A critical element of the financial sector reforms is the development of a pool of human resources having right skills and expertise in each segment of the industry to provide quality intermediation to market participants.
In order to dispense quality intermediation, personnel working in the industry need to (i) follow a certain code of conduct usually achieved through regulations and (ii) possess requisite skills and knowledge acquired through a system of testing and certification.
As intermediation involves human expertise more than technological support, it is important that a person providing intermediation in the industry has a proper understanding of the business and the skills to help it remain competitive. In order to ensure this, it has become an accepted international practice for personnel working for market intermediaries to be adequately certified.
Such testing and certification has assumed significance in India as there is no formal education or training on financial markets, especially in the area of operations, while at the same time the market has undergone a complete transformation in the recent years.
A variety of new functions that need different levels and nature of specialisation and orientation have emerged. The industry has a large work force with varying levels of professional qualifications, skills and experience that do not necessarily match their work responsibilities.
Taking into account international experience and the needs of the Indian financial markets, with a view for protecting interests of investors in financial markets and more importantly, for minimising risks of losses arising out of deficient understanding of markets and instruments, National Stock Exchange introduced in 1998 a facility for testing and certification by launching NSE's Certification in Financial Markets (NCFM).
Test at NSE Centres
| Test Centre | Test Centre | Contact Numbers |
| 1 | National Stock Exchange of India Ltd. "Exchange Plaza", Bandra Kurla Complex, Bandra (East), Mumbai-400051 | Tel : 022 - 26598171-72 022 - 26598216 / 8252 022 - 26598100 - 114 Fax : 022 – 26598393 Email : ncfm@nse.co.in |
| 2 | National Stock Exchange of India Ltd. 4th Floor, Jeevan Vihar Building Parliament Street New Delhi-110001 | Tel : 011-23344313-27 Fax : 011-23366658 Email : ncfm_delhi@nse.co.in |
| 3 | National Stock Exchange of India Ltd. 1st Floor, Park View Apartments 99, Rash Behari Avenue Kolkata – 700 029 | Tel : (033) 24631802-1805, 24631809-1812 (Board Nos) Fax. (033) 24631791, 24631806 Email : ncfm_kolkata@nse.co.in |
| 4 | National Stock Exchange of India Ltd. 7th Floor, Arihant Nitco Park 90, Dr.Radhakrishnan Salai Mylapore Chennai - 600 004 | Tel : 044-28475100 Fax : 044-28473633 Email : ncfm_chennai@nse.co.in |
| 5 | National Stock Exchange of India Ltd. H No.3-6-322 Mahavir House, IInd Floor Chamber no.203 & 204 Basheerbagh Hyderabad : 500029 | Tel : 040-23227084/5 Fax : 040-23227086 Email : ncfm_hyderabad@nse.co.in |
| 6 | National Stock Exchange of India Ltd. 406 Sakar II Near Ellis Bridge Ahmedabad – 380 006 | Tel : 079-26580212 - 13 Fax : 079-26576123 Email : ncfm_ahmedabad@nse.co.in |
| 7 | Any other place (depending on demand) |
Note :
The candidate should reach the test centre on the test date 15 minutes
prior to the scheduled time.
Test Details
| Sr. No. | Name of Module | Total Module Fees (Rs.) | Test Duration (in minutes) | No. of Questions | Maximum Marks | Pass Marks (%) | Certificate Validity (in years) |
| 1 | Financial Markets: A Beginners’ Module | 500 | 60 | 50 | 100 | 50 | 5 |
| 2 | Derivatives Market (Dealers) Module | 1000 | 120 | 60 | 100 | 60 | 3 |
| 3 | Capital Market (Dealers) Module | 1000 | 105 | 60 | 100 | 50 | 5 |
| 4 | Securities Market (Basic) Module | 1000 | 105 | 60 | 100 | 60 | 5 |
| 5 | FIMMDA-NSE Debt Market (Basic) Module | 1000 | 120 | 60 | 100 | 60 | 5 |
| 6 | Surveillance in Stock Exchanges Module | 1000 | 120 | 50 | 100 | 60 | 5 |
| 7 | NSDL–Depository Operations Module | 1000 | 75 | 60 | 100 | 60 * | 5 |
| 8 | AMFI-Mutual Fund (Basic) Module | 1000 | 90 | 62 | 100 | 50 | No limit |
| 9 | AMFI-Mutual Fund (Advisors) Module | 1000 | 120 | 72 | 100 | 50 | 5 |
| 10 | Commodities Market Module | 1200 | 120 | 60 | 100 | 50 | 3 |
| 11 | Corporate Governance Module | 1000 | 90 | 100 | 100 | 60 | 5 |
| 12 | Compliance Officers (Brokers) Module | 1000 | 120 | 60 | 100 | 60 | 5 |
| 13 | Compliance Officers (Corporates) Module | 1000 | 120 | 60 | 100 | 60 | 5 |
| 14 | Information Security Auditors Module (Part-1) | 1500 | 120 | 90 | 100 | 60 | 2 |
| Information Security Auditors Module (Part-2) | 1500 | 120 | 90 | 100 | 60 |
For Derivatives Market (Dealers) Module, Capital Market (Dealers) Module, Securities Market (Basic) Module, FIMMDA-NSE Debt Market (Basic) Module, Surveillance in Stock Exchanges Module, Application Fee - Rs. 250, Examination Fee - Rs. 200, Study Material Fee - Rs. 550; for Commodities Market Module, Application Fee - Rs. 250, Examination Fee - Rs. 400, Study Material Fee - Rs. 550; for Financial Markets : A Beginners' Module, Application Fee - Rs. 250, Examination Fee - Rs. 100, Study Material Fee - Rs. 150; For NSDL - Depository Operations Module, AMFI - Mutual Fund (Basic) Module, AMFI - Mutual Fund (Advisors) Module, Corporate Governance Module, Compliance Officers (Brokers) Module, Compliance Officers (Corporates) Module, the total module fees are Rs.1000/ - per test.
Test at other locations
| Currently scheduled tests | |
| Forthcoming tests | |
| List of Candidates |
NSE conducts tests in NCFM modules on weekdays (Monday to Friday except on Exchange specified holidays) at all six NSE offices.
Such tests are also offered from other locations in India, if there is adequate demand for the same.
Candidates interested in appearing for any of the NCFM modules may submit their test requests by filling up the registration form and submitting the required test fees at the specified ‘Nearest NSE branch office’. The candidate has to clearly specify the test center ( on the registration form) where he would like to give NCFM test.
Test Centers
At present NSE may conduct tests at the below mentioned locations on receipt of adequate requests:
|
Top
Procedures
The procedure for such test would be as follows:
- On receipt of adequate requests for any of the above test center, the test date, test time and the venue as specified by NSE would be informed to the candidate. Kindly note for these locations the Exchange would specify the test date, test time and test venue..
- Candidates would be confirmed as per first come first basis.
- Confirmation would be as per the mailing address and the contact numbers as given by the candidates in their registration forms. You are therefore requested to inform us the correct details in the registration form.
- Once the test details are confirmed to the candidate, the test cannot be rescheduled on any grounds. You may seek fresh enrollment.
- Fees once paid shall not be refunded.
- The candidate needs to be present at the test venue 15 minutes prior to the test time.
- On arrival at the designated test center on the test date, the NSE test administrator would verify the identity of the candidate and then grant him access to the test terminal.
- In case the candidate is not present at the venue at the given test time for any reason whatsoever, the test paper of the candidate would be marked absent. In such case the candidate would need to seek fresh enrollment.
- Model tests are available on our website. In order to familiarize yourself about the pattern of the question paper, you may attempt any of the model test papers. The questions in these model test papers may not necessarily appear in your actual test paper.
- Marks are provided to the candidate on submission of the test paper. A printout of the scorecard is submitted to the candidate.
- A certificate is mailed to the successful candidates within 15 days of the test at the candidate’s mailing address as given in his registration form.
- The candidate may bring a scientific calculator and a pen to the test venue. Only rough sheets would be provided to the candidates for carrying out their workings during the test. This rough sheet needs to be returned to the test administrator before leaving the test venue.
- A backup sheet would be provided to the candidate to list out the answers selected by him. The candidate is required to return the backup sheet to the test administrator before leaving the test venue.
- A candidate found using any unfair means including use of mobile phone or in possession of any incriminating material during the test will be expelled from the test venue and his test would be cancelled. The decision of the test administrator in this regard would be final.
In order to familiarise yourself about the pattern of question paper, you may attempt model test papers of:
- Financial Markets: A Beginners' Module
- Derivatives Market (Dealers) Module
- Capital Market (Dealers) Module
- Securities Market (Basic) Module
- FIMMDA-NSE Debt Market (Basic) Module
- Surveillance in Stock Exchanges Module
- NSDL-Depository Operations Module
- Commodities Market Module
- Corporate Governance Module
- Compliance Officers (Brokers) Module
- Compliance Officers (Corporates) Module
- Information Security Auditors Module (Part-1)
Information Security Auditors Module (Part-2)
and get it evaluated instantly on submission of test paper....Experience the feel of Real Test!
Please go through the Instructions carefully before taking the test.
Instructions for appearing the Model Test:
- The question paper consists of objective type questions only.
- For every question, you will find four / five alternative answers. To select your answer, click on the radio button next to the alternative.
- In case you want to change the answer click on any other desired alternative.
- If you do not wish to answer a question, make sure that the alternative ‘I am not attempting this Question’ is selected.
- Please remember wrong answers carry negative marks.
- After completing the test, press the ‘done’ button. A list of questions attempted as well as not attempted will appear along with the two options, viz, ‘Go back to question paper’ or ‘Submit answer paper’.
- In case you want to go back to your question paper, to recheck your answers, click on the ‘Go back to question paper button’.
