NISM DP 1300 MCQS - by Vinay Kumar Gandi PDF

NISM-DP
1) Arrange the process in a chronological order

1. Verification of Clients signature on the DRF-GS with the specimen signature.
2. The depository’ s system shall credit the client’ s account automatically.
3. DRN will be generated by system.
4. The request is then released to Depository software system by the DP.
a) 1,2,4,3
b) 1,3,2,4
c) 1,4,3,2
d) 1,3,4,2
2) If application for renewal is not received by SEBI 3 months of before expiry of

registration certificate, the Depository.
a) None of the above

b) Will not cease to be an intermediary but must stop carrying on the
activities of the intermediary from the date of such
expiry.
c) Will not cease to be an intermediary but will carry on the approved
activities of the intermediary from the date of such expiry.
d) shall cease to be an intermediary.
3) The aggregate value of the securities of the beneficial owners, held in dematerialized
form through a stockbroker DP , cannot be more then____________ times the net
worth of the stockbroker, if net worth of stock broker is less then Rs. 10 crore .
a) 50
b) 10
c) 20
d) 100
4) The investor shall fill up the application form and submit the same along with the
payment instrument to the DP.
a) False
b) True
5) Which of the following is NOT a part of the Primary Market ?
a) Stock Exchanges
b) Registrars and Transfer Agents
c) Merchant Bankers
d) Mutual Funds
6) Once the pledgor repays the loan to the Pledgee, who requests for the closure of the
pledge ?
a) Pledgees DP
b) Pledgor
c) Pledgee
d) Pledgors DP
7) Demat request form for dematerializing government securities is same as that is used
for equities etc
a) TRUE
b) FALSE
8) An intermediary account can be opened by __________ for the purpose of stock

lending and borrowing.
a) any intermediary in securities market

b) RBI /SEBI registered intermediary
c) a SEBI registered intermediary
d) banks and brokers
9) For pledging and hypothecation of securities, the pledgee and the pledgor can have
their account with different DPs under the same depository
a) FALSE
b) TRUE
10) When can an request to dematerialiase government securities be rejected ?
a) When the authorized signatories are not registered with RBI

b) When there is mismatch between the details provided with DRF-GS and
electronic message received by depository
c) Signature Mismatch
d) All of the above
11) Standing instruction for transfer of securities is given as a part of the account opening
form
a) TRUE
b) FALSE
12) __________provides for standard of disclosure in public issues of capital
a) SEBI Act, 1992

b) SCRA, 1956
c) Companies Act ,1956
d) Depositories Act,1996
13) Who verifies and ensures that the securities to be pledged exists in the pledgor’ s
account ?
a) NSDL
b) Pledgee
c) Depository Participant
d) Depository
14 ) If an existing client has introduced a new client to the DP, then his signature is required
on the form
a) TRUE
b) FALSE
15)In case of transmission of securities, held singly without nomination, which documents
are required to be submitted
a) A copy of the death certificate, duly notarized

b) A copy of the succession certificate, duly notarized
c) Both 1 and 2
d) None of the above
16) A depository company must have a minimum net worth of
a) Rs.50 crore
b) Rs.100 crore
c) Rs 500 crore
d) Rs. 10 crore
17) When does a pledgor initiate the closure of the pledge/hypothecation through its DP
a) After the pledgor has repaid the loan to the pledgee

b) When the depository instructs the pledgor to do so
c) Both 1 and 2
18) Does the DP charge the Beneficiary owner when he wants his securities transferred to
some other DP ?
a) Yes
b) No
19) SEBI’ s regulatory jurisdiction extends over corporates in the issuance of the capital and
securities
a) TRUE
b) FALSE
20) A Beneficial Owner of a Corporate Action is an entity that owns the security
on_______________.
a) Record Date
b) Cut-off Date
c) Book Closure Date
d) All of the above
21) The applicant for registering as DP should not have been expelled, barred or suspended
by SEBI, self-regulatory organization or any recognized stock exchange
a) FALSE
b) TRUE
c) FALSE only for NBFCs
d) TRUE only for Stock Brokers
22) Cerificate of deposits are eligible for dematerialization as per SEBI (Depositories &
Participants) Regulations, 1996
a) TRUE
b) FALSE
23) While carrying out the modification in corporate accounts, the name of the any exsiting
account holder of an account can neither be deleted nor any new name can be added
a) TRUE
b) FALSE
24) In the nomination form, is the photograph of the nominee also required ?
a) No
b) Yes
25) As per the _______________guidelines, the Inssuer will provide the details of the
redemption account in the form of a certificate to the first investor of the CD.
a) FIMMDA
b) RBI Monetary and Credit Policy
c) SEBI
26)Transferee can give ‘ Standing Instruction’ [SI] to its DP for securities to be received
a) FALSE
b) TRUE
27) Credit cards/Debit cards issued by Banks with photograph of applicant is___________
a) not a valid proof of identity for opening account with a DP

b) valid proof of identity opening account with a DP
28) The client must submit the delivery instruction slip to its DP_________
a) before the exchange’ s acceptance deadline

b) before the depository’ s acceptance deadline
c) before the broker’ s acceptance deadline
d) before the DPs acceptance deadline
29) Which form the investor has submit to DP for dematcrialisation of Government
Securities?
a) DSF-GS
b) DRF-GS
c) DIS-GS
d) SGL-GS
30) SEBI Act and Depositories Act are both administered by SEBI
a) FALSE
b) TRUE
31) State True Or False :- At the time of delivery, client initiates a remat request through the
DP using the Physical Delivery Remat Form (PDRF)
a) TRUE
b) FALSE
32) Which agencies are exempted from the mandatory requirement of giving PAN number
during demat account opening ?
a) Banks
b) NGOs
c) UN entities
d) NBFCs
33) The debit is effected on the _______.
a) pay-out date
b) pay-in date
c) execution date
d) trade date
34) In Which type of market are the new securities sold ?
a) Primary market
b) Money market
c) Commodity market
d) Secondary market
35) The depository determines and announces the record date for every Corporate Action.
a) FALSE
b) TRUE
36) The only way for Depository to handle a corporate action is by providing information to
the issuer about the persons entitled to receives corporate benefits
a) TRUE
b) FALSE
a) Corporate
b) Institutional Investors
c) Individual investors
d) All of the Above
38) The DP should forward the RRF-GS to the depository within_____________ of

accepting such request
From the client
a) Three Days
b) Six Days
c) Seven Days
d) Two days
39) The process of a CC/CH transferring the broker’ s settlement account for the quantity of
securities purchased by them on behalf of their clients is known as ‘ pay-out’ .
a) TRUE
b) FALSE
40) A Depository must have minimum networth of
a) Rs 100 crore
b) Rs 500 crore
c) Rs 1 crore
d) Rs 10 crore
41) SEBI can issue guidelines pertaining to public issues
a) FALSE
b) TRUE
42) Which of the following corporate benefits are accrued to the pledgor (borrower) ?
a) Dividend
b) Bonus
c) Rights
d) All of the above
43) Remat Request Form is to be signed by any of the owners in a Jointaly held account
a) TRUE
b) FALSE
44) Can a Demat account be frozen?
a) No
b) Yes
45) Issure has to warrant that____________.
a) Securities dematerialized are validly issued

b) It is entitled to transfer dematerialized securities into the Depository
c) Dematerialised securities exist at the time of securities into the depository and also
therafter
d) All of the above
46) What is required to be filled up in the IPO application form?
a) Client ID
b) DP registration no
c) Depository registration no
47) Normally, which of the following trades are settled through off-market route?
a) Transfer of securities between a client and a sub-broker

b) Large trades in debt instruments
c) All of The above
d) Large deals between institutions
48) On default of payment, the pledgee send an invocation noticed to the pledgor
a) TRUE
b) FALSE
49) The CC/CH gives pay-out and securities are transferd___________.
a) from the selling broker’ s account

b) to the selling broker’ s account
c) from the sub broker’ s account
d) to the buying broker’ s account
50) In case of transposition-cum-dematerialisation, the names appearing on the certificates

should match with the names in the demat account and should be in the same order
a) TRUE
b) FALSE
51) Face value of Commercial Paper in a depository system is taken as
a) 50000
b) 5000000
c) 500000
d) 5000
52) DP must provide transaction statements to clients
a) atleast on a yearly basis or more frequently, as agreed upon in the agreement with the
client
b) atleast on a monthly basis or more frequently, as agreed upon in the agreement with
the client
c) atleast on a quarterly basis or more frequently, as agreed upon in the agreement with
the clients
d) atleast on half yearly basis or more frequently, as agreed upon in the agreement with
the client
53)Can DPs collect charges/tax/rent on behalf of commoditiy exchange / warehouse?
a) Yes, after ensuring adequate legal basis

b) No, such activities are dealt between client and commodity excahange /warehouse
c) Yes, but only charges and rent can be collected
d) Yes
54) Securities issued by the same company, issued at different times or carrying different
rights, terms and conditions are different securities for the purpose of allocating ISIN
a) TRUE
b) FALSE
55) To withdrawn its security balances for rematerlisation purpose with the Depository a
client has to fill
a) RRD
b) RRS
c) RRF
d) RRC
56) When securities are dematerialized, the physical securities are
a) either stored or destroyed , as desired by the security holder

b) mutilated and stored with the depositories
c) destroyed
d) kept with the depository for rematerialisation
57) On settlement day, the RBI________ the SGL-2 account of the depository and
________its current account
For funds, in case of government securities.
a) credits , debits
b) debits ,credits
58) Before granting certificate of commencement to a depository , SEBI examines the

automated data processing system against
a) All of the Above

b) Unauthorised dissemination of data
c) Unauthorised access to records and data
d) Alteration of records and data
59) To whom will the corporate benefits like dividend etc accrue for those securities which
are pledge?
a) Pledgor
b) Pledgee
60) One the criteria to participante as a Clearing House of a Stock Exchange is to have
adequate hardware and software systems to interact with the Depository Participant
a) TRUE
b) FALSE
61) “ Non-cash corporate action” involves which of the following?
a) all benefits other than monetary benefits

b) Monetary Benefits
c) Both Monetary as well as non-monetary benefits
62) Investor of physical securities can get them dematerialized by making a request through
whom
a) Depository Participant
b) SEBI
c) Depository
d) Stock Exchange
63) A pledgor can substitute offered in a pledge transaction, if the pledge agrees to it
a) TRUE
b) FALSE
64) it is necessary for DPs to enter into a separate agreement with persons, seeking to open a
demat account for the purpose of holding and dealing in electronic warehousing receipts
because
a) Legal status of Warehouse Receipts is different form securities

b) Warehouse receipts are unique to commodities only
c) Depository have provided a model agreement format for Warehouse receipts to the
DPs
65) Which of the follwing statement is False?
a) Each debt security has a unique identification called IPIN

b) A debt instrument has a limited life
c) A interested bearing security is a debt instrument
d) An Issuer may issue multiple debt instrument by Varying the features of the
instruments.
66) Where there is an objection form any member of the HUF , transmission of securities
held in the beneficial owner account should be effected only_____________.
a) on the basis of a Decree by a competent Court or the Deed of partition
b) on the basis of opinion of legal counsel
c) on the basis of the collective of other members of the family
d) on the basis of the past precedents of such transmission in the company
67) Confirmation or rejection of pledge request is communicated to the _________
a) Pledgor’ s Depository participant

b) pledgee’ s Depository participant
c) Depository
68) Exchange of money for the off-market transaction____________
a) can be handled in the same manner like a market transaction

b) are handled outside the depository system
c) are handled within depository system
d) are to be handled in ‘ off-market settlement system’
69) ________is required to give Inter-settlement Instruction to the Participants for securities
lying within a same CM account but in different settlement a pocket.
a) Depository
b) Clearing House
c) Clearing Member
d) Exchange
70) If the securities are held in the depository system, documents have to be submitted to the
________________for effecting transmission
a) Company
b) Depository
c) SEBI
d) Depository Participant
71) Under the process of Remat, the depository account of a beneficial owner is debited for
the securities sought to be rematerialized and physical certificates for the equivalent number
of securities is/are issued
a) FALSE
b) TRUE
72)Identify the incorrect underlined portion of the sentence: Accounts opened under
agreement with DPs shall hold electronic warehouse receipts alogwith other securities
a) Alongwith other securities

b) Electronic warehouse receipts
c) Accounts opened
d) Agreement with DPs
73)Large deals between institution, trades among private parties, transfer of securities
between a client and a sub-broker, large trades in debt instruments are normally settled
through off-market rought.
a) TRUE
b) FALSE
74) Nominee details can be changed later on after submission of details
a) TRUE
b) FALSE
75) On issue of secured debentures, the Issuer initially allots_____________ till the charges
are created. On creation of the charges, _______________ are issued.
a) Letter of Allocation (LOA), Debt Certificate

b) Letter of Allotment (LOA), Debt Certificate
c) Debt Certificate, Letter of Allotment (LOA)
d) Debt Certificate, Letter of Allocation (LOA)
76) In the depository system, the securities in dematerialized form are identification by
distinctive number and certificate numbers just as in the physical environment.
a) TRUE
b) FALSE
77) Where a part quantity of the pledged shares are closure, what is the status shown against
those shares?
a) Partially closed
b) Part closed
c) Closed settled
78) When can a Registrar and Transfer Agents reject a DRF
a) Certificate(s) not received by R&T Agent in time form DP

b) All/ some certificate(s) sent to incorrect R&T Agent by DP
c) Both 1 and 2
79) The DPs can verify the details in the application form and submit it into the DP system
till the ________ day from the offer clouser day
a) Second
b) Fourth
c) Third
d) Fifth
80) SEBI gives DP a certificate of
a) initiation
b) registration
c) incorporation
d) All of the above
81) The allotment advice/refund warrants are sent to the applicant directly by
_______________
a) Issuers
b) Depositories
c) Depository Participants
82)Dematerialisation is the process of converting securities held in _____________ form into
holdings in book entry form

b) Temporary
c) Paper
d) Electronic
83) The depository should indemnify beneficial owners of security for any loss caused to
them due to the negligence of _______________
a) Sponsors
b) Depository Participant
c) Bankers to an Issue
d) Issuers
84) As per SEBI ( Depositories and Participants) Regulations, 1996,____________.
a) all DPs must have membership on both depositories

b) both the depositories must have similar bye laws to avoid investor complaints.
c) Both the depositories must be inter-connected to enable inter-depository transfers.
d) Depositories must concentrate on different geographical are to increase the reach
85)The Depository Act, 1996 aims at ensuring free transferability of securities with speed,
accuracy and security
a) TRUE
b) FALSE
86) Beneficiary owners can only make a remat request
a) FALSE
b) TRUE
87)Which of the following records need to be maintained by a Depository?
a) Details of the holdings of the securities of beneficial owners at the end of each day
b) Records of approval, notice, entry and cancellation of pledge or hypothecation.
c) Records of securities dematerialised and rematerialized
d) All of the above
88) To receive the securities allotted in public issue in a demat form, which detail is requird
to be given
a) Savings account Number

b) PAN number
c) Beneficiary account number
89) In case the applicant does not exercise the option of holding securities in demat form,
The Issuer will ________________________
a) Allot securities in physical form

b) Hold back the allotment of securities
c) Cancel the allotment of securities
90) Investors Wishing to Open a Demat account have to maintain a minimum balance
a) TRUE
b) FALSE
91) In a clearing member account, the securities are always kept in a buket of specific market
type and settalment number
a) TRUE
b) FALSE
92) No DP can assign or delegate its function as a depository participant to any other person
without prior approval of the depository in which it is a participant.
a) TRUE only for Stock Brokers

b) False only for Stock Brokers
c) True for all
d) False
93) Can a account be frozen for both credits and debits
a) No
b) Yes
94) Depository Participant must have a networth of Rs 10 crore
a) No, a stock broker can maintain minimum Networth of Rs 5 crore

b) TRUE for all
c) No, an NBFC can maintain minimum Networth of Rs 5 crore
d) True only for R & T Agents
95) For a minor accountholder who has attined majority, to continue to avail of his
depository services, he needs to
a) Open a new demat account

b) Has to open with a new DP
c) Can continue with the same account and is not required to open a new account
96) The certificate of registration granted to a DP may be suspended by SEBI if it is found

that the DP has failed to furnish any information relating to its activity as a DP required
under the regulations
a) FALSE
b) TRUE
97) Locked-in securities can not be invoked before the lock-in release date
a) TRUE
b) FALSE
98) The clearing Corporation/ Clearing House gives pay-out and then securities are
transferred to the buying broker’ s account pp
a) TRUE
b) FALSE
99) During distribution of dividends, companies should mandatorily print the account details
furnished by the Depositories on payment instruments.
a) FALSE
b) TRUE
100) who has provided model agreement to depository participants for warehouse receipts of
commodities?
a) SEBI
b) FMC
c) Depositories
d) RBI
101) SEBI Act, 1992 empowers SEBI to
a) protect interest of investors in securities

b) promoted development of securities markets
c) regulate securities markets
d) all of the above
102) when securities are dematerialized, the physical securities are
a) destroyed
b) kept with the depository for rematerialisation
c) either stored or destroyed, as desired by the security holder
d) mutilated and stored with the depositories
103) Before granting certificate of commencement to a depository, SEBI examines if

depository has made arrangements for insurance for indemnifying the beneficial owners for
relevant losses
a) FALSE
b) TRUE
104) Transfer of securities frome an account in one depository to an account in another

depository____________
a) is allowed only in special cases

b) is termed as an inter-depository transfer
c) is not allowed in Indian securities market as yet
d) is termed as ‘ off – market’ transfer
105) If adequate balances are not received till the end of the day of the execution date, the
instruction will fail.
a) TRUE
b) FALSE
106) To receive the securities allotted in public issue in demat form, the subscriber has to
give
a) Beneficiary Account Number

b) DP-ID
c) Depository Name
d) All of the above
107) Clearing Member is required to give Inter-settlement Instructions to the Participant for
securities lying within a same CM account but in different settlement a pocket.
a) FALSE
b) TRUE
108) Clearing members are entities who
a) are authorized to paying and receive payout from the clearing corporation against
trades done only by their clients
b) are authorized to pay in and receive the pay out from clearing Corporation(CC)/
Clearing House against trades done by them or their clients
c) trade on behalf of their clients
d) Are authorized to paying and receive payout from the Clearing corporation against
trades done only by them
109) Ownership of the pledged/hypothecated securities remains with the ______________

until the pledge is invoked
a) Pledgor (borrower)
b) pledge
110) DPs are required to open house accounts for their own investments to prevent co-
mingling of their assets with that of their clients.
a) TRUE
b) FALSE
111) A Client may withdraw its security balances with the Depository at any point of time
a) FALSE
b) TRUE
112) A new company making an offer of Rs. 10.5 crores is required to make the offer only in
dematerialized form
a) FALSE
b) TRUE
113) No single participant can hold, at any point of time, more than_______ of the equity
capital of the depository.
a) 5%
b) 3%
c) 11%
d) 8%
114) Which section of the request form for transferring of government securities form SGL
account to depository account filled by DP?
a) Agreement Section
b) Consent Section
c) Authorization Section
d) Approval Section
115) If the pledgor defaults in discharging his obligation under the agreement, the pledgee
can
a) cannot do anything about it

b) invoke the pledge/hypothecation
c) submit a written compliant to Depository
d) Compliant to SEBI
116) It is not mandatory for the company/issuer to have connectivity with the depository
a) TRUE
b) FALSE
117) Sate True or False: Account Opening procedure remains the same as applicable for
account opening of BOs
a) TRUE
b) FALSE
118) For dematerialization of government securities, the client has to submit request alogwith
DRF or ___________
a) Letter of Authority
b) Letter of Approval
c) Letter of consent
d) Letter of intent
119) Does the DP charges the Beneficiary owner when he wants his securities transferred to
some other DP?
a) No
b) Yes
120) An active____________ promotes the growth of the primary market and capital
formation
a) secondary market
b) export market
c) forex market
d) bullion market
121) A depository can directly open accounts and provide services to clients.
a) TRUE
b) FALSE
122) There can only be one pledge/hypothecation transaction between the pledgee and the
pledgor
a) FALSE
b) TRUE
123) Corporate actions affect the rights, obligation and/ or interests of only the beneficial
owners of securities held in a depository. Sate whether TRUE or FALSE
a) TRUE
b) FALSE
124) The oldest surviving male member is appointed the new karta of the HUF in event of
the death of the karta of the HUF
a) FALSE
b) TRUE
125) Sate True or False: The depository informs all the DPs about the book closure for
government securities as and when announced by RBI
a) TRUE
b) FALSE
126) Locked-in securities can be invoked before the lock-in release date
a) TRUE
b) FALSE
127) One of the criteria to participate as a Clearing House of a Stock Exchange is to have
a) FALSE
b) TRUE
128) Sate True or False :- RBI has provided a model agreement format to the DPs
a) FALSE
b) TRUE
129) After announcement of the Corporate Actions, on what date does the depository provide
the details of the holdings of the beneficial owners to the Issuer/RTA?
a) Record date
b) Date of announcement
c) Date of Settlement
130) it is necessary for DPs to enter into a separate agreement with persons, seeking to open
a demat account for the purpose of holding and dealing in electronic warehouse receipts
because
a) Legal Status of Warehouse Receipts is different from securities

c) Depositories have provided a model agreement format for Warehouse receipts to
the DPs
131) The securities held with the depository may be used as collateral to secure loans and
other credits by the clients.
a) FALSE
b) TRUE
132) If the lender needs concurrence of the borrower for appropriating securities to his
account, the transaction is called_______________
a) Hypothecation
b) Pledge
c) Either of the above
133) DIS refers to
a) Delivery Instruction Slip

b) Delivery Intent Slip
c) Delivery Issue Slip
134) How is a demat account frozen?
a) Written instruction is received from the client by the DP, requesting freezing of
account
b) Order are received by the Dp or the depository from the Central or Sate
Government, SEBI, or any order by the court, tribunal, or any statutory authority
c) Request is received by the Depository from a DP or client
d) All of the above
135) If the account holder is dead , the securities lying to the credit of the account holder may
be ______________ to the nominee’ s account after the DP verifies the identity of the
nominee
a) Transmitted
b) Transposed
c) Bought
d) Sold
136) Who can make a rematerialisation request ?
a) Registrar and Transfer Agents

c) Depository
d) Beneficial Owners
137) If the debit has to be effected on a particular date in future, account holder may mention
such date in the space provided for______________ in the form
a) execution date
b) transfer date
c) value date
d) effective date
138) In case of cash Corporate Action, depositories in india provides only the information to
the Issuer about the persons entitled to receive corporate benefits. State whether TRUE or
FALSE ?
a) TRUE
b) FALSE
139) If the Pledgor fails to discharge his obligation under the agreement of pledge, what does
the pledgor do?
a) Can’ t take any action

b) Complain to the DP
c) Complain to the Depository
d) Invoke the Pledge
140) The applicant has to pay SEBI Application fee when submitting the application form for
registering as DP with the Depository.
a) TRUE
b) FALSE
141) The DP should forward the RRF-GS to the depository within ______________ of
accepting such request from the client
a) Seven Days
b) Two Days
c) Six Days
d) Three days
142) Which of the following statement is false?
a) There are two types of government securities- Dated Securities and Treasury Bills
b) All the activities relating to issue of government securities(G-Secs) are handled by
the Reserve Bank of India through its Public Deposit Office(PDO)
c) The depositories in India have been given Permission to maintain SGL accounts, of
investors through its DPs
d) Treasury Bills have a maturity period of up to one year
143) The Facility for change of name in corporate accounts is available for Client types
a) Body Corporate, Bank and Financial Institution

b) Foreign Institutional Investors and Mutual Fund
c) Only 1
d) Both 1 and 2
144) Once the allotment of securities are done, the refund/allotment notice is received by the
DP through the depository system through which he had applied
a) FALSE
b) TRUE
145) Who scrutinizes the form of transfer in case of Government securities?
a) Depository Participants
b) Debiting and Paying Agent(DPA)
c) Registrar and Transfer Agent(RTA)
d) Issuing and Paying Agent(IPA)
146) It is possible for investors to transpose names of the joint holders alogwith the process
of dematerialization through their DPs
a) FALSE
b) TRUE
147) The depository issues circular relating to activation of commodities identification

number called
a) ISIN
b) ICIN
148) In the process of transmission through a depository, the successor to the title interacts
only with one entity

b) His DP
c) His banker
d) His sub broker
149) Transmission statements can be sent to clients in electronic form___________ provided

an agreement in the prescribed format has been executed with the clients for this adequate
security measures have been taken.
a) in email form with digital signature

