to the extent to
which the distribution is attributable to accumulated profits.
c) Any advance to shareholder by a company in the due course of its business, where
the lending of money is a substantial part of the business of the company.
d) Distribution made to its shareholders by a company on reduction of its capital, o the
extent to which the company possesses accumulated profits.
270. A trading member has the following position in the scrips given in the table,
Client Reliance
Buy Sell
A 2000 500
B 1500 1000
C 1000 1500
D 0 2000
E 4000 2500
F 3000 1500
What will be the final settlement obligation in scrip Reliance?
a) Pay-out obligation of 2500 shares
b) Pay-in obligation of 2500 shares
c) Pay-out obligation of 11500 shares
d) Pay-in obligation of 9000 shares
Page 39 of 53
271.A trading member has the following position in the scrips given in the table,
Client Wipro Reliance
Buy Sell Buy Sell

A 500 1500 2000 500
B 2000 2000 1500 1000
C 1500 1000 1000 1500
D 2500 1800 0 2000
E 1600 1400 4000 2500
F 4000 5000 3000 1500
What will be the final settlement obligation in scrip Reliance?
a) Pay-in obligation of 2500 shares of Reliance & Pay-out obligation of 600 shares of Wipro
b) Pay-out obligation of 2500 shares of Reliance & Pay-in obligation of 600 shares of Wipro
c) Pay-in obligation of 1900 shares
d) Pay-out obligation of 1900 shares
272.A trading member has the following funds position (Rs.) for his clients,
Client Pay-In Pay-out
A 4000 2000
B 6000 4500
C 5000 3000
D 3500 2500
E 2500 4000
F 2000 3000
What will be the final settlement obligation of the member?
a) Pay-out obligation of Rs. 19,000
b) Pay-in obligation of Rs. 23,000
c) Pay-in obligation of Rs. 4,000
d) Pay-out obligation of Rs. 4,000
273. A trading member has the following funds position (Rs.) for his clients,
Client Scrip X
Bought value Sold value
A 150000 250000
B 250000 160000
C 200000 400000
D 500000 300000
E 250000 500000

a) Pay-out obligation of Rs. 16,10,000
b) Pay-in obligation of Rs. 13,50,000
c) Pay-in obligation of Rs. 2,90,000
d) Pay-out obligation of Rs. 2,60,000
Page 40 of 53
274.A trading member has the following funds position (Rs.) for his clients,
Client Scrip A Scrip B

Bought value Sold value Bought value Sold value
A 150000 335000 300000 160000
B 160000 300000 250000 230000
C 290000 165000 0 340000
D 150000 250000 270000 90000

a) Pay-out obligation of Rs. 50,000
b) Pay-in obligation of Rs. 50,000
c) 0
d) Pay-out obligation of Rs. 3,00,000
275.Base minimum capital is a requirement of ________.