- Click on the ‘Submit question paper’ button to submit the paper and result will be displayed on the screen
| NCFM MODEL TEST PAPER | |||
|---|---|---|---|
| Financial Markets: A Beginners' Module | |||
| Maximum Marks: 100 | Pass Marks: | 50 | |
| Test Duration: 60 minutes | Time Left: | 59:26 minutes | |
| Q1 | Capital Employed is equal to _________. [ 2 Marks ] (a) Fixed Assets + Current Assets +Current Liabilities (b) Fixed Assets + Current Assets - Current Liabilities (c) Fixed Assets - Current Assets + Current Liabilities (d) Fixed Assets - Current Assets - Current Liabilities (e) I am not attempting the question | |
| Q2 | If a client buys shares worth Rs. 2,55,000 and sells shares worth Rs. 3,45,000 through a broker, then the maximum brokerage payable to the broker is _____________. [ 2 Marks ] (a) Rs. 20000 (b) Rs. 15000 (c) Rs. 25000 (d) Rs. 10000 (e) I am not attempting the question | |
| Q3 | Return on Total Asset is equal to __________. [ 2 Marks ] (a) Gross Income/Average Total Asset (b) Average total asset/Gross Income (c) Return on Equity/Average total Asset (d) Net income /Average Total Asset (e) I am not attempting the question | |
| Q4 | Which of the following is a benefit of participation in a depository? [ 1 Mark ] (a) No stamp duty on transfer of securities. (b) Elimination of risks associated with physical certificates such as bad delivery, fake securities,etc. (c) Nomination facility. (d) All of the above (e) I am not attempting the question | |
| Q5 | The benchmark stock market index of India is ________. [ 1 Mark ] (a) Dow Jones (b) Nikkei 225 (c) S&P 500 (d) the Nifty (e) I am not attempting the question | |
| Q6 | Which of the following is not true about offer of shares through normal public issue? [ 2 Marks ] (a) In normal Public issue, investors bid for shares at the floor price or above and after the closure of the process the price is determined for allotment of shares. (b) In case of the normal public issue the demand for an issue is known at the close of the issue. (c) In case of offer of shares through normal public issue price at which securities will be allotted is known to an investor in advance . (d) None of the above (e) I am not attempting the question | |
| Q7 | At 8% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after one year. [ 3 Marks ] (a) Rs. 108 (b) Rs. 118 (c) Rs. 208 (d) Rs. 98 (e) I am not attempting the question | |
| Q8 | At 6% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after two years. [ 3 Marks ] (a) Rs. 224 (b) Rs. 112.36 (c) Rs. 122.46 (d) Rs. 124.30 (e) I am not attempting the question | |
| Q9 | The Margin which takes care that all daily losses must be met by the investor by depositing of further collateral by the close of business, the following day is known as _________. [ 1 Mark ] (a) Mark to Market Margin (b) Minimum Margin (c) Cross Margin (d) Initial Margin (e) I am not attempting the question | |
| Q10 | What is the present value of Rs. 6000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ] (a) Rs. 5429.02 (b) Rs. 6000 (c) Rs. 5700 (d) Rs. 6300 (e) I am not attempting the question | |
| Q11 | What is the dividend yield of ABC Co Share having a face value of Rs 100, market value of 360 and an annual dividend of Rs 10? [ 1 Mark ] (a) 1% (b) 2.77% (c) 10% (d) 4% (e) I am not attempting the question | |
| Q12 | Earnings Per Share (EPS) is calculated by _________. [ 2 Marks ] (a) Gross Profit / No. of equity shareholders (b) Net Profit / No. of equity shareholders (c) Gross Profit / No. of Ordinary shares outstanding (d) Net Profit / No. of Ordinary shares outstanding (e) I am not attempting the question | |
| Q13 | Which amongst these is not a Debt market instrument? [ 1 Mark ] (a) Public Sector Units bonds (b) Corporate Securities (c) FIIs (d) Government Securities (e) I am not attempting the question | |
| Q14 | Which rate of return accounts for intra-year compounding? [ 2 Marks ] (a) Effective (b) Stated (c) Both of the above (d) None of the above (e) I am not attempting the question | |
| Q15 | ___________ is a good indicator of the stock market behaviour. [ 1 Mark ] (a) Reliance (b) TISCO (c) Infosys (d) Nifty index (e) I am not attempting the question | |
| Q16 | Market Capitalisation is _____________. [ 2 Marks ] (a) Value of shares of the company held by Foreign Investors (b) No. of shares issued by a company multiplied by it's market price (c) Value of shares held by promoters of the company (d) Value of shares in the company held by the public (e) I am not attempting the question | |
| Q17 | What is the present value of Rs 10000 receivable after 1 year discounted at 10% p.a.? [ 2 Marks ] (a) 11000 (b) 10000 (c) 9000 (d) 9090.9 (e) I am not attempting the question | |
| Q18 | What factor/s affect the interest rate? [ 3 Marks ] (a) Government borrowings (b) Supply of money (c) Inflation rate (d) All of the above (e) I am not attempting the question | |
| Q19 | Which of the following needs to be considered by an investor, while investing? [ 3 Marks ] (a) Assess risk-return profile of the investment. (b) Know the liquidity and safety aspects of the investment. (c) Obtain written documents explaining the investment. (d) All of the above (e) I am not attempting the question | |
| Q20 | Money market mutual funds can invest in _______. [ 3 Marks ] (a) treasury bills (b) certificate of deposits (c) commercial paper (d) All of the above (e) I am not attempting the question | |
| Q21 | Which of the following is not true about a debt instrument? [ 1 Mark ] (a) It signifies a ownership right in the company. (b) It carries interest paying obligation. (c) It has a fixed maturity. (d) None of the above (e) I am not attempting the question | |
| Q22 | Which type of corporate action splits the existing shares of a particular face value into smaller denominations? [ 1 Mark ] (a) Stock Split (b) Bonus Issue (c) Buy Back (d) Right Issue (e) I am not attempting the question | |
| Q23 | How many securities are there in Nifty index? [ 1 Mark ] (a) 30 (b) 100 (c) 500 (d) 50 (e) I am not attempting the question | |
| Q24 | Which of the following is TRUE about Primary Markets? [ 2 Marks ] (a) Primary Markets are markets where commodities are sold. (b) Primary Market is the place where public can buy and sell securities from one another. (c) Primary Markets refer to the mobilization of funds from the public by corporates through the issue of shares / debentures. (d) Primary Markets are places where only short term instruments are traded. (e) I am not attempting the question | |
| Q25 | The future value of a Rs.10,000 investment done today, which gives an annual rate of return of 20% per annum, after one year should be ____________. [ 3 Marks ] (a) Rs. 12,200 (b) Rs. 12,500 (c) Rs. 12,000 (d) Rs. 12,640 (e) I am not attempting the question | |
| Q26 | Which of the following problems have been eliminated by Depositories? [ 1 Mark ] (a) Reduction in the share transfer time to the buyer. (b) Risk of stolen, fake, forged shares. (c) Stamp duty on transfer of shares in dematerialized form. (d) All of the above (e) I am not attempting the question | |
| Q27 | Which of the following is not a benefit of investing in mutual funds? [ 2 Marks ] (a) Investment in Mutual funds leads to diversification of holdings. (b) Mutual funds are managed by professional fund managers. (c) Mutual Funds regularly provide investors with information on the value of their investments. (d) None of the above (e) I am not attempting the question | |
| Q28 | Funds which invest only in the stocks comprising an index and aim to give returns commensurate with the index returns are called _________. [ 2 Marks ] (a) Index Funds (b) Active Funds (c) Dormant Funds (d) None of the above (e) I am not attempting the question | |
| Q29 | Depositories are like banks for securities. [ 1 Mark ] (a) TRUE (b) FALSE (c) Dormant Funds (d) None of the above (e) I am not attempting the question | |
| Q30 | At 12% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after one year. [ 3 Marks ] (a) Rs. 114 (b) Rs. 112 (c) Rs. 102 (d) Rs. 113 (e) I am not attempting the question | |
| Q31 | The future value of a Rs.10,000 investment, which gives an annual rate of return of 20% per annum, after two years would grow to _________ (assume discrete compounding) [ 3 Marks ] (a) Rs. 14,400 (b) Rs. 14,000 (c) Rs, 14,250 (d) Rs. 14,500 (e) I am not attempting the question | |
| Q32 | An investment should provide an after-tax return which is ________. [ 3 Marks ] (a) at least higher than the rate of inflation (b) less than the rate of inflation (c) equal to the rate of inflation (d) None of the above (e) I am not attempting the question | |
| Q33 | Which of the following is not true about ADR? [ 1 Mark ] (a) ADR represents the foreign shares of the company held on deposit by a custodian bank in the company's home country. (b) ADRs may be used in public or private markets inside or outside US. (c) ADRs do not eliminate the currency risk associated with an investment in a non-U.S. company. (d) An ADR is a U.S. dollar denominated form of equity ownership in a non-U.S. company. (e) I am not attempting the question | |
| Q34 | What are the segments of Securities Market? [ 1 Mark ] (a) Primary market and Secondary market (b) New issues market (c) Primary market (d) Secondary market (e) I am not attempting the question | |
| Q35 | Which instrument among these is considered the most challenging and rewarding investment option, when compared to other investment options? [ 3 Marks ] (a) Equity (b) Fixed Deposit (c) Bonds (d) Treasury Bill (e) I am not attempting the question | |
| Q36 | 'Bid' means the _____________. [ 3 Marks ] (a) Seller's price (b) Traded Price (c) Market price (d) Buyer's price (e) I am not attempting the question | |
| Q37 | Profit and Loss account of a company shows _______. [ 2 Marks ] (a) The revenues and expenses during particular period of time. (b) The revenues and expenses of the company at a particular point of time. (c) The financial position of the company at a particular point of time. (d) None of the above (e) I am not attempting the question | |
| Q38 | Which instrument among these have historically shown to give the highest returns when invested over long periods? [ 3 Marks ] (a) Debentures (b) Equity (c) Fixed Deposit (d) Bank Deposit (e) I am not attempting the question | |
| Q39 | The lenders use ______________ ratio to assess debt servicing capacity of a firm. [ 2 Marks ] (a) Interest Coverage ratio (b) Debt-Asset Ratio (c) Acid-test Ratio (d) Current Ratio (e) I am not attempting the question | |
| Q40 | _______ funds do not have a fixed date of redemption. [ 2 Marks ] (a) Open ended funds (b) Close ended funds (c) Diversified funds (d) Both A and B (e) I am not attempting the question | |
| Q41 | 'Ask' means the ________. [ 3 Marks ] (a) Buyer's price (b) Seller's price (c) Market price (d) Traded Price (e) I am not attempting the question | |
| Q42 | ________________ is maintained by NSE to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the Exchange. [ 1 Mark ] (a) Investor Education and Reimbursement Fund (IERF) (b) Investor Reimbursement Fund (IRF) (c) Investor Education and Protection Fund (IEPF) (d) Investor Protection Fund (IPF) (e) I am not attempting the question | |
| Q43 | At 10% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after one year. [ 3 Marks ] (a) Rs.101 (b) Rs. 110 (c) Rs.115 (d) Rs. 109 (e) I am not attempting the question | |
| Q44 | What is the present value of Rs. 3000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ] (a) Rs. 3150 (b) Rs. 2714.51 (c) Rs. 2850 (d) Rs. 2970 (e) I am not attempting the question | |
| Q45 | The future value of a Rs.12,000 investment made today, which gives an annual rate of return of 10% per annum, after one year should be _________. [ 3 Marks ] (a) Rs. 12,200 (b) Rs. 12,500 (c) Rs. 13,200 (d) Rs. 13,100 (e) I am not attempting the question | |
| Q46 | Nifty index is used in _________. [ 1 Mark ] (a) Derivatives (b) Index Funds (c) Exchange Traded Funds (ETFs) (d) All of the above (e) I am not attempting the question | |
| Q47 | Demutualisation of stock exchanges refer to _________. [ 3 Marks ] (a) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange are segregated from one another (b) the legal structure of an exchange whereby the ownership and the management at the exchange are segregated from one another (c) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange vests in one person (d) None of the above (e) I am not attempting the question | |
| Q48 | Which securities can an investor invest in? [ 1 Mark ] (a) Shares (b) Debentures (c) Mutual Funds (d) All of the above (e) I am not attempting the question | |
| Q49 | _____________ gives the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date. [ 1 Mark ] (a) Put Option (b) Forward (c) Future (d) Call Option (e) I am not attempting the question | |
| Q50 | The holders of which instrument are members of the company and have voting rights? [ 3 Marks ] (a) Treasury Bill (b) Commercial Paper (c) Debenture (d) Equity (e) I am not attempting the question | |
| NCFM MODEL TEST PAPER | |||
|---|---|---|---|
| Derivatives Market (Dealers) Module | |||
| Maximum Marks: 100 | Pass Marks: | 60 | |
| Test Duration: 120 minutes | Time Left: | 119:45 minutes | |
| Q1 | Weekly options trading commenced on NSE in _______. [ 1 Mark ] (a) NSE does not trade in Weekly options (b) 02-Jun-2005 (c) 04-Jul-2005 (d) 04-Jun-2005 (e) I am not attempting the question | |
| Q2 | A stock is currently selling at Rs. 70. The put option to sell the stock at Rs. 75 costs Rs. 12. What is the time value of the option? [ 1 Mark ] (a) Rs. 7 (b) Rs. 5 (c) Rs. 2 (d) Rs. 4 (e) I am not attempting the question | |
| Q3 | The value of taxable securities transaction relating to 'option in securities' is the ___________. [ 1 Mark ] (a) aggregate of the strike price and the option premium of such option in securities. (b) the strike price of such 'option in securities' (c) the option premium of such 'option in securities' (d) None of the above (e) I am not attempting the question | |
| Q4 | An option to buy or sell a swap, that becomes operative at the expiry of the option, is called a _______. [ 1 Mark ] (a) swaption (b) futures (c) basket option (d) warrant (e) I am not attempting the question | |
| Q5 | On NSE's options market, until the buyer pays in the premium, the premium due is deducted from the available ____________ on a real time basis. [ 1 Mark ] (a) cash deposit (b) liquid net worth (c) cash and non-cash deposit (d) effective deposit (e) I am not attempting the question | |
| Q6 | To be eligible for options trading, the market wide position limit in the stock should not be less than Rs. ___________ . [ 3 Marks ] (a) 250 crore (b) 100 crore (c) 50 crore (d) 500 crore (e) I am not attempting the question | |
| Q7 | In case a Future Contract is not traded in a day, which of the following prices is reckoned for daily mark to market settlement? [ 2 Marks ] (a) Closing price of the last traded day (b) Theoretical price (c) Closing price of the futures contract (d) Closing price of the underlying (e) I am not attempting the question | |