b) in email form with scanned signature
c) only in scanned form
150) A shareholder holds securities of company XYZ in physical form. A rights issue is
announced and the shareholder is given an option to receive the new securities in physical or
dematerialized form. If the shareholder does not exercise the option, in which form will the
new securities be allocated to him/her ?
a) Physical form
b) Dematerialized form
c) No allotment will be made
151) The applicant for registering as DP is mandated to appoint a _____________

b) Principal officer
c) Security officer
d) Compliance Officer
152)Preference is given to those subscribers of public issue who have opted for demat
allocation of securities
a) FALSE
b) TRUE
153) Under PMLA, all intermediaries, including a DP has to maintain record of all cash
transaction above________________
a) Rs.100 lacs
b) Rs.10 lacs
c) Rs.50 lacs
d) Rs.25 lacs
154) For investors in government securities, payment of interest is made by whom?
a) Depository
b) Issuers/R&T Agents
d) Brokers
155) Every depository may have its own Bye-laws for termination or suspension of its DPs
a) TRUE only if specific permission is taken from SEBI

b) FALSE
c) TRUE
d) TRUE only if mentioned in the agreement signed with Depository Participant
156) The name of the client on DRF and the certificates should be exactly the same as in the
clients account in the DP system
a) TRUE
b) FALSE
157) Dematerialisation is the process of converting securities held in physical form into
holding in book entry form.
a) TRUE
b) FALSE
158) ________________ lays down Eligibility criteria for Depository participant.
a) All of the above

b) Bye-Laws of BSE
c) SEBI( Depository & Participants) Regulations, 1996
d) Bye-Laws of NSE
159) Trading periods of each of the market segments is identified by a settlement number.
a) TRUE
b) FALSE
160) Transfer due to a transaction done on a _______________ is called ‘ off-market’

transaction.
a) multilateral basis
b) person to institution basis
c) institution to person basis
d) person to person basis
161) When can a Registrar and Transfer Agents reject a DRF
a) Certificate(s) not received by R&T Agent in time from DP

b) All/some certificate(s) sent to incorrect R&T Agent by DP
c) Both 1 & 2
162) The Depository Act, 1996 aims at
a) ensuring organized trading activity in securities takes place on a specified

recognized stock excahange
b) All of the above
c) Ensuring direct and indirect control of virtually all aspects of securities trading
d) Ensuring free transferability of securities with speed, accuracy and security
163) The ‘ Standing Instructions’ are given by
a) Transferer to Transferee
b) Transferer to DP
c) Transferee to DP
164) An issuer wanting to give demat facility for debt instruments has to send____________
along with the request to the depository
b) Letter of Intent
c) Letter of Allotment
d) Letter of Consent
165) Client-Participant agreement is a standard agreement approved by
a) SEBI
b) DCA
c) RBI
d) NSDL
166) Depository Participants are the collecting points for the application forms of IPO’ s and
the Bank instruments
a) FALSE
b) TRUE
167) SEBI can issue guidelines pertaining to public issues
a) TRUE
b) FALSE
168) Relationship of DP with Depository is governed by
a) Agreement with SEBI

b) Agreement with Exachange
c) SEBI
d) Agreement with Depository
169) When is a Pledge transaction completed ?
a) When the confirmation advice is entered in the DP system

b) When SEBI approves the proposal
c) When the depository gives its nod
170) Which agencies are exempted from the mandatory requirement of giving PAN number
during demat account opening ?
a) Banks
b) NGOs
c) NBFCs
d) UN entities
171) The investor shall fill up application form and submit the same along with the payment
instrument to the DP
a) FALSE
b) TRUE
172) In case where a state or the central government is the issuer, the depository reconciles
the records of the dematerialised securities with the statement provided by the RBI on a daily
basis.
a) FALSE
b) TRUE
173) Units of Mutual Funds are eligible for dematerialization as per SEBI ( Depositories
& Participants) Regulations, 1996
a) TRUE
b) FALSE
174) A succession certificate is mandatorily required for transmission of securities to a

legal heir in case where nomination has not been made
a) FALSE
b) TRUE
175) A depository CAN NOT directly open accounts and provided services to clients
a) FALSE
b) TRUE
176) The Demat account number is a ____________ digit ID
a) 16
b) 20
c) 18
d) 8
177) Pledge clousure request is given to whom by the pledgor
b) Depository
c) Pledgee directly
178) The Nominee is requird to sign the nomination form
a) FALSE
b) TRUE
179) Rematerialisation refers to the process of
a) Issuing promissory notes to the clients

b) Issuing bank notes by the depository to the DPs
c) Issuing physical securities in place of the securities held electronically in
book-entry form with a depository
180) In case where the pledgor substitutes the pledge securities, does that involve the
procedure of closure of earlier pledge and creation of new pledge
a) Yes
b) No
181) Arrange the following events in a chronological order:

(1) Investor submits DRF and physical certificate
(2) Investor opens an account with DP
(3) Certificates are marked saying “ submitted for demat”
(4) Transaction statement is provided by DP
a) 2,3,1,4
b) 1,3,4,2
c) 1,2,3,4
d) 2,1,3,4
182) Arrange the events in chronological order

(5) client fills PDRF
(6) DP shall issue acknowledgment for recipt
(7) Client will submit this acknowledgment and attested copy of PDRF
(8) At the time of delivery, client initiates remat
a) 1,3,2,4
b) 4,3,2,1
c) 1,2,3,4
d) 4,1,2,3
183) The Clearing Corporation/ Clearing House gives pay – out and securities are transferred
to the____________
a) account of stock exchange

b) Buying broker’ s account
c) Depository
d) Investors account
184) ____________regulates sale and purchase of derivatives contract on money market

securities
a) RBI
b) BSE
c) NSE
d) SEBI
185) The process of effecting changes in the order of joint names appearing on a security
certificate is called_______________
a) Transposition
b) Regression
c) Nomination
186) Clearing member and broker needs to open a ___________ account to deal with their
own holdings
a) Beneficiary account
b) Clearing member account
c) Broker account
d) Intermediary account
187) Pay-out’ means________
a) The process of a CC/ CH transferring the securities to the broker’ s settlement

– account for the quantity of securities purchased by them on behalf of their clients’
b) The process of a CC/CH transferring the securities to the broker’ s margin account
for the quantity of securities purchased by them on behalf of their clients’
c) The process of a CC/CH transferring the securities to the brokers margin account for
the quantity of securities sold by them behalf of their clients’
188) Which of the following statement is False?

a) Issuer of Commercial Paper will provide these details to the Registrar and transfer
Agent(RTA)
b) For any buying or selling of demat debt instruments, the procedures involved for
delivery or recipt of debt instrument is the same as that involved for equity shares.
c) As per the RBI Monetary and Credit Policy 2001-02, effective June30,2001, banks
financial institutions(FIs), primary dealers(PDs) and satellite dealers (SDs) is
permitted to make fresh investments and hold CP only in dematerialised form
d) IPA will open redemption account with the DP at the time of issue of Commercial
paper in demat mode
registration certificate, the Depository
a) will not case to be an intermediary but must stop carrying on the activities of the
intermediary form the date of such expiry
b) None Of the above
c) Shall cease to be an intermediary
d) Will not cease to be an intermediary but will carry on the approved activities of the
intermediary from the date of such expiry
190) An intermediary account can be open by _________ for the purpose of stock lending
and borrowing.
a) any intermediary in securities market

b) a SEBI registered intermediary
c) RBI/SEBI registered intermediary
d) Banks/ brokers
191) _________________ aims at streamlining settalment process by transfer of ownership

of securities electronically by book entry without making the securities moves from person to
person
a) Depositories Act,1996
b) Companies Act,1956
c) SCRA,1956
d) SEBI Act, 1992
192) Details of securities declard to be eligeable for dematetialisation in the depository need
to be maintained by a Depository
a) TRUE
b) FALSE
193) Beneficial owners can trade in the securities which has been sent for remat
a) FALSE
b) TRUE
194) In a clearing member account, the securities are always kept in a bucket of specific
market type and settlement number
a) FALSE
b) TRUE
195)The process of a broker/trading member submitting securities towards the securities sold
by him on behalf of his client, to CC/CH of a stock exchange is called ‘ pay-in’
a) FALSE
b) TRUE
196) Each security is identified in the depository system by an ______________________
a) ISIN
b) INS
c) IIP
d) WAP
197) __________________transferee has to submit duly filled in ‘ Recipt-Instruction’ (RI)

form for every expected receipt
a) If one of the party to the transaction is FII,

b) If Standing Instruction is not given,
c) If an FII is transferor
d) If it is a ‘ off-market’ transaction
198) Without filling out the demat application form and the DP-client agreement, can the
investor apply for a demat account?
a) Yes
b) No
199) What is the Main difference between unilateral pledge closure and pledge closure
request?
a) No confirmation/rejection required by the pledgor

b) No Depository participant involved
c) Automatic closure after repayment of loan
200) Establishment of depository system led to
a) reduced risk
b) increased transparency
c) improved investor protection
d) All of the above
201) The depository may conduct entrance examination and/or interviews, to examine the
knowledge of the DP (and its staff) related to ____________aspect of the depository.
a) operational
b) functional
c) All of the above
d) Technical
202) The pledge/hypothecation so created can be closed on repayment of loan
a) FALSE
b) TRUE
203) Client-Participants agreement is a standard agreement approved by
a) RBI
b) NSDL
c) DCA
d) SEBI
204) Indigenous money lenders form a part of organised money market
a) TRUE
b) FALSE
205) Under PMLA, all intermediaries, including a DP has to maintain record of all
transactions above__________.
a) Rs. 25 lacs
b) Rs. 10 lacs
c) RS 50 lacs
d) Rs 100 lacs
206) ____________lays down specifications about who can open a beneficiary account.
a) The Depositories Act

b) Regulations under Depositories Act
c) SEBI Act
207) Transfer of securities from an account in one depository to an account in another

depository_________.
a) Is not allowed in Indian securities market as yet
b) Is allowed only in special cases.
c) Is termed as an inter-depository transfer.
d) Is termed as ‘ off-market’ transfer
208) The securities Offer in the public offer can be traded in the stock exchange in demat
form
a) TRUE
b) FALSE
209) Once the pledgor repays the loan to the Pledgee, who request for the clouser of the
pledge ?
a) Pledgee
b) Pledgor
c) Pledgors DP
d) Pledgees DP
210) The Orders of SEBI under the securities laws are appellable before_________
a) securities Appellate Tribunal

b) SEBI Appellate Tribunal
c) Supreme Court
d) High Court
211) Can a DP register the transfer of securities to or a beneficial owner’ s account on

receipt of instructions ?
a) FALSE
b) TRUE
212) Transaction statement can be sent to clients in electronic form________ provided

an agreement in the prescribed format has been executed with the clients for this
and adequate security measures have been taken.
a) Only in scanned form

b) In email form with scanned signature
c) None of the above
d) In email form with digital signature
213) _____________has made the securities of all public limited companies freely
transferable
a) Depositories Act , 1996

b) SEBI Act, 1992
c) SCRA, 1956
d) Companies Act, 1956
214) The CC/CH gives pay-out and securities are transferred_________.
a) from the selling broker’ s account

b) to the selling broker’ s account
c) to the buying broker’ s account
d) from the sub broker’ s account
215) Which account is required by a nominee to give effected to the transmission of

shares ?
a) Current account
b) Demat account
c) Salary account
d) Bank account
216) The Issuer/ R&T Agent has to furnish a list of authorized officials who will
represent and interact with the depository
a) within 14 days of executing the tripartite agreement

b) within 15 days of executing the tripartite agreement
c) within 13 days of executing the tripartite agreement
d) within 12 days of executing the tripartite agreement
217) Distribution of dividends can NOT be made using which of the following modes?
a) Cash
b) ECS
c) Warrants
218) ISIN is a 12-character long identification mark.
a) FALSE
b) TRUE
219) The process of a broker/trading member submitting securities towards the securities
sold by him on behalf of his client, to Clearing Corporation/Clearing House of a
stogck exchange is called________
a) ‘ pay-in’
b) Pay-out
c) Settlement
d) Patawat
220) Without intimating the pledger, the pledgee can initiate the invocation procedure
towards the pledge of securities
a) FALSE
b) TRUE
221) Where there is an objection from any member of the HUF, transmission of
securities held in the beneficial owner account should be effected only on basis of a
Decree by a competent court or the Deed of Partition
a) TRUE
b) FALSE
222) Who has made the requirement of PAN mandatory for demat account opening?
a) RBI
b) Income Tax
c) SEBI
d) Government of India
223) The procedure for dematerialization of CD is __________ that carried out equity
shares
a) Same as
b) Differs form
224) Who scrutinises the form of transfer in case of Government securities ?
a) Debiting and Paying Agent (DPA)

b) Issuing and Paying Agent (IPA)
d) Registrar and Transfer Agents (RTA)
225) Corporate actions affect the rights , obligation and / or interests of only the
beneficial owners of securities held in a depository. State whether TRUE or
FALSE.
a) FALSE
b) TRUE
226) Who ensure compliance of warehouse receipts and securities being in different
accounts?
a) Depository participants
b) Commodity Exchange
c) Depositories
d) All of the above

(1) Verification of clients signature on the DRF-GS with the specimen
signature
(2) The depository’ s system shall credit the client’ s account
automatically
(3) DRN will be generated by the system
(4) The request is then released to Depository software system by the
DP.
a) 1,2,4,3
b) 1,3,4,2
c) 1,3,2,4
d) 1,4,3,2
228) Karta of Hindu Undivided Family (HUF) holder of power of attorney can not
nominate.
a) True for HUF but not for PoA holder

b) True for POA holder but not for karta of HUF
c) TRUE
d) FALSE
229) In case of transposition-cum-dematerialisation, the client can get securities

dematerialised in the same account if the names appearing on the ceritificates match
with the name in which the account has been opened but are in different order
a) TRUE
b) FALSE
230) it is ____________ For DPs to enter into a separate agreement with persons,
seeking to open a demat account for the purpose of holding and dealing in
electronic warehouse receipts.
a) Necessary
b) Optional
c) Optional, on adequate legal basis
231) If the buying client is a sub-broker, such sub-broker will transfer securities to the
final client using the off-market route.
a) FALSE
b) TRUE
232) A shareholder holds securities of company XYZ in physical form. A rights issue is
announced and the shareholder is given an Option to receive the new securities in
physical or dematerialized form. If the shareholder does not exercise the option , in
which form will the new securities be allocated to him/her?
a) Physical form
233) Sate True or False :- At the time of delivery, client initiates a remat request through
the DP using the Physical Delivery Remat Form(PDRF) .
a) FALSE
b) TRUE
234) A depository should conduct an annual inspection of its procedures and forward a
copy of the inspection report to
a) SEBI
b) RTA
c) Issuer
d) Investors
235) Beneficial owners can trade in the securities which has been sent for remat
a) TRUE
b) FALSE
236) The holder of securities should have a beneficiary account in the same name as it
appears on the security certificates to be dematerialised
a) FALSE
b) TRUE
237) When can a Registrar and Transfer Agent reject a DRF
a) Certificate(s) not received by R&T Agent in time from DP

b) All/some certificate(s) sent to incorrect R&T Agent by DP
c) Both 1 and 2
238) Separate dematerialization request forms have to be submitted for each ISIN
a) TRUE
b) FALSE
239) Any trade that is cleared and settled without the participation of a clearing member
or clearing corporation is called___________
a) open trade
b) kerb trade
c) off-market trade
d) non participative trade
240) A single agreement is executed for ________ pledge transaction.
a) Multiple
b) 1
c) 2
241) A DP can only commence its operations after complying with the prescribed
procedures of the depository for commencing business operations.
a) TRUE only for Stock Brokers

b) TRUE for all
c) FALSE only for Stock Brokers
d) FALSE for all
242) What typeof accounts does a clearing member and broker have if they need to deal
with their own holdings
c) Intermediary account
d) Any Of The above
243)Wich the following securities can be dematerialised?
a) Debentures
b) Commercial Papers
c) Scrips
d) All of the above
244) Depository:_______:Bank: Fund
a) Liabilities
b) Securities
c) Investors
d) Assets
245) In pledged and hypothecated securities, the corporate benefits accrue to the lender or the
pledgee of the securities
a) TRUE
b) FALSE
246) The accounts of all the successful allotees is credited on the _________ of the allotment
date
a) Beginning of the Day

b) The day on which the security gets listed on the exchnge
c) End of Day
247) Locked – in securities can not be invoked before the lock-in released date
a) TRUE
b) FALSE
248) ______________ deals with regulations pertaining to dematerialization of securities
a) Companies Act,1956
b) Depositories Act,1996
c) SEBI Act , 1992
d) SCRA, 1956
249) Depository Participants must have a networth of Rs 10 crore
a) No, a stock broker can maintain minimum Networth of Rs 5 crore

b) True only R & T Agents
c) TRUE for all
d) No, an NBFC can maintain minimum Networth of Rs 5 crore
250) The following client details can be changed even after opening the demat account
except for
a) Standing instruction
b) Email address
c) Name of the account holders
d) Pan number
251) Pledge closure request is given to whom by the pledgor
b) Depository
c) Pledgee directly
252) Who has provided model agreement to Depository Participants for warehouse receipts
of commodities?
a) FMC
b) SEBI
c) RBI
d) Depositories
253) An instruction to move securities form one settlement to another settlement which is
called ‘ inter-settlement’ transfer
a) FALSE
b) TRUE
254) Establishment of depository system led to
a) reduced transparency
b) improved investor protection
c) increased risk
d) all of the above
255) To withdraw its security balances for rematerialisation purpose with the Depository a
client has to fill
a) RRD
b) RRF
c) RRC
d) RRS
256) Before granting certificate of commencement to a depository , SEBI examines the

a) All of the above

b) Unauthorized access to records and data
c) Altearation of records and data
d) Unauthorised dissemination of data
257) On settlement day, the RBI ___________ the SGL-2 account of the depository and
________ its current account for funds, in case of the sale of government securities.
a) debits, credits
b) credits, debits
258) Transfer of ownership( under a system where depository is not presented) of securities
involves
a) endorsement
b) payment of stamp duty
c) execution of a transfer instrument
d) All of the above
259) Payout is pre-determined by the settlement calendar
a) FALSE
b) TRUE
260) The ‘ standing Instruction’ are given by :
a) Transferer to Transferee
b) Transferer to DP
d) Transferee to DP
261) There is only one depository in India that provides all depository services
a) TRUE
b) FALSE
262) Clearing member account is opened for the purpose stock lending and borrowing
a) TRUE
b) FALSE
263) Which of the following is a “ cash corporate Actions” ?
a) Corporate Benefits
b) Dividend
c) Bonus
d) Rights
264) Clearing Corporation is an entity responsible for clearing and settlement of trades done
by clearing members on a recognized stock exchange.
a) TRUE
b) FALSE
265) In cases where the pledger substitutes the pledged securities, does that involve the
procedure of closer of earlier pledge and creation of a new pledge
a) No
b) Yes
a) FALSE
b) TRUE
267) If adequate balances are not received till the end of the execution date, the instruction
will fail.
a) TRUE
b) FALSE
268) Within how many days of request for remat of securities should the client receive the
physical securities?
a) 30 days
b) 28 days
c) 15 days
d) 45 days
269) Which of the following corporate benefits are accrued to the pledgor (borrower)?
a) Dividend
b) Bonus
c) Rights
d) All of the above
270. If the Beneficiary owners account are not given in the IPO application form, can the
securities be allotted in demat form?
a) No
b) Yes
271. A Depository must have minimum networth of
a) Rs 10 Crore
b) Rs 500 Crore
c) Rs 100 Crore
d) Rs 1 crore
272. ICIN refers to
a) International Commodity Identification Number

b) Interim Commodity Identification Number
c) Intermediate Commodity Identification Number
d) None Of The Above
273. The investor shall fill up the application form and submit the same along with the
payment instrument to the DP
a) FALSE
b) TRUE
274. The Clearing Corporation/ Clearing House gives pay-out and then securities are
transferred to the __________

b) buying broker’ s account
c) investor’ s account
d) depository
275. A succession certification is mandatorily required for transmission of securities to a

legal heir in case where nomination has not been made
a) FALSE
b) TRUE
276. The creation of pledge and hypothecation against securities which are held in demat
mode is permitted under which section in the Depositories Act 1996
a) Section 12
b) Section 10
c) Section 5
d) None of the above Sections
277. When a pledge request is rejected by the pledgee, the reason for the rejection is given to
the Pledgor’ s DP
a) TRUE
b) FALSE
278. Without filling out the demat application form and DP-client agreement, can the
a) Yes
b) No
279. The DP should forward the RRF-GS to the depository within ______________ of
accepting such request form the client
a) Six Days
b) Three days
c) Two days
d) Seven days
280. State True or False: The depository’ s G-Sec cell rejects the dematerialization request in
case SEBI rejects the transfer on account of signature mismatch
a) TRUE
b) FALSE
281. What is the maturity period of Treasury Bills?
a) more than 10 years

b) Upto 1 Year
c) Upto 3 months
d) Upto 6 months
282. What is the minimum value required to subscribe for Commercial Paper (CP)?
a) 5000
b) 5,00,000
c) 500
d) 50,000
283. Which of the following records need to be maintained by a Depository?

a) Detail of the holding of the securities of beneficial owners at the end
of each day
b) Records of approval, notice entry and cancellation of pledge or
hypothecation.
c) Records of securities dematerialised and rematerialized
d) All of the above
284. An investor has the option of opening several accounts with a single DP.
a) FALSE
b) TRUE
285. Can custodians act as clearing members?
a) FALSE
b) TRUE
286. An issuer wanting to give demat facility for debt instrument has to send __________
along with the request to the depository
a) Letter of Allotment
b) Letter of Authority
c) Letter of Intent
d) Letter of Consent
287. During an off-market transaction, the ‘ Delivery Instruction’ is submitted by