(a) SEBI Act, 1992
(b) the exchanges
(c) the exchanges subject to the minimum stipulated by SEBI
(d) Association of brokers in India
276.Which of the following is NOT true about corporate securities market reforms?
(a) To ensure effective regulation of the corporate securities market, the SEBI Act, 1992
was enacted to empower SEBI with statutory powers.
(b) Permission to access the international capital market was withdrawn.
(c) Major part of the liberalisation process was the repeal of the Capital Issues (Control)
Act, 1947 in May 1992.
(d) Indian companies were allowed access to international capital market through issue
of ADRs and GDRs.
277. What is the minimum networth for a corporate member in Capital Market and F&O
segments of NSEIL?
(a) Rs. 200 lakh
(b) Rs. 100 lakh
(c) Rs. 10 lakh
(d) Rs. 5 lakh
278. Auction is held in Reliance for 10,000 shares. The closing price of Reliance on that day
was Rs. 151.00 The last traded price of Reliance on that day was Rs.146.00 The close
price of Reliance last Friday was Rs.147.00 The previous day's close price of Reliance
was Rs.156.00 What is the maximum allowable price at which the member can put a sell
order in the auction for Reliance? (Price band applicable for Auction market is +/-15%)
(a) Rs. 169.05
(b) Rs. 173.65
(c) Rs. 167.90
(d) Rs. 179.40
Page 41 of 53
279. What is the amount a trading member deposits while filing an application for arbitration?
(a) no deposit is required since exchange bears the expenses of arbitration
(b) Rs. 6000/-
(c) Rs. 12000/-
(d) depends on the amount of claim
280 Which of the following is TRUE about facilities available for the market watch screen in
the NEAT system?
A) The user has the option to set-up securities directly from the Security List without
typing a single character on the market watch screen.
(B) The user also has the option to add and delete the security set up in the market watch
screen as many times as one desires
(C)The user can print the contents of the Market Watch setup by the user
(a) (A) and (C) only
(b) (B) and (C) only
(c) (B) only
(d) (A), (B) and (C)
281. A trading member has the following position in a particular security Zee:
Client Buy quantity Sell quantity
A 1000 1000
B 0 500
C 2000 0
D 4000 2500
E 500 2000
What will be the final settlement obligation in Zee for the member?
(a) Pay-out obligation of 1500 shares
(b) Pay-in obligation of 6000 shares
(c) Pay-in obligation of 1500 shares
(d) Pay-out obligation of 7500 shares
282.In order to migrate membership from individual to corporate, the individual should hold
at least ___% of the paid-up capital of the proposed corporate (listed company).
(a) 10
(b) 51
(c) 41
(d) 40
283.A trading member has the following funds position (Rs.) for his clients:
Client Pay-in Pay-out
A 0 400
B 4000 0
C 3000 0
D 0 1600
E 0 2500
(a) Pay-in obligation of Rs. 2500
(b) Pay-out obligation of Rs. 4500
Page 42 of 53
(c) Pay-out obligation of Rs. 2500

(d) Pay-in obligation Rs. 7000
284.Which of the following is NOT an objective of Securities and Exchange Board of India?
(a) Permitting companies to issue securities
(b) Protecting the interests of investors in securities
(c) Promoting the development of the securities market
(d) Regulating the securities market
285.Which of the following statement is TRUE about auction in the NEAT system?
(A) Order matching takes place at the end of the solicitor period for the auction.
(B) Order matching takes place for the orders received during solicitor period only.
(C) All auction trades take place at the auction price that is calculated as per regular

(c) (B) only
(d) (A), (B) and (C)
286.What is the present value of Rs.1,000 payable 3 years hence, if the interest rate is 10 % p.a.?
(a) Rs. 715
(b) Rs. 1,331
(c) Rs. 1,000
(d) Rs. 751
287.SEBI has permitted __ to allot ISIN for demat shares.

(a) NSDL
(b) NSE
(c) ANNA
(d) SEBI
288.An individual applying for the sub-brokership in NSE should ___ years of age.
(a) be more than 18
(b) be more than 25
(c) not be less than 21
(d) be more than 30
289.What is a market lot for depository securities (series - E) in the NEAT system?
(a) 1
(b) 10
(c) 100
(d) no limit
290.Which of the following statements are true?

Statement A: Base Minimum Capital can be utilised towards taking exposure/turnover.
Statement B: Base Minimum Capital can be utilised towards margin payment.
(a) Statement A only
(b) Statement B only
(c) Both the statements
Page 43 of 53
(d) Neither of the statements
291.Which of the following is NOT true about issue of securities?