| Q8 | You are the owner of a 2 million portfolio with a beta 1.0. You would like to insure your portfolio against a fall in the index of magnitude higher than 15%. Spot Nifty stands at 2200. Put options on the Nifty are available at three strike prices. Which strike will give you the insurance you want? [ 2 Marks ] (a) 1,870 (b) 1,840 (c) 1,970 (d) None of the above (e) I am not attempting the question | |
| Q9 | The maximum brokerage chargeable by a trading member in relation to trades effected in the contracts admitted to dealing on the F&O segment of NSEIL is fixed at ______ of the contract value, exclusive of statutory levies. [ 1 Mark ] (a) 1.50% (b) 2.50% (c) 0.75% (d) 3% (e) I am not attempting the question | |
| Q10 | Ms. Shetty has sold 600 calls on DR. REDDY'S LAB at a strike price of Rs.992 for a premium of Rs.25 per call on April 1, 2002. The closing price of equity shares of DR. REDDY'S LAB is Rs. 994 on that day. If the call option is assigned against her on that day, what is her net obligation on April 01, 2002? [ 2 Marks ] (a) Pay-out of Rs.18,300 (b) Pay-in of Rs.18,300 (c) Pay-in of Rs.13,800 (d) Pay-out of Rs.13,800 (e) I am not attempting the question | |
| Q11 | Daily Mark to Market settlement of futures takes place on ________ basis . [ 2 Marks ] (a) T+0 (b) T+3 (c) T+5 (d) T+1 (e) I am not attempting the question | |
| Q12 | What is displayed in the NEAT Trading System Ticker Screen? [ 3 Marks ] (a) The electronic display that continuously shows only the stock symbol, volume and price at which each successive trade occurs. (b) The electronic display that continuously shows only the price at which each successive trade occurs. (c) The electronic display that continuously shows only the stock symbol and volume at each successive trade occurs. (d) None of the above (e) I am not attempting the question | |
| Q13 | Each user of the trading member in F&O segment of NSEIL is assigned a unique _________ ID [ 3 Marks ] (a) user (b) trading member (c) branch (d) exchange (e) I am not attempting the question | |
| Q14 | _______ order allows the user to execute a contract as soon as it is entered into the system, failing which the order is immediately cancelled from the system. [ 2 Marks ] (a) GTD (b) IOC (c) Limit (d) GTC (e) I am not attempting the question | |
| Q15 | Which of the following statement is true? [ 3 Marks ] (a) Basket trading is illegal in India. (b) NSE does not allow basket trading in it's F&O Segment. (c) Basket trading has been discontinued in the F&O Segment. (d) F&O Segment has a Basket trading facility. (e) I am not attempting the question | |
| Q16 | Immediate or cancel is an order which will automatically __________ in F&O segment of NSEIL. [ 2 Marks ] (a) be matched because it being a preferential order (b) be cancelled if it is not matched immediately and in its entirety (c) get stored in the system for matching, if not executed immediately (d) cancel the unmatched portion of the order quantity (e) I am not attempting the question | |
| Q17 | Ms. Asha sells an options contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29/Sep/2005 for Rs. 10. The strike price of the contract is Rs. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be _________. [ 1 Mark ] (a) Rs. 10 (b) Rs. 40 (c) Rs. 53 (d) Rs. 11 (e) I am not attempting the question | |
| Q18 | A market index is very important for its use ___________. [ 2 Marks ] (a) as a barometer for market behavior (b) as a benchmark of portfolio performance (c) in portfolio management (d) All of the above (e) I am not attempting the question | |
| Q19 | An 'authorised person' in the Futures & Options segment is ___________. [ 1 Mark ] (a) any person who is acting in any capacity on behalf of the trading member or a participant for any activity relating to the trades done and executed (b) a person authorised by the exchange as an approved user of a trading member (c) an approved user of a participant (d) All of the above (e) I am not attempting the question | |
| Q20 | NSCCL's on-line position monitoring system monitors open position of _____________on a real time basis. [ 1 Mark ] (a) clearing member only (b) trading member only (c) clearing member and trading member (d) dealer only (e) I am not attempting the question | |
| Q21 | The option price is the _______. [ 3 Marks ] (a) price paid by the buyer of the option to the seller of the option (b) price at which an option trades in the market (c) sum of intrinsic value plus time value of an option (d) All of the above (e) I am not attempting the question | |
| Q22 | Which of the following contracts are compulsorily settled on exercise date? [ 2 Marks ] (a) In the money option contracts (b) Deep at the money option contracts (c) At the money option contracts (d) Out of the money option contracts (e) I am not attempting the question | |
| Q23 | Which of the following are derivatives? [ 2 Marks ] (a) Options (b) Futures (c) Forward Rate Agreements (d) All of the above (e) I am not attempting the question | |
| Q24 | Initial margin is collected to __________. [ 2 Marks ] (a) make good daily losses (b) square-off a position on the expiry of the contract (c) safeguard against potential losses on out-standing positions (d) provide for losses that have already occurred (e) I am not attempting the question | |
| Q25 | Transaction tax is payable by the __________ of the derivative instrument. [ 1 Mark ] (a) buyer (b) designer (c) seller (d) originator (e) I am not attempting the question | |
| Q26 | The intrinsic value of a call option is the amount the option is ________. [ 1 Mark ] (a) in-the-money (b) at-the-money (c) out-of-the-money (d) above-the-money (e) I am not attempting the question | |
| Q27 | The beta of Nifty is _______. [ 2 Marks ] (a) 1.7 (b) 1 (c) 0 (d) (-)1 (e) I am not attempting the question | |
| Q28 | A stock broker is allowed to buy, sell or deal in securities __________. [ 1 Mark ] (a) only on being admitted as a member of a stock exchange (b) on submission of document with SEBI for registration (c) on submission of document with stock exchange for admission (d) only on having a certificate of registration granted by SEBI (e) I am not attempting the question | |
| Q29 | The market impact cost on a trade of Rs. 3 million of the S&P CNX Nifty works out to be about 0.05%. This means that if S&P CNX Nifty is at 2000, a sell order of that value will go through at a price of Rs. _______. [ 1 Mark ] (a) 1999 (b) 1995 (c) 1,999.50 (d) 1,995.50 (e) I am not attempting the question | |
| Q30 | ETFs can be ________. [ 1 Mark ] (a) bought and sold on an exchange (b) bought and sold directly with the mutual fund (c) bought on an exchange but sold only directly to the mutual fund (d) None of the above (e) I am not attempting the question | |
| Q31 | Ms. Shetty has sold 300 calls on WIPRO at a strike price of Rs.1503 for a premium of Rs.28 per call on April 1, 2002. The closing price of equity shares of WIPRO is Rs. 1553 on that day. If the call option is assigned against her on that day, what is her net obligation on April 01, 2002? [ 2 Marks ] (a) Pay-out of Rs. 21,600 (b) Pay-in of Rs.15,000 (c) Pay-out of Rs.13,400 (d) Pay-in of Rs.6,600 (e) I am not attempting the question | |
| Q32 | VaR methodology seeks to measure the amount of value that a portfolio may stand to lose within a certain horizon time period due to potential changes in ______________. [ 2 Marks ] (a) underlying exposures (b) underlying asset spot price (c) underlying stock volatility (d) underlying index volatility (e) I am not attempting the question | |
| Q33 | Mr. A sells a futures contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29/Sep/2005 for Rs. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be ________. [ 1 Mark ] (a) Rs. 10 (b) Rs. 80 (c) Rs. 20 (d) Rs. 51 (e) I am not attempting the question | |
| Q34 | An index put option at a strike of Rs. 2176 is selling at a premium of Rs. 18. At what index level will it break even for the buyer of the option? [ 1 Mark ] (a) Rs. 2194 (b) Rs. 2196 (c) Rs. 2158 (d) Rs. 2162 (e) I am not attempting the question | |
| Q35 | Which of the following is the duty of the trading member? [ 3 Marks ] (a) Sending the periodical statement of accounts to clients (b) Maintaining unique client codes (c) Ensuring timely pay-in and pay-out of funds (d) All of the above (e) I am not attempting the question | |
| Q36 | Which of the following should be disclosed separately for long and short positions, in respect of each series of equity index futures as of the balance sheet date? [ 1 Mark ] (a) Number of equity index futures contracts having open position (b) Number of units of equity index futures pertaining to the contracts (c) The daily settlement price (d) All of the above (e) I am not attempting the question | |
| Q37 | Futures differs from forwards in the sense that ________. [ 2 Marks ] (a) settlement of contract takes place in the future (b) both parties are bound to give/take delivery (c) positions are marked-to-market everyday (d) contracts are custom designed (e) I am not attempting the question | |
| Q38 | You have bought a portfolio of securities on the exchange. To eliminate the risk arising out of market, you should _____. [ 3 Marks ] (a) buy index futures (b) buy stock futures (c) sell stock futures (d) sell index futures (e) I am not attempting the question | |
| Q39 | The clearing member/trading member is required to disclose to the clearing corporation details of any person(s) acting in concert who together own _____% or more of the open interest of all futures and options contracts on a particular underlying index on the stock exchange. [ 1 Mark ] (a) 12 (b) 15 (c) 20 (d) 25 (e) I am not attempting the question | |
| Q40 | The spot price of TISCO is Rs. 2050 and the cost of financing is 10%. What is the fair price of a one month futures contract on TISCO? [ 2 Marks ] (a) 2,082.80 (b) 2,066.30 (c) 2,085.15 (d) 2,099.40 (e) I am not attempting the question | |
| Q41 | Cyrus is short 600 WIPRO July Puts at strike Rs. 1520 for a premium of Rs. 33 each on July 22, 2002. On July 25, 2002 (the expiration day of the contract), the spot price of WIPRO closes at Rs.1553, while the July futures on WIPRO close at 1555. Does Cyrus have an obligation to the Clearing Corporation on his positions, and how much, if any? [ 2 Marks ] (a) Yes. Rs.19,800 pay-out (b) No pay in or pay-out on expiration of contract (c) Yes. Rs.18,900 pay-out (d) Yes. Rs.19,800 pay-in (e) I am not attempting the question | |
| Q42 | Which of the following is required for personnel working in the industry in order to dispense quality intermediation? [ 1 Mark ] (a) To follow certain code of conduct. (b) To possess requisite skills and knowledge. (c) To have a proper understanding of the business and skills to help it remain competitive. (d) All of the above (e) I am not attempting the question | |
| Q43 | June futures contract on WIPRO closed at Rs. 1153 on May 20 and at Rs. 1150 on May 21, 2002. Raju has a short position of 4000 in the June futures contract. On May 21, 2002, he sells 3000 units of 10-June-2002 expiring Put Options on WIPRO at strike price of Rs.1145 for a premium of Rs.28 per unit. What is his net obligation to / from the Clearing Corporation for May 21, 2002? [ 2 Marks ] (a) Pay-in of Rs.32,000 (b) Pay-in of Rs.72,000 (c) Pay-out of Rs.96,000 (d) Pay-out of Rs.32,000 (e) I am not attempting the question | |
| Q44 | Assume that the base value of a market capitalization weighted index were 1000 and the base market capitalisation were Rs.35,000 crore. If the current market capitalisation is Rs.77,000 crore, the index is at Rs. ____. [ 1 Mark ] (a) 2,110 (b) 2,350 (c) 2,250 (d) 2,200 (e) I am not attempting the question | |
| Q45 | Around 60% of the trading volume on the American Stock Exchange is from __________. [ 1 Mark ] (a) Index Funds (b) Index Futures (c) ETFs (d) Index Options (e) I am not attempting the question | |
| Q46 | The SEBI Committee on derivatives has recommended that the exposure limits for brokers should be linked to the __________. [ 1 Mark ] (a) daily turnover of the broker (b) networth of the broker (c) satisfactory margin payment track record of the broker (d) deposits kept by the broker with the Exchange/Clearing corporation (e) I am not attempting the question | |
| Q47 | If the annual risk free rate is 10%, then the `r' used in the Black Scholes formula should be ______. [ 1 Mark ] (a) 0.095 (b) 0.1398 (c) 1.1 (d) None of the above (e) I am not attempting the question | |
| Q48 | At the balance sheet date, the balance in the `initial margin equity index futures account' should be shown separately under the head ________. [ 1 Mark ] (a) prepaid expenses (b) current assets (c) outstanding balance (d) current liabilities (e) I am not attempting the question | |
| Q49 | Hedging with index futures means ___________. [ 1 Mark ] (a) long security, short security (b) long index futures, short index futures (c) long security, short index futures (d) long security, long index futures (e) I am not attempting the question | |
| Q50 | Which of the following is not the duty of the trading member? [ 3 Marks ] (a) Filling of 'Know Your Client' form (b) Assisting the client to arrange for margins (c) Bringing risk factors to the knowledge of client (d) Execution of Client Broker Agreement (e) I am not attempting the question | |
| Q51 | On expiry, the settlement price of an index futures contract is _______. [ 2 Marks ] (a) opening price of futures contract (b) closing index value (c) closing price of futures contract (d) opening index value (e) I am not attempting the question | |
| Q52 | The NEAT F&O trading system _____________. [ 3 Marks ] (a) allows one to enter combination trades (b) does not allow combination trades (c) allows only a single order placement at a time (d) None of the above (e) I am not attempting the question | |
| Q53 | Santosh is bearish about ABC Ltd.and sells ten one-month ABC Ltd.futures contracts at Rs.2,96,000. On the last Thursday of the month, ABC Ltd.closes at Rs.310. He makes a _________. (assume one lot = 100) [ 1 Mark ] (a) profit of Rs. 7,000 (b) loss of Rs. 7,000 (c) profit of Rs. 14,000 (d) loss of Rs. 14,000 (e) I am not attempting the question | |
| Q54 | A stock broker applies for registration to SEBI _________. [ 1 Mark ] (a) through stock exchange(s) of which he or she is admitted as a member (b) directly (c) through association of members (d) through Ministry of Finance (e) I am not attempting the question | |
| Q55 | NCFM stands for ___________. [ 1 Mark ] (a) National Certification in Financial Management (b) National Certification in Financial Markets (c) NSE's Certification in Financial Markets (d) NSE's Certification in Financial Management (e) I am not attempting the question | |
| Q56 | In Indian context, derivative includes: A) A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; B) A contract which derives its value from the prices, or index of prices, of underlying securities; [ 2 Marks ] (a) A (b) B (c) Both of the above (d) None of the above (e) I am not attempting the question | |
