NISM Series III-A Securities Intermediaries Compliance (Non-Fund) Cert. Mock Test - 1

/50

NISM Series III-A Securities Intermediaries Compliance (Non-Fund) Cert. Mock Test – 1

1 / 50

A banker who wants to issue securities (called a Merchant Banker) needs to pay a registration fee to SEBI to get the certificate.

a) 5 lakhs

b) 50 lakhs

c) 1 crore

d) 20 lakhs

2 / 50

__________ is traded on European Stock Exchanges.

a) IDR

b) ESOP

c) GDR

d) ADR

3 / 50

All the stock exchanges in India have the same bye laws and these have to be approved by SEBI – True or False?

a) True

b) False

4 / 50

As per PMLA (Prevention of Money Laundering Act), intermediaries need to report information about cash and suspicious transactions to the authorities.

a) SEBI

b) Finance Ministry

c) RAW

d) Director – Financial Intelligence Unit

5 / 50

A Depository Participant should redress the grievances of the investors within _______ days of the receipt of complaint.

a) 30

b) 45

c) 20

d) 15

6 / 50

The applicant for a merchant banker should have the required infrastructure, such as ______.

a) Office space as per SEBI criteria

b) Equipments in place

c) Skilled and relevant manpower

d) All of the above

7 / 50

The minimum age to become a member in any exchange according to SCRR (Securities Contracts (Regulation) Rules) is ________ years.

a) 18

b) 21

c) 25

d) 23

8 / 50

Is addressing investor complaints considered part of compliance?

a) Yes

b) No

9 / 50

The registration certificate for a custodian is valid for a period of ______ years according to SEBI (Custodian of Securities) Regulations.

a) Permanently until suspended

b) 3

c) 5

d) 2

10 / 50

To qualify as a Category 1 Merchant Banker, the minimum net worth should be ______ as per the SEBI (Merchant Bankers) Regulations, 1992.

a) Rs 1,00,00,000

b) Rs 5,00,00,000

c) Rs 50,000,00

d) Rs 25,00,000

11 / 50

(SEBI (Prohibition of Insider Trading) Regulations, 2015) Regulation 7A to 7K deals with ______.

a) Private placement

b) Off-market trades

c) Insider Trading

d) Informant

12 / 50

_______ is involved in aggregating transactions over a trading period and netting the positions to determine the liabilities of members

a) Portfolio Managers

b) Clearing House

c) Registrars

d) Transfer agents

13 / 50

The stock broker shall provide the facility of algorithmic trading only upon the prior permission of ________

a) SEBI

b) Authorised Person

c) Stock exchange

d) Sub broker

14 / 50

Audit Committee of a listed company or other analogous body for intermediary or fiduciary shall review compliance with the provisions of these regulations at least once in ______ .

a) Six months

b) Five financial year

c) Each Quarter

d) One financial year

15 / 50

(SEBI (Prohibition of Insider Trading) Regulations, 2015) Regulation 7H specifies the requirements with respect to informant –

a) Eligibility

b) Credibility

c) Confidentiality

d) All the above

16 / 50

Depository participants are required to be registered with SEBI through respective depository concerned.

a) False

b) True

17 / 50

Which of the following single transactions are recorded ?

a) Cash transactions of the value of more than Rs. 10 lakh

b) Cash transactions of the value of more than Rs. 20 lakh

c) Cash transactions of the value of more than Rs. 25 lakh

d) Cash transactions of the value of more than Rs. 15 lakh

18 / 50

____________ has access to client identification data and CDD information, transaction records and other relevant information

a) Principal Officer

b) Money Laundering Control Officer

c) Investors

d) Both 1 and 2

19 / 50

Any registrar to an issue shall act as registrar for any issue of securities in case he or it is an associate of the body corporate issuing the securities.

a) False

b) True

20 / 50

KRAs are also required to develop the monitoring mechanism through ______.

a) Internal operations

b) External audit

c) External operations

d) Internal audit

21 / 50

The act of failure to redress the grievances of any investor by a stock broker is penalized under –

a) Section 23C of SCRA

b) Section 23A of SCRA

c) Section 23D of SCRA

d) Section 23B of SCRA

22 / 50

The holding company or associate company or subsidiary company of the concerned company is considered as a connected person.

a) False

b) True

23 / 50

_____ are agreements between two or more parties to exchange series of cash flows in the same currency over an agreed period of time.

a) Currency options

b) Currency futures

c) Interest-rate Options

d) Interest rate swaps

24 / 50

In case of a book built issue, the issuer may mention a price or a price band in the _________

a) Abridged prospectus

b) General prospectus

c) Offer document

d) Red herring prospectus

25 / 50

Rule 15(1) of Securities Contracts (Regulation) Rules requires every member of a recognized stock exchange is required to maintain and preserve the books of account and documents for a period of ______.