(a) Issuers are required to comply with Disclosure and Investor Protection guidelines and
then access the market.
(b) The Disclosure and Investor guidelines contain a substantial body of requirements for
issuers/intermediaries, the broad intention being to ensure that all concerned observe
high standards of integrity and fair dealing.
(c) The Disclosure and Investor Protection guidelines aim to secure fuller disclosure of
relevant information about the issuer and the nature of the securities to be issued so
that investor can take an informed decision.
(d) The issue price of shares is determined by merchant banker in consultation with SEBI.
292.In the event of the user forgetting his password on the NEAT system, the trading
member is required to _____.
(a) login with a password of another user of the same trading member
(b) inform the Exchange in writing to reset the password
(c) reset the password and inform the exchange
(d) login with the default password and enter a new password
293.Which of the following statement(s) is TRUE:
(A) A stockbroker can trade singly or in concert with others to create a market in a scrip
or a group of scrips.
(B) A stockbroker shall not deal knowingly, directly or indirectly, with a client who
defaults to another stockbroker
(a) Statement A
(b) Statement B
(c) Both the statements
(d) Neither of the statements
294.Which time condition is NOT available along with Disclosed quantity during order entry
on the NEAT system?
(a) Good till Cancelled
(b) Day
(c) IOC
(d) Good till Days
295.A client shall make payment for securities purchased to the trading member _____.
(a) on receipt of the securities
(b) within 48 hours of sale
(c) within 24 hours of sale
(d) before the funds pay-in day
296.The branch order value limit set by a trading member on NSE on 10th December for
branch A is Rs.100 lakh. A dealer has entered orders worth Rs.80 lakh from branch A, of
which Rs.55 lakh got traded. Of the remaining orders, Rs.5 lakh worth are GTC orders.
The dealer has cancelled orders worth Rs.10 lakh which are not GTC orders. What will
be the branch order value limit available on 11th December, the next trading day?
(a) Rs. 100 lakh
(b) Rs. 90 lakh
Page 44 of 53
(c) Rs. 95 lakh

(d) Rs. 40 lakh
297.If a client buys shares worth Rs. 4,40,000 and sells shares worth Rs. 5,60,000 through a
sub-broker, then the maximum brokerage payable to him is _____.
(a) Rs. 24,000
(b) Rs. 15,000
(c) Rs. 20,000
(d) Rs. 16,000
298.In case the user logs in for the first time, a valid combination of______ needs to be
entered compulsorily to gain access to the NEAT system
(a) Trading Member ID and Default Password
(b) User ID, Trading Member ID, Default Password and New Password
(c) User ID, Trading Member ID and Default Password
(d) User ID and Default Password
299.IPF stands for_____.

(a) Indian Peace-keeping Force
(b) Investor Protection Fund
(c) Indian Protection Fund
(d) International Protection Fund
300.Which of the following is NOT a requirement for an individual to become a sub-broker?

(a) Pass in NCFM examination.
(b) 21years of age.
(c) not convicted of an offence in fraud.
(d) fit and proper person.
301.Trading Member shall issue the contract note for purchase or sale of securities to a client
within _____of the execution of trade
(a) 2 working days
(b) 24 hours
(c) 36 hours
(d) 48 hours
302.In arbitration, arbitrator(s) is/are appointed by_______ .

(a) SEBI
(b) the Central Government
(c) the disputants
(d) the exchange
303.Which is the leading stock exchange in India?

(a) Delhi Stock Exchange
(b) National Stock Exchange of India
(c) OTCEI
(d) Calcutta Stock Exchange
Page 45 of 53
304.What is the purpose of 'Order Limit' facility in the NEAT system?