| Q57 | The futures price is ________. [ 2 Marks ] (a) the price of a contract in the future (b) spot price plus cost of carry (c) the price at which a futures contract trades in the market (d) the price set by the exchange (e) I am not attempting the question | |
| Q58 | Index options on the S&P CNX Nifty can be exercised ___________. [ 2 Marks ] (a) any time on or before maturity (b) upon maturity (c) any time upto maturity (d) on a date pre-specified by the trading member (e) I am not attempting the question | |
| Q59 | A trading member allowed to clear his own trades only is known as _________. [ 1 Mark ] (a) Trading member - clearing member (b) Trading members are not allowed to clear their own trades (c) professional clearing member (d) self clearing member (e) I am not attempting the question | |
| Q60 | The initial margin amount is large enough to cover a one-day loss that can be encountered on ______% of the days. [ 2 Marks ] (a) 95 (b) 50 (c) 99 (d) 90 (e) I am not attempting the question | |
| NCFM MODEL TEST PAPER | |||
|---|---|---|---|
| CAPITAL MARKET (DEALERS) MODULE | |||
| Maximum Marks: 100 | Pass Marks: | 50 | |
| Test Duration: 105 minutes | Time Left: | 104:53 minutes | |
| Q1 | An application for arbitration can be filed within ____ from the date of dispute [ 1 Mark ] (a) 45 days (b) 3 months (c) 1 year (d) 6 months (e) I am not attempting this question | ||||||||||||
| Q2 | Which of the following is FALSE about trade cancellation in the NEAT system? [ 1 Mark ] (a) The counterparty to the trade makes similar request on the same trading day. (b) Identity of the users are disclosed to keep transparency. (c) The user can use trade cancellation screen for cancelling trades done during the day. (d) The user can request for trade cancellation from the previous trades screen. (e) I am not attempting this question | ||||||||||||
| Q3 | Which is the settlement system followed by NSCCL with effect from April 1, 2003? [ 2 Marks ] (a) Daily Settlement (b) T+2 rolling settlement (c) Account Period Settlement (d) T+3 rolling settlement. (e) I am not attempting this question | ||||||||||||
| Q4 | Which of the following statement/s is TRUE on the NEAT system? (A) Disclosed quantity orders cannot be modified to such a quantity where the disclosed quantity is greater than the order quantity. (B) Except for the Limited Physical market, a user cannot modify an order to a quantity less than the specified Regular Lot and multiples of Regular Lot. (C) Orders cannot be modified to a quantity greater than the issued capital for the security. [ 2 Marks ] (a) Only statements (A) and (C) (b) Only statements (B) and (C) (c) Statements (A), (B) and (C) (d) Only statement (C) (e) I am not attempting this question | ||||||||||||
| Q5 | Which of the following functions a branch manager can perform on the NEAT system [ 2 Marks ] (a) The branch manager can receive the End of Day reports for the trading firm. (b) The branch manager can view and perform order and trade related activities for the  trading firm.(c) The branch manager can view and perform order and trade related activities and receive the End of Day reports for all dealers under that branch.(d) The branch manager can receive the End of Day reports of all the branches of the trading firm. (e) I am not attempting this question | ||||||||||||
| Q6 | The daily margin in T+2 rolling settlement comprises of ___________. [ 2 Marks ] (a) Mark to Market Margin and Gross Exposure Margin (b) Mark to Market Margin, Gross Exposure Margin and Value at Risk-based Margin (c) Mark to Market Margin and Value at Risk-based Margin (d) Gross Exposure Margin and Value at Risk-based Margin (e) I am not attempting this question | ||||||||||||
| Q7 | Which of the following statement/s is TRUE on the NEAT system? (A) Circulars, as and when issued by NSEIL, are available to members on the intranet in their respective trading member directory identified by their trading member id. (B) A message is flashed on the NEAT screen when the circular is downloaded. (C) The circular file is ********.wri where ******** indicates the department and Circular No. [ 2 Marks ] (a) Only statements (B) and (C) (b) Only statements (A) and (B) (c) Statements (A), (B) and (C) (d) Only statements (A) and (C) (e) I am not attempting this question | ||||||||||||
| Q8 | Which of the following is not true about Mark to Market Margin? [ 2 Marks ] (a) Mark to market margin is computed on the basis of mark to market loss of a member. (b) Mark to market margin is calculated by marking each transaction in a scrip to the closing price of the scrip at the end of trading(c) Mark to market profit/loss across different securities within the same settlement is set off to determine the mark to market loss for a settlement.(d) Mark to market loss is the notional loss which the member would incur in case the cumulative gross outstanding position of the member in some securities were closed out at the closing price of the securities(e) I am not attempting this question | ||||||||||||
| Q9 | Auction is held in PQR for 10,000 shares. The closing price of PQR on that day was Rs.149.00 The last traded price of PQR on that day was Rs.144.0 The close price of PQR last Friday was Rs.145.00 The previous day's close price of PQR was Rs.154.00 What is the maximum allowable price at which the member can put a sell order in the auction for PQR? (Assume Price Band applicable for Auction market is +/-20%) [ 3 Marks ] (a) Rs. 184.8 (b) Rs. 180.35 (c) Rs. 154 (d) Rs. 144 (e) I am not attempting this question | ||||||||||||
| Q10 | A trading member on the NSE, has a branch order value of Rs. 750 lakh for his Mumbai branch and Rs. 600 lakh for Delhi branch. Mumbai branch has two users 'X' and 'Y' with user order value limits of Rs. 200 lakh and Rs. 200 lakh respectively. Delhi branch has one user 'Z' with user order value limit of Rs. 450 lakh. The member applies for a new user at Mumbai. What is the maximum user order value that can be set for the new user? [ 3 Marks ] (a) Rs. 500 lakh (b) Any amount, as there is no restriction on User Order Value (c) Rs. 350 lakh (d) Rs. 150 lakh (e) I am not attempting this question | ||||||||||||
| Q11 | A client shall make payment for securities purchased to the trading member _______. [ 2 Marks ] (a) on receipt of the securities (b) Any amount, as there is no restriction on User Order Value (c) before the funds pay-in day (d) within 24 hours of sale (e) I am not attempting this question | ||||||||||||
| Q12 | Which of the following is NOT a derivative traded on Indian Stock Market? [ 1 Mark ] (a) Index Options (b) Stock Futures (c) Index Futures (d) Forward Rate Agreements (e) I am not attempting this question | ||||||||||||
| Q13 | Contract note is signed by the _______. [ 1 Mark ] (a) dealer (b) dominant promoters (c) directors (d) authorised signatory (e) I am not attempting this question | ||||||||||||
| Q14 | Which of the following is FALSE about auctions in the NEAT system? [ 2 Marks ] (a) All auction orders are entered into the auction order book. (b) Auction order matching takes place at the end of the solicitor period for the auction. (c) Auction matching takes place only across orders belonging to the same auction. (d) All auction trades take place at the last traded price for that day in the regular lot book in the normal market(e) I am not attempting this question | ||||||||||||
| Q15 | In which book type on the NEAT system, does the user enter Limited Physical orders? [ 1 Mark ] (a) SL (b) RL (c) OL (d) SP (e) I am not attempting this question | ||||||||||||
| Q16 | Which of the following statements is FALSE about the NEAT system? [ 1 Mark ] (a) The order/trade slips are Confirmation/Modification/Cancellation/Rejection slips. (b) Members can take print of confirmation slips at the end of the day from the reprint option in the supplementary menu(c) Margin report is generated on-line. (d) The trade and order slips are generated on-line. (e) I am not attempting this question | ||||||||||||
| Q17 | If a client buys shares worth Rs. 1,25,000 and sells shares worth Rs. 75,000 through a sub-broker, then the maximum brokerage payable to him is ___. [ 2 Marks ] (a) Rs. 24,000 (b) Rs. 16,000 (c) Rs. 3,000 (d) Rs. 20,000 (e) I am not attempting this question | ||||||||||||
| Q18 | A trading member submits ____________ to the stock exchange on an annual basis. (A) audited financial statements (B) networth certificate (C) proof of renewal of insurance cover [ 2 Marks ] (a) (A), (B) and (C) (b) (A) and (C) only (c) (B) and (C) only (d) (A) only (e) I am not attempting this question | ||||||||||||
| Q19 | Is it compulsory for a trading member to maintain a separate bank account for the Clients? [ 2 Marks ] (a) Yes, only if his clients request for opening a bank account (b) No (c) Yes, only if his clients are not his relatives (d) Yes (e) I am not attempting this question | ||||||||||||
| Q20 | A copy of an advertisement has to be submitted by a trading member to NSE __________. [ 1 Mark ] (a) for record (b) for information (c) after its issue in publication/media (d) for prior approval before its issue in publication/media (e) I am not attempting this question | ||||||||||||
| Q21 | A portfolio contains securities with the expected return as follows:-
What will be the expected return of the portfolio? [ 1 Mark ] (a) 2.1 (b) 46 (c) 38 (d) 3,150 (e) I am not attempting this question | ||||||||||||
| Q22 | A settlement system has ________. (A) counterparty risk (B) systems risk (C) liquidity risk [ 2 Marks ] (a) (B) and (C) (b) (A) and (B) (c) only (C) (d) (A) and (C) (e) I am not attempting this question | ||||||||||||
| Q23 | What does 'OM' indicate as an activity in the 'Activity Log' screen in the NEAT system? [ 1 Mark ] (a) Order Modified (b) Trade Cancelled (c) Trade Modified (d) Order Cancelled (e) I am not attempting this question | ||||||||||||
| Q24 | NSE's Certification in Financial Markets does NOT allow flexibility in terms of ______. [ 1 Mark ] (a) candidate's presence (b) test date (c) testing centre (d) test time (e) I am not attempting this question | ||||||||||||
| Q25 | How many depositories are there in India? [ 1 Mark ] (a) 2 (b) 3 (c) 0 (d) 1 (e) I am not attempting this question | ||||||||||||
| Q26 | In the event of the user forgetting his password on the NEAT system, the trading member is required to _______. [ 1 Mark ] (a) reset the password and inform the exchange (b) login with a password of another user of the same trading member (c) login with the default password and enter a new password (d) inform the Exchange in writing to reset the password (e) I am not attempting this question | ||||||||||||
| Q27 | Register of transactions (Sauda Book) shall be preserved for a period of _____ years by the stock broker as per the Securities Contracts (Regulation) Rules, 1957 [ 2 Marks ] (a) 7 (b) 5 (c) 10 (d) 6 (e) I am not attempting this question | ||||||||||||
| Q28 | The members/custodians make available the required securities in their ____________ with Depository Participants by the prescribed pay-in time for securities. [ 2 Marks ] (a) Client Account (b) Receipt Account (c) Delivery Account (d) Pool Account (e) I am not attempting this question | ||||||||||||
| Q29 | What is the maximum number of depository accounts that can be opened by an investor? [ 1 Mark ] (a) Only one account with a particular depository participant (b) One account only (c) There is no restriction on the number of accounts an investor can open (d) It depends on his Net Worth (e) I am not attempting this question | ||||||||||||
| Q30 | VaR margin is charged at differential rate on the ____________ position of the client. [ 2 Marks ] (a) Gross outstanding sale. (b) Net sale (c) Net outstanding sale. (d) Gross sale. (e) I am not attempting this question | ||||||||||||
| Q31 | Which of the following statements is TRUE? [ 1 Mark ] (a) The reliance on public issues has increased in the recent past. (b) Private placement is costly and time consuming. (c) Public issues is a preferred means of raising resources in the corporate sector. (d) The amount raised through private placements far exceeds that raised through public issues. (e) I am not attempting this question | ||||||||||||
| Q32 | A registered sub-broker, holding registration granted by SEBI on the recommendation of a trading member, can transact through ____________ [ 1 Mark ] (a) a stock exchange directly (b) any member broker of a stock exchange (c) the member broker who had recommended his application for registration (d) any member broker of any stock exchange (e) I am not attempting this question | ||||||||||||
| Q33 | ______ or a corporate can become member of an exchange [ 1 Mark ] (a) An individual, a partnership firm (b) Hindu Undivided Family (c) An individual, a partnership firm, Hindu Undivided Family (d) An individual, Hindu Undivided Family (e) I am not attempting this question | ||||||||||||
| Q34 | NSCCL uses services of _________ to transfer demat securities [ 1 Mark ] (a) depositories (b) clearing Banks (c) share transfer agents (d) custodians (e) I am not attempting this question | ||||||||||||
| Q35 | A sub-broker can have a maximum of ___ clients. [ 1 Mark ] (a) 500 (b) 50 (c) unlimited (d) 100 (e) I am not attempting this question | ||||||||||||
| Q36 | The amount in unpaid dividend accounts of companies shall be transferred to the: ____. [ 2 Marks ] (a) Dividend Equalisation Reserve (b) Investor Education and Protection Fund (c) Investor Protection Fund (d) General Revenue Account of the Central Government (e) I am not attempting this question | ||||||||||||
| Q37 | Which is the principal Act that governs the trading in securities market in India? [ 2 Marks ] (a) Companies Act, 1956 (b) Securities Contracts (Regulation) Act, 1956 (c) SEBI Act, 1992 (d) Depositories Act, 1996 (e) I am not attempting this question | ||||||||||||
| Q38 | Penalty points are charged to members for ______________. [ 2 Marks ] (a) only for violation in respect of client code modifications. (b) only for violation in respect of non-confirmation of custodial trades. (c) only for gross exposure and turnover violations. (d) All of the above (e) I am not attempting this question | ||||||||||||
| Q39 | Members can submit which of the following as additional base capital to NSCCL. [ 2 Marks ] (a) Cash. (b) Bank Guarantee (c) Fixed Deposit Receipts (d) All of the above (e) I am not attempting this question | ||||||||||||
| Q40 | A trading member on the NSE, has set the branch order value unlimited for his Chennai branch and Rs. 950 lakh for Kolkata branch. Chennai branch has two users 'X' and 'Y' with user order limits of Rs. 250 lakh and Rs. 300 lakh respectively. Kolkata branch has one user 'Z' with user order value limit of Rs. 350 lakh. The member applies for a new user at Kolkata. What is the maximum user order value that can be set for the new user? [ 3 Marks ] (a) Not more than Rs. 950 lakh (b) Zero (c) unlimited (d) Rs. 600 lakh (e) I am not attempting this question | ||||||||||||
| Q41 | What is the minimum networth for a corporate member in Capital Market and F&O segments of NSEIL? [ 2 Marks ] (a) Rs. 5 lakh (b) Rs. 200 lakh (c) Rs. 10 lakh (d) Rs. 100 lakh (e) I am not attempting this question | ||||||||||||