a) 1 year

b) 5 years

c) 2 years

d) 3 years

26 / 50

The KRA shall send the action taken report to SEBI within ______ of placing audit report before BOD

a) 6 weeks

b) 3 months

c) 8 weeks

d) 1 month

27 / 50

The portfolio manager shall execute off market transfers in client’s account for ________

a) Providing margin or collateral for clients’ own positions

b) Settlement of the clients’ own trades

c) Dealing in listed securities

d) Both 1 and 2

28 / 50

______ provides for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed, accuracy and security.

a) SEBI SAST Regulations, 2003

b) SEBI (Underwriters) Regulations, 1993

c) SEBI (Merchant Banking) Regulations, 1992

d) Depositories Act, 1996

29 / 50

QRTAs, servicing mutual Funds investors, must have investor service center in at least ______

a) 150 cities

b) 100 cities

c) 300 cities

d) 250 cities

30 / 50

Any person aggrieved by an order of the SEBI or Adjudicating Officer may prefer an appeal to ________

a) SAT

b) Supreme court

c) Central Government

d) Exchange

31 / 50

If there is _______, the price of the specific securities given to anchor investors cannot be less than the price offered to other applicants.

a) Retail investors

b) Employees entitled for reservation

c) Book built issue

d) Fixed price issue

32 / 50

The IT Strategy Committee will offer guidance and advice to the QRTAs Board of Directors on IT advancements and their alignment with investor services.

a) True

b) False

33 / 50

The client can choose a Chartered Accountant (CA) to examine the portfolio manager’s financial records and transactions. The portfolio manager must cooperate with the CA during the audit.

a) True

b) False

34 / 50

Rule 8 of SCRR outlines the regulations concerning –

a) Maintaining books of accounts

b) Admission of members of the stock exchange

c) Insider trading

d) Contracts entered into between members

35 / 50

If a depository fails to address investors’ complaints even after being instructed by SEBI within a set timeframe, a penalty of ________ will be imposed.

a) Maximum Rs. 1 cr

b) Maximum Rs. 10 cr

c) Maximum Rs. 5 cr

d) Maximum Rs. 15 cr

36 / 50

The report on meeting the increased reporting requirements must be submitted to SEBI after being reviewed by the QRTAs Board of Directors within ______ after the end of each calendar quarter.

a) 30 days

b) 21 days

c) 60 days

d) 45 days

37 / 50

According to the SEBI (Debenture Trustee) Regulations, the registration certificate for a Debenture Trustee remains valid for _____ years.

a) Permanently until suspended

b) 1

c) 4

d) 2

38 / 50

_______ is responsible for guiding the company in choosing underwriters.

a) Registrars

b) Merchant bankers

c) Depositories

d) Custodians

39 / 50

QRTAs must keep ______ with a center located at a different place than the main processing location.

a) Business Conduct Plan (BCP)

b) Basic Continuity Plan (BCP)

c) Business Continuity Process (BCP)

d) Business Continuity Plan (BCP)

40 / 50

The penalty for engaging in fraudulent and unfair trade practices under Section 15 of the SEBI Act will not be less than five lakh rupees but may go up to –

a) Thrice times the amount of profits made out of such practices

b) 25 crore rupees

c) 20 crore rupees

d) Either 1 or 2

41 / 50

The employee welfare trusts or gratuity trusts set up for the benefit of employees can’t register as alternative investment fund.

a) False

b) True

42 / 50

______ states that an insider shall not allow access to any UPSI relating to a company or securities listed to any person including other insiders.

a) Regulation 4(1)

b) Regulation 3(1)

c) Regulation 1(1)

d) Regulation 5(1)

43 / 50

A applicant who is a registered Custodian under the SEBI (Custodian) Regulations,1996 cannot apply to grant of approval as designated depository participant

a) True

b) False

44 / 50

In front running a owner or purchaser of the block trade himself may engage in the offsetting futures as a means of ______ against price fluctuations caused by the block transaction.

a) Speculation

b) Hedging

c) Arbitrage

d) Both 1 and 3

45 / 50

Which of the following is NOT the activity performed by Bankers to an Issue?

a) Payment of dividend or interest warrant

b) Acceptance of call monies

c) Acceptance of application monies

d) Collection of securities transaction tax

46 / 50

______ means the minimum amount, calculated as a percentage of the market value of the securities, with respect to the last trading day’s closing price, to be maintained by the client with the broker.

a) Initial margin

b) Maintenance margin

c) Trading margin

d) Mark to market margin

47 / 50

Each intermediary shall consider carefully the specific nature of ______ to satisfy itself that the measures taken by it are adequate and appropriate.

a) Organizational structure

b) Type of client

c) Business

d) All the above

48 / 50

An investment adviser shall disclose to a prospective client, all material information about itself including its disciplinary history.

a) True

b) False

49 / 50

A KRA applicant should also have a networth of atleast ______ on a continuous basis.

a) Rs. 25 crore

b) Rs. 15 crore

c) Rs. 10 crore

d) Rs. 20 crore

50 / 50

The periodic reports or other communications prepared for unit holders of mutual fund shall not be included in a research report.

a) True

b) False

Your score is

Exit

NISM Series III-A Securities Intermediaries Compliance (Non-Fund) Cert. Mock Test - 1

In Association with freemockexams.in

Resources

Popular Mock Tests

Other Mock Tests

Disclaimer: freemockexams.in is an independent exam preparation platform and is not affiliated with, endorsed by, or authorized by NISM or SEBI.