(a) It enables the branch manager to setup a limit on order entry for himself and for all
his dealers under the trading member firm.
(b) There is no such facility as 'Order Limit' in the NEAT system.
(c) It enables individual users to specify maximum value per order and maximum quantity
per order that can be entered from the trader workstation.
(d) It enables corporate manager to setup order limit for all dealers under the trading
member firm.
305.Which of the following is FALSE about order modification in the NEAT system?
(a) MF orders cannot be modified to a MF quantity greater than the order quantity.
(b) If the order has a D condition attached, then the user can modify the MF quantity to
a value greater than D.
(c) If MF/AON condition is not allowed for a security, then the user cannot modify
orders in that security so as to attach the MF/AON condition.
(d) A D order with a value less than one Regular Lot or a value other than multiples of
Regular Lot is not permitted.
306.A trading member on the NSE, has a branch order value of Rs. 650 lakh for his Mumbai
branch and Rs. 750 lakh for Delhi branch. Mumbai branch has two users 'X' and 'Y' with
user order value limits of Rs. 200 lakh and Rs. 250 lakh respectively. Delhi branch has
one user 'Z' with user order value limit of Rs. 500 lakh. The member applies for a new
user at Mumbai. What is the maximum user order value that can be set for the new user?
(a) Rs. 200 lakh
(b) Any amount, as there is no restriction on User Order Value
(c) Rs. 450 lakh
(d) Rs. 250 lakh
307.A person can become a member of ______ recognised Stock Exchanges.

(a) any number of
(b) only one
(c) 10
(e) 15
308.Which of the following is NOT an objective of the establishment of NSCCL?

(a) To operate a tight risk containment system.
(b) To settle securities in demat form.
(c) To promote and maintain short and consistent settlement cycles.
(d) To provide counter-party risk guarantee.
309.The current assets of a firm XYZ Ltd. are Rs. 40.00 crore and it has current liabilities and
provisions of Rs. 14.00 crore. It has reserves amounting to Rs. 9.00 crore. What is the current
ratio of the firm?
(a) 1.74
(b) 2.86
(c) 0.56
(d) 2.89
Page 46 of 53
310.In respect of demat securities, who is entitled to rights and obligations?

(a) Beneficial owner
(b) Custodian
(c) Depository participant
(d) Registered owner
311.Which of the following is NOT covered under the SEBI (Prohibition of Fraudulent and
Unfair Trade Practices relating to the Securities Market) Regulations 1995?
(a) Unfair trade practice relating to securities
(b) Market manipulation
(c) Insider-trading
(d) Misleading statements to induce sale or purchase of securities
312.Which of the following is FALSE about trade management in the NEAT system?
a) The trade confirmation slip gets printed at the trader workstation of the user with a
Unique trade number.
(b) The user cannot reprint his trade confirmation slip.
(c) Whenever a trade takes place, the system sends a trade confirmation message to the
users involved in the trade.
d) Matching of two orders is done automatically by the system.
313.Which Act provides for direct and indirect control of virtually all aspects of securities
trading and running of stock exchanges?
(a) The Banking Regulation Act, 1949.
(b) The Securities Contracts (Regulation) Act, 1956.
(c) The Capital Issues (Control) Act, 1947.
(d) The Companies Act, 1956.
314.Which report displays information regarding the Open, High, Low, Close, Previous
Close and % change over the Previous Close of S&P CNX Nifty index and CNX Nifty
Junior index?
(a) Market Statistics report
(b) Activity Log report
(c) Open Orders report
(d) Trades Done Today report
315.x.25 address check is performed in the NEAT system.
(A) when the user logs in to the NEAT system
(B) during report download request
(C) when the user logs in for the first time in the NEAT system
(a) (B) only
(b) (A), (B) and (C)
(c) (C) only
(d) (B) and (C) only
316.Which of the following information is NOT displayed in 'Security Descriptor' on the

NEAT system?
(a) Tick size
(b) Best Buy and Sell orders
(c) Full name of the security
(d) The price range of the security for the day
Page 47 of 53
317.The powers under the Securities Contracts (Regulation) Act, 1956 are NOT shared by
_______.
(a) Department of Economic Affairs
(b) Department of Company Affairs
(c) Securities Exchange Board of India
(d) Reserve Bank of India
318.In which book type, does the user enter Auction orders?
(a) RL
(b) SL
(c) AU
(d) OL
319.A trading member is getting a message that he has violated the gross exposure limit. The
gross exposure at that point of time was 1900 lakh. What is his free base capital?
(a) Rs. 46.00 lakh
(b) Rs. 205.00 lakh
(c) Rs. 157.00 lakh
(d) Rs. 181.00 lakh
320.The advertisement in any publication/media by a trading member of NSE shall contain __.
(A) name and/or his logo
(B) code of NSE membership
(C) registration no. allotted by SEBI

(c) (A), (B) and (C)
(d) (C) only
321.A Company does NOT announce a record date for ______.