_____________
a) buyer’ s sub broker

b) seller’ s sub broker
c) buyer
d) seller
288.____________provides for standard of disclosure in public issues of capital
a) Depositories Act,1996
b) SEBI Act, 1992
c) Companies Act, 1956
d) SCRA, 1956
289. In case of debt instruments, a call option refers to
a) Repaying the debt before the redemption date

b) Demanding repayment before time
c) Not Repaying the debt on the redemption date
d) Not Demanding repayment on the redemption date
290. A company can open a demat account, provide its memorandum authorized it to make
investment in the securities of other companies
a) TRUE
b) FALSE
291.___________transferee has to submit duly filled in ‘ Receipt-Instruction’ (RI) form for
every expected receipt.
a) If an FII is transferor,
b) If it is a ‘ off-market’ transaction,
c) If Standing Instruction is not given,
d) If one of the party to the transaction is FII
292. The applicant has to pay SEBI Application fee when submitting the application form for
registerd as DP with the Depository.
a) TRUE
b) FALSE
293. SEBI gives DP a certificate of
a) initiation
b) incorporation
c) registration
d) All of the above
294. In case the BO Account at transfer DP is a joint account, the BO Account at transferee
DP should also be a joint account in the same sequence of ownership
a) TRUE
b) FALSE
295. How is a demat account frozen?
a) Written instruction is received from the client by the DP, requesting

freezing of account
b) Orders are received by the DP or the depository from the Central or
Sate Government, SEBI, or any order by the court, tribunal, or any
statutory authority
c) Request is received by the Depository from a DP or client
d) All of the above
296. A DP can terminate its participation in the depository by giving a notice of atleast

b) 1 Months
c) 3 Months
d) 2 Months
297. Who are held responsiable if the application forms and the payment instrument are not
deposited in time with the bank?
a) Exchange
b) Depositories
d) Investors themselves
298. In which type of market are the new securities sold?
a) Money Market
b) Commodity market
c) Primary market
d) Secondary market
299. The word “ ___________________” means devolution of title to shares
a) Transposition
b) Transmission
c) Taxation
d) Transfer
300. On allotment of securities who credits the securities to the allottees account on the
execution date in case of demat allocation?
a) Issuer directly
b) Depository
c) Depository participants
d) Registrar and Transfer Agents
301. There can only be one pledge/ hypothecation transaction between the pledge and the
pledgor
a) FALSE
b) TRUE
302. Transfer of ownership (under a system where depository is not present) of securities
involves
a) endorsement
d) All of the above
303._______________ the depository reconciles the records of the dematerialized securities

with the statement provided by the RBI on a daily basis
a) In case of securitized debt

b) In case of issues of CP
c) In case where a state or the central government is the issuer,
d) In case of debt issues of PSU
304. Option of receiving demat allotment of securities is given in the
a) IPO application form

b) Demat account opening form
c) Savings bank account opning form
305. A pledgor can substitute the securities offered in a pledge transaction, if the pledgee
agrees to it
a) FALSE
b) TRUE
306. Mr. A has lent his securities to Mr. B through the depository system. Which of the
following corporate benefits is Mr. A entitled to?
a) Dividend
b) Bonus
c) Split
d) All of the above
307. No single participation can hold, at any point of time, more than________ of the equity
capital of the depository
a) 8%.
b) 5%
c) 3%
d) 11%
308. The depository credits the securities to the allottee accounts on demat allocation on
which date?
a) Execution date
b) Record date
c) Book closure date
309. Once the invocation order is accepted by the DP, the securities automatically move from
the pledgee’ s account to the pledgor’ s account
a) FALSE
b) TRUE
310. The ‘ Delivery Instruction’ for an off-market trade is triggered on_____________.
a) Execution date
b) Instruction Date
c) Either(a) or (b)
d) Neither (a) or (b)
311. The securities offer in the public offer can only be traded in the stock exchange in demat
form
a) TRUE
b) FALSE
312. In a clearing member account, the securities are always kept in a bucket of specific
a) True
b) False
313. Under PMLA, all intermediaries a DP has to maintain record of all cash transaction
above Rs. 10 lacs
c) FALSE
d) TRUE
314. Distribution of dividends can NOT be made using which of the following modes?
a) Cash
b) ECS
c) Warrants
315. ____________is one that is settled through the participation of a Clearing Corporation/
Clearing House.
a) An off-market trade
b) A commercially clear trade
c) A genuine trade
d) A market trade
316. In the process of transmission through a depository, the successor to the title interacts
only with one entity i.e,
a) his DP
b) None of the above
c) his banker
d) his sub broker
payment instrument to the Exchange
a) FALSE
b) TRUE
318. CDSL stands for
a) Common Depository Services Limited

b) Central Depository Securities Limited
c) Central Depository Services Limited
d) Common Depository Securities Limited
319. The ‘ Standing Instructions’ are given by:
a) Transferer to transferee
c) Transferee to DP
d) Transserer to DP
320.If_______ has a minimum net worth of Rs. 10 crore, the limits on the aggregate value of
the portfolio of securities of the beneficial owners held in dematerialized form in a depository
through him, shall not be applicable.
a) stock broker
b) NBFC
c) All of the above
d) RTA
321. The pledge/ Hypothecation created can be invoked if there is a _____by the pledgor
a) Default
b) Repayment
c) New pledge initiated
322. In case of a mismatch, the depositories G-Sec cell sends a letter/fax to the
______________intimating them of the mismatch, seeking necessary
clarification/documentation from the______________
b) Client
c) RBI
d) Both 1 and 2
323. What is the major difference between a clearing member account and an individual
account?
a) the clearing member has to first register itself with the clearing
corporation and obtain a clearing corporation clearing member
identification number
b) No difference
c) Clearing member has to start operation before applying for a CM
account
324. A shareholder holds securities of company XYZ in physical form. A rights issue is
dematerialized form. If the shareholder does not exercise the option, in which form will, the
new securities are allocated to him/her?
a) Physical form
325. The only way for a Depository to handle a corporate action is by providing information
to the issuer about the persons entitled to receive corporate benefits
a) TRUE
b) FALSE
326. With the introduction of depository system in India theft, forgery, mutilation of
certificates become more prominent
a) FLASE
b) TRUE
327. DP system generates an ‘ instruction number’ for each instruction entered.
a) TRUE
b) FALSE
328. The name of the client on DRF and the certificates should be exactly the same as in the
client’ s account in the DP system
a) TRUE
b) FALSE
329. Can an investor apply for an IPO even of he does not have a demat account?
a) No
b) Yes , if he opens a demat account while submitting his IPO application
form
330. As per SEBI (Depositories and participants) Regulations, 1996,___________.
a) Both the depositories must have similar bye laws to avoid investor
complaints.
b) Both the depositories must be inter-connected to enable inter-depository
transfers.
c) All DPs must membership on both depositories.
d) Depositories must concentrate on different geographical areas to increase
the reach
331.In case of transposition-cum-dematerialization, the Client can get securities

dematerialized in the same account if names appearing on the certificates match with the
names in which the account has been opened but are in a different order
a) TRUE
b) FALSE
332. Of the following options, when is SGL-1 account preferred?
a) When opening of account is done with RBI directly

b) For only consolidated balance of all account holders
c) To keep account of constituent investors
d) To keep sub accounts for each investors separately
333. The creation of pledge and hypothecation against securities which are held in demat
mode is permitted under which section in the Depositories Act, 1996
a) Section 12
b) Section 10
c) Section 5
d) None of the above sections
334. The certificate of registration granted to a DP may be cancelled

a) by Depository on recommendation from SEBI
b) by SEBI
c) by Depository for violating Bye-laws
d) All of the above
335. Sate True or False: - Debt instruments can be issued only by central or sate government
a) TRUE
b) FALSE
336. If the nominee does not have an account with the depository, he needs
to_______________ to give effect to the transmission of securities.
a) Open a bank account

b) Open demat account
c) Buy the shares
d) Sell the shares
337. A depository must apply for and obtain a certificate of commencement of business from
SEBI within one year from the date of applying for registration with SEBI
a) FALSE
b) TRUE
338. In the Unilateral closure of pledge, who gives the request for closure?
a) Pledgee
b) Pledgor
c) DP
339. Which of the following is NOT a “ corporate Action” ?
a) Liquidation
b) Rights
c) Dividend
340. Primary markets can raise funds from the market for investment purpose as well to
discharged some obligation
a) TRUE
b) FALSE
341. Brokers of stock exchanges that offer settlement through depository are required to open
a________________
a) Temporary account for every settlement.

c) ‘ clearing member account’
d) ‘Personal settlement account’ .
342. Can a demat request by an investor be rejected?
a) TRUE
b) FALSE
343. A depository account may be opened and maintained in the names of more than one
person
a) FALSE
b) TRUE
344. Does the DP charge the Beneficiary owner when he wants his securities transferred to
some other DP?
a) Yes
b) No
345. As per the RDI Monetary and Credit Policy 2001-02 effective June 30, 2001, banks,
which of the following is permitted to make fresh investment and hold CP only in
dematerialized form?
a) Primary Dealers
b) Satellite Dealers
d) All of the above
346. Locked-in securities can be invoked before the lock-in release date
a) FALSE
b) TRUE
347) DP is an intermediary between
a) SEBI and Investors

b) Depository and Exchange
c) Depository and Bank
d) Depository and Investors
348) In addition to the brokers, custodians registered with SEBI and approved by stock
exchange can open a clearing member account
a) TRUE
b) FALSE
349) to whom will the corporate benefits like dividend etc accrue for those securities which
are pledged?
a) Pledgor
b) Pledgee
350) The process of a broker/trading member submitting securities towards the
securities sold by him on behalf of his client, to CC/CH of a stock exchange is
called___________.
a) ‘pay-in’
b) ‘ pay-out’
351) Depository provides the details of the holdings of the clients to the Issuer/ R&T
Agent for the purpose of corporate action and distribution of corporate benefits
a) TRUE
b) FALSE
352) Which of the following can register as a Depository Participant?
a) All of the above

b) R&T Agent
c) Stockbroker
d) Non-banking Finance Company
353) An investor had applied through DP 1 for an IPO, who in turn is a DP with
NSDL. The IPO allotment made to the investor is received by the DP 1 form
CDSL. Is it possible
a) Yes
b) No
354) A beneficiary account holder is legally entitled for

_________________attached to the securities held in that account.
a) all rights
b) none of the above
c) all rights and liabilities
d) all obligations
355) Depository Bye-Laws specify that the applicant for being a Depository
Participant should furnish information and detail of its business history for a
minimum period of _____________.
a) 2 years
b) 1year
c) 5 year
d) 3 year
356) In Case of securities and electronic warehouse receipts being held in the same
account, who has the responsibility of returning the securities to the originating
account?
b) CDSL
c) Commodity Stock exchanges
e)
357) Which of the following are the prerequisites for rematerialization request?
a) Both 1 and 2
b) There should be sufficient free balance of securities in the beneficial account
d) Request should be made by the Beneficial account
358) Securities market provides channels for allocation of saving to investment
a) TRUE
b) FALSE
359) A depository should conduct an annual inspection of its procedures and forward
a copy of the inspection report to
a) RTA
b) Investors
c) Issuer
d) SEBI
360) Sate True or False :- Different redemption accounts is required to be opened by

the Issuer for all the CDs issued by the Issuer
a) True
b) False
361) Sate True False- Request for partial dematerialization of a certificate are not
enterained
a) TRUE
b) FALSE
362) The Securities of each Beneficial Owner________________.
a) may or may not be segregated from the securities of other beneficial owner
but must be segregated the DPs own securities
b) should be segregated from securities in that beneficial owner’ s account with
other DPs
c) should be segregated from the securities of the beneficial owner’ s or from the
DP’ s own securities
d) should be segregated from securities in other beneficial owners’ account with
other DPs
363) An intermediary account can be opened by ______________for the purpose of

stock lending and borrowing.
a) banks and brokers

b) any intermediary in securities market
c) RBI/SEBI registered intermediary
d) A SEBI registered intermediary
364) Confirmation or rejection of the pledge request is communicated to the

_______________
b) Pledgee’ s Depository participant
c) Depository
365) The FII-DP agreement authorizes the DP to
a) act on behalf of the FII to trade in securities

b) to enter into service provided by the other DPs
c) act on behalf of the FII for availing depository services
d) none of the above
366) Which agencies are exempted from the mandatory requirement of giving PAN
number during demat account opening?
a) UN entities
b) Banks
c) NBFCs
d) NGOs
367) On issue of secured debentures, the Issuer initially allots___________ till the
charges are created. On creation of the charge,______________ are issued
a) Letter of Allotment(LOA), Debt Certificate

b) Debt Certificate, Letter of Allotment(LOA)
c) Letter of Allocation(LOA), Debt Certificate
d) Debt Certificate, Letter of Allocation(LOA)
368) A beneficial owner holding securities desiring to get the securities converted
into physical form needs to fill which form?
a) Rematerialisation Request form

b) Transmission Form
c) Transfer
d) Dematerialization Request form
a) TRUE
b) FALSE
370) To facilitate transfer of securities form one account to another at the instruction
of the account holder is the job of ___________
a) sub-brokers
b) depositories
c) clearing houses
d) exchanges
371) Detail of securities declared to be eligible for dematerilisation in the depository
need to be maintained by a Depository
a) FALSE
b) TRUE
372) In India, SEBI has delegated the assigning of ISIN of various securities to
NSDL
a) FALSE
b) TRUE
373) In case of death of none of the clients, it is mandatory for the surviving client to
open a new accounts with another DP
a) TRUE
b) FALSE
374) Who has provided model agreement to Depository participants for warehouse
receipts of commodities?
a) FMC
b) RBI
c) Depositories
d) SEBI
a) TRUE
b) FALSE
376) In case of Non Pari-Passu shares or multiple ISINs, auto DOs cannot be
generated by clearing corporations.
a) FALSE
b) TRUE
377) Can a demat account be frozen?
a) No
b) Yes
378) Who can make a request for the demat of security
a) Company
c) Depository
d) Registered holder of the security
379) Where a part quantity of the pledged shares is closure, what is the status shown
against those shares?
a) Partially closed
b) Part closed
c) Closed settled
380) Any trade that is cleared and settled without the participation of a clearing
member or clearing corporation is called off-market trade
a) FALSE
b) TRUE
381) _____________promotes development of securities market
a) SCRA, 1956
b) SEBI Act,1992
c) Stock Exchange
d) SEBI
382) even though stock exchanges can determine their own listing regulation they have to
conform to the minimum listing criteria as per__________
a) SCRA, 1956
d) SEBI Act, 1992
383) what is meant by account freezing?
a) Suspending the DP service

b) Canceling the registration number
c) Canceling the depository account
d) Suspending any further transaction from a depository account till the account
is unfrozen
384)On Settlement day, the RBI __________ the SGL-2 account of the depository and
__________ its current account for funds, in case of sale of government securities.
a) credits,debits
b) debits,credits
385) Inter – depository transfer of warehouse receipts is ________________
a) Not Possible
b) Possible, with adequate legal basis
c) Possible, on agreement with exchange and warehouse
d) Possible
386) all accounts opened by illiterate person(s) must be
a) introduced by an existing account holders

b) must be attested by applicant’ s bank
c) Any one of the above
387) Companies Act, 1956 deals with regulations pertaining dematerialization of securities
a) FALSE
b) TRUE
388) SEBI and Depositories Act are both administered by SEBI
a) FALSE
b) TRUE
389) The DP s can verify the details in the application form submit it into the DP system till
the ______________day from the offer closure day.
a) Fifth
b) Second
c) Fourth
d) Third
390) The clearing corporation or a clearing house of a stock exchange has to undertake
to co-operate at all times to redress the grievances of clients and DPs in respect of
its operation in relation to the depository
a) TRUE
b) FALSE
391) It is necessary to determine the eligible Beneficial Owners for Corporate Action.
a) TRUE
b) FALSE
392) Depository Participant should make an application for renewal________ month/s

before expiry date of the validity of the certificate of registration
a) 3
b) 1
c) 6
d) 2
393) For transmission of securities to the account of the new Karta from the account of
the deceased of the Karta, the Surviving members through the new Karta Shall
make a Joint application to the DP
a) FALSE
b) TRUE
394) Separate RRF are submitted for securities of different Paid up Value
a) FALSE
b) TRUE
395) Units of Mutual Funds are eligible for dematerialization as per SEBI(Depositories
& Participants) regulation,1996
a) FALSE
b) TRUE
396) The facility for change of name in corporate accounts is available for client types
a) Body Corporate, Bank and Financial Institution

b) Foreign Institutional Investors and Mutual Funds
c) Only 1
d) Both 1 and 2
397) Which section of the request form for transferring of government securities from
SGL account to Depository account filled by DP?
a) Agreement section
b) Consent Section
d) Approval Section
398) State True or False: ICIN for same commodity differs from exchange to exchange
a) FALSE
b) TRUE
399) For converting from electronic government securities to physical certificates, the
investor has to fill_____________________________
a) DRF-GS
b) RDF-GS
c) DDF-GS
d) RRF-GS
400) The legal status of warehouse receipts is ___________ that of securities
a) Different form
b) Similar to
c) Same as
401) in case of Share splits in the pledged securities, the spilt shares are
_____________to the pledgors account
a) Credited
b) Debited
c) Sold
402) Who are held responsible if the application forms and the payment instruments are
not deposited in time with the bank
a) Investors themselves
c) Depositories
d) Exchange
403) The provision under ____________are administered by DEA and SEBI
b) SEBI Act , 1992
c) SCRA ,1956
d) Depositories Act, 1996
404) The Opening of clearing member account constitutes a “ _____________” to

receive credits from the clearing corporation when there is a pay-out
a) phasing out instruction

b) passing securities instruction
c) Credit instruction
d) Standing instruction
405) In Case of death one of the Clients in a joint account, the surviving joint holder will
have to open a new account with the DP in their name
a) FALSE
b) TRUE
406) It is not mandatory for the company/issuer to have connectivity with the depository
a) FALSE
b) TRUE
407) Which of the following statement is false?
a) All the activities relating to issue of government securities (G-Sec) are

handled by the Reserve Bank of India through its Public Deposit Office
(PDO)
b) The depositories in India have been given permission to maintain SGL
accounts, of the investors through its DPs
c) Treasury Bills have a maturity period of up to one year
d) There are two types of Government Securities-Dated Securities and Treasury
Bills
408) XYZ company is coming up a public offer of Rs. 9.5 croes. The company issues
securities in physical form to 25% of its subscribers. Can the XYZ company issue
securities in physical form & can the subscribers sell the physical form & can the
subscribers sell the physical certificate in the stock Market
a) Yes , the company can issue securities in physical form & No, the Subscribers
can not sell the physical certificates in the stock market
b) No, the company cannot issue securities in physical form & No, the
subscribers cannot sell the physical certificates in the stock market
c) No, the company cannot issue securities in physical form & Yes , the
subscribers can sell the physical certificates in the stock market
409) Mr. A has lent his securities to Mr. B through the depository system. Which of the
following corporate benefits is Mr. B entitled to?
a) Dividend
b) Bouns
c) Split
410) Can DPs collect Charges/tax/rent on behalf of commodity exchange/Warehouse?
a) Yes, but only charges and rent can be collected

b) Yes, after ensuring adequate legal basis
c) Yes
d) No, Such activities are dealt between client and commodity exchange/
warehouse
411) Sate True or False :- RBI has provided a model agreement format to the Dps
a) FALSE
b) TRUE
412) Transfer of securities from an account in one depository to an account in another

depository is termed as an inter-depository transfer
a) TRUE
b) FALSE
413) If the pledgor defaults in discharging his obligation under the agreement, the
pledgee Can
a) submit a written compliant to depository

b) Compliant to SEBI
c) Cannot do anything about it
d) Invoke the pledge/ Hypothecation
414) Which of the following can register as a Depository Participant?
a) Stockbroker
b) Non-banking Finance Company
c) All of the above
d) R&T Agent
415) In case of Cash Corporate Actions, depositories in India provides only the
information to the issuer about the persons entitled to receive corporate benefits.
State whether TRUE or FALSE?
a) FALSE
b) TRUE
416) Investor grievance must be addressed by the Depository within ___________

week/s of receipts of complaints
a) 2
b) 4
c) 3
d) 1
417) without filling out the demat application form and the DP-client agreement, can the
a) No
b) Yes
418) if ____________ has a minimum net worth of Rs. 10 crore, the limits on the aggregate
value of the portfolio of securities of the beneficial owners held in dematerialized form in a
depository through him, shall not be applicable
a) RTA
b) NBFC
c) Stock Broker
d) All of the above
419) On settlement day, the RBI __________the SGL-2 account of the depository and
________ its current account for funds, in case of sale of government securities.
a) credits , debits
b) debits , credits
420) Once the allotments of securities are done, the refund/allotment notice is received by the
a) FALSE
b) TRUE
421) Can a demat account be frozen?
a) Yes
b) No
422) Devolution of title to shares can happen by
a) Death
b) Birth
c) Adoption
d) All of the above
423) State True or False :- Different redemption accounts is required to be opened

by the Issuer for all the CDs issued by the Issuer
a) TRUE
b) FALSE
424) A transfer is the legal change of ownership of a security in the records of

____________.
a) the Issuer
b) the RTA
c) the Exchange
d) the Depository
a) TRUE
b) FALSE
426) Arrange the following events in a chronological order:

(1) Investor submits DRF and physical certificate
(2) Investor opens an account with DP
(3) Certificates are marked saying “ submitted for demat”
(4) Transaction statement is provided by DP
a) 2,3,1,4
b) 1,3,4,2
c) 2,1,3,4
d) 1,2,3,4
427) Which section of the request form for transferring of government securities
from SGL account to Depository account filled by DP?
a) Approval Section
b) Agreement Section
d) Consent section
428) The following client details can be changed even after opening the demat
account except for
a) Nominee details
b) Bank details
c) Pan Number
d) Name of the account holders
429) A broker account as a ___________ can be opened only after the depository
approves it and allots clearing-member business partner identification number
a) Joint account
b) Business partner account
c) Trading account
d) Clearing account
430) Indigenous money lenders form a part of organized money market
a) TRUE
b) FALSE
431) The securities of the company AB Ltd. Were offered as collateral and the
Pledgor was to offer securities of company CD Ltd. Or PQ Ltd or both of them,
he may do so if the pledge agrees to it
a) TRUE
b) FALSE
432) For dematerialization of government securities, the client has to submit request
alogwith DRF or ___________
b) Letter of Consent
c) Letter of Intent
d) Letter of Approval
433) The DP receives the pledge closure request form from
a) Pledgor
b) Depository
c) Pledgee
434) On receipt of notice of termination by DP the depository should

notify__________ within seven days of this action
a) Other DPs
b) SEBI
c) Clients of the surrendering DP
d) All of the above
435) Details of securities declared to be eligible for dematerialization in the

depository need to be maintained by a Depository
a) FALSE
b) TRUE
436) Issuer and ___________ sign a tripartite agreement with depository.
a) Stock Exchange
b) Clearing house
c) Depository participant
d) R &T Agents
437) Any trade that is cleared and settled without the participation of a clearing
member or clearing corporation is called_________
a) kerb trade
b) non participative trade
c) off-market trade
d) Open trade
438) The _____________credits the buying CM account immediately on pay-out.
a) exchange
b) depository
c) clearing corporation/ clearing house
439) The securities of each Beneficial Owner _____________.

a) should be segregated from the securities of other beneficial owners or from
the DP’ s own securities
b) may or may not be segregated from the securities of other beneficial owners
but must be segregated the DP’ s own securities
c) should be segregated from the securities of other beneficial owners accounts
with other DP’ s
d) should be segregated from the securities in that beneficial owners accounts
with other DP’ s
440) Who issues the physical securities to the clients on receipts of remat request?
a) Issuer or the Registrar and Transfer Agents

b) SEBI
c) Depository
d) Department of company Affairs
441) Relationship of DP with Depository is governed by
a) SEBI
b) Agreement with Exchange
c) Agreement with SEBI
d) Agreement with Depository
442) The investor shall fill up the application form and submit the same along with
the payment instrument to the Exchange
a) TRUE
b) FALSE
443) Direct delivery of securities to the clients can be effected by the clearing
corporation, subject to completion of necessary procedures
a) FALSE
b) TRUE
444) The DP should reconcile its records with its depository on a _________basis.
a) monthly
b) weekly
c) daily
d) any of the above, as per agreement signed with DP
445) Transferee of a security can give Standing Instruction to its DP for __________.
a) Receiving of Securities
b) Delivering of Securities
c) Transferring of Securities
d) Both (b) and (c)
446) On default of payment, the pledgee- send an invocation notice to the pledgor
a) FALSE
b) TRUE
447) The depository should indemnify beneficial owners of securities for any loss
caused to them due to the negligence of __________
a) Bankers to an Issue
c) Issuers
d) Sponsors
448) Option of receiving demat allotment of securities is given in the

c) Savings bank account opening form
449) ISIN is a ___________ identification mark.
a) 10- character long

b) 3- character long
c) 6- character long
d) 12- character long
450) __________deals with issue, allotment and transfer of securities and various
aspects relating to company management
a) SCRA,1956
b) SEBI, 1992
451) In a depository system, the investors stand to gain by the way of efficient
settlements, lower costs and lower risks of theft or forgery , etc
a) TRUE
b) FALSE
452) Who can make a rematerializtion request?
a) Beneficial owners
b) Depository participant
c) Registrar and Transfer Agents
d) Depository
453) How is a demat account frozen?
a) Written instruction is received from the client by the DP, requesting freezing
of account
b) Orders are received by the DP or the depository form the Central or State
Government, SEBI, or any order by the court, tribunal, or any statutory
authority
c) Request is received by the Depository from a DP or Client
d) All of the Above’
454) No foreign entity,______________ , can hold more than 20% of the equity
a) individually or collectively only as a DP, or as a sponsor and DP together

b) individually or collectively only as a sponsor
c) individually
d) individually or collectively either as a sponsor or as a DP, or as a sponsor and
DP together
455) On receiving information on corporate Action from the Depository, the DP

verifies which of the following information before the closure of the
book/record date?
a) Change in Tax Status

b) Bank Account Details
c) Change of addressed
d) All of the above
456) DP system generates an ‘ instruction number’ for each instruction entered.
a) FALSE
b) TRUE
457) Which of the following statement is False?
a) An Issuer may issue multiple debt instruments by varying the features of the
instruments.
b) Each debt security has a unique identification called IPIN
c) A interest bearing security is a debt instruments
d) A debt instrument has a limited life
458) Depository Bye-laws specify that the applicant for being a Depository
Participant should furnish information and details of its business history for a
minimum period of_____________.
a) 1 Years
b) 5 Years
c) 2 Years
d) 3 Years
459) A depository must apply for and obtain a certificate of commencement of

business from SEBI within one Year from the date of applying for registration
with SEBI
a) TRUE
b) FALSE
460) A Clearing House can not open beneficiary accounts for clients, unless
permitted by __________to offer Constitute SGL account facility to the
investors
a) Stock Exchange
b) SEBI
c) RBI
d) Depository
461) The nominee is required to sign the nomination form
a) FALSE
b) TRUE
462) A Demat account can also be operated by a power of Attorney holder
a) TRUE
b) FALSE
463) In Case of corporates or trust, with whom should the authorized signatories be
registered with for dematerilistion of government securities?
a) SEBI
b) RBI
c) Both 1 and 2
a) All of the above

b) Shall stop carrying on the activities of the intermediary from the date of such
expiary
c) Shall transfer the accounts/ business of existing clients to another registered
intermediary before the date of such expiry
d) Shall cease to be an intermediary
465) Voter’ s id is valid proof addressed.
a) TRUE
b) FALSE
466) At the time of delivery, client initiates a remat request through the DP using the
______________
a) PDRF
b) DRF-WR
c) WRDF
d) RRF-WRF
467) Can a demat request by an investor be rejected?
a) FALSE
b) TRUE
468) Is the procedure of opening demat account for holding WR same as that for
holding securities?
a) Yes, but under the separate account

b) No
469) In case there is an objection by any of the surviving members of the HUF, the
transmission of securities will be effected only on the basis of
a) Decree by a competent Court

b) Deed of Partition
c) Both 1 and 2
d) Either 1 or 2
470) If an investor invests of Rs. 10 crore in a CP issue, then how many units would
be credited to his account?
a) 10
b) 200
c) 20
d) 100
471) If adequate balances do not exist in the account, then delivery instruction will
wait for adequate balances till the end of the execution day
a) TRUE
b) FALSE
472) Client-participant agreement is a standard agreement approved by
a) RBI
b) DCA
c) SEBI
d) NSDL
473) A depository Can not directly open accounts and provides services to clients
a) TRUE
b) FALSE
474) SCRA, 1956 aims at ensuring direct and indirect control of virtually all aspects
of securities trading.
a) TRUE
b) FALSE
475) Clearing Members account is opened for trade purpose
a) FALSE
b) TRUE
476) What is SOT?
a) Securities of trade
b) Statement of transaction
c) Securities on transaction
d) Statement of trade
477) Brokers of stock exchange that offer settlement through depository are required
to open a clearing member account
a) TRUE
b) FALSE
478) Actual delivery of securities to do the clearing system from the selling brokers
and delivery of securities from the clearing system to the broker is done
by______________
b) Depository
c) Issuer
d) All of the above
479) An R &T Agent is required to confirm/ reject a demat request within

