Question No.

What does OM indicate as an activity in the Activity Log screen in the NEAT system.
Order Matched
Order Cancelled
Trade Modified
Order Modification
Question No. 2

In auction process the party who enters on the opposite side of the initiator is called
Competitor
Rationalist
Solicitor
Initiator
Question No. 3

Auctions for shares on the NSEIL are initiated by the____________

NSEIL
National Securities Clearing Corporation Limited
Any of the above
Cant say
Question No. 4

M/s Agre Financial Services, a trading member of NSE, has a branch order value of Rs. 700 Lakh
for his Chennai branch and Rs. 650 for Kolkata branch. Chennai branch has two users X and Y with
user order value limits of Rs. 250 Lakh and Rs. 300 Lakh respectively. Kolkata branch has one user
Z with user order value limit of Rs. 350 Lakh. The member applies for a new user at Chennai. What
is the maximum user order value that can be set for the new user?
200 lakh
250 lakh
150 lakh
300 lakh
Question No. 5

The max amount for basket trading is

3000 Crores
3000 Lakhs
300 Crores
300 Lakhs
Question No. 6

A trading member entering an order needs to enter the_______

Margin payable by the client
Brokerage payable by the client
Client code
Transaction tax payable by the client
Question No. 7

The user is not allowed to modify any auction orders. True or False ?
FALSE
True, only if they are another user
True, only if price of the order is above Rs. 500
TRUE
Question No. 8

Who has permitted NSDL to allot an ISIN for demat shares ?

NSCCL
CRISIL
RBI
SEBI
Question No. 9

How many depositories are there in India?

3
2
1
5
Question No. 10

No person shall be admitted as trading member of a recognized stock exchange if he has been
adjusted bankrupt or a receiver order in bankruptcy has been made against him or he has been
proved to be insolvent even though he has obtained his final discharge. True or False ?
TRUE
FALSE

Question No. 11

The equilibrium price is the price at which the ______ volume is executable.
Minimum
Maximum
Any of the above

Question No. 12

VAR margin is decided by whom?

Broker
Exchange
Client
SEBI
Question No. 13

__________obligated the depositories to maintain ownership records of securities and effect

changes in such records electronically at the behest of the owner of the securities
The Depositories Act 1996
The SEBI Act 1992
The Securities Contract Regulation Act 1956 SCRA 1956
The Companies Act 1956
Question No. 14

The depositories assist NSCCL to pay-in and pay-out______________________

Securities held in demat form only
securities held in physical form only
both
none of the above
Question No. 15

Acid Test Ratio of a firm is given by

Current Assets / Total Liabilities
Current Assets ( Inventory + Prepaid Expenses ) / Current Liabilities
Total Assets / Total Liabilities
Current Assets / Current Liabilities
Question No. 16

The effect of the provisions of SC (R ) A, 1956 clearly is that if a transaction is securities has to be
validly entered into, such a transaction has to be either between the members of a recognized stock
exchange or through a member of a stock exchange ? The above statement is True or False
FALSE
TRUE
Partially True
True Only for Debentures
Question No. 17

A user can simultaneously view a regular inquiry (e.g. MBP) and the Snap Quote display on the
trading screen. True or False ?
TRUE
FALSE

Question No. 18

What is the obligation of buyer on settlement day?

Buy the shares
Pay funds to the broker / trading member
Receive funds from trading member/ broker
Get the delivery of the stock
Question No. 19

What is the full form of XB ?

Ex-Bonds
Ex-cum Bonus
Ex-Bondages
Ex-Bonus
Question No. 20

Who can appoint a sub broker?

Listed stock exchange
Sub broker himself
Broker of a listed stock exchange
All of the above
Question No. 21

Under T+2 rolling settlement, pay-in of funds and securities takes place ___________________
On 2nd working day after trade date
On 1st working day after the trade date
On the trading day
On 1st and 2nd working day respectively after the trade date
Question No. 22

Penalty points are charged to members for______

Only for gross exposure & turnover violations
Only for violation in respect of client code modifications
Only for violation in respect of non-confirmation of custodial trades
All of the Above
Question No. 23

Which of the following is utilized to settle claims of such investors where the trading member
through whom the investor dealt has been declared defaulter ?
Settlement guarantee fund
Settlement fund
Investor protection fund
Investor protection & Education fund
Question No. 24

Who is a stock broker?

A stock broker is an intermediary who provides a platform to the buyer and seller to buy and
sell the securities.
A stock broker must be a member of stock exchange
A stock broker is requires to hold a certificate of registration
All of the above
Question No. 25

Which of following statement is True ? Statement

( A) SEBI has permitted NSDL to allot ISIN for demat securities Statement
(B) ISIN for a security is allotted only when the security is admitted to NSDL.
A is True
B is True
Both are True
A is True but B is not
Question No. 26

________allows market participants to take short positions effectively with less cost
Direct Market Access
Securities Lending and Borrowing
Interest Rate Futures
None of the above
Question No. 27

On the Securities ______________Delivering members are required to bring in securities to

NSCCL.
pay out day
pay in day
both
can’t say
Question No. 28

A copy of the advertisement must be submitted to the Exchange within _________days before their
issue
30 days
15 days
24 days
7 days
Question No. 29

What is the name of reports are being downloaded to all trading members on a daily basis?
Daily funds summary statement
Daily funds statement
Both of the above
None of the above
Question No. 30

Which of the following statements are false ? (i) When any order enters the trading system. It is an
active order, ( ii) If it does not find a match, the order becomes a passive order & goes & sits in the
order book. (iii) An active order tries to find a match on the order side of the books. ( iv) If an active
order finds a match a trade is generated.
Only ( i)
Only (ii)
Both (iii) & ( iv)
None of the above
Question No. 31

A stock broker means a member of

SEBI
Any exchange
A recognized stock exchange
Any stock exchange
Question No. 32

When an order enters the trading system is called

Passive order
Pending order
Active order
Exmitted order
Question No. 33

If the third character of the ISIN is mentioned as F, what does it indicate ?