(a) holding general meeting
(b) declaring dividends
(c) rights issue
(d) bonus issue
322.What does 'OM' indicate as an activity in the 'Activity Log' screen in the NEAT system?
(a) order modified
(b) order cancelled
(c) trade modified
(d) trade cancelled
323.Which is the underlying asset for index futures traded on NSE?

(a) S&P CNX Defty
(b) CNX Midcap 200
(c) CNX Nifty Junior
(d) S&P CNX Nifty
Page 48 of 53
324.The Daily Funds Statement generated from clearing software does NOT display ______.
(a) Summary Transaction Number
(b) Original amount
(c) Due date and due amount
(d) Details of the clients
325.If a client buys shares worth Rs. 2,25,000 and sells shares worth Rs. 5,75,000 through a
stockbroker, then the maximum brokerage payable is _______.
(a) Rs. 16,000
(b) Rs. 24,000
(c) Rs. 8,000
(d) Rs. 20,000
326.Which of the following activities the user can carry out during Open phase in the normal
market on the NEAT system?
a) Inquiry of different screens only
b) Order entry, Order modification and Order cancellation only
c) Both of the above
327.Orders, in the ‘Outstanding Orders’ screen in the NEAT system, are displayed _______.
a) on the basis of price / time priority in order of Regular Lot orders first and then Stop
Loss orders
b) on the basis of time priority
c) in descending order of order numbers
d) in ascending order of order numbers
328.Order entry can be carried out in RETDEBT market by selecting______ in the book type.
a) BT
b) RD
c) RL
d) SL
329.Which of the following is true about trade cancellation in the NEAT system?
a) The user can use trade cancellation screen for canceling trades done during the day
b) The user can request for trade cancellation from the previous trades screen.
c) The counter party to the trade makes similar request on the same trading day.
330.Which of the following is FALSE about auctions in the NEAT system/

a) Auctions are initiated by the Exchange on behalf of trading members for settlement
related reasons.
b) If the exchange conducts a Buy-In auction, the trading members enter sell orders as
solicitor orders
c) If the exchange conducts a Sell-In auction, the trading members enter buy orders as
solicitor orders
d) The trading members can participate in the exchange-initiated auction by entering
orders as a competitor.
Page 49 of 53
331.What is true about Internet trades on NSEIL?

a) NSEIL enables investors to place orders on the NEAT system directly through the Internet.
b) NSEIL enables investors to use the internet as an order routing system
c) NSEIL enables brokers to collect orders through the Internet from clients.
d) NSEIL uses Internet in lieu of VSATs for trades in NEAT system.
332.In Limited Physical Market, orders get matched when _____ in the buy and sell order.
a) only price is same
b) price and quantity is same
c) only quantity is same
d) stop loss is specified as order condition.
333.Which of the following statement is TRUE?

a) Clearing members are responsible for settling their obligations as determined by NSCCL
b) Custodian can be a trading member
c) Clearing members are not required to open a dedicated clearing account with any of the
clearing banks.
d) Clearing members are not required to maintain a clearing pool account with depositories
334.Which of the following is true about rolling settlement?

a) In ‘T+X’ rolling settlement, ‘T’ is the trade day 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 holiday are
included
d) None of the above statements are true
335.Which of the following is true about settlement for the Limited Physical Market segment?
a) Delivery of shares in street name and market delivery is treated as good delivery.
b) Any delivery less than 500 shares is marked as short and such deliveries are
compulsorily closed out.
c) Settlement for trades is carried out on a trade for trade basis.
d) Securities and funds pay in takes place on T-+1 working days after the trade date.
336.Penalty points are charged to members for _____________.