| Q42 | A trading member is getting a message that he has violated the gross exposure limit. The gross exposure at that point of time was Rs. 1300 lakh. What is his base capital? (Assume Rs. 1300 lakh is allowable gross exposure). [ 3 Marks ] (a) Rs. 46.00 lakh (b) Rs. 145.00 lakh (c) Rs. 157.00 lakh (d) Rs. 181.00 lakh (e) I am not attempting this question | ||||||||||||
| Q43 | Rahul is supposed to receive Rs. 90,000 from Chandra after 3 years. If the interest rate is 8%, what is the present value of the amount due from Chandra? [ 2 Marks ] (a) 81,444.9 (b) 71,444.9 (c) 86,444.9 (d) 91,444.9 (e) I am not attempting this question | ||||||||||||
| Q44 | Which of the following statement/s is TRUE about trade cancellation in the NEAT system? (A) The trade cancellation request is sent to the Exchange for approval and message to that effect is displayed in the message window. (B) When a request for the trade cancellation is approved by the Exchange, the parties to trade receive a system message confirming the trade cancellation and the trade cancellation slip is printed at their respective trader workstations. (C) If the Exchange rejects the trade cancellation request, the trade cancellation rejection slip is printed at their respective trader workstations. [ 2 Marks ] (a) Only statements (A) and (C) (b) Only statement (C) (c) Only statements (B) and (C) (d) Statements (A), (B) and (C) (e) I am not attempting this question | ||||||||||||
| Q45 | Which of the following obligation reports are NOT generated by the clearing software? [ 1 Mark ] (a) Daily Obligation Statement (b) Final Settlement Obligations Statement (c) Margin Report (d) Daily Obligation Statement of Custodial Trades (e) I am not attempting this question | ||||||||||||
| Q46 | What can the corporate manager view in the 'Activity Log' screen in the NEAT system? [ 2 Marks ] (a) He can view all activities that have been performed on any order for own User Id only. (b) He can view all the activities that have been performed on any order or all orders under all branches or for a specific branch and for a specific dealer or for all dealers.(c) He has no access to the 'Activity Log' screen. (d) He can view all activities that have been performed on any order of the whole market. (e) I am not attempting this question | ||||||||||||
| Q47 | What does 'LIS' indicate as a message code in 'Full Message window' in the NEAT system? [ 1 Mark ] (a) All listing related messages (b) There is no such message code as 'LIS' in the Full Message Window (c) All messages related to suspension for trading of listed securities only (d) All messages related to newly listed securities only (e) I am not attempting this question | ||||||||||||
| Q48 | A person can become a member of __ recognised Stock Exchanges. [ 1 Mark ] (a) 15 (b) any number of (c) 10 (d) only one (e) I am not attempting this question | ||||||||||||
| Q49 | In the demat environment, the securities are transferred from one account to another through book entry only on the instructions of the _______. [ 1 Mark ] (a) beneficial owner (b) company concerned (c) stock exchange concerned (d) depository (e) I am not attempting this question | ||||||||||||
| Q50 | NSCCL pays-out demat securities to the members in the __________ from where these are transferred to the ____________ of the members. [ 2 Marks ] (a) Clients Account, Pool Account (b) Pool Account, Clients Account (c) Delivery Account, Pool Account (d) Receipt Account, Delivery Account (e) I am not attempting this question | ||||||||||||
| Q51 | The maximum amount of claim payable from the IPF to the investor (where the trading member through whom the investor has dealt is declared a defaulter) is ________. [ 1 Mark ] (a) Rs. 7 lakh (b) Rs. 10 lakh (c) Rs. 17 lakh (d) Rs. 1 lakh (e) I am not attempting this question | ||||||||||||
| Q52 | If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1,10,000 through a stock-broker, then the maximum brokerage payable is _____. [ 3 Marks ] (a) Rs. 4,000 (b) Rs. 5,000 (c) Rs. 2,000 (d) Rs. 6,000 (e) I am not attempting this question | ||||||||||||
| Q53 | Which of the following does NOT issue securities in the primary market? [ 1 Mark ] (a) Government of India (b) Stock Exchanges (c) Companies (d) Financial Institutions (e) I am not attempting this question | ||||||||||||
| Q54 | As per the provisions of SEBI (Prohibition of Insider Trading) regulations, any person who holds more than _____________ shares or voting rights in any listed company shall make such disclosure to the company. [ 2 Marks ] (a) 2% (b) 10% (c) 5% (d) 3% (e) I am not attempting this question | ||||||||||||
| Q55 | Which address of the Corporate trading member is printed on the contract note? (A) Registered office address (B) Dealing office address (C) Correspondence address [ 2 Marks ] (a) (C) (b) (B) and (C) (c) (A) and (C) (d) (A) and (B) (e) I am not attempting this question | ||||||||||||
| Q56 | Mr. Desai has decided to deposit Rs. 100,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 11.5% how much would his deposit grow upto in 2 years? [ 2 Marks ] (a) 166,141.11 (b) 171,507.54 (c) 185,570.7 (d) 224,871.26 (e) I am not attempting this question | ||||||||||||
| Q57 | A maximum penalty of Rs. _______ can be imposed for insider trading, as prescribed under SEBI Act, 1992. [ 2 Marks ] (a) 5 lakh (b) 50,000 (c) 3 lakh (d) 1 lakh (e) I am not attempting this question | ||||||||||||
| Q58 | What does 'P' indicate as a status in the 'Auction Inquiry' screen in the NEAT system? [ 1 Mark ] (a) Auction is pending and yet to begin. (b) Auction is deleted. (c) There is no such status indicator as 'P' in the Auction Inquiry screen. (d) Auction is over. (e) I am not attempting this question | ||||||||||||
| Q59 | Every stock broker shall preserve the books of accounts and other records prescribed under the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 for a minimum period of _______ years. [ 2 Marks ] (a) 7 (b) 3 (c) 5 (d) 2 (e) I am not attempting this question | ||||||||||||
| Q60 | Which of the following is/are TRUE about the ticker in the NEAT system? (A) The user has the option of selecting the securities that should appear in the ticker. (B) When a request for the trade cancellation is approved by the Exchange, the parties to trade receive a system message confirming the trade cancellation and the trade cancellation slip is printed at their respective trader workstations. (C) The ticker displays information about any trade in the system as and when it takes place. [ 2 Marks ] (a) Only statements (B) and (C) (b) Statements (A), (B) and (C) (c) Only statement (C) (d) Only statements (A) and (C) (e) I am not attempting this question | ||||||||||||
| NCFM MODEL TEST PAPER | |||
|---|---|---|---|
| SECURITIES MARKET (BASIC) MODULE | |||
| Maximum Marks: 100 | Pass Marks: | 60 | |
| Test Duration: 105 minutes | Time Left: | 104:53 minutes | |
| Q1 | 1.What is the outstanding position on which initial margin will be calculated if Mr. Madanlal buys 800 units @Rs.1060 and sells 450 units @Rs.1055? [ 2 Marks ] (a) 800 units (b) 1250 units (c) 450 units (d) 350 units (e) I am not attempting this question | ||||||||||||||||||
| Q2 | Which of the following does NOT invite penalty points? [ 2 Marks ] (a) non-payment of funds obligation (b) short delivery (c) inadequate stamp duty on transfer deed (d) bad delivery (e) I am not attempting this question | ||||||||||||||||||
| Q3 | Who issues the registration to a Mutual Fund in India? [ 2 Marks ] (a) Only RBI (b) RBI for all types of Mutual Funds and additional permission from SEBI in case of a Mutual Fund being a subsidiary of a bank(c) Only SEBI (d) SEBI for all types of Mutual Funds and additional permission from RBI in case of a Mutual Fund being a subsidiary of a bank(e) I am not attempting this question | ||||||||||||||||||
| Q4 | In index/stock futures trading, profits are received or losses are paid ______. [ 1 Mark ] (a) in the delivery month (b) on a weekly settlement basis (c) on daily settlement (d) on the day of expiry of the contract (e) I am not attempting this question | ||||||||||||||||||
| Q5 | Derivative includes: A. a security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. B. a contract which derives its value from the prices, or index or prices, of underlying securities. [ 2 Marks ] (a) only A (b) only B (c) Both A and B (d) Neither A nor B (e) I am not attempting this question | ||||||||||||||||||
| Q6 | The _________issued by SEBI aim to secure fuller disclosure of the relevant information about the issuer and the nature of issue so that the investors can take informed decision [ 1 Mark ] (a) SEBI (Stock Brokers and Sub brokers) Rules (b) SC(R)A (c) Disclosure and Investor Protection Guidelines (d) SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) regulations(e) I am not attempting this question | ||||||||||||||||||
| Q7 | If the company pays dividend of Rs.10 every year and the expected return for the investor is 8%, what is the theoretical value of the share of the company for a period of one year, if the par value of the share is Rs.80? [ 2 Marks ] (a) 80 (b) 83.334 (c) 84.07 (d) 89.259 (e) I am not attempting this question | ||||||||||||||||||
| Q8 | A trading member has the following position in a particular security TELCO:
What will be the final settlement obligation in TELCO for the member? [ 3 Marks ] (a) Pay-in obligation for 13600 shares (b) Pay-in obligation of 1700 shares (c) Pay-in obligation for 800 shares (d) Pay-out obligation of 1700 shares (e) I am not attempting this question | ||||||||||||||||||
| Q9 | The difference between primary markets and secondary markets is __________. [ 2 Marks ] (a) Corporates raise resources directly from the investors through the primary market, whereas in the secondary markets, investors buy and sell securities to one another(b) Primary markets deal in shares whereas secondary markets in debentures (c) Primary markets are legal whereas secondary markets are not (d) The initial public issues are made in primary market whereas all subsequent issues are made in the secondary markets(e) I am not attempting this question | ||||||||||||||||||
| Q10 | Which of the following is not a speculative transaction? [ 1 Mark ] (a) a contract in respect of stocks and shares entered into by a dealer or investor therein to guard against loss in his holdings of stocks and shares through price fluctuations(b) a contract entered into by a member of a forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrage to guard against loss arising in ordinary course of business(c) a contract entered into by a person to guard against loss through future price fluctuations in respect of his contracts for actual delivery of goods manufactured by him or merchandise sold by him(d) none of the above is speculative transactions (e) I am not attempting this question | ||||||||||||||||||
| Q11 | Assume security A with a beta of 1.1 is being considered at a time when risk free rate of return is 5% and market return is expected to be 14%. What is the required rate of return according to Capital Asset Pricing Model? [ 2 Marks ] (a) 18.9 (b) 21.9 (c) 14.9 (d) 16.9 (e) I am not attempting this question | ||||||||||||||||||
| Q12 | Which one of the following is NOT an immediate measure taken by NSCCL in case a member fails to meet any obligation? [ 1 Mark ] (a) Squares up open positions. (b) Reduces exposure limits. (c) Uses trade guarantee fund to discharge his obligations. (d) Disables trading terminal until member's obligations are fully discharged. (e) I am not attempting this question | ||||||||||||||||||
| Q13 | Stock price of XYZ Ltd. is trading at Rs.60. The firm is expected to declare dividend of Rs.6 per share and is expected to grow at rate of 12per cent per year. What is the cost of equity under dividend growth model? [ 2 Marks ] (a) 22% (b) 20% (c) 18% (d) 12% (e) I am not attempting this question | ||||||||||||||||||
| Q14 | S&P CNX Nifty includes _______most liquid stocks that trade on NSEIL. [ 1 Mark ] (a) 50 (b) 30 (c) 500 (d) 100 (e) I am not attempting this question | ||||||||||||||||||
| Q15 | Register of transactions (Sauda Book) shall be preserved for a period of ___ years by the stock broker as per the Securities Contracts (Regulation) Rules, 1957. [ 2 Marks ] (a) 7 (b) 5 (c) 6 (d) 10 (e) I am not attempting this question | ||||||||||||||||||
| Q16 | An order which is activated when a price crosses a limit is _________ in F&O segment of NSEIL. [ 1 Mark ] (a) Market order (b) Fill or kill order (c) Stop loss order (d) None of the above (e) I am not attempting this question | ||||||||||||||||||
| Q17 | Auction is held in Reliance for 10,000 shares. The closing price of Reliance on that day was Rs.146.00 The last traded price of Reliance on that day was Rs.141.00 The close price of Reliance last Friday was Rs.142.00 The previous day's close price of Reliance was Rs.151.00 What is the maximum allowable price at which the member can put a sell order in the auction for Reliance? (Price band applicable for Auction market is +/-15%) [ 3 Marks ] (a) Rs. 167.90 (b) Rs. 173.65 (c) Rs. 162.15 (d) Rs. 163.30 (e) I am not attempting this question | ||||||||||||||||||
| Q18 | What is the current yield if a 11.50% bond sells in the market for Rs.125? [ 2 Marks ] (a) 9.2 (b) 9.15 (c) 9.25 (d) 9 (e) I am not attempting this question | ||||||||||||||||||
| Q19 | On May 20, 2003, SATYAM COMP closed at Rs. 224, while the June futures contract on SATYAM COMP closed at Rs. 226.4. On May 21, 2003, SATYAM COMP closed at Rs. 227 and the June futures contract on SATYAM COMP closed at Rs. 228.70. Santosh is long 2 contracts of SATYAM COMP (minimum lot size per contract of SATYAM COMP is 1000). What is the profit / loss made by Santosh on his position on May 21, 2003? [ 3 Marks ] (a) Loss of Rs. 4,600 (b) Profit of Rs. 6,000 (c) Profit of Rs. 4,600 (d) Loss of Rs. 6,000 (e) I am not attempting this question | ||||||||||||||||||
| Q20 | Which of the following statements is incorrect regarding B2B portals? [ 2 Marks ] (a) The 'debtonnetindia' is a B2B web-enabled market place for primary issuance of debt securities and provides investors and brokers similar levels of efficiency and transparency on the primary market segment.(b) The B2B portal 'debtonnetindia', provides both secondary and primary market platform. (c) TheB2B portal 'riskexpress' provides both secondary and primary market platform. (d) Two B2B portals, namely 'debtonnetindia' and 'riskexpress' provide a secure, anonymous, neutral and flexible transactional platform for issue and trading of fixed income instruments.(e) I am not attempting this question | ||||||||||||||||||
| Q21 | What is the average rate of return if the returns during the previous three years are 10%, 25% and 42%? [ 1 Mark ] (a) 21% (b) 25.67% (c) 2.57% (d) 15.40% (e) I am not attempting this question | ||||||||||||||||||
| Q22 | In which market does Buyer & seller not know each other? [ 1 Mark ] (a) Continuous Market (b) Negotiated Market (c) Continuous as well as negotiated (d) None of the Above (e) I am not attempting this question | ||||||||||||||||||