___________days from the date of receipt of physical shares
a) 10
b) 7
c) 15
d) 12
480) For pledging and hypothecation of securities, the pledgee and the pledger can
have their account with DPs under the different depository
a) FALSE
b) TRUE
481) The client must submit the delivery instruction slip to its DP _______________.
a) before the broker’ s acceptance deadline

b) before the DPs acceptance deadline
c) before the depository’ s acceptance deadline
d) before the exchange’ s acceptance deadline
482) To withdraw its security balances for rematerilization purpose with the
Depository a client has to fill
a) RRF
b) RRC
c) RRD
d) RRS
483) In case the applicant does not exercise the option holding securities in demat
form, the Issuer will ____________
a) Allot securities in physical form

b) Hold back the allotment of securities
c) Cancel the allotment of securities
484) In the depository system, both transferor and transferee ____________ for
delivering (transferring out) and receiving of securities
a) have to give instruction to its brokers

b) have to give instruction to its sub-brokers
c) have to give instruction to its DPs
485) The allotment procedure for rights issue is similar to which of the following
procedures?
a) Initial Public offer

b) Open Offer
c) Dutch Auction
d) None of The above
486) SCRA, 1956 has made the securities of all public limited companies freely
transferable
a) TRUE
b) FALSE
487) Under the process of remat, the depository account of a beneficial owner is
debited for the securities sought to be rematerialized and physical certificates
for the equivalent number of securities is/are issued
a) TRUE
b) FALSE
488) In a pledge/hypothecation transaction the borrower is called a ___________and

the lender is called a______
a) Pledgor , Pledgee
b) Pledgee , Pledgor
c) Debtor, creditor
489) Corporation actions are events which affect the rights, obligation and / or
interests of the beneficial as well as non-beneficial owner of the securities held
in a depository. Sate whether TRUE or False.
a) TRUE
b) FALSE
490) Transfer due to a transaction done on a person to person basis is called

__________ transaction.
a) Market
b) Intra Market
c) Sub Market
d) Off-market
491) In the event of the death of a joint holder, the balance lying in the account can
be transmitted, on request of the surviving holders , to a new accounts to be
opened by the surviving holders
a) FALSE
b) TRUE
492) On receipt of pledge/ hypothecation request details from the DP, the Pledgee
submits his acceptance or rejectior of the request
a) FALSE
b) TRUE
a) TRUE
b) FALSE
494) In the Unilateral closure of Pledge, Who gives the request for closure?
a) Pledgee
b) Pledgor
c) DP
495) In Which type of market are the new securities sold?
a) Secondary market
b) Primary market
c) Money market
d) Commodity market
496) Sate True or False : An investor in government securities holding electronic

balances in the depositories SGL-1 account can convert them into physical
certificates by the process of rematerialisation
a) TRUE
b) FALSE
497) The facility of nomination can be availed of by
a) Resident Indian Investor

b) A non- resident Indian investor
c) Both 1 and 2
498) An instruction to Move securities from one settlement to another settlement

which is called ‘ inter-settlement’ transfer
a) TRUE
b) FALSE
499) State True or False : The depositories also provide depository facility to the
commodity exchange for settlement of trades pertaining to vault receipts for
commodities
a) TRUE
b) FALSE
500) It is possible for investors to transpose name of the joint holders alogwith the
process of dematerilisation through their DPs
a) FALSE
b) TRUE
501) The allotment procedure for rights issue is similar to which of the following
procedures?
a) Initial Public Offer

b) Open Offer
c) Dutch Auction
502) Any applicant for registering as DP should have a minimum net worth of
___________.
a) Rs 8 crore
b) Rs 5 Crore
c) Rs 10 crore
d) Rs 3 crore

(1) Verification of Clients Signature on the DRF-GS with the specimen
signature
(2) The depository’ s system shall credit the client’ s account
automatically
(4) The request is then released to depository software system by the
DP.
a) 1,3,2,4
b) 1,2,4,3
c) 1,3,4,2
d) 1,4,3,2
504) What is SOT?
c) Statement of trade
d) Securities on transaction
505) Demat request form for dematerializing government securities is same as that
used for equities etc
a) TRUE
b) FALSE
506) The Clearing corporation/ clearing House gives pay-out and then securities are
transferred to the ________

b) investors account
c) depository
d) buying broker’ s account
507) A certificate of registration is valid for a period of ________ from the date of
issue.
a) 1 Year
b) 3 Years
c) 2 Years
d) 5 Years
508) What is the maturity period of Treasury Bills?
a) More then 10 Years

b) Upto 3 Months
c) Upto 6 Months
d) Upto 1 Year
509) ICIN for Same commodity ________ exchange to exchange
a) remains same
b) differs from
510) Neither the depository Act nor the regulation made under the Act lay down any
specification about who can open a beneficiary account
a) TRUE
b) FALSE
511) The Client ID needs to be filled out when applying through a DP for an IPO
a) TRUE
b) FALSE
512) In a depository system, an investors stand to gain by way of
a) efficient settlements
b) lower costs
c) lower risks of theft or forgery
d) all of the above
513) As per SEBI (Depository and Participants) Regulation, 1996, ___________.

a) Both the depositories must be inter-connected to enable inter-depository
transfers.
b) Both the depositories must have similar bye laws to avoid investor complaints.
c) Depositories must concentrate on different geographical areas to increase the
reach
d) All DPs must have membership on both depositories
514) If the debit has to be effected on a particular date in future , account holders
may mention such date in the space provided for ___________in the form
a) transfer date
b) execution date
c) value date
d) effective date
515) The sponsor(s) of the depository have to hold at least _______ of the equity
a) 76%
b) 51%
c) 26%
d) 33%
a) TRUE
b) FALSE
517) The pledge/ Hypothecation created can be invoked if there is a ___________by

the pledgor
a) Default
b) Repayment
c) New pledge initiated
518) A depository account may be opened and maintained in the names of more
than one person
a) FALSE
b) TRUE
519) Who is required to sign the application form and put details of name and
addressed in addition to the details of the minor?
a) Guardian
c) Mother
d) Broker
520) Clearing member and broker need to open a _________ account to deal with
their own holding.
c) Broker account
521) Subscribers of the public issue receive the securities in physical form and get
them dematerilised.
a) TRUE
b) FALSE
522) State True or False : An investor in government securities holding electronic

balance in the depositories SGL-1 accounts can convert them into physical
certificates by the process of rematerilisation
a) TRUE
b) FALSE
523) In case of share splits in the pledged securities, the split shares are
____________ to the pledgors account
a) Credited
b) Debited
c) Sold
524) Multiple pledge instructions can be executed on the basis of a single agreement
a) FALSE
b) TRUE
525) The Minimum size to be subscribed/ transacted by investor through the

depository system for certificate Depository (CD) is ___________
a) 150000
b) 10000
c) 100000
d) 1000
a) TRUE
b) FALSE
527) What is the correct sequence in the unilateral pledge closure:

1) Pledgor repays the loan to the pledgee,
2) Pledgors DP intimates the Pledgor
3) The pledgee’ s DP forwards the request to the depository,
4) The depository informs the pledgor’ s DP,
5) The pledge is then closed’
6) The pledge gives the unilateral pledge closure request to his DP
a) 1-6-3-5-4-2
b) 1-2-3-4-5-6
c) 1-6-3-4-5-2
528) If the Pledgor fails to discharge his obligation under the agreement of pledge,
what does the pledgee do?
a) Can’ t take any action

b) Invoke the Pledge
c) Complain to the depository
d) Complain to the DP
529) In the depository environment, the securities move through account transfer.
a) TRUE
b) FALSE
530) ___________regulation jurisdiction extends over corporates in the issuance of

capital and transfer of securities
a) RBI’ s
b) SEBI’ s
c) DEA’ s
d) MCA’ s
531) Option of receiving demat allotment of securities is given in the

c) Saving bank account opening form
532) SEBI Act and Depositories Act are both administered by SEBI
a) FALSE
b) TRUE
533) Price of CP is determined by
a) Mutual consent of buyer and seller

b) FIMMDA
c) SEBI
d) RBI
534) It is necessary to determine the eligible Beneficial Owners for every Corporate
Action.
a) FALSE
b) TRUE
535) Primary markets can raise funds from the market for investment purpose as well
to discharge some obligation
a) FALSE
b) TRUE
536) Different depositories________ different methodologoies for assessing

networth of a DP.
a) must have
b) may have
c) can not have
d) should preferably have
537) The Depository Act, 1996 aims at
a) All of the above

b) Ensuring organized trading activity in securities takes place on a specified
recognized stock exchange
c) Ensuring direct and indirect control of virtually all aspects of securities
trading
d) Ensuring free transferability of securities with speed, accuracy and security
a) TRUE
b) FALSE
539) If adequate balances are not received till the end of the day of the execution
date, _______.
a) the instruction will wait till grace period is over

b) DP will lend securities to the transferor
c) The instruction will fail
d) DP will transfer securities to the account
540) An issuer wanting to give demat facility for debt instruments has to send
_________along with the request to the depository
b) Letter of Intent
c) Letter of Consent
d) Letter of Allotment
541) If the lender needs concurrence of the borrower for appropriating securities to
his account, the transaction is called _______________
a) Hypothecation
b) Pledge
c) Either of the above
542) Which of the following is a “ corporate Action” ?

a) Declaration of bonus shares
b) Payment of Call Money
c) Payment of Interest
d) All of the above
543) Under the process of remat, the depository account of a beneficial owner is
debited for the securities sought to be rematerialized and physical certificates
for the equivalent number of securities is/are issued
a) TRUE
b) FALSE
544) As per guidelines on Anti Money Laundering Measure, every Depository

Participant should appoint a senior management executive to be designated as
the Principal Officer
a) FALSE
b) FALSE only for Stock Brokers
c) TRUE only for Stock Brokers
d) TRUE
545) The DP receives the pledge closure request from
a) Pledgor
b) Depository
c) Pledgee
546) In India, SEBI has delegated the assigning of ISIN of various securities to
_____________.
a) CDSL
b) NSDL
c) RBI
d) IL& FS
547) The clearing corporation or a clearing house of a stock exchange has to

undertake to co-operate at all time to redress the grievances of clients and DPs
in respect of its opratio in relation to the depository
a) TRUE
b) FALSE
548) The eldest surviving male member is appointed the new Karta of the HUF in
event of the death of the karta of the HUF
a) TRUE
b) FALSE
549) The person on whom the shares devolve has to prove his entitlement by
submitting appropriate documents and seek transmission
a) TRUE
b) FALSE
550) The sponsore(s) of the depository have to hold at least _______of the equity
capital of the depository company.
a) 40%
b) 51%
c) 76%
d) 26%
551) A demat account can also be operated by a power of Attorny holder
a) TRUE
b) FALSE
552) Depository Participants are the collecting points for the application forms of
the IPO’ s and the Bank instruments
a) TRUE
b) FALSE
553) If _____________has a minimum net worth of Rs. 10 crore, the limits on the
aggregate Value of the portfolio of securities of the beneficial owners held in
dematerialized form in a depository through him, shall not be applicable.
a) NBFC
b) RTA
c) All of the above
d) Stock broker
554) State True or False : The depository informs all the DPs about the book closure
for government securities as and when announced by RBI
a) TRUE
b) FALSE
555) Which is the correct order for the process flow of IPO through the depository:
1) Application for Allotment,
2) Credits of securities,
3) Detail of allotment to BO,
4) Verification report,
5) Issuer sends intimation of allotment
6) BO Id for verification
a) 1-2-3-4-5-6
b) 1-6-4-3-2-5
c) 1-6-4-5-3-2
d) 1-6-4-2-3-5
556) Indigenous money lenders form a part of orgnised money market
a) FALSE
b) TRUE
557) In Automatic corporate Action, the corporate action gets executed automatically
as per a predefined ratio
a) TRUE
b) FALSE
558) The depositories have provided a model agreement format to the DPs for
___________of commodities
a) Vault Receipt
b) Shipping Receipts
c) Warehouse Receipts
d) Delivery Order
559) The nominee is required to sign the nomination form
a) FALSE
b) TRUE
560) A pledgor cannot substitute the securities offerd in a pledge transaction
a) FALSE
b) TRUE
561) Which of the following information is indicated on the physical copy of the
government securities?
a) Book Debt Certificate

b) ISIN
c) Security descriptor
562) Records of securities dematerialized and rematerialized
a) must be maintained by Depository Participant only

b) must be maintained by Issuer and shared with Depository only on specific
request
c) must be maintained by Depository
563) In case of transposition-cum-dematerialization, the Client can get securities
dematerialized in the same account if the names appearing on the certificates
match with the names in which the account has been opened but are it a
different order
a) FALSE
b) TRUE
564) Dematerialisation is the process of converting securities held in
__________form into holding in book entry form

b) Paper
c) Temporary
d) Electronic
565) An investor had applied through DP 1 for an IPO, who in turn is a DP with
NSDL. The IPO allotment made to the investor is received by the DP1 from
CDSL. Is it possible
a) Yes
b) No
566) Arrange the events in chronological order:

(1) client fills PDRF
(2) DP shall issue acknowledgment for receipt
(3) Client will submit this acknowledgment and attested copy of PDRF
(4) At the time of delivery, client initiates remat
a) 4,1,2,3
b) 1,2,3,4
c) 4,3,2,1
d) 1,3,2,4
567) How many types of demat accounts can be opened with a depository?
a) 2
b) 4
c) 3
d) 1
568) The investor shall fill up the application form and submit the same along with
the payment instrument to the DP
a) TRUE
b) FALSE
569) Dematerialization of securities occurs when securities issued in physical form is

destroyed and an equivalent number of securities are credited into the security
holder(s) beneficial owner’ s account.
a) True
b) False
570. Who ensure compliance of warehouse receipts and securities being in different
accounts?
a) Depository participants
b) Commodity exchanges
c) Depositories
d) All of the above
571. _____________ is one that is settled through the participation of a clearing corporation /
clearing house.
a) A commercially clear trade

b) An off-market trade
c) A market trade
d) A genuine trade
572. One of the most important and basic services provided by the depositories in India is to
facilitate transfer of securities from one account to another at the instruction of the account
holder.
a) True
b) False
573. Unites of Mutual Funds are eligible for dematerialization as per SEBI (depositories &
participants) regulations, 1996
a) False
b) True
574. The FII-DP agreement authorizes the DP to
a) Act on behalf of the FII to trade in securities

b) To enter into service provided by the other DPs
c) Act on behalf of the FII for availing depository services
575. A depository can directly open accounts and provide services to clients.
a) False
b) True
576. The legal status of warehouse receipts is ______ that of securities.
a) Different from
b) Similar to
c) Same as
a) Dividend
b) Bonus
c) Split
d) All of the above
578. ________ allocates unique identity codes to the securities issued by an issuer.
a) R & T Agents
b) SEBI
c) Depository
d) Issuer
579. If the buying client is a sub-broker will transfer securities to the final client using the
off-market route.
a) False
b) True
580. Before granting certificate of commencement to a depository, SEBI approve bye – laws
of the.
a) Depository, Exchange and participants

b) Depository only
c) Depository and exchange
d) Exchange only
581. Clearing Member is required to give inter-settlement instructions to the participants for
securities laying within a same CM account but in different settlement a pocket.
a) False
b) True
582. The following client details can be changed even after opening the demat account
expect for
a) Nominee details
b) Bank details
d) Pan Number
583. In case of death of one of the Clients in a joint account, the surviving Clients(s) shall
request the DP to transmit the balance lying in the Client account to the account of the
surviving Clients(s)
a) True
b) False
584. What happens when the demat request initiated under wrong ISIN?
a) DRF rejected by the R & T Agents

b) DRF Rejected by the depository
c) DRF rejected by the DP
d) DRF rejected by the SEBI
585. SEBI gives DP a certificate of
a) Registration
b) Initiation
c) All of the above
d) Incorporation
a) Not Repaying the debt on the redemption date

b) Not Demanding repayment on the redemption date
c) Repaying the debt before the redemption date
d) Demanding repayment before time
587. _________provides for standard of disclosure in public issues of capital
b) SCRA,1956
c) SEBI Act, 1992
588. Any trade that is cleared and settled without the participation of a clearing corporation is
called__________.
a) market trade
b) sub-market trade
c) non-market trade
d) off-market trade
589. Can an account be frozen for both credits and debits?
a) No
b) Yes
590. The holders of securities should have a beneficiary account in the same name as it
appears on the security certificates to be dematerialized
a) True
b) False
591. Beneficial owners can trade in the securities which has been sent for remat
a) False
b) True
592. On announcement of a corporate action, which of the following is TRUE?
a) The Issuer informs the depository about the corporate action

b) The Registrar and transfer Agent informs the depository about the corporate action
c) The Depository informs all its DPs about the corporate action
d) All of the above
593. When is a Pledge transaction completed

594. Brokers of stock exchange that offer settlement through depository are required to open
a ________
a) temporary account for every settlement

c) Clearing member account
d) Personal settlement account
595. DP must provide transaction statement to clients.
a) at least on a quarterly basis or more frequently, as agreed upon in the agreement

with the client
b) at least on a monthly basis or more frequently, as agreed upon in the agreement
with the client
c) at least on a half yearly basis or more frequently, as agreed upon in the agreement
with the client
d) at least on a yearly basis or more frequently, as agreed upon in the agreement with
the client
596. SEBI has advised DPs to instruct their clients to submit the settlement instruction on
T+1 basis for pay-in of securities.
a) True
b) False
597. For which of the following can SEBI suspected the certificate of registration of the DP?
a) The DP has acted against any of the provision of the Depository Act
b) The DP has acted against any of the provision of the Bye-Laws of the Depository
c) SEBI (D & P) Regulation, 1996
d) All of the above
598. Depository Offer services through Depository participants, who are
a) principals
b) agents
c) investors
599. State True or False: The depository’ s G-sec cell rejects the dematerialization request in
case SEBI rejects the transfer on account of signature mismatch
a) False
b) True
600. The opening of clearing member account constitutes a “ ________________” to

a) standing instruction
b) Credit instruction
c) Phasing out instruction
d) Passing securities instruction
a) Dividend
b) Bonus
c) Split
d) All of the above
602. Subscribers of the public issue receive the securities in physical form and then gets them
dematerialized.
a) True
b) False
603. The demat account number is a _________digit ID
a) 16
b) 18
c) 8
d) 20
604. To receive the securities allotted in public issue in demat form, the subscriber has to
give
a) Beneficiary Accountant Number

b) DP-ID
c) Depository Name
d) All of the above
605. In case of transposition-cum-dematerialization , the Client can get securities

dematerialized in the same account if the names appearing on the certificates match with the
names in which the account has been opened but are ir a different order
a) TRUE
b) FALSE
606. Details about date of birth and nomination is requird for
a) individual accounts
c) corporate account
d) clearing member account
607. The securities of company infosys ltd. were offered as collateral and the pledgor decides
to offer securities of company wipro ltd. Is he by regulation allowed to do even if the pledge
has no objection to it?
a) Yes
b) No
608. In dematerialized form, all equity shares in the class of say, fully paid up shares, are
interchangeable
a) True
b) False
609. For any changes in signature in the records, the client need to
a) Make a request in writing specifying reasons for change in signature

b) New signature should be duly attested by Client’ s banker
c) Visit DP’ s office personally and produce valid proof of identity as well as the latest
transaction statement of its account
d) All of the above
610. Establishment of depository system led to
a) reduced transparency
b) increased risk
c) All of the above
d) Improved investor protection
611. Dematerialization is the process of converting securities held in physical form into
a) False
b) True
612. The instrument descriptor for debt instruments in depository includes which of the
following information?
a) Redemption Date
b) Coupon Rate
c) Both 1 and 2
613. _____________aims at streamlining settlement process by transfer of ownership of

securities electronically by book entry without making the securities move from person to
person

b) SEBI, 1992
c) SCRA,1956
614. For a minor accountholder who has attained majority, to continue to avail of this
a) Can continue with the same account and is not required to Open a new account
b) Open a new demat account
c) Has to open with a new DP
615. Which of the following securities can be dematerialized?
a) Debentures
c) Scrips
d) All of the above
616. For the purpose of creation of pledge/ hypothecation, both the parties to the agreement,
ie., the pledgor and the pledge_______________________.
a) must have a beneficial account with the same depository.

b) Must have a beneficial account with the same bank which is also a depository
participant.
c) Must have beneficial account with the same depository participant.
d) Can have beneficial accountant with any depository participant.
617. State True or False- A client has to open separate account to deal with G-secs
a) False
b) True
618. ISIN is a 12-character long identification mark.
a) True
b) False
619. Multiple pledge instruction can be executed on the basis of single agreement
a) False
b) True
620. Clearing Corporation is an entity responsible for clearing and settlement of trades
done by clearing members on a recognized stock exchange.
a) True
b) False
621. A beneficiary owner wants to request for the remat of securities which are due for
pay-in to his account three days later. Can the beneficiary owner request for remat
a) No
b) Yes
622. Any applicant for registering as DP should have a minimum net worth of
_________.
a) Rs 10 Corer
b) Rs 3 Corer
c) Rs 5 Corer
d) Rs 8 Corer
623. In the depository environment, the securities move through account transfer.
a) False
b) True
624. ___________regulates sale and purchase of derivatives contracts on money market

securities
a) NSE
b) RBI
c) SEBI
d) BSE
625. The pledge/hypothecation so created can be on repayment of loan
a) False
b) True
626. State True or False: The depositories also provide depository facility to the
commodity exchange for settlement of trades pertaining to vault receipts for
commodities
a) False
b) True
627. Once the allotment of securities are done, the refund/allotment notice is received by the
a) True
b) False
628. ____________ of DP apply to SEBI for registration
a) Sponsors
b) Trustee
c) Any of the above
d) Board of Trustee
629. Issuer has to warrant that___________.