a) only for gross exposure & turnover violations
b) only for violation in respect of client code modifications
c) only for violation I respect of non-confirmation of custodial trades
d) all of the above
337.Var margin is charged at differential rate on the _______ position of the client.
a) Net outstanding sale
b) Gross outstanding sale
c) Net sale
d) Gross sale.
Page 50 of 53
338.Members can submit which of the following as additional base capital to NSCCL.
a) Cash
b) Fixed Deposit Receipts
c) Bank Guarantee
339.Which of the following statements is true about arbitration/

a) The reference for arbitration should be filed within 6 months from the date when
dispute arose between the parties along with the list of arbitrators.
b) The arbitration application received form the applicant is forwarded to the respondent
c) The respondent is called upon to file his reply along with his list of arbitrators within
the specified time
d) All of the above statements are true
340.Which of the following documents / information do the trading members of NSE have to
submit on an annual basis as part of the continuing membership norms?
a) Audited financial statements.
b) Networth certificate in the prescribed format duly certified by a chartered accountant
c) Details of directors, shareholders, dominant shareholders, etc. duly certified by a
chartered accountant
341.SEBI made it mandatory for all brokers to use _____________ for all clients.
a) Permanent Account number
b) Driving License number
c) Bank Account number
d) Unique client code
342.As per the provisions of SEBI (Prohibition of Insider Trading) Regulations, any person
who holds more than _____ shares or voting rights in any listed company shall make
such disclosure to the company.
a) 10%
b) 5%
c) 3%
d) 2%
343.The minimum paid-capital of private company is Rs._____________.

a) 10 lakhs
b) 5 lakhs
c) 1 lakh
d) 2 lakhs
344.The minimum paid-capital of public company is Rs._____________.

a) 10 lakhs
b) 5 lakhs
c) 1 lakh
d) 2 lakhs
Page 51 of 53
345.The private company limits the number of its member to ____________.

a) seven
b) two
c) fifty
d) No limit
346.The public company limits the number of its member to ____________.

a) seven
b) two
c) fifty
d) No limit
347.The minimum number of persons required to form a private company is ________.

a) two
b) ten
c) five
d) seven
348.The minimum number of persons required to form a public company is ________.
a) two
b) ten
c) five
d) seven
349.Every public company, making initial public offer of any security for a sum of rupees of
________ or more, shall issue the same only in dematerlised form.
a) two crores
b) fifty crores
c) ten crores
d) five crores
350.What is the difference between listed and permitted shares?
a) Listed shares belong to public companies while permitted shares belong to private Cos.
b) Shares of companies which have entered into a listing agreement with an exchange
are called listed, while shares permitted for trading without entering into a listing
agreement are called permitted shares.
c) Listed shares are regulated by SEBI while permitted shares by Exchange.
d) There is no difference.
351.Dividend yield is given by:
a) Dividend per share / Market Value per share * 100
b) Net profit available to equity shareholders / Market Value per share * 100
c) Dividend per share / Face Value per share * 100
d) Net profit available to equity shareholders / Face Value per share * 100
352.Acid Test Ratio of a firm is given by:

a) Current Assets / Total Liabilities
b) Current Assets – (Inventory + Prepaid expenses) / Current Liabilities
c) Total Assets / Current Liabilities
d) Current Assets / Current Liabilities
Page 52 of 53
353.Inventory Turnover ratio is given by:

a) Cost of goods sold / Inventory
b) Cost of goods sold / Sales
c) Purchases / Inventory
d) Sales / Inventory
354.Calculate Price to Earnings from the following details?
Market Price of share – Rs. 35.00, Share Capital – 30 crores (1,00,00, 000 equity shares
of Rs.10 each), Gross Profit - 15 crores, Income Tax – 7.5 crores, Equity Dividend – 2
crores, Current liabilities – 12 crores, Fixed Assets – 40 crores & Reserves – 22 crores
a) 5.66
b) 4.66
c) 4.83
d) 5.98
Page 53 of 53