| Q23 | Which of the following is not the main objective of SEBI? [ 2 Marks ] (a) Protecting the interest of investors in securities market (b) Regulating the securities market (c) Promoting and developing Forex Market in India. (d) Promoting the development of securities market (e) I am not attempting this question | ||||||||||||||||||
| Q24 | ________ is also known as profitability index which measures the present value of the returns per rupee invested. [ 1 Mark ] (a) Accounting Rate of Return (b) Internal Rate of Return (c) Net Present Value (d) Benefit-Cost Ratio (e) I am not attempting this question | ||||||||||||||||||
| Q25 | Calculate the value 5 years hence of a deposit of Rs. 1,000 made today if the interest rate is 7% (compounded annually). [ 2 Marks ] (a) Rs.1,403 (b) Rs.1,350 (c) Rs.1,000 (d) Rs.1,035 (e) I am not attempting this question | ||||||||||||||||||
| Q26 | The branch manager can view all the order details for _______ in the 'Outstanding Orders' screen in the NEAT system. (A) a specific dealer under his own branch (B) all dealers under his own branch (C) the whole broking firm [ 1 Mark ] (a) (A) and (B) only (b) (A) and (C) only (c) (A), (B) and (C) (d) (B) and (C) only (e) I am not attempting this question | ||||||||||||||||||
| Q27 | Total Margin levied on a member in respect of options contracts comprises of _____. [ 1 Mark ] (a) Initial Margin + Premium Margin - Assignment Margin (b) Initial Margin + Mark to Market Settlement (c) Initial Margin + Premium Margin (d) Initial Margin + Premium Margin + Assignment Margin (e) I am not attempting this question | ||||||||||||||||||
| Q28 | Security A gives a return of 12% with a dispersion of 4%, while security B gives return of 15% with a dispersion of 5%.which security is more risky? [ 2 Marks ] (a) Security A (b) Both securities are equally risky (c) Security B (d) Neither of the securities is risky (e) I am not attempting this question | ||||||||||||||||||
| Q29 | Which of the following is NOT true about corporate securities market reforms? [ 2 Marks ] (a) Indian companies were allowed access to international capital market through issue of ADRs and GDRs.(b) Major part of the liberalisation process was the repeal of the Capital Issues (Control) Act, 1947 in May 1992.(c) Permission to access the international capital market was withdrawn. (d) To ensure effective regulation of the corporate securities market, the SEBI Act, 1992 was enacted to empower SEBI with statutory powers.(e) I am not attempting this question | ||||||||||||||||||
| Q30 | A stock currently sells at 120. The put options to sell the stock sells at Rs. 134 costs Rs. 18. What is the time value of the option? [ 2 Marks ] (a) Rs.12 (b) Rs.18 (c) Rs.4 (d) Rs.14 (e) I am not attempting this question | ||||||||||||||||||
| Q31 | The authority regulating the issue of shares by companies in the primary markets is the ________. [ 1 Mark ] (a) Reserve Bank of India (b) National Stock Exchange (c) Controller of Capital Issues (d) Securities and Exchange Board of India (e) I am not attempting this question | ||||||||||||||||||
| Q32 | A trading member is getting a message that he has violated the gross exposure limit. The gross exposure at that point of time was Rs. 1400 lakh. What is his base capital? (Assume Rs. 1400 lakh is allowable gross exposure). [ 2 Marks ] (a) Rs. 155.00 lakh (b) Rs. 181.00 lakh (c) Rs. 157.00 lakh (d) Rs. 46.00 lakh (e) I am not attempting this question | ||||||||||||||||||
| Q33 | What are securities issued at Discount & redeemed at par? [ 1 Mark ] (a) Securities with Fixed Coupon rates (b) Indexed Bonds (c) Zero-Coupon Bonds (d) Floating Rate Bonds (e) I am not attempting this question | ||||||||||||||||||
| Q34 | For what kind of results is Limited review mandatory? [ 2 Marks ] (a) Audited half-yearly (b) Audited quarterly (c) un-audited quarterly (d) un-audited half-yearly (e) I am not attempting this question | ||||||||||||||||||
| Q35 | An at-the-money option contract would generate ______upon exercise for the buyer. [ 1 Mark ] (a) negative cash flow (b) positive cash flow (c) no cash flow (d) specified amount of cash flow (e) I am not attempting this question | ||||||||||||||||||
| Q36 | The cost of debt capital is cheaper in the capital structure under________. [ 1 Mark ] (a) Net Operating Income Approach (b) Traditional Approach (c) Net Income Approach (d) Modigliani and Miller Approach (e) I am not attempting this question | ||||||||||||||||||
| Q37 | Where securities are listed on the application of any person on any recognised stock exchange, such person shall comply with the conditions of the listing agreement with __________. [ 2 Marks ] (a) that stock exchange (b) Registrar of Companies (c) Central Government (d) Securities and Exchange Board of India (e) I am not attempting this question | ||||||||||||||||||
| Q38 | Average Collection Period is given by __________. [ 1 Mark ] (a) Average Accounts Payables/Average Daily Credit Sales (b) Average Accounts Payables/Average Daily Credit Purchases (c) Average Accounts Receivables/Average Daily Credit Sales (d) Average Accounts Receivables/Average Daily Credit Purchases (e) I am not attempting this question | ||||||||||||||||||
| Q39 | The pre-issue and post-issue obligations are discharged by _______. [ 1 Mark ] (a) bankers (b) stock exchanges (c) transfer agents (d) merchant bankers (e) I am not attempting this question | ||||||||||||||||||
| Q40 | Find the spot rate uptill next coupon, using Nelson-Seigel Model when settlement date is 15th March 2003 & next coupon is 23rd September 2003, Beta 0=8, Beta 1 = -1.85, Beta 2 = -4 and Tau=15. [ 3 Marks ] (a) 5.9089 (b) 6.0576 (c) 6.1135 (d) 6.0045 (e) I am not attempting this question | ||||||||||||||||||
| Q41 | What is the present value of Rs. 4000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ] (a) Rs. 3619.34 (b) Rs. 3800 (c) Rs. 3628.11 (d) Rs. 4200 (e) I am not attempting this question | ||||||||||||||||||
| Q42 | Find the forward leg consideration for Security 11.50% 2012 for Settlement date of 25th August 2003 & Maturity date of 14th December 2012 with Market Price of Rs. 133 (Ex-Interest Price), Repo rate 8% p.a. & Repo term of 5 days. [ 3 Marks ] (a) 135.6565 (b) 135.6246 (c) 135.4163 (d) 135.5812 (e) I am not attempting this question | ||||||||||||||||||
| Q43 | Pay-in and pay-out of funds and securities are effected on the same day in the ____________. [ 1 Mark ] (a) ALBM Segment (b) Rolling Market Segment (c) Normal Market segment (d) Limited Physical Segment (e) I am not attempting this question | ||||||||||||||||||
| Q44 | Trading member Mr. Shantilal took proprietary purchase in a March 2000 contract. He bought 1500 units @Rs.1200 and sold 1200 @ Rs. 1220. The end of day settlement price was Rs. 1221. What is the outstanding position on which initial margin will be calculated? [ 2 Marks ] (a) 1200 units (b) 2700 units (c) 1500 units (d) 300 units (e) I am not attempting this question | ||||||||||||||||||
| Q45 | Which of the following is FALSE about the NEAT system? [ 2 Marks ] (a) A member punches into the computer quantities of securities and the price at which he wants to transact.(b) The transaction is executed through the mainframe computer of the exchange as soon as the order punched by the user finds a matching sale or buy order from a counter party.(c) The identity of the trading member is revealed to make the system transparent. (d) This system enables members from across the country to trade simultaneously with enormous ease and efficiency.(e) I am not attempting this question | ||||||||||||||||||
| Q46 | A call option that is out-of-the-money or at-the-money has ________. [ 1 Mark ] (a) no value (b) only intrinsic value (c) face value (d) only time value (e) I am not attempting this question | ||||||||||||||||||
| Q47 | Which of the following is a criterion for admission of a stock into S&P CNX Nifty? [ 1 Mark ] (a) Stocks where prices have gone up recently (b) Stocks where ICICI has appraised projects (c) Stocks with low impact cost (d) Stock with low P/E (e) I am not attempting this question | ||||||||||||||||||
| Q48 | NSE has set up Investor Protection Fund as a ________. [ 1 Mark ] (a) Company (b) Cooperative Society (c) Association (d) Trust (e) I am not attempting this question | ||||||||||||||||||
| Q49 | The power to withdraw recognition to a Stock Exchange vests in ______. [ 1 Mark ] (a) Parliament (b) Reserve Bank of India (c) Securities and Exchange Board of India (d) Department of Company Affairs (e) I am not attempting this question | ||||||||||||||||||
| Q50 | How much is the correlation coefficient between the companies A and B, if their covariance is 30 and their standard deviations respectively are 6 and 8? [ 2 Marks ] (a) 0.46 (b) 0.625 (c) 1.6 (d) 1 (e) I am not attempting this question | ||||||||||||||||||
| Q51 | Mr. Harsh purchased 16000 shares of MTNL Options having strike price of 120. The market lot of the shares before adjustment was 1600. After the corporate action of 1:1 bonus in MTNL, the revised details in respect of strike price, Market lot and positions would be _________. [ 2 Marks ] (a) 120, 1600, 16000 (b) 240, 800, 8000 (c) 30, 1600, 8000 (d) 60, 3200, 32000 (e) I am not attempting this question | ||||||||||||||||||
| Q52 | Spot value of Nifty is 1240. An investor buys a one-month nifty 1255 put option for a premium of Rs.17. The option is __________. [ 2 Marks ] (a) at-the-money (b) out-of-the-money (c) in-the-money (d) above-the-money (e) I am not attempting this question | ||||||||||||||||||
| Q53 | For a security B, if price at the beginning of the year is Rs.20; dividend receivable at the end of the year is Rs.0.5; and the price at the end of the year is Rs.22 then what is the rate of return on the security? [ 2 Marks ] (a) 0.095 (b) 0.125 (c) 0.045 (d) 0.135 (e) I am not attempting this question | ||||||||||||||||||
| Q54 | Which of the following is NOT true about corporate securities market reforms? [ 2 Marks ] (a) The trading cycle in the stock exchanges follow rolling settlement. (b) The practice of allocation of resources among different competing entities as well as its terms by a central authority was discontinued.(c) The secondary market overcame the geographical barriers by moving to screen based trading. (d) Counter-party risk is borne by investors. (e) I am not attempting this question | ||||||||||||||||||
| Q55 | The depositories assist NSCCL to pay-in and pay-out of _________. [ 1 Mark ] (a) securities held in demat form only (b) securities held in physical form only (c) securities held in demat as well as in physical form (d) None of the above (e) I am not attempting this question | ||||||||||||||||||
| Q56 | Mr. A purchased equity shares of XYZ Ltd. at a cost of Rs. 95000/- on 1st June 2001. He sold the same on 1st January 2003 for Rs. 98000/-. (Given: Cost inflation index FY 2001-02 = 426, FY 2002-03 = 447 and 447/426 = 1.05). Long term capital profit / loss on this transaction would be ____. [ 2 Marks ] (a) Long term capital gain Rs. 3,000/- (b) Long term capital loss Rs. 1,750/- (c) Long term capital gain Rs. 1,750/- (d) Long term capital loss Rs. 3,000/- (e) I am not attempting this question | ||||||||||||||||||
| Q57 | Which of the following is TRUE about primary markets? [ 2 Marks ] (a) Primary markets are places where only short term instruments are traded. (b) Primary markets refer to the direct solicitation of funds from the public by companies. (c) Primary markets are markets where commodities are sold. (d) Primary markets is the place where public can buy and sell securities with one another. (e) I am not attempting this question | ||||||||||||||||||
| Q58 | Premium Margin is levied at ___ level. [ 1 Mark ] (a) broker (b) trading member (c) client (d) clearing member (e) I am not attempting this question | ||||||||||||||||||
| Q59 | In the case of a GTC order, each day counted is a calendar day inclusive of ____________. [ 1 Mark ] (a) Saturdays and Sundays (b) Saturdays, Sundays and other Exchange specified holidays (c) Sundays only (d) Saturdays only (e) I am not attempting this question | ||||||||||||||||||
| Q60 | Which of the following is NOT true about a credit rating agency (CRA)? [ 2 Marks ] (a) CRA can not rate the securities issued by its promoter (b) CRA can be promoted by any company or body corporate having the networth of Rs. 100 crore in previous 3 years.(c) CRA can not rate securities issued by any borrower, subsidiary, an associate promoter of CRA if there are common Chairman, Directors or employee between CRA or its rating committee and these entities.(d) CRA has to have a minimum networth of 5 crore (e) I am not attempting this question | ||||||||||||||||||
| NCFM MODEL TEST PAPER | |||
|---|---|---|---|
| FIMMDA-NSE DEBT MARKET (BASIC) MODULE | |||
| Maximum Marks: 100 | Pass Marks: | 60 | |
| Test Duration: 120 minutes | Time Left: | 119:55 minutes | |
| Q1 | Which of the following statements is TRUE about daily volumes in the call money market? [ 1 Mark ] (a) These volumes are usually lower than the volumes in the repo markets. (b) These volumes are comparable with volumes in the ICD and CP markets. (c) They register the largest transaction value after government securities. (d) Call money markets record the highest daily transaction value amongst all segments of debt markets. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q2 | How are the market borrowings of state governments managed? [ 1 Mark ] (a) Bonds are privately placed with PDs. (b) Bonds are issued by the state governments. (c) Bonds are issued by the RBI as well as the respective state governments. (d) Bonds are issued by the RBI. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q3 | Which of the following is NOT a credit enhancement mechanism for asset backed securities? [ 1 Mark ] (a) Creation of an escrow account for repayment by principal borrowers with rights to the investor. (b) Cherry-picking of the asset portfolio of the originator. (c) Guarantees from loan originators in the event of default. (d) Enabling the servicing of payments through the originator. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q4 | If a trade is cancelled, the counter party limit in the WDM segment of NSE is _____. [ 1 Mark ] (a) not changed during the trading day (b) automatically restored when trades are cancelled (c) restored only after the counterparties notify the exchange of the same (d) restored only when transactions are settled (e) I am not attempting this question | ||||||||||||||||||||||||
| Q5 | Which segment of the debt markets has highest market capitalisation? [ 1 Mark ] (a) Call money markets (b) Government bonds (c) PSU bonds (d) Corporate bonds (e) I am not attempting this question | ||||||||||||||||||||||||
| Q6 | To arrive at the average MIBOR/MIBID rates, NSE uses _______. [ 1 Mark ] (a) weighted trimmed mean adjusted for standard deviation (b) simple mean trimmed arrived at by bootstrapping (c) simple trimmed mean (d) adaptive trimmed mean (e) I am not attempting this question | ||||||||||||||||||||||||
| Q7 | If the yield changes by 15 basis points, the value of the portfolio (given in the following table) can be expected to change by _________.