b) It is to transfer dematerialized securities into the depository
c) Dematerialized securities exist at the time of transfer of securities into the
depository and also therafter
d) All of the above
630. In addition to the brokers, custodians registered with SEBI and approved by stock
exchange can open a clearing member account.
a) True
b) False
631. Transfer due to transaction done on a _________ is called ‘ off-market’ transaction.
a) institution to person basis

b) person to person basis
c) person to institution basis
d) multilateral basis
632. Where there is an objection from any member of the HUF, transmission of securities
held in the beneficial owner account should be effected only ____________.
a) on the basis of the past precedents of such transmission in the company

b) on the basis of collective of other members of the family
c) on the basis of opinion of legal counsel
d) on the basis of a Decree by a competent Court or the Deed of Partition
633. Where part quantities of the pledge shares are closure, what is the status shown against
those shares?
a) Partially Closed
b) Part Closed
c) Closed Settled
634. When securities are dematerialized, the physical securities are
a) either stored or destroyed, as desired by the security holder

b) kept with the depository for rematerialisation
c) destroyed
d) mutilated and stored with the depositories
635. When the pledge/hypothecation request is cleared, to whom are the details of the request
sent for confirmation?
a) Company of whose shares are pledge

c) Pledgee
d) Depository
636. What happens when the demat request is initiated under wrong ISIN?
a) DRF rejected by the SEBI

b) DRF rejected by the R & T Agents
c) DRF rejected by the depository
d) DRF rejected by the DP
637. State True or False: Different redemption accounts is required to be opened by the
Issuer for all the CDs issued by the Issuer
a) False
b) True
638. State True or False: ICIN for same commodity differs from exchange to exchange
a) False
b) True
639. Can a demat account be frozen?
a) Yes
b) No
640. Clearing members are entities who
a) are authorized to paying and receive payout from the Clearing corporation
against trades done only by them
b) are authorized to pay in and receive the pay out from a clearing Corporation
(CC)/ Clearing House against trades done by them or their clients
c) are authorized to paying and receive payout from the Clearing corporation
against trades done only by their clients
d) trade on behalf of their clients
641. For dematerialization of government securities, the client has to submit request
alongwith DRF or_____________
a) Letter of Intent
b) Letter of Approval
c) Letter of Consent
d) Letter of Authority
a) Details of the holding of the securities of beneficial owners at the end of each
day
b) Records of approval, notice, entry and cancellation of pledge or
hypothecation.
c) Records of securities dematerialized and rematerialized
d) All of the above
643. When a rematrialisation request is sent, the securities in the client account are also
available for delivery/transfer immediately.
a) True
b) False
644. Who resolves the mismatch during rematerialisation of government securities?
b) Depositories G-sec cell
c) SEBI
d) RBI
645. ___________ is one that is settled through the participation of a Clearing

Corporation/ Clearing House.
a) A commercially clear trade

b) A genuine trade
c) An Off-market trade
d) A market trade
646. The _____________ credits the buying CM accounts immediately on pay-out.
a) depository
b) clearing corporation/ clearing house
c) exchange
647. During distribution of dividends, companies should mandatorily print the bank
account details furnished by the Depositories on the payment instruments.
a) False
b) True
648. On settlement day, the RBI ____________the SGL-2 account of the depository and
__________its current account for funds, in case of sale of government securities.
a) Credits, debits
b) Debits, credits
649. An intermediary account can be opened by a SEBI registered intermediary for the
purpose of stock lending and borrowing.
a) False
b) True
650. Credit cards / debit cads issued by Banks with photograph of applicant is____________
a) valid proof of identity for opening account with a DP

b) not valid proof of identity for opening account with a DP
651. By freezing an account for debits only, is it possible for the client to receive securities in
this account
a) Yes
b) No
652. During a Corporate Action, which of the following information is NOT shared by
the Depository with the Depository Participants?
a) Beneficial Owner’ s Bank details

b) Procedure to be followed by DPs and client
c) Record Date
d) Type of corporate Action
653. A depository may or may not have adequate mechanisms for reviewing monitoring
and evaluating the depository’ s controls, systems, procedures and safeguards.
a) True
b) False
654. Arrange the process in a chronological order

(1) Verification of clients signature on the DRF-GS with the specimen
signature
(2) The depositories system shall credits the client’ s account
automatically
(4) The request is then released to Depository software system by the
DP.
a) 1,3,4,2
b) 1,3,2,4
c) 1,2,4,3
d) 1,4,3,2
655. Find the odd man out
a) Treasury bills
b) Commercial paper
c) Bonds
d) Debentures
656. The process of a broker/trading member submitting securities towards the securities
sold by him on behalf of his client, to CC/CH of a stock exchange is
called___________.
a) ‘ pay-in’
b) ‘ pay-out’
657. The DP should reconcile its records with its depository on a __________basis
a) daily
b) any of the above, as per agreement signed with DP
c) weekly
d) monthly
a) Pledgee
b) Pledgor
c) DP
659. SEBI has advised DPs to instruct their clients to submit the settlement instruction
on _________basis for pay-in of securities.
a) T+2
b) T+0
c) T+1
d) T+3
660. In the nomination form, is the photograph of the nominee also required?
a) Yes
b) No
661. If___________ has a minimum net worth of Rs. 10 crore , the limits on the
aggregate value of the portfolio of securities of the beneficial owners held in
dematerialized form in a depository through him, shall not be applicable.
a) RTA
b) NBFC
c) Stock broker
d) All of the above
662. On allotment of securities, who credits the securities to the allotees account on the
b) Registrar and Transfer Agents
c) Issuer directly
d) Depository
663. In Automatic Corporate Action, the corporate action gets executed automatically as
per a predefined ratio
a) True
b) False
664. A Beneficial Owner of a Corporate Action is an entity that owns the security on
________________.
a) Record Date
b) Cut-off Date
d) All of the above
665. Who prints the Public offer banker’ s report and gives to the collecting bank?
a) DP
b) Depository
d) Company
666. A beneficiary account can be debited only if the beneficial owner has given
‘ Delivery Instruction’ (DI) in the prescribed form.
a) false
b) True
667. State True or False : Account Opening procedure remains the same as applicable for
account opening of BOs
a) True
b) False
668. State True or False : RBI has provided a model agreement format to the DPs
a) True
b) False
669. Primary markets can raise funds from the market for investments purpose as well to
discharge some obligation
a) False
b) True
670. For NRI accounts , proof is required for both addressed- that of the account holder
as well as the constituted attorney
a) True
b) False
671. Face Value of Commercial Paper in a depository system is taken as

a) 5000
b) 50000
c) 500000
d) 5000000
672. In invoking of a pledge no confirmation is required by the pledgor’ s DP for

transferring the securities
a) True
b) False
673. Securities market provides channel for allocation of saving to investment
a) false
b) true
674. Which of the following can register as a Depository Participant?
a) Non-banking Finance Company

b) R & T Agent
c) All of the above
d) Stock broker
675. An R & T Agent is required to confirm/ reject a demat request within ________
days from the date of receipt of physical shares
a) 10
b) 7
c) 15
d) 12
676. The debit is affected on the execution date.
a) False
b) True
677. The Word “ ____________” means devolution of title of shares
a) Transfer
b) Taxation
c) Transmission
d) Transposition
678. In a clearing member account, the securities are always kept _____________.
a) In day and date wise buckets.

b) In date-wise buckets
c) In a bucket of specific market type and settlement number.
d) In the custody of the compliance officer
679. No single participant can hold, at any point of time, more than ________ of the
equity capital of the depository.
a) 3%
b) 11%
c) 5%
d) 8%
680. SEBI Act, 1992 empowers SEBI to
a) protect interest of investors in securities

b) promote development of securities markets
c) regulate securities markets
d) All of the above
681. “ Non-cash corporate action” involves which of the following?
a) All benefits other than monetary benefits

c) Both monetary as well as non-monetary benefits
682. A DP is liable to its clients for all the acts and deeds performed by it
a) True
b) False
683. The facility of nominations can be availed of by

b) A non-resident Indian Investor
c) Both 1 and 2
684. Transfer of securities from an account in one depository to an account in another

depository__________.
a) is termed as an inter-depository transfer

b) is allowed only in special cases
c) is term as ‘ off-market’ transfer
d) is not allowed in Indian Securities market as yet
685. Depository : ________ : Bank : Fund
a) Securities
b) Liabilities
c) Assets
d) Investors
686. If application for renewal is not received by SEBI 3 months of before expiry of
registration certificate the DP
a) All of the above

b) Shall stop carrying on the activities of the intermediary from the date of such
expiry
c) Shall cease to be an intermediary
d) Shall transfer the accounts/ business of existing clients to another registered
intermediary before the date of such expiry
687. Only those securities whose_________ has been activated by the depository, can be
dematerialised in the depository system
a) IIP
b) WAP
c) INS
d) ISIN
688. Before granting certificate of commencement to a depository, SEBI examines if

depository has a detailed operational manual explaining all aspects of its functioning
e) True
f) False
689. State True or False: Request for partial dematerialization of a certificate are not
entertained
a) False
b) True
690. SCRA, 1956 aims at ensuring direct and indirect control of virtually all aspects of
securities trading.
a) True
b) False
691. The certificate of registration granted to a DP may be cancelled
a) by Depository for violating Bye-laws

b) By SEBI
c) By Depository on recommendation from SEBI
d) All of the above
692. In case of transmission of securities, held singly without nomination, which documents
are required to be submitted?
a) A copy of the death certificate, duly notarized

b) A copy of the succession certificate, duly notarized,
c) Both 1 and 2
693. At the time of delivery, client initiates a remat request through the DP using the
_________.
a) RRF-WRF
b) DRF-WR
c) WRDF
d) PDRF
694. Does the DP charge the Beneficiary owner when he wants his securities transferred to
some other DP?
a) Yes
b) No
695. The Delivery instruction slip should contain the name of the stock exchange, market
type and settlement number for which securities are being transferred to the clearing member
accounts.
a) False
b) True
696. Separate RRF are submitted for securities of different paid-up value
a) True
b) False
697. Without filling out the demat application form and the DP client agreement, can the
investors apply for a demat account
a) Yes
b) No
698. Who is the one main point of contact between the issuer of the securities and the demat
allottees?
a) Depositories
b) Exchange
699. In case of rejection by the borrower in invocation of Hypotication, The securities will
continue to remain as Pledge balance in the borrower’ s account
a) True
b) False
700. Before accepting the Pledge request, what is ensured to give effect to the creation of
pledge/hypothecation?
a) The instruction form is submitted in duplicate

b) Sufficient balance is there in the pledgor’ s account
c) Both 1 and 2
701. When can a DP reject a DRF?
a) All/some certificates received by R&T Agent from DP is/are found to be fake

b) Physical quantity of shares/certificates received by R&T Agent from DP is less than
what is mentioned in Demat Request Form
c) All/some certificate received by R&T Agent from DP is/are reported lost or stolen
d) All of the above
702. For which of the following can SEBI suspend the certificate of registration of the DP?
a) The DP has acted against any of the provisions of the Depositories Act
b) The DP has acted against any of the provisions of the Bye-Laws of the Depository
c) SEBI (D&P) Regulation, 1996
d) All of the above
703. An intermediary account can be opened by a SEBI registered intermediary for the
purpose of stock lending and borrowing.
a) True
b) False
704. In Case of share splits in the pledged securities, the spilt shares are _________ to the
pledgor’ s accountant
a) Credited
b) Debited
c) Sold
705. __________can open a clearing member account.
a) A custodian registered with SEBI

b) Any custodian whether registered or not
c) A custodian registered with SEBI and approved by the exchange
d) A Custodian approved by the stock exchange
706. What type of accounts does a clearing member and broker have if they need to deal
d) Any of the above
707. Before granting certificate of commencement to a depository, SEBI examines the

a) All of the above

b) Unauthorized access to records and data
c) Alteration of records and data
d) Unauthorized dissemination of data
708. No single participant can hold, at any point of time, more than _________of the
equity capital of the depository
a) 8%
b) 3%
c) 11%
d) 5%
709. If _________ has a minimum net worth of Rs. 10 crore, the limits on the aggregate
value of the portfolio of securities of the beneficial owners held in dematerialized
from in a depository through him, shall not be applicable.
a) Stock broker
b) All of the above
c) RTA
d) NBFC
710. Mr. A has lent his securities to Mr. B under the stock lending scheme. However, on
the record date of announcement of a corporate action, the securities are still lying
in the intermediary account. In the above case, the Issuer/R&T Agent can return the
securities to Mr. A before the cut-off date to let Mr. A get the Corporate Benefit.
State whether the above argument is True or False?
a) True
b) False
711. The client ID needs to be filled out when applying through a DP for an IPO
a) False
b) True
712. Only those Companies / issuer who have established connectivity with depository
can have their securities dematerialized
a) False
b) True
713. In pledge/hypothecation transaction the borrower is called a _________and the

lender is called a________
a) Pledgor, pledgee
b) Pledgee, pledgor
c) Debtor, creditor
714. ____________ deals with issue, allotment and transfer of securities and various
a) SCRA,1956
b) Companies Act, 1956
c) Depository Act, 1996
d) SEBI Act , 1992
715. Depository Bye-Laws specify that the applicant for being a Depository Participant
should furnish information and detail of its business history for a minimum period
of ___________.
a) 3 Years
b) 1 Year
c) 2 Years
d) 5 Years
716. A pledgor cannot substitute the securities offered in a pledge transaction
a) True
b) False
717. Which of the following is a “ Cash Corporate Actions” ?
a) Rights
b) Dividend
c) Bonus
d) Corporate Benefits
718. In case the BO Account at transferor DP is a joint account, the BO Accountant at

transferee DP should also be a joint account in the sequence of ownership
a) False
b) True
719. Pre-fix on ISIN is _________
a) a check number
b) Code of industry to which company belongs
c) A country code
d) Code of sate where company has registered office
720. Where a part quantity of the pledged shares are closure, what is the status shown
against those shares
a) Partially closed
b) part closed
c) Closed settled
721. The process of a broker/ trading member submitting securities towards the
securities sold by him on behalf of his client, to Clearing Corporation/ Clearing
House of a stock exchange is called__________
a) settlement
b) ‘ pay-in’
c) Patawat
d) Pay-out
722. DP has to get an ___________done of the depository operations on a half yearly

basis by a practicing chartered accountant or a company secretary
a) Security systems audit

b) Internal audit
c) External audit
d) Inspection
723. What is one main point of contact between the issuer of the securities and the demat
allottees?

b) Depositories
c) Exchange
d) Depository participants
724. A depository may or may not have adequate mechanisms for reviewing. Monitoring
and evaluating the depository controls system procedures and safeguards.
a) True
b) False
725. DP is required to open house accounts for their own investments to __________.
a) to bring efficiency in lending / borrowing operations

b) prevent co-mingling of their assets with that of their clients
c) to keep the audit trail of its own transaction
d) expedite the settlement process
726. If Standing Instruction is not given, transferee has to give _____________ each
time securities have to be received.
a) separate receipt instruction

b) separate transfer instruction
c) composite receipt instruction
d) separate pay-in slip
727. Sate True or false : DPs may make their business / contractual agreement with the
commodity exchanges/ warehouse owners including terms and conditions related to
collection of rent under the purview of FMC
a) True
b) False
728. Delivery-out instruction for moving securities from CM Settlement Account to CM

Delivery Account can not be generated automatically by the respective Clearing
Corporation based on the net delivery obligation of its Clearing Members.
a) True
b) False
729. Which is the correct order for the process flow of IPO through the depository:
1) Application for allotment
2) Credits of securities,
3) Details of allotments to BO,
4) Verification report,
5) Issuer sends intimation of allotment
6) BO Id for verification.
a) 1-6-4-2-3-5
b) 1-2-3-4-5-6
c) 1-6-4-5-3-2
d) 1-6-4-3-2-5
730. The allotment advice/refund warrants are sent to the applicant’ s directly by
Issuers/Registrars
a) False
b) True
731. Dematerialization of securities occurs when securities issued in physical form are
destroyed and an equivalent number of securities are credited into the security
holder(s) beneficial owner’ s account.
a) False
b) True

depository__________.
a) Is termed as an inter-depository transfer.

b) Is allowed only in special cases.
c) Is not allowed in Indian Securities market as yet.
d) Is termed as ‘ off-market’ transfer.
733. Which form the investor has to submit to DP for dematerialization of Government
Securities?
a) DSF-GS
b) DIS-GS
c) DRF-GS
d) SGL-GS
734. The DP should forward the RRF-GS to the depository within ____________of
accepting such request form the client
a) Seven Days
b) Six Days
c) Three Days
d) Two Days
735. Any trade that is cleared and settled without the participation of a clearing member
or clearing corporation is called off-market trade
a) True
b) False
736. Where there is an objection from any member of the HUF, transmission of
securities held in the beneficial owner should be effected only ____________.
a) on the basis of the past precedents of such transmission in the company

b) on the basis of a Decree by a competent Court or the Deed of Partition
c) on the basis of opinion of legal counsel
d) on the basis of collective of other members of the family
737. In Case of rejection by the borrower in invocation of hypothecation, the securities

will continue to remain as pledge balance in the borrower’ s account
a) false
b) True
738. If the securities are held in the depository system, documents have to be submitted
to the _____________for effecting transmission
a) Company
b) SEBI
d) Depository
739. SCRA,1956 has made the securities of all public limited companies freely
transferable
a) True
b) False
740. On settlement day, the RBI ___________the SGL-2 account of the depository and
__________its current account for funds, in case of purchase of government securities.
a) debits, credits
b) credits, debits
741.On default of payment , the pledgee send an invocation notice to the pledgor
a) True
b) False
742. Identify the incorrect underlined portion of the sentence: Accounts opened under
agreement with DPs shall hold electronic warehouse receipts along with other securities
a) Along with other securities

b) Electronic warehouse receipts
c) Agreement with DPs
d) Accounts Opened
743. Which account is required by a nominee to give effect to the transmission of shares?
a) Salary account
b) Bank Account
c) Demat account
d) Current account
a) Stocks
b) Securitized Debt
c) Money Market Instrument
d) All of the above
745. As per the __________ guidelines, the Issuer will provide the details of the redemption
account in the form of a certificate to the first investor of the CD
a) FIMMDA
b) RBI Monetary and credit Policy
c) SEBI
746. Depository intimates all dematerialization request to the respective Issuer or its R&T
Agent
a) once every two days

b) twice every day
d) Every day
747. The orders of SEBI under the securities laws are appellable before ____________
a) High Court
c) Securities Apellate Tribunal
d) Supreme Court
748. Suspending any further transaction from a depository account till the account is
unfrozen, is tarmed as
a) Account freezing
b) Cancellation of DP registration
c) Account canceling
d) Suspension of DP Services
749. State True or False : RBI has provided a model agreement format to the DPs
a) True
b) False
750. Dematerialization is the process of converting securities held in _________ from into
holding in book entry form
a) electronic
b) paper
c) temporary
751. Which of the following is NOT a part of the Primary Market?
a) Mutual Funds
b) Merchant Bankers
c) Registrars and Transfer Agents
d) Stock Exchange
752. The client encounters temporary illiquidity on the securities requested for in
rematerialized form.
a) False
b) True
753. State True or False: it is necessary for DPs to enter into a separate agreement with
persons, seeking to open a demat account for the purpose of holding and dealing in electronic
warehouse receipts.
a) False
b) True
754. An R&T Agent is required to confirm/reject a demat request within

__________days from the date of receipt of physical shares
a) 10
b) 15
c) 7
d) 12
755. Price of CP is determined by
a) RBI
b) Mutual consent of buyer and seller
c) FIMMDA
d) SEBI
756. In a clearing member account, the securities are always kept in a bucket of specific
a) False
b) True
757. In case of death of one of the clients, it is mandatory for the surviving client to open
a new account with another DP
a) True
b) False
758. During a Corporate Action, which of the following information is NOT shared by
the Depository with the Depository Participants
a) Beneficial Owners Bank Details

b) Procedure to be followed by DPs and Client
c) Record Date
d) Type of Corporate Action
759. Physical delivery of securities for transfer of shares is risk free
a) True
b) False
760. Who issues the physical securities to the clients on receipt of remat request?
a) Department of Company Affairs

b) Issuer or the Registrar and Transfer Agents
c) SEBI
d) Depository
761. A demat account can also be operated by a power of Attorney holder
a) False
b) True
762. The _________ credits the buying CM account immediately on pay-out

a) depository
b) clearing corporation/ Clearing house
c) Exchange
763. For the purpose of creation of pledge/hypothecation, both the parties to the
agreement, i.e., the pledgor and the pledge_______________________.
a) Must have a beneficial account with the same bank which is also a depository
participant.
b) Must have a beneficial account with the same depository.
c) Must have a beneficial account with the same depository participant.
d) Can have beneficial account with depository and depository participant
764. The Issuer/ R&T Agent has to furnish a list of authorized officials who represent
and interact with the depository
a) within 13 days of executing the tripartite agreement

b) within 15 days of executing the tripartite agreement
c) within 12days of executing the tripartite agreement
d) within 14days of executing the tripartite agreement
765. ___________lays down Eligibility criteria for Depository Particiapnt.
a) All of the above

b) Bye-Laws of BSE
c) SEBI( Depository & Participants) Regulation, 1996
d) Bye-Laws of NSE
766. On initiating the pledge/hypothecation by the pledgor , who confirms the creation
of the pledge
a) Pledgor
c) Pledgee
d) Depository
767. The securities offer in the public offer can only be traded in the stock exchange in
demat form
a) True
b) False
768. When is a Pledge transaction completed?

769. An investor subscribing for an IPO gives his Demat account number and the DP
name, can the securities be allotted to him be in demat form?
a) Yes
b) No
770. Record Date for a Corporate Action is announced by
a) Issuer
b) Shareholders
c) Corporate
d) Depository
____________
a) WRDF
b) DRF-WR
c) RRF-WRF
d) PDRF
772. Which of the following statement is false?
a) Treasury Bills have a maturity period of up to one year

b) There are two types of Government Securities-Dated Securities and Treasury
Bills
c) All the activities relating to issue of government securities (G-sec) are handled
by the Reserve Bank of India through its Public Deposit Office(PDO)
d) The depositories in India have been given permission to maintain SGL
accounts, of investors through its DPs
773. If the investment descriptor in the depository system indicates “ SBI BANK
LIMITED LR-T9812.25 UMD 12FB06 FVRS1 LAC” , 12.25 stands for
a) Coupon Rate
b) Face Value
c) Instrument Name
d) Redemption Date
774. Karta of Hindu Undivided Family (HUF) holders of power of attorney can not
nominate
a) True
b) False
c) True for POA holder but not for Karta of HUF
d) True for HUF but not for POA holders
775. In a bank account, either of the account holders can sign instruction. This is not the
case with a depository account.
a) False
b) True
776. Once the pledgor repays the loan to the Pledgee, who request for the closure of the
pledge?
a) Pledgee
b) Pldgee DP
c) Pledgors DP
d) Pledgor
777. Which of the following are the prerequisites for rematerialization request?