Central Government is issuer
State Government is the issuer
Units issued by Mutual Fund
Issuer is a Banking Company
Question No. 34

Auction is held in XYZ for 10000 shares The closing price of XYZ on that day was Rs 146 The last
traded price of XYZ on that day was Rs 141 The close price of XYZ last Friday was Rs 142 The
previous days close price of XYZ was Rs 151 What is the maximum allowable price at which the
member can put a sell order in the auction for XYZ Price band applicable for Auction market is 15
Rs 167.90
Rs 173.65
Rs 163.30
Rs 162.15
Question No. 35

What does X indicates as a status in the Auction Inquiry screen in the NEAT system ?
System is matching the orders
Auction is over
Auction is deleted
Auction is pending and yet to begin
Question No. 36

Which of the following is Not true about corporate securities market reforms ?
The secondary market overcame the geographical barriers by moving to screen based trading
Counter-party risk is borne by investors
The trading cycle in the stock exchange follow rolling settlement
The practice of allocation of resources among different competing entities aswell as its terms by
a central authority was discontinued
Question No. 37

In India the depository act made in the year ____________

1995
2001
1996
2005
Question No. 38

______________represents the cost of executing a transaction in a given stock, for specific,

predefined order size, at any given point of time.
Impact Cost
Standardized Cost
Margin
Any of the above
Question No. 39

The authorized person is not allowed to have any trading relationship with the clients they
introduced
Ture
FALSE

Question No. 40

The third character of ISIN represents__________

Country Name
Share name
Issuer type
Exchange name
Question No. 41

In Auction market the Trading member can enter order for a security in which initiator order is
entered against him
TRUE
FALSE
Question No. 42

Who regulates securities market in India?

NSE/ BSE
SEBI
RBI
Department of economic
Question No. 43

A Broker shall not advertise his business publicity unless permitted by ______________________
SEBI
The Stock Exchange
Broker
None of the above
Question No. 44

The period after market close during which the users have inquiry access only is
watch period
No delivery period
SURCON ( Surveillance and Control Period)

Question No. 45

The advertisement issued by trading member shall contain

TM name and / or his logo
Code of NSE Membership
Registration number allotted by SEBI
All of the above
Question No. 46

Which screen enables the user to view information such as market by order, market by price,
previous trades, outstanding orders, activity log, and order status ?
Inquiry window
Snap Quote
message window
market watch window
Question No. 47

The initial token payment is called margin

TRUE
FALSE
Question No. 48

Which of the following is correct ? A. The Corporate Manager can view all the trades for all
Branches or for a specific branch B. The Branch Manager can view all details under that Branch i.e.
all previous trades for all dealers and for all clients or for specific dealer.
Statement A is correct
Statement B is correct
Both are correct
None is correct
Question No. 49

A sell order in the stop loss book gets triggered when the last traded price in the normal market
reaches or falls_________________the trigger price of the order.
Below
Above
Cannt say

Question No. 50

__________are orders to buy or sell shares at a stated quantity and price ?

Stop Loss order
Limit Orders
Immediate or cancel order
day order
Question No. 51

The Balance Sheet information pertaining to___________

Firms assets and liabilities
Shareholders equity
All of the above

Question No. 52

_________Is it compulsory for a trading member to maintain a separate bank account for a client ?
Yes
No
Optional
cant say
Question No. 53

Which of the following risk arise if the laws or regulation do not support enforcement of settlement
obligation or are uncertain ?
Operational risk
Legal risk
System risk
Counterparty risk
Question No. 54

Clearing member is required to open a dedicated and settlement account with one of the clearing
banks.
TRUE
FALSE

Question No. 55

Trading in retail debt market take place in the same manner as in equities.
TRUE
FALSE

Question No. 56

Quantity freeze - lesser of____________

0.5% of issue size
25000 shares
Rs. 2.5 crores
All of the above
Question No. 57

The members/custodians make available the required securities in their ______________with

depository participants (DPs) by the prescribed pay-in time for securities.
Clients Account
Delivery account
pool accounts
receipt account
Question No. 58

Book type of Odd Lot Book

OL
OB
OC
None of the above
Question No. 59

Which statement is false?

A dealer can modify only the orders entered by him
A branch manager can modify his own order or order of all dealer of the trading member.
A corporate manager can modify his own order or orders of all dealer and branch manager of
the trading member
None of the above
Question No. 60

Investor Protection Fund has been set up as a trust under

SEBI Act, 1992
SCRA Act, 1956
Bombay Public Trust Act, 1950
Investor Trust Act, 1996
Total Number of Questions 60
Questions Attempted 60
Number of Correct Answers 21
Number of Wrong Answers 39
Nagetive Marking 25%
Score 19%