[ 4 Marks ] (a) Rs. 678816.90 (b) Rs. 680916.90 (c) Rs. 677616.90 (d) Rs. 678866.90 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q8 | The repo auction conducted by the RBI on a daily basis is known as _______. [ 1 Mark ] (a) money market intervention (b) open market operations (c) liquidity adjustment facility (d) tri-partite repos (e) I am not attempting this question | ||||||||||||||||||||||||
| Q9 | The company sends the debenture certificate/ credits the depository account in case of all allottees in a corporate debenture issue within _______. [ 1 Mark ] (a) 30 days from the date of closure of the issue (b) 3 months from the closure of the issue (c) 30 days from the deemed date of allotment (d) 3 months from the deemed date of allotment (e) I am not attempting this question | ||||||||||||||||||||||||
| Q10 | Which of the following factors does NOT directly affect call rates? [ 1 Mark ] (a) Capital inflows and exchange rate situation (b) Outcome of treasury bill auctions (c) Rates of growth in bank deposits (d) Seasonal fluctuations in credit off take (e) I am not attempting this question | ||||||||||||||||||||||||
| Q11 | Which of the following is FALSE? [ 1 Mark ] (a) FIIs cannot invest more than 30% of their funds in Dated Government Securities and Treasury Bills. (b) RBI cannot buy or sell securities in the secondary markets. (c) PDs cannot issue CPs. (d) Provident funds cannot invest in call money markets. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q12 | If the YTMs of 2 bonds with tenors of 4.850 years and 7.842 years are 8.9202% and 9.1699% respectively, what is the YTM (%) of a bond with a tenor of 5.748 years? (Hint: Use linear interpolation). [ 2 Marks ] (a) 9.0251 (b) 8.9951 (c) 8.9551 (d) 9.1451 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q13 | If interest rates fall, which of the following will hold good? [ 1 Mark ] (a) The total return to the investor will change depending on the investor's investment horizon. (b) The total return to the investor will increase because there would be capital gains on the bond. (c) The total return to the investor will decrease because reinvestment income will become lower. (d) The total return to the investor will remain unchanged as long as coupons are not defaulting and are the largest component of total return. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q14 | What is the maximum brokerage that can be charged by an NSE trading member for a deal in government securities for Rs. 20 million? [ 2 Marks ] (a) Rs. 30,000 (b) Rs. 22,000 (c) Rs. 20,000 (d) Rs. 25,000 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q15 | In the case of securities held in SGL form, which of the following statements is FALSE? [ 2 Marks ] (a) The transferor is deemed to be the holder of the security, until the transferee is registered by the PDO. (b) Transfer is effected using RBI prescribed instruments of transfer. (c) The transfer can be for whole or part of the stock of securities. (d) Transfers are effected by execution of the SGL form III by the seller of the securities. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q16 | Which of the following statements is FALSE? [ 1 Mark ] (a) Non-competitive bids are always deducted from the notified amount of Treasury Bills auction. (b) Non-competitive bids are allotted at the weighted average price of winning bids. (c) Provident funds can submit non-competitive bids at treasury auctions. (d) FIIs can submit non-competitive bids in treasury auctions. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q17 | If the NSE-ZCYC interest rate for 10.5095 years is 9.6150%, what is the discounted value of Rs.100 receivable at the end of that period? [ 2 Marks ] (a) Rs. 36.42413 (b) Rs. 36.33913 (c) Rs. 36.40411 (d) Rs. 36.32913 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q18 | The Clearing Corporation of India Ltd. will settle transactions in ____. [ 1 Mark ] (a) long term government debt (b) money and Forex markets (c) money, government securities and Forex markets (d) money market instruments and government securities (e) I am not attempting this question | ||||||||||||||||||||||||
| Q19 | How is a bond marked to market using a simple yield curve? [ 2 Marks ] (a) The YTM that corresponds with the duration of the bond is used to value the cash flows of the bond. (b) The YTM that corresponds with the average tenor of the cash flows of the bond are used to value the bond. (c) The YTM that corresponds with the tenor of the bond is used to value the cash flows of the bond. (d) The rates that correspond to each cash flow of the bond are read from the yield curve, and used to value the bond. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q20 | Duration of the bond index is computed as _______. [ 1 Mark ] (a) duration of all bonds included in the index, weighted by the number of each bond held (b) simple average of the duration of all bonds included in the index (c) market capitalisation weighted duration of all bonds in the index (d) price-weighted duration of all bonds included in the index (e) I am not attempting this question | ||||||||||||||||||||||||
| Q21 | Which of the following statements is TRUE about the NSE MIBOR polling process? [ 2 Marks ] (a) NSE disseminates information about the rates and participants, but not the amount associated with each quote. (b) NSE does not reveal the identity of the participants, but discloses the rates of each participant. (c) NSE keeps both participant identity and polled rate confidential. (d) NSE disseminates information on rates quoted by each participant and the amounts associated with those rates. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q22 | A 13.82% GOI security maturing on 30-May-2002 is trading at a YTM of 6.9545% on 10-Jul-2001. The price of the security is ______. [ 2 Marks ] (a) Rs 105.82 (b) Rs 105.80 (c) Rs 105.78 (d) Rs 105.83 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q23 | A CP maturing on September 26, 2001 was issued on June 28, 2001 at a price of Rs.97.05. What is the cut-off yield (%)? [ 2 Marks ] (a) 12.1276 (b) 12.8276 (c) 12.5276 (d) 12.3276 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q24 | A 10.25% GOI security, maturing on 29-May-2021 is trading on 2-Jul-2001 at a YTM of 9.8944%. How much interest has accrued on the security? [ 2 Marks ] (a) Rs. 0.9396 (b) Rs. 0.9344 (c) Rs. 0.9448 (d) Rs. 0.9293 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q25 | When can a company withdraw funds from the debenture redemption reserve account? [ 2 Marks ] (a) The redemption reserve is equal to the redemption amount. (b) At least 50% of the debentures outstanding have been redeemed. (c) Companies cannot withdraw funds from the debenture redemption reserve account. (d) At least 10% of the debentures outstanding have been redeemed. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q26 | Which of the following statements is FALSE? [ 1 Mark ] (a) The lower the YTM of a bond, the lower its duration. (b) The higher the YTM of a bond, the lower its duration. (c) The higher the tenor of a bond, the higher its duration. (d) The lower the coupon of a bond, the higher its duration. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q27 | Which of the following about the relationship between price and yield is FALSE? [ 2 Marks ] (a) The relationship between prices and yields is non-linear. (b) Rise in bond prices for a fall in yields is mostly steeper than fall in bond prices for a rise in yields. (c) Prices and yields of a bond are inversely related. (d) The fall in bond yields for a rise in price is lower than the rise in bond yields for a fall in price. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q28 | PV01 of a bond represents ____________. [ 1 Mark ] (a) the percentage change in value of the bond, for a 1bp change in yield (b) the change in rupee value of the bond for a 1bp change in yield (c) the change in duration of the bond for a 1 basis point change in yield (d) the change in modified duration of the bond for a 1 basis point change in yield (e) I am not attempting this question | ||||||||||||||||||||||||
| Q29 | In order for a mutual fund scheme to be listed for trading on the WDM segment of NSE, ________. [ 1 Mark ] (a) the scheme should invest atleast 50% of NAV in debt instruments (b) the scheme has to publish daily NAVs (c) the investment objective of the scheme should be to invest pre-dominantly in debt securities. (d) the scheme has to be held by atleast 50 investors (e) I am not attempting this question | ||||||||||||||||||||||||
| Q30 | The following are the parameters of the NSE-ZCYC. beta0 = 11.1462 beta1 = (-)2.0187 beta2 = (-)8.9666 tau = 1.3540 What is the interest rate (%) corresponding to a tenor of 0.4986 years, using the above ZCYC? [ 3 Marks ] (a) 8.1649 (b) 8.1839 (c) 8.1610 (d) 8.1189 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q31 | Which of the following statements about the ZCYC is TRUE? [ 1 Mark ] (a) The ZCYC estimates the yield associated with bonds whose duration is equal to the tenor of a corresponding zero coupon bond. (b) The ZCYC cannot be estimated in market where only coupon paying bonds are traded. (c) The ZCYC is the estimated theoretical spot rate curve underlying coupon-paying bonds. (d) The ZCYC is the YTM of all traded zero coupon bonds in the market. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q32 | Which of the following about mandates to debt market brokers is FALSE? [ 1 Mark ] (a) Mandates are usually valid for 15 minutes, unless otherwise specified. (b) If the counter-party is firm to the deal at the mandate price, the broker shall reveal the name of the party offering the mandate. (c) Mandates cannot be renewed at the same terms after expiry of the validity period. (d) Brokers have to check for the currency of the mandate from time to time after the initial validity period expires. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q33 | The following bids are received in a treasury bond auction. The notified amount is Rs. 20,000 million. No amount devolves on the RBI/PDs.