b) There should be sufficient free balance of securities in the beneficial account
c) Request should be made by the Beneficial
d) Both 1 and 2
778. It is possible for investors to transpose names of the joint holders alogwith the
process of dematerialization through their DPs
a) False
b) True
779. The DPs can verify the details in the application form and submit it into the DP
system till the _______ day from the offer closure day.
a) Second
b) Fourth
c) Third
d) Fifth
780. Details about date of birth and nomination is required for

c) Individual accounts
d) Corporate account
781. DP system generates a _________for each instruction entered.
a) ‘ order number’
b) ‘ instruction number’
c) ‘ transaction number’
d) ‘ entry number,
782. The clearing corporation or a clearing house of a stock exchange has to undertake to
co-operate at all times to redress the grievances of clients and DPs respect of its
operation in relation to the depository
a) false
b) True
783. There is only one depository in India that provides all depository services
a) False
b) True
784. A new company making an offer of Rs. 10.5 corers is required to make the offer
only in dematerialized form
a) True
b) False
785. In case of a mismatch, the depository G-sec cell sends a letter/fax to the
____________intimating them of the mismatch, seeking necessary clarification/
documentation from the__________
b) Client
c) RBI
d) Both 1 and 2
786. Clearing members are entities who
a) trade on behalf of their clients

b) are authorized to paying and receive payout from the Clearing corporation
against trades done only by their clients
c) are authorized to pay in and receive the pay out from a Clearing Corporation
(CC) / Clearing House against trades done by them or their clients
d) are authorized to paying and receive payout from the Clearing Corporation
against trades done only by them
787. State True or False : Separate Transaction statement is reflected for equity and debt
instruments
a) False
b) True
788. If application for renewal is not received by SEBI 3 months of before expiary of

b) Will not case to be an intermediary but must stop carrying on the activities of
the intermediary from the date of such expiry
c) Will not case to be an intermediary but will carry on the approved activities of
the intermediary from the date of such expiry
789. SCRA, 1956 aims it
a) ensuring organized trading activity in securities takes place on a specified

recognized stock exchange
b) ensuring direct and indirect control of virtually all aspects of securities trading
c) ensuring prevention of undesirable transactions in securities
d) All of the above
790. Transaction statement can be sent to clients in electronic form_________ provided

an agreement in the prescribed format has been executed with the clients for this
and adequate security measures have been taken.
a) only in scanned form

c) In email form with digital signature
d) In email form with scanned signature
791. Normally, which of the following trades are not settled through off-market route?
a) large trades in debt instrument

b) Transfer of securities between a client and sub-broker
d) Large deal between institutions
792. The CC/CH gives pay-out and securities are transferred to the buying broker’ s
account.
a) True
b) False
793. Records of securities dematerialized and rematerialized

b) must be maintained by Issuer and shared with Depository only on specific
request
794. State True or False :- Producer for transfer of government securities within the
depository is exactly similar to that of transfer of equity shares
a) True
b) False
795. Exchange of money for the off-market transaction are handled outside the
depository system
a) True
b) False
796. Which agencies are exempted from the mandatory requirement of giving PAN
a) NGOs
b) Banks
c) NBFCs
d) UN entities
797. During distribution of bonus shares, if shareholders do not indicate any choice, the
Issuer/ R&T Agent issued securities in which of the following forms?
a) Same form in which the shareholder held the securities on record date
b) Electronic form only
c) Physical form only
except for
a) Name of the account holders
b) Standing instruction
c) Email addressed
d) Pan number
799. Which of the following certificates is given by SEBI to a DP?
a) certificate of initiation
b) certificate of incorporation
c) certificate of commencement
d) certificate of association
800. For a minor accountholder who has attained majority, to continue to avail of his
a) Can continue with the same account and is not required to open a new account
b) Open a new demat account
c) Has to open with a new DP
801. State True or False : An investor in government securities holding electronic

balances in the depositories SGL-1 account can convert them into physical
certificates by the process of rematerialisation
a) False
b) True
802. Section 12 of the Depositories Act,1996 permits creation of pledge and

hypothecation against securities which are held in demat mode.
a) True
b) False
803. Investor can have many accounts with one DP or accounts with many DP
a) True
b) False
804. When processing transmission request of securities not exceeding Rs. 10 lakh
which documents are required by the DP?
a) A notarized declaration of the list of surviving members of HUF in an affidavit

b) Letter of Indemnity by the surviving members
c) Both 1 and 2
805. __________ deals with issue, allotment and transfer of securities and various
a) SEBI Act, 1992

b) Companies Act ,1956
c) Depository Act, 1996
d) SCRA, 1956
806. Which of the following information is indicated on the physical copy of the
government securities?
a) Book Debt Certificate

b) ISIN
c) Securities descriptor
807. The certificate of registration granted to a DP may be suspended by SEBI if it is

found that the DP has failed to pay annual fee as specified under the
SEBI(Depositories & Participants) Regulation, 1996.
a) True
b) False
808. State True or False : The depository informs all the DPs about the book closure for
government securities as and when announced by RBI
a) False
b) True
payment instrument to the ______________
a) Company directly
b) Depository
d) Exchange
810. Settlement of funds between the parties is settled _________the depository for CDs.
a) Outside
b) Through
c) With Consent of
811. No foreign entity, _____________, can hold more than 20% of the equity capital of
the depository
a) individually
b) individually or collectively only as a sponsor
c) individually or collectively only as a DP, or as a sponsor and DP together
d) individually or collectively either as a sponsor or as a DP, or as a sponsor and
DP together
812. In case where a state or the central government is the issuer, the depository
reconciles the records of the records of the dematerialized securities with statement
provided by the RBI on a daily basis.
a) True
b) False
813. In case of death of one the clients, it is mandatory for the surviving client to open a
new account with another DP
a) True
b) False
814. Who has provided model agreement to Depository Participants for warehouse
receipts of commodities?
a) RBI
b) SEBI
c) FMC
d) Depositories
815. The depository may conduct entrance examination and/or interviews, to examine
the knowledge of the DP (and its staff) related to __________ aspects of the
depository.
a) operational
b) technical
c) functional
d) All of the above
816. On receiving information on Corporate Action form the Depository, the DP verifies
which of the following information before the closure of the book/ record date?
a) Change in tax Status

d) All of the above
817. State True or False :- At the time of delivery, client initiates a remat request through
the DP using the Physical Delivery Remat Form (PDRF)
a) False
b) True
818. Government security means a security created and issued by the

_______________for the purpose of raising a public loan
a) Central Government
b) State Government
c) Both 1 and 2
819. The name of the client on DRF and the certificates should be exactly the same as in
the client’ s account in the DP system
a) False
b) True
820. A depository must apply for and obtain a certificate of commencement of business
from SEBI within_______ from the date of receiving the certificate of registration
from SEBI
a) 3 Months
b) 12 months
c) 6 months
d) 9 months
821. Once the allotment of securities are done, the refund/ allotment notice is received
by the DP through the depository system through which he had applied
a) False
b) True
822. In addition to the brokers, custodians registered with SEBI and approved by the
stock exchanges can open a clearing member account.
a) True
b) False
823. Dematerialization is the process of the holding the securities in a ___________

form
a) Fungible
b) Gold
c) Commodity
d) Paper
824. If the instrument descriptor in the depository system indicates “ SBI BANK
LIMITED LR-T98 12.25 UMD 12FB06 FVRS 1 LAC” , 12.25 stands for
a) Instrument Name
b) Redemption Date
c) Face Value
d) Coupon Rate
825. XYZ company is coming up a public offer of Rs. 9.5 cores. The company issues
securities in physical form to 25% of its subscribers. Can the XYZ company issue
securities in physical form & can the subscribers sell the physical form & can the
subscribers sell the physical certificate in the stock Market?
826. During the Settlement process, who generates the ‘ Instruction Number’ for each
transaction?
a) Depository System
b) DP system
c) Transferor
d) Transferee
827. A plegor cannot substitute the securities offered in a pledge transaction

a) True
b) False
828. The debit is effected on the execution date.
a) False
b) True
829. A Client may withdraw its securities balances with the Depository at any point of
time
a) True
b) False
830. The process of a broker/trading member submitting securities towards the securities sold
by him on behalf of his client, to CC/CH of a stock exchange is called ‘ pay-in’
c) FALSE
d) TRUE
831. After Depository receives an application for registering as a DP, it evaluates and
forwards the application to SEBI within_________
a) 15 days
b) 30 days
c) 45 days
d) 20 days

c) Buy the shares
d) Sell the shares
833. “ Non-cash corporate action” involves which of the following?

834. Partnership firm cannot open a depository account
a) False
b) True
835. DP should open a separate account in the name of each beneficial owner
a) False
b) True
836. Which of the following statement is False?
a) Issuer of Commercial Paper will provide these details to the Registrar and transfer
Agent(RTA)
b) For any buying or selling of demat debt instruments, the procedures involved for
delivery or receipt of debt instrument is the same as that involved for equity shares.
c) As per the RBI Monetary and Credit Policy 2001-02, effective June30,2001, banks
financial institutions(FIs), primary dealers(PDs) and satellite dealers (SDs) is
permitted to make fresh investments and hold CP only in dematerialized form
d) IPA will open redemption account with the DP at the time of issue of Commercial
paper in demat mode
837. Who prints the Public offer banker’ s report and gives to the collecting bank?
a) DP
b) Depository
d) Company
838. In case Of hypothecation, who instructs its DP to confirm the invocation of the
hypothecation?
a) Pledgor
b) Pledgee
c) Pledgees DP
839. The DP receives the pledge closure request form
a) Pledgor
b) Depository
c) Pledgee
840. SCRA, 1956 aims it
a) ensuring organized trading activity in securities takes place on a specified recognized

stock exchange
b) ensuring direct and indirect control of virtually all aspects of securities trading
c) ensuring prevention of undesirable transactions in securities
d) All of the above
841. Who issues the physical securities to the clients on the receipts of remat request?
a) Ministry of Finance
c) Depository
d) Registrar and Transfer Agent
842. Who rejects the DRF and informs the client?
a) RT&A, Depository
b) SEBI,DP
c) Depository, DP
d) RT&A, DP
843. The client ID needs to be filled out when applying through a DP for an IPO
a) false
b) True
844. The process of effecting changes in the order of joint names appearing on a security
certificate is called_______________
a) Transposition
b) Regression
c) Nomination
give

b) DP-ID
c) Depository Name
d) All of the above
a) False
b) True
847. A beneficiary account can be debited only if the beneficial owner has given _________.
a) Delivery Instruction
b) Standing Instruction
c) Receipt Instruction
d) Both (a) and (b)
848. The allotment procedure for rights issue is similar to which of the following
procedures?
a) Initial Public offer

b) Open Offer
c) Dutch Auction
d) None of The above
849. State True or False: The depositories also provide depository facility to the commodity
exchange for settlement of trades pertaining to vault receipts for commodities
a) TRUE
b) FALSE
850. On receipt of pledge/ hypothecation request details from the DP, the Pledgee submits his
acceptance or rejection of the request
a) FALSE
b) TRUE
851. Units of Mutual Funds are eligible for dematerialization as per SEBI ( Depositories &
a) TRUE
b) FALSE
852. RBI’ s regulatory jurisdiction extends over corporate in the issuance of capital and
transfer of securities
a) True
b) False
853. Direct delivery of securities to the clients can be effected by the Clearing Corporation,
subject to completion of necessary procedures
a) False
b) True
854. ____________of DP apply to SEBI for registration
a) Trustee
b) Board of Trustee
c) Any of the above
d) Sponsors
855. In Case of Non Pari-Passu ashres or multiple ISINs, auto Does can not be generated by
clearing corporation
a) True
b) False
856. What is meant by account freezing?
a) canceling the depository account

b) Canceling the registration number
c) Suspending any further transaction from a depository account till the account is
unfrozen
d) Suspending the DP services
857. State True or False : DPs may make their Business/ contractual agreement with the
commodity exchanges/ warehouse owners including terms and conditions related to
collection related to collection of rent under the purview of FMC
a) False
b) True
858. On issue of secured debentures, the Issuer initially allots _________ till the charges are
created. On creation of the charge, ___________are issued.
a) Letter of Allocation (LOA), Debt Certificate
b) Letter of Allotment (LOA), Debt Certificate
c) Debt Certificate, Letter of Allotment (LOA)
d) Debt Certificate, Letter of Allocation (LOA)
859. Records of securities dematerializes and rematerialized

b) must be maintained by Issuer and shared with Depository only on specific request
860. A depository can directly open accounts and provide services to clients.
a) True
b) False
861. In invoking of a pledge, the pledgor’ s DP needs to confirm the pledgee’ s DP for
transferring of securities
a) True
b) False

c) destroyed
a) Pledgee
b) Pledgor
c) DP
864. For investor in government securities, payment of intrest is made by whom?
a) Depository
b) Depository Participants
c) Brokers
d) Issuer/ R&T Agents
c) False
d) True
866. To whom will the corporate benefits like dividend etc accrue for those securities which
are pledge?
a) Pledgor
b) Pledgee
867. What was the major difference between a clearing member account and an individual
account?
b) No difference
account
a ________

869. Nomination can be made by individuals for Beneficiary accounts held jointly or singly
a) False
b) True
870. If public limited company wants to make a public offer of more than Rs 10 crores, what
is the mandatory requirement under the companies Act 1956?
a) The company has to make the public offer only in dematerialized form
b) Special permission is required from Ministry of Company Affairs
c) Special Permission is required from the SEBI
871. A certificate of registration is valid for a period of ________ from the date of issue.
a) 1 Year
b) 3 Years
c) 2 Years
d) 5 Years
872. State True or False: The investor has the choice of holding Ware house receipts in a
separate account or all its holding in one account
a) True
b) False
873. _____________ can be opened by a SEBI registered intermediary for the purpose of
stock lending and borrowing.
a) A Beneficiary account
b) A clearing member account
c) An intermediary account
d) A margin account
874. ____________ enables setting up of multiple depositories
a) SEBI Act, 1992

b) Depositories Act, 1996
c) SCRA, 1956
875. In a Pledge transaction, who initiates the creation of a pledge
a) Pledgee
b) Pledgor
c) Depository
876. Any trade that is cleared and settled without the participation of a clearing member or
clearing corporation is called off-market trade
a) FALSE
b) TRUE
877. Credit cards/ Debit cards issued by Banks with photograph applicant is _________
a) valid Proof of identity for opening account with a DP

b) not valid proof of identity opening account with a DP
878. A demat Account can be closed any time when the balance in it is zero
a) False
b) True
879. Who can make a rematerialisation request?

b) Depository
d) Beneficial Owner
880. Who verifies and ensure that the securities to be pledged exist in the pledgor’ s
account?
a) Depository
c) NSDL
d) Pledgee
881. Securities market provides channels for allocation of saving to investment
a) True
b) False
882. Any change in the client details of the demat account needs to be submitted to the
a) SEBI
b) Bank
d) Depository
883. Who has made the requirement of PAN mandatory for demat account opening?
a) RBI
b) Income Tax
c) SEBI
d) Government of India
884. During which period RBI does not register for transfer of government securities from
SGL account to Depository account?
a) Lock Period
b) Closure Period
c) Shut Period
d) No Transfer Period
885. As per guidelines on Anti money Laundering Measure, every Depository Participant
should appoint a senior management executive to be designated as the Principal Officer
a) True
b) False only for stock Brokers
c) False
d) True only for Stock Brokers
886. On allotment of securities who credits the securities to the allottees account on the
a) Issuer directly
b) Depository
887. ______________regulates sale and purchase of gold related securities
a) RBI
b) AMFI
c) FMC
d) SEBI
888. Ms. XYZ changes her signature due to marriage and informs the DP with which she
holds her account vide an email with the scanned specimen of the new signature. Will the DP
update its record with the new signature?
a) Yes
b) No
889. DRN refers to
a) Dematerialization Request Note

b) Dematerialization Request Number
c) Dematerialization Redressal Number
d) Dematerialization Reform Note
890. It is not mandatory for the company/issuer to have connectivity with the Depository
a) True
b) False
891. Different depositories________ different methodologies for assessing net worth of a

DP.
a) must have
b) may have
c) can not have
d) should preferably have
892. as per SEBI (Depositories and Participants) Regulations, 1996, ____________.
a) all DPs must have membership on both depositories

b) both the depositories must have similar bye laws to avoid investor complaints.
c) Both the depositories must be inter-connected to enable inter-depository transfers.
d) Depositories must concentrate on different geographical are to increase the reach
893. The clearing system attached to _____________performs the function of ascertaining

the pay-in or pay-out of brokers who have traded on the stock exchange
a) Mutual Funds
b) Clearing House of a Mutual Fund
c) All of the above
d) Stock Exchange
894. It is necessary to determine the eligible Beneficial Owners for Corporate Action.
a) TRUE
b) FALSE
895 In the process of transmission through a depository, the successor to the title interacts
only with one entity

b) His DP
c) His banker
d) His sub broker
896. Clearing Corporation is an entity responsible for clearing and settlement of trades done
by clearing members on a recognized stock exchange.
a) TRUE
b) FALSE
897. Rematerialisation refers to the process of

898. Exchange of money for the off-market transaction____________
a) can be handled in the same manner like a market transaction

b) are handled outside the depository system
c) are handled within depository system
d) are to be handled in ‘ off-market settlement system’
899. It is possible for investor to transpose names of the joint holder’ s alogwith the process
of dematerialization through their DPs
a) True
b) False
900. The _________ credits the buying CM account immediately on pay-out
a) clearing corporation /clearing house

b) exchange
c) depository
901. The depositories have provided a model agreement format to the DPs for
______________of commodities
a) Vault Receipts
b) Delivery Order
c) Shipping Receipts
d) Ware House Receipt
902. For NRI accounts, proof is required for both addressed-that of the account holder as
well as the constituted attorney
a) True
b) False
a) FLASE
b) TRUE
904. Who verifies and ensure that the securities to be pledged exist in the pledgor’ s
account?
a) Depository
c) NSDL
d) Pledgee
905. Depository Participant should make an application for renewal________ month/s before
expiry date of the validity of the certificate of registration
a) 3
b) 1
c) 6
d) 2
906. A recognized stock exchange ___________ register as a depository

b) Can not
c) Can
d) Must
907. In case of share splits in the pledge securities, the spilt shares are___________ to the
pledgors account
a) Credited
b) Debited
c) Sold
908. If the Beneficiary owner account details are not given in the IPO application form, can
the securities be allotted in demat form?
a) No
b) Yes
909. In case of death of one of the clients, it is mandatory for the surviving client to open a
new account with another DP
a) False
b) True
910. Investor of physical securities can get them dematerialized by making a request through
whom
b) SEBI
c) Depository
d) Stock Exchange
911. Neither happens Depositories Act nor the regulates made under the Act lay down any
specification about who can open a beneficiary account
a) True
b) False
912. What happens when the demat request initiated under wrong ISIN?
a) DRF rejected by the R & T Agents

b) DRF Rejected by the depository
c) DRF rejected by the DP
d) DRF rejected by the SEBI
913. The demat account number is a ________ digit ID
a) 18
b) 20
c) 8
d) 16
914. The securities offer in the public offer can only be traded in the stock exchange in
demat form
a) False
b) True
915. A market trade is one that is settled through the participation of a Clearing
Corporation/ Clearing House
a) False
b) True
916. Which of the following is not a part of the Primary Market?
a) Merchant Bankers
b) Stock Exchange
c) Mutual Fund
d) Registrars and Transfer Agents
917. The depository credits the securities to the allottee accounts on demat allocation on
which date?
a) Execution date
b) Record date
918. Devolution of title to shares Devolution of title to shares can happen by
a) Death
b) Birth
c) Adoption
d) All of the above
919. When does a pledgor initiate the closure of the pledge/hypothecation through its DP
a) After the pledgor has repaid the loan from the pledgee
c) Both 1 and 2
920. The depository gives effects to all transfer resulting from _________ by recording
entries in the accounts of such beneficial owners
a) the settlement of trades

b) transaction between various beneficial owners
c) Both A and B
921. A depositories account may be opened and maintained in the names of more than one
person
a) False
b) True
922. ______________aims at streamlining settlement process by transfer of Process by the

transfer of ownership of securities electronically by book entry without making the securities
move from person to person
a) SCRA, 1956
b) SEBI Act, 1992
923. When can an request to dematerialiase government securities be rejected?
a) When the authorized signatories are not registered with RBI

b) When there is mismatch between the details provided with DRF-GS and
electronic message received by depository
d) All of the above
924. The eldest surviving male member is appointed the new Karta of the HUF in event of
the death of the Karta of the HUF
a) False
b) True
925. According to which regulation, securities are eligible to be held in demat form?
a) SEBI ( Depositories and Participants) Regulations, 1996

b) SEBI Act 1992
c) SCRA 1956
d) Depositories Act 1996
926. The DP must enter into an agreement with a beneficial owner within 3 months from date
of commencing acting on behalf of the client
a) True
b) False
927. Depositories offer services through Depositories Participants, who are
a) agents
b) principal
c) investors
928. State True or False – In case of different Loan Codes, the Clients submit only one
DRF-GS and Form of Transfer
a) False
b) True
929. Corporate actions affect the rights, obligation and/or interests of only the beneficial
owners of securities held in a depository, state whether True or False
a) False
b) True
930. Public limited companies are required to make the public offer only in
dematerialized from in case the offer is more than ________ corer
a) Rs 12 Corer
b) Rs 25 Corer
c) Rs 10Corer
d) Rs 50 Corer
931. The debit is effected on the_______.
a) Pay-in date
b) Execution date
c) Trade date
d) Pay-out date
932. During distribution of dividends, companies should mandatorily print the account
details furnished by the Depository on the payment instruments
a) True
b) False
933. For investors in government securities, payment of interest is made by whom?
a) Depository
b) Issuers/ R&T Agents
c) Brokers
d) Depository Participants
934. Ms. XYZ changes her signature due to marriage and informs the DP with which she
holds her account vide an email with the scanned specimen of the new signature. Will the DP
a) Yes
b) No
935.An inter-depository transfer means
a) transfer of securities form an account in one depository to an account in

another depository
b) transfer of securities from an account in one segment to an account in another
settlement
c) transfer of securities from an account in one settlement to an account in
another segment
936. Issuer has to warrant that _________.

b) It is entitled to transfer dematerialized securities into the Depository
c) Dematerialized securities exist at the time of transfer of securities into depository and
also therafter
d) All of the above
937. Who among the following can subscribe for government securities ?
a) Corporate
b) Institutional Investors
c) Individual investors
d) All of the Above
938. Before granting certificate of commencement to a depository, SEBI approve bye – laws
of the.
a) Depository, Exchange and participants

b) Depository only
c) Depository and exchange
d) Exchange only
939. On entering the dematerialization request the depository system generates a

__________which needs to be mentioned on the request form
a) Depository Number
b) DP number
c) Demat demand number
d) Dematerialization request number(DRN)
940. The accounts of all the successful allottees is credited on the ____________ of the
allotment date
a) Beginning of the day

b) The day on which the security gets listed on the Exchange
c) End of Day
941. An issuer wanting to give demat facility for debt instrument has to send _________
along with the request to the request to the depository
b) Letter of Intent
c) Letter of consent
d) Letter of Allotment
942. In the IPO application form the bank details are essentially required to be filled in
a) false
b) True
943. For any change in signature in the records, the client needs to
a) Make a request in writing specifying reasons for change in signature

b) New signature should be duly attested by Client’ s banker
c) Visit DP’ s office personally and produce valid proof of identity as well as the latest
transaction statement of its account
d) All of the above
a) False
b) True
945. Locked-in securities can be invoked before the lock-in release date
a) False
b) True
946. The client encounters temporary illiquidity on the securities requested for in
rematerialized form.
a) False
b) True
947. Execution date is crucial while executing any transfer instruction for debt
instrument because
a) Debt instruments bear interest

b) Debt instruments have limited life
c) On redemption, the instrument is de-activated in the depository system
d) Both 1 and 2
948. The applicant for registering as DP should furnish details of its Board of Directors/
authorized officials, who would be responsible for the conduct of the business of
the applicant as a participant
a) False
b) True
949. ___________of DP apply to SEBI for registration

a) Board of Trustee
b) Any of the above
c) Sponsors
d) Trustee
950. DP has to get an ___________done of the depository operations on a half yearly

basis by a practicing chartered accountant or a company secretary
a) Security systems audit

b) Internal audit
c) External audit
d) Inspection
951. For which of the following can SEBI suspend the certificate of registration of the
DP?
a) contravention of the provision of the SEBI Act,1992

b) non-cooperation in any inspection or enquiry conducted by Issuer
c) failure to furnish any information relating to activity as a DP required under
the regulations
d) contravention of the provision of the companies Act,1956
952. If the seller client or CM is unable to deliver the securities within a pay-in deadline
time, the short deliveries are auctioned.
a) True
b) False
953. Confirmation or rejection of pledge request is communicated to the _________

b) pledgee’ s Depository participant
c) Depository
954. Normally, which of the following trades are settled through off-market route?
a) All of the above

b) Transfer of securities between a client and a sub-broker
c) Large trades in debt instruments
d) Large deals between institutions
955. In case of purchase of government securities by a depository client from a seller holding
securities in an SGL account with other eligible entity, the buying client should
submit____________________
a) Inter-SGL trade purchase instructions

b) Inter-GSec trade purchase instruction
c) Inter- SGL Trade Sale Instruction
956. Payment of instrument are deposited with the Collecting banks directaly
a) True
b) False
957. The beneficial owner who wants securities to be demat should submit the remat request
form to
a) Ministry of finance
b) Company secretary of the company whose securities are held
c) Depository
958. __________promotes development of securities markets
a) SCRA, 1956
b) SEBI
c) Stock exchange
d) SEBI Act, 1992
959. One of the most important and basic services provided by the depositories in India is to
facilitate transfer of securities from one account to another at the instruction of the account
holder.
a) True
b) False
960. How many types of demat accounts can be opened with a depository?
a) 3
b) 1
c) 4
d) 2
961. PDRF refers to
a) Physical Deposit Request Form

b) Physical Deposit Remat Form
c) Physical Delivery Remat form
d) Physical Delivery Request Form
962. Details of the holding of the securities of beneficial owners should be recorded by
Depository
a) twice every day

c) On an ongoing basis
d) At the end of each day
963. State True or False : it is necessary for DPs to enter into a separate agreement with
persons, seeking to open a demat account for the purpose of holding and dealing in electronic
warehouse receipts.
a) False
b) True
964. The securities of company AB Ltd. Were offered as collateral and the pledgor were to
offer securities of company CD Ltd. Or PQ Ltd. Or both of them, he may do so if the pledge
agrees to it
a) False
b) True
965. Who ensures compliance of warehouse receipts and securities being in different
accounts?
b) Commodity Exchanges
c) Depositories
d) All of the above
966. A depository has the right to prescribe higher networth requirements for its DPs
a) False
b) True
967. A depository should conduct an annual inspection of its procedures and forward a
copy of the inspection report to
a) issuer
b) Investor
c) RTA
d) SEBI
968. Exchange of money for the off-market transaction are handled outside the depository
system
a) True
b) False
969. The clearing Corporation/ Clearing House gives pay-out and then securities are
transferred to the buying broker’ s account
a) TRUE
b) FALSE
970. SROs do not have to comply with other regulation as long as they are complying with
their own regulations
a) True
b) False

c) Buy the shares
d) Sell the shares
972. State True or False: ICIN for same commodity differs from exchange to exchange
a) FALSE
b) TRUE
973. Directly delivery of securities to the clients can be effected by the Clearing Corporation
a) True
b) False
974. Can a account be frozen for both credits and debits
a) No
b) Yes
975. A depository CANNOT directly open accounts and provide services to clients
a) True
b) False
976. Section 12 of the Depositories Act, 1996, permits creation of pledge and hypothecation
against securities which are held in demat mode
a) false
b) true
account ?
b) No difference
account
978. What is the correct Sequence in the unilateral pledge closure:

1. Pledgor repays the loan to the pledge
2. pledgors DP intimates the Pledgor
3. The pledgee’ s DP forwards the request to the depository
4. The depository informs the pledgor’ s DP
5. The pledge is then closed
6. The pledgee gives the unilateral pledge closure request to
his DP
e) 1-6-3-5-4-2
f) 1-2-3-4-5-6
g) 1-6-3-4-5-2
h) None of the above
979. Units of Mutual Funds are eligible for dematerialization as per SEBI (Depositories &
a) TRUE
b) FALSE
980. A transferee of security can give which of the following instruction to its DP for
receiving in securities?
a) Standing Instruction
b) Debit Instruction
c) Delivery Instruction
d) All of the above
981. To withdraw its security balance for rematerilisation purpose with the Depository a
client has to fill
a) RRC
b) RRS
c) RRF
d) RRD
982. Pledge closure request is given to whom by the pledgor
b) Depository
c) Pledge directly
983. Companies Act, 1956 deals with regulation pertain to dematerialization of securities
a) True
b) False
_________basis for pay-in of securities.
a) T+2
b) T+0
c) T+1
d) T+3
985. What is required to be filled up the IPO application Form?
a) Client ID
b) DP Registration No.
c) Depository registration no.
986. The DP should forward the RRF-GS to the depository within_____________ of

From the client
a) Three Days
b) Six Days
c) Seven Days
d) Two days
987. In case of death of one or more of the joint holders, the surviving joint holder(s) can get
the name(s) get the name(s) of the deceased removed from security certificate
a) True
b) False
988. Distribution of dividends can NOT be made using which of the following mades?
a) Cash
b) ECS
c) Warrants
989. RBI does not register transfer of securities during ______________
a) Lock Period
b) Closure Period
c) Shut Period
d) No Transfer Period
990. Which of the following is a “ cash Corporate Action” ?
a) Dividend
b) Rights
c) Corporate Benefits
d) Bonus
b) clearing member account
992. The producer for dematerialization of CD is ____________ that carried out for equity
shares
a) same as
b) Differs from
993. Who is responsible for opening an redemption account at the time of issue of
commercial Paper(CP)?
a) Registrar and Transfer Agent(RTA)

b) Debiting and Paying Agent (DPA)
c) Primary Dealers( PD)
d) Issuing and Paying Agent(IPA)
994. If ______________ has a minimum net worth of Rs 10 crore, the limits on the aggregate
value of the portfolio of securities of the beneficial owners held in dematerialization from in
a depository through him, shall not be applicable.
a) stock broker
b) All of the above
c) RTA
d) NBFC
995. What is SOT?
b) Statement of trade
c) Statement of transaction
996. Nomination can be made by individuals for Beneficiary accounts held jointly or singly
a) True
b) False
997. One of the criteria to participant as a Clearing House of a Stock Exchange is to have
a) True
b) False
a _____

999. Actual delivery of securities to the clearing system from the selling broker and delivery
of securities from the clearing system to the buying broker is done by________
a) Issuer
b) Depository
d) All of the above
1000. Who can make a rematerilisation request?
a) Registrar and transfer Agent

b) Depository
1001. Rights under Collective Investment schemes are eligible for dematerialization as per
SEBI ( Depositories & Participant) Regulation,1996.
a) False
b) True
1002. For pledging and hypothecation of securities, the pledge and pledgor can have their
account with different DPs under the same depository
a) True
b) False
1003. Suspending any further transaction from a depository account till the account is
unfrozen, is termed as
a) Account freezing
b) Cancellation of DP registration
c) Account canceling
d) Suspension of DP Services
account?
a) the clearing member has to first register itself with the clearing corporation and
obtain a clearing corporation clearing member identification number
b) No difference
c) Clearing member has to start operation before applying for a CM account
1005. In case of a mismatch, the depositories G-Sec cell sends a letter/fax to the
______________intimating them of the mismatch, seeking necessary
clarification/documentation from the______________
b) Client
c) RBI
d) Both 1 and 2
1006. Different depositories_______ different methodologies for assessing networth of a DP.
a) can not have

b) may have
c) should preferably have
d) must have
1007. Multiple pledge instructions can be executed on the basis of a single agreement
a) True
b) False
1008. Who can make a request for the demat of security
a) Company
c) Depository
d) Registered holder of the security
1009. In an account with the DP, investor must maintain a minimum number of shares or a
minimum portfolio size
a) True
b) False
1010. In the depository environment, the securities moves through account transfer.
a) True
b) False
1011. When processing transmission request of securities not exceeding Rs. 10 lakh which
documents are required by the DP?
a) A notarized declaration of the list of surviving members of HUF in an affidavit

b) Letter of Indemnity by the surviving members
c) Both 1 and 2
1012. If the account holder is dead, the securities lying to the credit of the account holder
may be _________ to the nominee’ s account after the DP verifies the identity of the
nominee
a) bought
b) sold
c) transmitted
d) transposed
a) will not cease to be intermediary but will carry on the approved activities of the
b) Shall cease to be an intermediary
c) will not cease to be intermediary but must stop carrying on the activities of the
1014. The securities of company infosys ltd. Were offered as collateral and the pledgor
decides to offer securities of company wipro ltd Is he by regulation allowed to do so even if
the pledge has no objection to it
a) Yes
b) No
co-operate at all times to redress the grievances of clients and DPs in respect of its operation
in relation to the depository
a) false
b) True
1016. Who issues the physical securities to the clients on receipt of remat request?
b) Depository
c) Registrar and transfer Agent
1017. In which type of market are the new securities sold?
a) Primary market
b) Secondary market
c) Commodity market
d) Money Market
1018. DP system generates a ______for each instruction entered.
b) ‘ entry number’
c) ‘ instruction number’
d) ‘ transaction number’
1019. Pay-out’ means________

– account for the quantity of securities purchased by them on behalf of their
clients’
1020.________regulates underwriting, the use of premium and discount on issues, rights

and bonus issues, payment of interest and dividends
a) SEBI Act, 1992

c) SCRA, 1956
d) Depository Act, 1996
1021. Before accepting the pledge request, what is ensured to give effect to the creation of
pledge/ hypothecation?
a) The instruction form is submitted in duplicate

b) Sufficient balance is there in the pledgor’ s account
c) Both 1 and 2
1022. Can DPs collect charge/tax/rent on behalf of commodity exchange/ warehouse?
a) Yes, but only charges and rent can be collected

b) Yes,
c) Yes, after ensuring adequate legal basis
d) No, such activities are dealt between client and commodity exchange/ warehouse
1023. A depository can directly open accounts and provides services to clients
a) False
b) True
1024. The process of a broker/trading member submitting securities towards the securities
sold by him on behalf of his client, to Clearing Corporation/ Clearing House of a stock
exchange is called_________
a) ‘ pay-in’
b) Pay-out
c) Settlement
d) Patawat
1025. Before granting certificate of commencement to a depository, SEBI examines if

depository has made arrangement for insurance for indemnifying the beneficial owner for
relevant losses
a) True
b) False
1026. State True or False- Request for partial dematerialization of a certificate are not
entertained
a) False
b) True
1027. The Depository Act, 1996 aims at
a) All of the above

b) Ensuring free transferability of securities with speed, accuracy and security
c) Ensuring direct and indirect control of virtually all aspects of securities trading
d) Ensuring organized trading activity in securities takes place on a specified recognized
stock exchange
1028. State True or False: All CDs can be demateriliased
a) True
b) False
1029. Demat request form for dematerializing government securities is same as used for
equities etc
a) True
b) False
1030. Fungibility means
a) identical, interchangeable and transferable

b) identical and interchangeable
c) identical, interchangeable and non-transferable
d) identical
1031. SEBI can issues guidelines pertaining to public issues

a) True
b) False
1032. Votes ID card is valid proof of address
a) True
b) False
1033. In the depository system, the securities in dematerialized form are NOT identification
by distinctive number and certificate numbers just as in the physical environment.
a) TRUE
b) FALSE
1034. What is the minimum value required to subscribe for Commercial Paper (CP)?
a) 50,000
b) 5,00,000
c) 5000
d) 500
1035. What typeof accounts does a clearing member and broker have if they need to deal
d) Any Of The above
except for
a) Bank Details
b) Nominee details
d) Pan number
1037. As per SEBI (Depositories and participants) Regulations, 1996, all securities must be
available on both the depositories.
a) True
b) False
1038. In a depository system, the investors stand to gain by way of efficient settlements,
lower cost and lower risks of theft or forgery, etc
a) True
b) False
1039. The investor shall fill up the application form submit the same along with the payment
instrument to the______
a) Exchange
b) Depository
d) Company directly
1040. A demat account can also be operated by a Power of Attorney holder
a) False
b) True
1041. Of the following options, when is SGL-1 account preferred?
a) For only consolidated balances of all account holders

b) When opening of account is done with RBI directly
c) To keep account of constituent investors
d) To keep sub account for each investor separately
1042. The person on whom the shares devolve does not have to prove his entitlement by
submitting appropriate documents and seek transmission. The shares come to him as a matter
of fact.
a) True
b) False
1043. To receive the securities allotted in public issue in demat form, which detail is required
to be given
a) PAN number
b) Beneficiary account number
c) Savings account number
1044. Exchange of money for the off-market transaction are handled outside the depository
system.
a) False
b) True
1045. DP has to be registered with
a) SEBI
b) Exchange
c) Depository
a) True
b) False
1047. State True or False : In case of securities and electronic warehouse receipts being held
in the same account, CDSL has the responsibility of returning the securities ti the originating
account?
a) False
b) True
1048. In a clearing member account, the securities are always kept __________.
a) in the custody of the compliance officer

b) in a bucket of specific market type and settlement number
c) In date-wise buckets.
d) In day and date wise buckets.
1049. The DP receives the pledge closure request form
a) Pledgor
b) Depository
c) Pledgee
1050. In case of transposition-cum-dematerialization, the Client can get securities

a) TRUE
b) FALSE
1051. Every depository may have its own Bye-laws for termination or suspension of its DPs

b) FALSE
c) TRUE
1052. During distribution of bonus shares, the shareholders can get the securities allotted to
them in which of the following forms?
a) Electronic form only

b) Physical form only
c) Either electronic or physical form
1053. Corporate action affect the rights, obligation and/or interests of only the beneficial
owners of securities of securities held in a depository. State whether True or False.
a) False
b) True
1054. A nomination, substitution is valid only if
a) details of the securities entered in the nomination forms match those in the records of
the Participant
b) Submitted to the Participant by the rightful Client(s) or under his/their due authority
c) In the prescribed format and signed by the clients
d) All of the above
1055. ISIN is a ___________ identification mark.
a) 10- character long

b) 3- character long
c) 6- character long
d) 12- character long
1056. An instruction to move securities form one settlement to another settlement which is
called ‘ inter-settlement’ transfer
a) FALSE
b) TRUE
1057. The applicant for registering as DP should furnish details of its Board of Directors/
authorized officials, who would be responsible for the conduct of the business of the
applicant as a participant
a) False
b) True
1058. Who is required to sign the application form and put details of name and addresse in
addition to the details of the minor?
a) Mother
c) Broker
d) Guardian
1059. On initiating the pledge/hypothecation by the pledgor, who confirms the creation of
pledge
b) Pledgor
c) Pledgee
d) Depository
________
a) DRF-WR
b) RRF-WRF
c) WRDF
d) PDRF
1061. What is required to be filled up in the IPO application form?
a) Client ID
b) DP registration no
c) Depository registration no
1062. Distribution of dividends can NOT be made using which of the following modes?
a) Cash
b) ECS
c) Warrants
1063. Investor grievance must be addressed by the Depository within ___________ week/s
of receipts of complaints
a) 2
b) 4
c) 3
d) 1
1064. on allotment of securities, who credits the securities to the allotees account on the
b) Registrar and Transfer Agents
c) Issuer directly
d) Depository
1065. Which of the following statement is False?
a) An issuer may issue multipal debt instruments by varying the features of the
instruments.
b) A interest bearing security is a debt instrument
c) A debt instruments has a limited life
d) Each debt security has a unique identification called IPIN
1066. Under PMLA, all intermediaries, including a DP has to maintain recored of all cash
transaction above ________
a) Rs. 100 lacs

b) Rs. 50 lacs
c) Rs. 10 lacs
d) Rs. 25 lacs
a) names of transferor
b) dates of transfer of securities
c) names of transferee
d) All of the above
1068. If a broker gives pay-out breakup of his clients to Clearing Corporation/ Clearing
House, then pay-out securities are directly credited in the clients in the account by the
Clearing Corporation/ Clearing House.
a) False
b) True
1069. In case of death of one of the Clients in a joint account, the surviving joint holder will
have to open a new account with the DP in their name.
a) False
b) True
1070. The applicant has to pay SEBI Application fee when submitting the application form
for registering as DP with the Depository.
a) TRUE
b) FALSE
1071. Once the pledgor repays the loan to the Pledgee, who request for the closure of the
pledge?
a) Pledgor
b) Pledgees DP
c) Pledgee
d) Pledgor DP
1072. What is SOT?
1073. When can a Registrar and Transfer Agents reject a DRF
a) Certificate(s) not received by R&T Agent in time form DP

b) All/ some certificate(s) sent to incorrect R&T Agent by DP
c) Both 1 and 2
1074. A market trade is one that is settled through the participation of a Clearing
Corporation/ Clearing House
a) False
b) True
1075. A depository account may be opened and maintained in the names of more than one
person
a) FALSE
b) TRUE
1076. ________ regulates sale and purchase of derivatives contracts on money market
securities
a) BSE
b) RBI
c) NSE
d) SEBI
1077. Who are held responsible if the application forms and the payment instruments are
not deposited in time with the banks?
b) Depositories
c) Exchange
d) Investors themselves
1078. Broker of stock exchange that offer settlement through depository are required to
open a __________
a) clearing member account

c) temporary account for every settlement
d) personal settlement account
1079. Transfer of ownership (under a system where depository is not present ) of securities
involves
a) endorsement
d) All of the above
1080. A foreign entity as a sponsor can hold more than 20% of the equity capital of the
depository
a) True
b) False
1081. Investors wishing to open a demat account have to maintain a minimum balance
a) false
b) True
1082. RBI regulatory jurisdiction extends over corporate in the issuance of capital and
transfer of securities
a) True
b) False
1083. Securities in which types of demat account are held for commercial purpose?
a) Clearing member account & beneficiary account

b) Beneficiary account & Intermediary Account
c) Singly held & jointly held account
d) Intermediary account & clearing member account
1084. On settlement day, the RBI________ the SGL-2 account of the depository and
For funds, in sale case of government securities.
a) credits , debits
b) debits ,credits
1085. Mr. A has lent his securities to Mr. B under the stock lending scheme. However, on the
record date of announcement of a corporate action, the securities are still lying in the
intermediary account. In the above case, the Issuer/R&T Agent can return the securities to
Mr. A before the cut-off date to let Mr. A get the Corporate Benefit. State whether the above
argument is true or false?
a) True
b) False
1086. Arrange the event in chronological order:-

(1) Client fills RRF-GS
(2) The depository should receive from RBI the physical certificates
(3) The depositories remove the balance from the client’ s account
(4) Depository should confirm the acceptance of RRF to the DP, after obtaining
approval from RBI
a) 1,2,4,3
b) 1,4,2,3
c) 1,2,3,4
d) 1,3,2,4
1087. it is necessary for DPs to enter into a separate agreement with persons, seeking to
open a demat account for the purpose of holding and dealing in electronic warehousing
receipts because
a) Legal status of Warehouse Receipts is different form securities

c) Depository have provided a model agreement format for Warehouse receipts to the
DPs
1088. Which of the following is a “ Cash Corporate Actions” ?
a) Dividend
b) Bonus
c) Corporate Benefits
d) Rights
1089. State True or False: DPs are free to add any more terms and conditions to the
agreement to the extent they are not contradictory to the terms and conditions of the model
agreement.
a) True
b) False
1090. Which section of the request form for transferring of government securities form SGL
account to depository account filled by DP?
a) Agreement Section
b) Consent Section
d) Approval Section
1091. Transfer due to a transaction done on a _______________ is called ‘ off-market’

transaction.
a) multilateral basis
b) person to institution basis
c) institution to person basis
d) person to person basis
1092. Rematerialisation refers to the process of

1093. Organized Money Market is a part of ________ Market
a) Primary
b) Secondary
c) Capital
1094. If the borrower fails to discharge his obligation under the agreement of hypothecation,
what does the lender do?
a) Invoke the hypothecation

b) Complain to the Depository
c) Complain to the DP

1096. A DP while conducting its business with client’ s ___________.
a) acts as a principal to the client

c) Acts as an agent of the client
d) Acts as an agent of the Depository
1097. In Automatic corporate Action, the corporate action gets executed automatically as per
a predefined ratio
TRUE
FALSE
1098. Once the allotment of securities are done, the refund/allotment notice is received by
the DP through the depository system through which he had applied
a) FALSE
b) TRUE
1099. Beneficiary owners can only make a remat request

True
False
1100. On receipt pf pldge/hypothecation request details from the DP, the Pledgee submits his
acceptance or rejectior of the request
a) True
b) False
1101. In invoking of a pledge no confirmation is required by the pledgor’ s DP for

transferring the securities
a) True
b) False
1102. An account opened by a DP for the custody of and transaction in its own investment is
referred to as a house account
a) True
b) False
1103. If the debit has to be effected on a particular date in future, account holder may
mention such date in the space provided for ____________ in the form.
a) value date
b) transfer date
c) execution date
d) effective date
1104. Remat Request Form is to be signed by any of the owners in a Jointly held account
a) TRUE
b) FALSE
1105. The depositories also provide depository facility to the commodity exchange for
settlement of trades pertains to ____________for commodities.
a) Warehouse Receipts
c) Delivery Order
1106. Primary Market consists of Money Market and Debt Market
a) False
b) True
1107. The depository credits the security to the allottee accounts on demat on allocation on
which date?
a) Execution date
b) Record date
1108. If the Beneficiary owners account details are not given in the IPO application form,
can the securities be allotted in demat form?
a) No
b) Yes
1109. Only those securities whose________ has been activated by the depository, can be
dematerilised in the depository system
a) ISIN
b) IIP
c) INS
d) WAP
1110.A depository should conduct an annual inspection of its procedures and forward a copy
of the inspection report to
a) issuer
b) SEBI
c) Investors
d) RTA
registration certificate, the Depository.

b) Will not cease to be an intermediary but must stop carrying on the
activities of the intermediary from the date of such
expiry.
c) Will not cease to be an intermediary but will carry on the approved
activities of the intermediary from the date of such expiry.
1112. A nomination substitution is valid only if
a) In the prescribed format and signed by the clients

b) Details of the securities entered in the nomination forms match those in the records
of the Participant
c) Submitted to the Participant by the rightful Client(s) or under his/their due
authority
d) All of the above
1113. Which agencies are exempted forms the mandatory requirements of giving PAN
a) UN entities
b) Banks
c) NGOs
d) NBFCs
1114. For a minor accountholder who has attained majority, to continue to avail of his
a) Can continue with the same account and is not required to open a new account
b) Has to open with a new DP
c) Open a new demat account
1115. Which of the following records need to be maintained by a depository?
a) Details of the holdings of the securities of beneficial owners at the end each day
b) Records of approval, notice entry and cancellation of pledge or hypothecation.
d) All of the above
1116. Without filling out the demat application form and DP-client agreement, can the
a) No
b) Yes
1117. Failure of payment of annual fee may cause suspension of registration of DP by SEBI
a) False
b) True
1118. Details about date of birth and nomination is requird for
d) clearing member account
1119. In the depository system, both transferor and transferee have to give instructions to its
DPs for delivering (transferring out) and receiving of securities.
a) True
b) False
1120. In case of share splits in the pledged securities, the split shares are ____________ to
the pledgors account
a) Credited
b) Debited
c) Sold
1121. Who is the one main point of contact between the issuer of the securities and the demat
allottees?
a) Depositories
b) Exchange
1122. Which form the investor has to submit to DP for dematerialization of Government
Securities?
a) DSF-GS
b) DIS-GS
c) DRF-GS
d) SGL-GS
1123. State true or false: The beneficiary holder should transfer the securities atleast before
4.00 p.m on two working days before the maturity date so as to give sufficient time for the
IPA to process the papers and arrange to effect the payment on the due date of CP
a) True
b) False
1124. Establishment of ________led to reduced risk, increased transparency and improved

investore protection
a) life insurance companies

c) Depositories
d) Mutual fund
1125. The client must submit the delivery instruction slip it’ s DP before the DPs acceptance
deadline
a) False
b) True
1126. The depository issues circular relating to activation of commodities identification

number called
a) ISIN
b) ICIN
1127. Upon death of the Karta of a Hindu Undivided Family, who is appointed as the new
karta?
a) Eldest surviving female in the family

b) Anybody professionally educated
c) Eldest Surviving male member
d) Any male member of the HUF
1128. When can a Registrar and Transfer Agent reject a DRF?
a) Signature(s) of client on demat Request Form do not tally with specimen signatures of
Holder(s) recorded with R&T Agent
b) Demat request initiated under wrong ISIN
c) Securities certificates not available for demat
d) All of the above
1129. For investors in debt securities, payment of interest is made by whom?
a) Depository
c) Issuer/R&T Agents
d) Brokers
1130. Trading periods of each of the market segments is identified by a settlement number.
a) TRUE
b) FALSE
1131. In case of rejection by the borrower in invocation of hypotication, the securities will
continue to remain as Pledge balance in the borrower’ s account
a) True
b) False
co-operate at all times to redress the grievances of clients and DPs in respect of its operation
in relation to the depository
a) TRUE
b) FALSE
1133. A foreign entity as sponsor can hold more than 20% the equity capital of the
depository
a) False
b) True
1134. State True or False : The investor has the choice of holding Ware house receipts in a
separate ac-count or all its holing in one account
a) false
b) True
1135. Transferee of a security can give Standing Instruction to its DP for __________.
a) Receiving of Securities
b) Delivering of Securities
c) Transferring of Securities
d) Both (b) and (c)
1136. State True or False: - RBI has provided a model agreement format to the DPs
a) True
b) False
1137. ___________ of DP apply to SEBI for registration
a) Sponsors
b) Any of the above
c) Trustee
d) Board of Trustee
a) credits , debits
b) debits ,credits
1139. As per SEBI (Depository and participant) Regulation, 1996, all Securities need not be
available on the both the depositories
a) True
b) False
1140. By freezing an account for debits only, is it possible for the client to receive securities
in his account
a) Yes
b) No
1141. What is SOT?
b) Statement of trade
c) Statement of transaction
1142. Section 12 of the Depositories Act, 1996 permits creation of pledge and hypothecation
against securities which are held in demat mode.
a) True
b) False
1143. The orders of SEBI under the securities laws are appellable before ____________
a) High Court
c) Securities Appellate Tribunal
d) Supreme Court
1144. A new company making an offer of Rs. 10.5 crores is required to make the offer only
in dematerialized form
a) FALSE
b) TRUE
1145. Direct delivery of securities to the clients can be effected by the Clearing Corporation,
a) False
b) True
1146. Arrange the following events in a chorological order:

(1) Verification of client’ s signature on the DRF-GS with the specimen signature
(2) The DP will dispatch the DRF-GS along with the LOA within seven working days of
accepting the same from
client
(3) DRN is generated by the system
(4) The depository fills the relevant portion of the Form iii and submits the same to RBI
a) 1,2,4,3
b) 1,4,3,2
c) 1,3,2,4
d) 1,2,3,4
1147. Ms XYZ changes her signature due to marriage and informs the DP with which she
holds her account vide an email with the scanned specimen of the new signature of the DP
a) No
b) Yes
1148. A pledgor can substitute the securities offered in a pledge transaction, if the pledge
agrees to it
a) False
b) True
1149. A DP is liable to its clients for all the acts and deeds performed by it
a) True
b) False
1150. When is no confirmation/rejection required for closing a pledge transaction?
a) Unilateral pledge closure request

b) Pledge closure request
c) Either of the above does not require any confirmation/rejection
1151. An R&T Agent is required to confirm / reject a demat request within _________days
from the date of receipt of physical shares
a) 10
b) 12
c) 7
d) 15
1152. Before granting certificate of commencement to depository, SEBI approves bye-laws

of the
a) Depository and Exchange

b) Depository, Exchange and Participant
c) Exchanges Only
d) Depository only
1153. DP has to get internal audit done of the depository operations on a _________ basis by
a practicing character accountant or a company secretary.
a) quarterly basis
b) weekly basis
c) half yearly basis
d) monthly basis
1154. Confirmation or rejection of the pledge request is communicated to the ____________
a) Pledgor’ s Depository Participant

b) Pledgee’ s Depository participant
c) Depository
1155. DP system generates an ‘ instruction number’ for each instruction entered.
a) TRUE
b) FALSE
1156. If the securities are held in the depository system, documents have to be submitted to
the ________________for effecting transmission
a) Company
b) Depository
c) SEBI
1157. The procedure for dematerialization of CD is __________ that carried out for equity
shares
a) Differs from
b) Same as
_________basis for pay-in of securities.
a) T+2
b) T+0
c) T+1
d) T+3
1159. During a corporate Action, which of the following information is Not shared by the
Depository with the Depository Participant?
a) Record Date
b) Type of Corporate Action
c) Procedure to be followed by DPs and client
d) Beneficial Owner’ s Bank details

1161. When a rematerialisation request is sent, the securities in the client account is also
available for delivery/transfer immediately
a) False
b) True
1162. A depository company must have a minimum net worth of
a) Rs.50 crore
b) Rs.100 crore
c) Rs 500 crore
d) Rs. 10 crore
1163. The DP should forward the RRF-GS to the depository within__________ of accepting
such request form the client
a) Seven Days
b) Two days
c) Three days
d) Six Days
1164. A transfer is the legal change of ownership of a security in the records of

____________.
a) the Issuer
b) the RTA
c) the Exchange
d) the Depository
1165. XYZ company is coming up with public offer of Rs, 9.5 crores. The company issues
securities in physical form to 25% of its subscribers. Can the XYZ company issue securities
in physical form and can the subscribers sell the physical certificates in the Stock Market
1166. A Single agreement is executed for__________ pledge transaction.
a) Multiple
b) 1
c) 2
1167.________regulates underwriting, the use of premium and discount on issues, rights

and bonus issues, payment of interest and dividends
a) SEBI Act, 1992
c) SCRA, 1956
d) Depository Act, 1996
1168. Depositories in India facilitate which of the following Corporate benefits?
a) Non-cash Corporate Actions

b) Cash Corporate Actions
c) Both (a) and (b)
d) Neither (a) nor (b)
1169. A Beneficial Owner of a Corporate Action is an entity that owns the security
on_______________.
a) Record Date
b) Cut-off Date
d) All of the above
1170. The aggregate value of the securities of the beneficial owners, held in dematerialized
form through a stockbroker DP , cannot be more then____________ times the net worth of
the stockbroker, if net worth of stock broker is less then Rs. 10 crore .
a) 50
b) 10
c) 20
d) 100

c) destroyed
except for
a) Standing instruction
b) Email address
d) Pan number
1173. If the account holder is dead , the securities lying to the credit of the account holder
may be ______________ to the nominee’ s account after the DP verifies the identity of the
nominee
a) Transmitted
b) Transposed
c) Bought
d) Sold
1174. State True or False : A client has to open separate account to deal with G-Sec
a) True
b) False
1175. Which of the following CAN NIT register as a Depository Participant
a) Any Public Finacial Institution

b) Any Clearing Corporation
c) Any Foreign Bank
d) Any Scheduled Bank
1176. Depository intimates all dematerialization request to the respective Issuer or its R&T
Agent
a) once every two days

b) twice every day
d) Every day
1177. During an off-market transaction, the account holder is required to specify the
execution date on the delivery instruction
a) True
b) False
1178. State True or False : Depository act as a RTA agent for G-secs
a) True
b) False
1179. Who can make a rematerialisation request?

c) Depository
1180. Payment of instruments are deposited with the Collecting banks directaly
a) True
b) False
1181. The code through with which each debt security is identified in a depository is called
a) IPIN
b) ICIN
c) ISIN
d) ITIN
a) Debentures
c) Scrips
d) All of the above
1183. In case of death of one of the Clients in a joint account If the surviving client wish to
open a new account with the same Participant, then the Participant will open the new account
in the name of the surviving member
a) false
b) True
1184. The opening of clearing member account constitutes a “ ________________” to

a) standing instruction
b) Credit instruction
c) Phasing out instruction
d) Passing securities instruction
1185. An investor had applied through DP 1 for an IPO, who in turn is a DP with NSDL. The
IPO allotment made to the investor is received by the DP1 from CDSL. Is it possible
a) Yes
b) No
1186. In case of transposition-cum-dematerialization, the Client can get securities

a) TRUE
b) FALSE
1187. To facilitate transfer of securities from one account to another To facilitate transfer of
securities form one account to another at the instruction of the account holder is the job of
___________
a) sub-brokers
b) depositories
c) clearing houses
d) exchanges
1188. If adequate balances do not exists in the account, then delivery instruction
will_________
a) wait for adequate balances till the end of the execution day
b) be summarily rejected
c) wait till grace period of 30 minutes is over for adequate balances
1189. During distribution of bonus shares, the shareholders can get the securities allotted to
them in which of the following forms?
a) Electronic form only

b) Physical form only
c) Either electronic or physical form
1190. All accounts opened by illiterate person(s) must be
a) introduced by an existing account holders

b) must be attested by applicant’ s bank
c) Any one of the above
1191. The applicant for registering as DP should not have been expelled, barred or suspended
by SEBI, self-regulatory organization or any recognized stock exchange
a) FALSE
b) TRUE
c) FALSE only for NBFCs
d) TRUE only for Stock Brokers
1192. The clearing system attached to _____________performs the function of ascertaining

the pay-in or pay-out of brokers who have traded on the stock exchange
a) Mutual Funds
b) Clearing House of a Mutual Fund
c) All of the above
d) Stock Exchange
1193. On initiating the pledge/ hypothecation by the pledgor, who confirms the creation
of the pledge
a) Depository
c) Pledgee
d) Pledgor
1194. The DP receives the pledge closure request from
a) Pledgor
b) Depository
c) Pledgee
1195. ISIN is the acronym for
a) International securities Identification Number

b) Identifying Stock Internationally
c) International Securities Indian Number
d) Indian Stock Identification number
1196. An intermediary aacount can be opened by a SEBI registered intermediary for the
purpose of stock lending and borrowing
a) True
b) False
1197. _______________ the depository reconciles the records of the dematerialized

securities with the setatement provided by the RBI on a daily basis
a) In case of securitised debt

b) In case of issues of CP
c) In case where a state or the central government is the issuer,
d) In case of debt issues of PSU
1198. _____________has made the securities of all public limited companies freely
transferable

b) SEBI Act, 1992
c) SCRA, 1956
1199. At the time of delivery, client initiates a remat. At the time of delivery, client initiates a
remat request through the DP using the _________.
a) RRF-WRF
b) DRF-WR
c) WRDF
d) PDRF
1200. SCRA, 1956 aims at ensuring direct and indirect control of virtually all aspects of
securities trading.
a) TRUE
b) FALSE
1201. SROs do not have to comply with other regulation as long as they are complying with
their own regulation
a) True
b) False
a) False
b) True
1203. If the borrower fails to discharge his obligation under the agreement of hypothecation,
what does the lender do?
a) Invoke the hypothecation

b) Complain to the Depository
c) Complain to the DP
1204. Large deals between institutions, trades among private parties, transfer of securities
between a client and a sub-broker, large trades in debt instruments are normally settled
through off-market route.
a) false
b) True
1205. The facility of nomination can be availed of by

b) A non- resident Indian investor
c) Both 1 and 2
1206. State True or False: In case of securities and electronic warehouse receipts being held
in the same account, CDSL has the responsibility of returning the securities ti the originating
account?
a) False
b) True
1207. What is SOT?
a) True
b) False
1209. Can a account be frozen for both credits and debits
a) No
b) Yes
1210. State True Or False:- Debt instrument can be issued only by central or state
government
a) True
b) False
give

b) DP-ID
c) Depository Name
d) All of the above
1212. The legal status of warehouse receipts is________ that of securities
a) Different from
b) Similar to
c) Same as
1213. SCRA, 1956 has made the securities of all public limited companies freely transferable
a) TRUE
b) FALSE
1214. In case of transposition-cum-dematerialization, the client can get securities

dematerialized in the same account if the names appearing on the certificates match with the
a) True
b) False
1215. Depository Participant should make an application for renewal________ month/s

before expiry date of the validity of the certificate of registration
a) 3
b) 1
c) 6
d) 2
1216. Section 12 of the Depositories Act, 1996 Section 12 of the Depositories Act, 1996,
permits creation of pledge and hypothecation against securities which are held in demat
mode
a) false
b) true
1217. If the buying client is a sub-broker, such sub-broker will transfer securities to the final
client using the off-market route.
a) True
b) False
a) credits , debits
b) debits ,credits
1219. After Depository receives an application for registering as a DP, it evaluates and
forwards the application to SEBI within_________
a) 15 days
b) 30 days
c) 45 days
d) 20 days
1220. DP system generates an _________for each instruction each instruction entered.
b) ‘ instruction number’
c) ‘ transaction number’
d) ‘ entry number,
1221. An active secondary market restricts the growth of the primary market and capital
formation
a) True
b) False
1222. Execution date is crucial while executing any transfer instruction for debt instrument
because
a) Debt instruments bear interest

b) Debt instruments have limited life
c) On redemption, the instrument is de-activated in the depository system
d) Both 1 and 2
1223. When is no confirmation/rejection required for closing a pledge transaction?
a) Unilateral pledge closure request

b) Pledge closure request
c) Either of the above does not require any confirmation/rejection
1224. When can a Registrar and Transfer Agent reject a DRF?
a) Signature(s) of client on demat Request Form do not tally with specimen signatures of
Holder(s) recorded with R&T Agent
b) Demat request initiated under wrong ISIN
c) Securities certificates not available for demat
d) All of the above
1225. On receiving information on corporate Action from the Depository, the DP verifies
which of the following information before the closure of the book/record date?
a) Change in Tax Status

d) All of the above
1226. Any changes in the client details of the client demat account needs to be submitted to
the
b) Bank
c) Depository
d) SEBI
1227. A DP while conducting its business with client’ s ___________.
a) acts as a principal to the client

c) Acts as an agent of the client
d) Acts as an agent of the Depository
1228. Standing instruction for transfer of securities is given as a part of the account opening
form
a) TRUE
b) FALSE
1229. When can an request to dematerialize government securities be rejected?
a) When the authorized signatories are not registerd with RBI

b) When there is mismatch between the details provided with DRF-GS and electronic
message received by depository
d) All of the above
1230. A shareholder holds securities of company XYZ in physical form. A rights issue is
dematerialized form. If the shareholder does not exercise the option, in which form will the
new securities be allocated to him/her ?
a) Physical form
1231. Exchange money for the off-market transaction are handled outside the depository
system.
a) false
b) True
payment instrument to the Exchange
a) FALSE
b) TRUE
1233. Which of the following can register as a Depository Participant?
a) All of the above

b) R&T Agent
c) Stockbroker
d) Non-banking Finance Company

c) Buy the shares
d) Sell the shares
1235. Can custodians act as clearing members?
a) false
b) true
1236. The persons on whom the shares devolve does not have to prove his entitlement by
submitting appropriate documents and seek transmission. The shares come to him as a matter
of fact.
a) True
b) False
1237. The accounts of all the successful allottees is credited on the ____________ of the
allotment date
a) Beginning of the day

b) The day on which the security gets listed on the Exchange
c) End of Day
1238. House Accounts are opened by
a) HUFs
b) Banks
c) Foreign nationals
d) Depository participant for self investment
1239. Which agencies are exempted from the mandatory requirement of giving PAN number
during demat account opening?
a) Banks
b) NGOs
c) UN entities
d) NBFCs
1240. During an off-market transaction, the account holder is required to specify the
execution date on the delivery instruction
a) True
b) False
1241. According to which regulation, securities are eligible to be held in demat form?
a) SEBI ( Depositories and Participants) Regulations, 1996

b) SEBI Act 1992
c) SCRA 1956
d) Depositories Act 1996
1242. Under PMLA, all intermediaries a DP has to maintain record of all cash transaction
above Rs. 10 lacs
a) FALSE
b) TRUE
1243. State True or False – In case of different Loan Codes, the Clients submit only one
DRF-GS and Form of Transfer
a) False
b) True
1244. Arrange the events in chronological order:-

1. Submission of DRF]
2. Acknowledgement is given to client by DP
3. CD is dematerialized
4. Authorized signatory of the client with ‘ CD’ written on the reverse
a) 1,2,3,4
b) 1,2,4,3
c) 4,1,2,3
d) 1,3,2,4
1245. The clearing corporation or a clearing house of stock exchange has to undertake to co-
operate at all times to redress the grievances of clients and DPs in respect of its operation in
relation to the depository
a) false
b) True
1246. A beneficiary account can be debited only if the beneficial owner has given
_________.
a) Delivery Instruction
b) Standing Instruction
c) Receipt Instruction
d) Both (a) and (b)
1247. The DP should forward the RRF-GS to the depository within_____________ of

From the client
a) Three Days
b) Six Days
c) Seven Days
d) Two days

depository is termed as an inter-depository transfer
a) TRUE
b) FALSE
1249. The depositories have provided a model agreement format to the DPs for
___________of commodities
a) Vault Receipt
c) Warehouse Receipts
d) Delivery Order
1250. A pledgor cannot substitute the securities offered in a pledge transaction
a) True
b) False
1251. Which is the correct order for the process flow of IPO through the depository:
1. Application for Allotment,
2. Credits of securities,
3. Detail of allotment to BO,
4. Verification report,
5. Issuer sends intimation of allotment
6. BO Id for verification
a) 1-2-3-4-5-6
b) 1-6-4-3-2-5
c) 1-6-4-5-3-2
d) 1-6-4-2-3-5
1252. Beneficiary owners can only make a remat request
a) FALSE
b) TRUE
1253. How many types of demat accounts can be opened with a depository?
a) 2
b) 4
c) 3
d) 1
1254. Face value of Commercial Paper in a depository system is taken as
a) 50000
b) 5000000
c) 500000
d) 5000
1255. When can a pledgors pledge closure request be rejected by the DP ?
a) Agreement number differs from that on the agreement

b) Pledged quantity not accepted
c) Both 1 & 2
1256. Who issues the physical securities to the clients on the receipts of remat request?
c) Depository
d) Registrar and Transfer Agent
1257. After intimation and authorization from Issuer / R &T agent, _________ makes the
credit entries in the account of the client
a) Clearing House
b) Custodian
d) Depository
1258. Which of the following corporate benefits are accrued to the pledgor (borrower)?
a) Dividend
b) Bonus
c) Rights
d) All of the above
1259. The unique identity codes assigned to the securities issued by an issuer by an issuer are
known as
a) Integrated Securities identification Number

b) Indexed Securities Identification Number
c) International Securities Identification Number
d) Indian Securities Identification Number
1260. ___________ deals with issue, allotment and transfer of securities and various aspects
relating to company management
a) Depositories Act, 1996

b) SCRA, 1956
c) SEBI Act, 1992
1261. Depositories offer services through Depository Participants who are
a) Principals
b) Agents
c) Investors
1262. The CC/CH gives pay-out and securities are transferred to the buying broker’ s
account.
a) False
b) True
1263. Can an investor apply for an IPO even of he does not have a demat account?
a) No
b) Yes , if he opens a demat account while submitting his IPO application
form
1264. Issuer shall be required to enter into agreement with all the _____________ before
coming out with a public offer
a) SEBI
c) Depositories
d) Investors
1265. Corporate actions are events which affect the rights, obligations and/or interests of the
beneficial as well as non-beneficial owners of the securities held in a depository. State
whether True or False
a) True
b) False
1266. Which is the following securities can be dematerialized?
a) Debentures
c) Scrips
d) All of the above
1267. DP is an intermediary between
a) SEBI and Investores

b) Depository and Bank
c) Depository and Investor
d) Depository and Exchanges
1268. Public limited companies are to make the public offer only in dematerialized form in
case the offer is more than ___________corer
a) Rs. 25 corer
b) Rs. 12 corer
c) Rs . 50 corer
d) Rs. 10 corer
a) Details of the holdings of the securities of beneficial owners at the end of each day
b) Records of approval, notice, entry and cancellation of pledge or hypothecation.
d) All of the above
1270. A Depository must have minimum networth of
a) Rs 100 crore
b) Rs 500 crore
c) Rs 1 crore
d) Rs 10 crore
1271. When is a Pledge transaction completed?

1272. When securities are pledge and towards those securities bonus shares are given by the
company, to whose account will it accrue to?
a) Pledgor
b) Pledgee
1273. Pay-out’ means________

– account for the quantity of securities purchased by them on behalf of their clients’
1274. The government has exempted __________ on transfer of securities in dematerialized

from at present.
a) STT
b) Sales tax
c) Registration Duty
d) Stamp Duty
1275. In case of death of one of the clients in a joint account , the surviving joint holders will
have to open a new account with the DP in their name.
a) True
b) False
1276. The clearing Corporation / Clearing House gives pay – out and then securities are
transferred to the ____________

b) investors account
c) buying brokers account
d) depository
1277. Arrange the process in a chronological order

1. Verification of clients signature on the DRF-GS with the specimen signature
2. The depository’ s system shall credit the client’ s account automatically
3. DRN will be generated by the system
4. The request is then released to Depository software system by the DP.
a) 1,2,4,3
b) 1,3,4,2
c) 1,3,2,4
d) 1,4,3,2
1278. In the event of the death of a joint holder, the balance lying in the account can be
transmitted, on request of the surviving holders , to a new accounts to be opened by the
surviving holders
a) FALSE
b) TRUE
1279. Clearing member and broker need to open a _________ account to deal with their own
holding.
c) Broker account
1280. Every depository may have its own Bye-laws for termination or suspension of its DPs

b) FALSE
c) TRUE
1281. Arrange the events in chronological order:

1) client fills PDRF
2) DP shall issue acknowledgment for receipt
3) Client will submit this acknowledgment and attested copy of PDRF
4) At the time of delivery, client initiates remat
a) 4,1,2,3
b) 1,3,2,4
c) 4,3,2,1
d) 1,2,3,4
1282. ICIN for same commodity __________ exchange to exchange
a) differs from
b) remains same
1283. When does a pledgor initiate the closure of the pledge/hypothecation through its DP
a) After the pledgor has repaid the loan from the pledgee
c) Both 1 and 2
1284. An investor has the option of opening an account with several DPs.
a) True
b) False
1285 ______________ deals with regulations pertaining to dematerialization of securities
c) SEBI Act , 1992
d) SCRA, 1956
a) Individual accounts
c) Corporate account
d) Clearing member account
1287. Before granting certificate of commencement to a depository , SEBI examines the

a) All of the Above

b) Unauthorized dissemination of data
c) Unauthorized access to records and data
d) Alteration of records and data
1288. Which form needs to be filled by the client requesting for demat
a) Dematerialization request form

b) Dematerialization demand form
d) Dematerialization form
1289. Rematrialisation refers to the process of
a) issuing physical securities in place of the securities held electronically in book-entry

form with a depository
c) Issuing promissory notes to the clients
d) Issuing bank notes by the depository to the DPs
1290. A depository should conduct an annual inspection of its procedures and forward a copy
of the inspection report to
a) SEBI
b) RTA
c) Issuer
d) Investors
1291. Multipal pledge instruction can be executed on the basis of a single agreement
a) True
b) False
1292. The applicant for registering DP should furnish details of its Board of Directors/
authorized officials, who would be responsible for the conduct of the business of the
applicant as a participant
a) True
b) False
1293. State True or False: A client has to open separate account to deal with G-sec
a) True
b) False
1294. In Case there is an objection by any of the surviving members of the HUF, the
transmission of securities will be effected only on the basis of
a) Decree by a competent Court
b) Deed of Partition
c) Either 1 or 2
d) Both 1 and 2
1295. The process of a broker/ trading member submitting securities towards the securities
sold by him on behalf of his client, to Clearing Corporation/ Clearing House of a stock
exchange is called__________
a) settlement
b) ‘ pay-in’
c) Patawat
d) Pay-out
1296. Establishment of __________ led to reduced risk, increased transparency and

improved investor protection

b) Depositories
c) mutual funds
d) Life insurance companies
1297. “ Non-cash corporate actions” involves which of the following?

1298. ________________is required to give Inter-settlement Instruction to the Participants

for securities lying within a same CM account but in different settlement a pocket.
a) Depository
b) Clearing House
c) Clearing Member
d) Exchange
1299. It is mandatory for the company/ issuer to have connectivity with the depository
a) false
b) True
1300. The payment towards the IPO application are directaly send to the company, which
then forward to the banks
a) True
b) False

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NISM-DP

1) Arrange the process in a chronological order

2) If application for renewal is not received by SEBI 3 months of before expiry of

a) None of the above

5) Which of the following is NOT a part of the Primary Market ?

8) An intermediary account can be opened by __________ for the purpose of stock

a) any intermediary in securities market

10) When can an request to dematerialiase government securities be rejected ?

a) When the authorized signatories are not registered with RBI

12) __________provides for standard of disclosure in public issues of capital

a) SEBI Act, 1992

a) A copy of the death certificate, duly notarized

16) A depository company must have a minimum net worth of

a) After the pledgor has repaid the loan to the pledgee

a) not a valid proof of identity for opening account with a DP

a) before the exchange’ s acceptance deadline

33) The debit is effected on the _______.

34) In Which type of market are the new securities sold ?

38) The DP should forward the RRF-GS to the depository within_____________ of

40) A Depository must have minimum networth of

41) SEBI can issue guidelines pertaining to public issues

44) Can a Demat account be frozen?

45) Issure has to warrant that____________.

a) Securities dematerialized are validly issued

46) What is required to be filled up in the IPO application form?

a) Transfer of securities between a client and a sub-broker

49) The CC/CH gives pay-out and securities are transferd___________.

a) from the selling broker’ s account

50) In case of transposition-cum-dematerialisation, the names appearing on the certificates

51) Face value of Commercial Paper in a depository system is taken as

52) DP must provide transaction statements to clients

53)Can DPs collect charges/tax/rent on behalf of commoditiy exchange / warehouse?

a) Yes, after ensuring adequate legal basis

56) When securities are dematerialized, the physical securities are

a) either stored or destroyed , as desired by the security holder

58) Before granting certificate of commencement to a depository , SEBI examines the

a) All of the Above

61) “ Non-cash corporate action” involves which of the following?

a) all benefits other than monetary benefits

a) Legal status of Warehouse Receipts is different form securities

65) Which of the follwing statement is False?

a) Each debt security has a unique identification called IPIN

67) Confirmation or rejection of pledge request is communicated to the _________

a) Pledgor’ s Depository participant

68) Exchange of money for the off-market transaction____________

a) can be handled in the same manner like a market transaction

a) Alongwith other securities

74) Nominee details can be changed later on after submission of details

a) Letter of Allocation (LOA), Debt Certificate

78) When can a Registrar and Transfer Agents reject a DRF

a) Certificate(s) not received by R&T Agent in time form DP

80) SEBI gives DP a certificate of

a) None of the above

84) As per SEBI ( Depositories and Participants) Regulations, 1996,____________.

a) all DPs must have membership on both depositories

86) Beneficiary owners can only make a remat request

87)Which of the following records need to be maintained by a Depository?

a) Savings account Number

a) Allot securities in physical form

a) TRUE only for Stock Brokers

93) Can a account be frozen for both credits and debits

94) Depository Participant must have a networth of Rs 10 crore

a) No, a stock broker can maintain minimum Networth of Rs 5 crore