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Capital Market Dealers Module

1. Which of the following is the purpose of Balance Sheet?

2. What is the purpose of the Profit & Loss account?

3. What do you understand by “Time value of the Money”?

4. The ratio of expected return to the standard deviation is called as _______________.

8. What is Price to Earnings Ratio (P/E ratio)?

9. Financial Leverage ratio is also known as ______________________.

11. The measure of risk (standard deviation) is calculated by ______________.

14. Which of the following is true about private placements?

15. What is the estimated investor population in India?

18. Government Securities are issued and auctioned by ________________.

19. Which of the following is not a market participant?

20. What do you mean by GDRs?

21. What is NCFM?

22. Which of the following is FALSE about Reforms of Securities Market?

23. Which of the following is TRUE about NEAT?

24. Derivative trading in India was introduced in _______________________.

26. NCFM examination NOT allows the flexibility in terms of ______________

30. The governing regulators of securities market are __________________.

32. As per section 2 (h) of SCRA Act 1956, securities includes,

34. Which of the following are bye-laws of the Stock-Exchange?

36. SCRA Act 1956 is not applicable to ________________.

42. Which of the following is/are the functions of SEBI?

43. Number of Members in the Board of SEBI are _________

53. _______________ is a person whose name is recorded as such with a depository.

55. As per _________________, a contract is an agreement enforceable by the law.

61. A penalty of cancellation of registration of a stock broker may be imposed if,

73. A sub-broker is a person who intermediates between _____________ & ____________.

85. Purchase / Sale note is issued by _____________.

92. The arbitration fees is borne by ___________

98. A clause must be mentioned in every contract note:

Calculate Debt to Equity ratio from the above the table?

100.Calculate current ratio from the above the table?

101.Which of the following is not currently available in Normal market?

103.Which of the following is the top most level in hierarchy?

104.Which of the following is lowest level in hierarchy?

106.What do you mean by abbreviation of word NEAT?

107.Which of the following is NOT TRUE about Corporate Manager?

108.Which of the following is CORRECT about Branch Manager?

112.Which of the following is CORRECT regarding Market Watch screen in NEAT?

113.Which of the following option displayed on invoking log-off screen?

115.Which of the following symbol is used to indicate that a security is Ex-Bonus?

116.Which of the following is NOT a purpose of Market By Price in NEAT system?

119._________________ is a feature available in the system to get instantaneous market

122.Which of the following is FALSE about the facilities of Online Backup?

123.Which of the following is not a supplementary function of NEAT system?

135.Which of the following is CORRECT relating to Special Term Book?

139.Which of the following statement(s) is/are FALSE relating to Auction Market?

143.Which of the following statement is NOT CORRECT regarding Bhav Copy?

145.Internet trading on NSE started from ___________

151._________ is a party who enters on the opposite side as of the initiator.

160.Which of the following is FALSE in regarding order cancellation in NEAT system?

161.Which of the following statement(s) is/are FALSE about Order Modifications?

162.Branch order value limit can be set by ________________

166.Which of the following is NOT CORRECT about negotiated trades?

172.Which of the following is the purpose of BASKET TRADING?

174.Which of the following windows is not displayed on trader workstation screen?

175.Which of the following are special features of Market Watch screen?

176.The branch manager cannot view outstanding orders for ________________

187.S&P CNX Defty consists of _____________.

195.Which of the following combination of orders is valid?

196.Orders for which price is determined by the system is called as _____________

197.Closing prices of securities traded on a day can be had from ___________

73. A sub-broker is a person who intermediates between _ & .