What is the cut-off price in the auction? [ 3 Marks ] (a) Rs. 110.1900 (b) Rs. 110.1950 (c) Rs. 110.1925 (d) Rs. 110.1875 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q34 | Which of the following statements is TRUE? [ 1 Mark ] (a) A Daily market- to- market based margin has to be paid on FRA's (b) FRA's are OTC contracts (c) FRA's cannot be cash-settled (d) Swaps are traded on an exchange (e) I am not attempting this question | ||||||||||||||||||||||||
| Q35 | Primary dealers are NOT directly involved in _______. [ 1 Mark ] (a) creating an effective conduit for open market operations (b) enabling wider holding of government securities (c) extending market support to retail investors in debt market (d) underwriting and market making in government securities (e) I am not attempting this question | ||||||||||||||||||||||||
| Q36 | On value date 27/07/2001, the term to maturity of a GOI bond maturing on 28/07/2006 is _____ year. [ 2 Marks ] (a) 5.075 (b) 5.003 (c) 5.002 (d) 5.005 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q37 | Which of the following is a NOT a use of interest rate derivatives? [ 2 Marks ] (a) They can be used to avail of arbitrage opportunities that may exist in the market. (b) They can be used to speculate on future interest rates. (c) They can be used to separate funding/ liquidity decisions from interest rate sensitivity decisions. (d) They can be used to hedge credit risk. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q38 | An investing institution has paid some amount as application money in a privately placed corporate debenture issue. They will receive interest on the application money at ________. [ 2 Marks ] (a) money market rates until the deemed date of allotment (b) 15% (c) the coupon rate applicable to the debenture for the period until the deemed date of allotment (d) the MIBOR rate for the period until the deemed date of allotment (e) I am not attempting this question | ||||||||||||||||||||||||
| Q39 | A 11.43% GOI security, maturing on 7-Apr-2015, trades on 28-Feb-2001. The next coupon payment is due on _______. [ 2 Marks ] (a) 04-Apr-2001 (b) 06-Apr-2001 (c) 05-Apr-2001 (d) 07-Apr-2001 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q40 | SEBI does NOT regulate _______. [ 1 Mark ] (a) debentures issues by PSUs (b) corporate debentures with less than 18 months to maturity (c) Commercial Paper and Certificate of Deposit (d) public issue of floating rate debentures (e) I am not attempting this question | ||||||||||||||||||||||||
| Q41 | Which of the following statements is TRUE? [ 1 Mark ] (a) State Government funding for fiscal deficit can only be done through market borrowings. (b) State Government funding for fiscal deficit can only be done through loans from Central Government (c) State Government funding for fiscal deficit through loans from the Central Government has fallen over the years (d) None of the above (e) I am not attempting this question | ||||||||||||||||||||||||
| Q42 | What is the PV01 of the following holding? Coupon rate: 10.47% Maturity date: 12-Feb-2015 YTM: 9.6524% Settlement date: 7-Jul-2001 Size of holding: 2250 G-secs [ 2 Marks ] (a) Rs. 169.1489 (b) Rs. 169.1316 (c) Rs. 169.0767 (d) Rs. 169.1554 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q43 | SBI enters into the following repo transaction: Security: 11.99% GOI security maturing on 7-Apr-2009 Days in the repo period: 4 Settlement date: 13-Oct-2001 Face value of the transaction: Rs. 3,550,000 Market Price of the security: Rs. 116.25 Repo rate: 7.75% How much does SBI pay on the second leg of the transaction? [ 3 Marks ] (a) Rs. 4,123,055 (b) Rs. 4,161,755 (c) Rs. 4,173,755 (d) Rs. 4,137,480 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q44 | Which of the following statements about CP issuance is FALSE? [ 1 Mark ] (a) CPs cannot be rolled over. (b) The issuing and paying agent will have to be a scheduled bank. (c) CP issues cannot be underwritten. (d) CPs cannot be issued by primary dealers. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q45 | Settlement date for a repo transaction on the WDM segment of NSE is after specified number of _________. [ 2 Marks ] (a) calendar days for the ready and forward legs of the transaction (b) calendar days for the ready leg and working days for the forward leg of the transaction (c) Working days for the ready leg and calendar days for the forward leg of the transaction (d) Working days for the ready and forward legs of the transaction (e) I am not attempting this question | ||||||||||||||||||||||||
| Q46 | Which of the following statements is TRUE for a normal overnight-indexed interest rate swap? [ 1 Mark ] (a) The fixed leg gets compounded daily. (b) The floating leg gets compounded daily at the overnight rate. (c) Floating rate can be set weekly. (d) The exchange of interest payments has to take place daily. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q47 | Consider a 6 month OIS: Notional Principal = Rs. 200 Fixed Rate = 7.5% Floating Rate = NSE Overnight MIBOR Under the structure of the swap, the Fixed Rate is a nominal rate MIBOR is compounded daily (on holidays, the previous MIBOR is taken) Consider 182 days in the period of the swap, 365 days in a year MIBOR remains constant for the entire period at 6.90% What is the amount to be exchanged at the end? [ 3 Marks ] (a) Rs. 0.479 (b) Rs. 0.858 (c) Rs. 0.191 (d) Rs. 0.600 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q48 | Which of the following is FALSE? [ 2 Marks ] (a) The company has to file the details of the charge with the Registrar of Companies. (b) A charge can be enforced only if it is registered with the Registrar of the Companies. (c) If no charge is created, such borrowings will be treated as "deposits" under Companies (Acceptance of Deposits) Rules, 1975. (d) No charge is required to be created for debentures with maturity less than 18 months. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q49 | The average trade size at NSE-WDM segment is approximately Rs. ___ crore. [ 2 Marks ] (a) 12 (b) 10 (c) 6 (d) 2 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q50 | How are the securities, used as collateral in a repo transaction, valued? [ 1 Mark ] (a) The value of the collateral is the clean price of the security, adjusted for a 'haircut.' (b) The value of the collateral is calculated by discounting the cash flows at the YTM of a comparable bond. (c) The value of the collateral is equal to the market value of the securities. (d) The value of the collateral is the dirty price of the security, less margin. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q51 | You have sold the following GOI bond: Coupon Rate: 11.68% Maturity Date: April 10, 2006 Settlement Date: October 9, 2001 Price: Rs. 115.7625 Transaction amount: Rs. 97,700,000 How much do you receive on settlement? [ 3 Marks ] (a) Rs. 118,798,944 (b) Rs. 118,783,944 (c) Rs. 118,748,944 (d) Rs. 118,773,944 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q52 | A treasury bill maturing on 30-Jul-2001 has a market price of Rs. 99.4881 on 3-Jul-2001. What is the discount rate (%) inherent in this price? [ 2 Marks ] (a) 7.2057 (b) 6.9557 (c) 7.0557 (d) 6.7057 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q53 | A dealer purchased on April 12, 2000 a 11.50% GOI bond maturing on 24-Nov-2011 for Rs. 115.03. He held it for 1 year, and sold it on 11-April-2001 for Rs. 110.78. He reinvested the coupons received during the holding period (first coupon @8.1355% and the second coupon @6.6475%). What is the realised yield (%) from the investment? [ 3 Marks ] (a) 7.1360 (b) 6.7871 (c) 6.4860 (d) 7.0860 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q54 | What is the duration (years) of the following GOI bond: Coupon rate: 12.50% Maturity date: 23-Mar-2004 YTM: 7.8384% Settlement date: 10-Jul-2001 [ 2 Marks ] (a) 2.321 (b) 2.295 (c) 2.329 (d) 2.324 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q55 | The following bids are received in a treasury bond auction. The notified amount is Rs. 20,000 million. No amount devolves on the RBI/PDs.
At what price will non-competitive bidders receive allotments? [ 3 Marks ] (a) Rs. 110.1980 (b) Rs. 110.1938 (c) Rs. 110.1925 (d) Rs. 110.1975 (e) I am not attempting this question | ||||||||||||||||||||||||
| Q56 | Who are currently the largest holders of T-bills? [ 1 Mark ] (a) Banks (b) Provident Funds (c) Mutual Funds (d) Primary Dealers (e) I am not attempting this question | ||||||||||||||||||||||||
| Q57 | In relation to documentation of a deal in the debt markets, which of the following statements is FALSE? [ 2 Marks ] (a) Documentation is evidence of the deal, and should not override the terms agreed upon orally. (b) A dealer cannot, under any circumstance, specify that a deal is subject to documentation. (c) A market transaction is usually confirmed orally, and the practice is not to finalise a deal subject to documentation. (d) Making a transaction subject to documentation is not considered good market practice. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q58 | _______ of outright transactions in G-secs is reported on the WDM segment of NSE. [ 1 Mark ] (a) Almost 90% (b) Over 80% (c) About 65% (d) Less than 50% (e) I am not attempting this question | ||||||||||||||||||||||||
| Q59 | Which one of the following conditions an offsetting swap, for a normal fixed-floating interest rate swap, does not have to satisfy? [ 1 Mark ] (a) Floating leg benchmark should be the same. (b) Notional Principal should be the same. (c) Fixed Rate has to be the same. (d) Interest exchange dates have to be the same. (e) I am not attempting this question | ||||||||||||||||||||||||
| Q60 | A trading member on the WDM segment of NSE sets up a counter party limit of Rs. 350 lakh against counter-party and utilises Rs. 300 lakh on a given day which is still outstanding in current asset limit. The next day, he modifies the CP limit to Rs. 250 lakh. Which of the following will hold good? [ 2 Marks ] (a) The counterparty has to be notified about the reduction in the CP limit. (b) The CP limits cannot be modified to a level lower than amounts in current asset limit. (c) The earlier transaction will remain in the system as utilised CP limit until those trades are settled; the new CP limit will apply for fresh trades. (d) The new CP limit will result in the counterparty cancelling or reversing that amount of transaction that exceeds the new CP limit. (e) I am not attempting this question | ||||||||||||||||||||||||
| NCFM MODEL TEST PAPER | |||
|---|---|---|---|
| SURVEILLANCE IN STOCK EXCHANGES MODULE | |||
| Maximum Marks: 100 | Pass Marks: | 60 | |
| Test Duration: 120 minutes | Time Left: | 119:53 minutes | |
| Q1 | As per the Securities Contracts (Regulation) Rules, 1957, every member of a recognized stock exchange shall maintain and preserve the Members' contract books showing details of all contracts entered into by him or counterfoils or duplicates of memos of confirmation issued to other members for a period of _____ years. [ 2 Marks ] (a) 1 (b) 5 (c) 2 (d) 7 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q2 | Suppose your annual savings are Rs. 30,000. You opt for pension fund that offers compounded interest rate of 10% annually. How much will your PF account have after 25 years if you are contributing your savings to the PF at the end of every year? [ 2 Marks ] (a) 32,50,412 (b) 29,50,412 (c) 2,95,041 (d) 3,25,041 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q3 | SEBI Act, 1992 was enacted to establish SEBI with statutory powers for: [ 2 Marks ] (a) Protecting the interests of investors in securities. (b) Promoting the development of the securities market. (c) Regulating the securities market. (d) All of the Above. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4 | What is the purpose of Market Surveillance? [ 1 Mark ] (a) To ensure Fair and efficient market. (b) To curb liquidity. (c) To delist non-compliant companies. (d) Both (a) and (b). (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q5 | The standard deviation of 2 securities A and B are 10% and 25% and their correlation coefficient is 0.2. What is the portfolio risk, if the investment in A is 25% and in B is 75%? [ 2 Marks ] (a) 3.90% (b) 19.41% (c) 7.10% (d) 1.10% (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q6 | The compliance officer shall immediately and independently report to SEBI about __________, under the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992. [ 2 Marks ] (a) Audit observation (b) Any non-compliance observed by him (c) Client details (d) Investment advice rendered by a broker (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q7 | IMSS stands for ________. [ 2 Marks ] (a) Integrated Market Security System (b) International Market Security Surveillance (c) International Market Surveillance System (d) Integrated Market Surveillance System (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q8 | Derivative includes: (A) A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. (B) A contract which derives its value from the prices, or index or prices, of underlying securities. [ 2 Marks ] (a) Only A (b) Only B (c) Both A and B (d) Neither A nor B (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q9 | When are the trading members expected to upload the Unique Client code details of F&O Clients? [ 2 Marks ] (a) Before executing the trade or latest on same day. (b) Before the 7th working day of the month following the day of trade. (c) Before the 7th day of the month following the day of trade. (d) None of the above. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q10 | A trading member has two clients with the following MTM positions.
(a) -6300 (b) -3300 (c) -3000 (d) 300 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q11 | Book building is a process of __________. [ 2 Marks ] (a) A company raising capital without diluting stake of its existing shareholders (b) Offering securities to public for subscription for the purpose of raising capital or fund. (c) Offering company's shares to a select set of people (d) Offering securities in which bids at various prices from investors through syndicate members are collected (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q12 | Which of the following is NOT true about SEBI? [ 2 Marks ] (a) It can specify the matters to be disclosed and the standards of disclosure required for the protection of investors in respect of issues. (b) Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities. (c) It determines the premium/discounts at which securities are to be issued. (d) Its regulatory jurisdiction extends over all intermediaries and persons associated with the securities market. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q13 | What is the present value of Rs. 6000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ] (a) Rs. 5700 (b) Rs. 5429.02 (c) Rs. 6000 (d) Rs. 6300 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q14 | Which of the following is NOT price sensitive information? [ 2 Marks ] (a) Investors' education and training of intermediaries of securities markets. (b) Major expansion plans or execution of new projects. (c) Disposal of the whole or substantial part of the undertaking. (d) Published periodical financial results of the company. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q15 | A trading member has four clients with the following positions.
(a) 3259; 2356; 2611; 7425 (b) -6734; -6816; -5720; -4894 (c) -3259; -2356; -2611; -7425 (d) 9993; 9172; 8331; 12319 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q16 | Under which of the following conditions, can SEBI reject issuance of registration certificate to a stock-broker? [ 2 Marks ] (a) If the stock broker does not have any past experience in the business of buying, selling or dealing in securities. (b) If the stock broker is not a fit and proper person. (c) If the stock broker does not have the necessary infrastructure to effectively discharge his activities. (d) All of the above. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q17 | Security A gives a return of 12% with a dispersion of 4%, while security B gives return of 15% with a dispersion of 5%. Which security is more risky? [ 2 Marks ] (a) Security B (b) Both securities are equally risky (c) Neither of the securities is risky (d) Security A (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q18 | Calculate Beta of security-X, given the Covariance between return on Security-X and the return on Market portfolio as 67 and the Variance of return on the market portfolio as 108.5. [ 1 Mark ] (a) 0.62 (b) 0.63 (c) 1.62 (d) 0.72 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q19 | What is the correct fine structure for delay in uploading UCI details for F&O client? [ 2 Marks ] (a) Rs.100 per client code subject to a minimum of Rs.1000 per week. (b) Rs.100 per client code subject to a minimum of Rs.100 per week. (c) Rs.10 per client code per day subject to Rs.100 per week (d) Rs.1000 per client code per day of delay (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q20 | A trading member has three clients with the following positions.
(a) 800; 1500; 1595; 2695 (b) -500; -1250; -870; -1900 (c) 300; 250; 725; 795 (d) -300; -250; -725; -795 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q21 | From the following information of a firm, determine earnings per share: Net profit available to equity holders = Rs.50 lakh Equity share capital = Rs.10 lakh Face value of an equity share = Rs. 10 [ 1 Mark ] (a) Rs.5.00 (b) Rs.50.00 (c) Rs.10.00 (d) Rs.2.00 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q22 | China Valley Pvt. Ltd. a Group I security, the scrip-wise daily VaR would be _____ times the volatility of the scrip, subject to a minimum of _____%. [ 2 Marks ] (a) 3; 7 (b) 7; 3.5 (c) 3.5; 7.5 (d) 7.5; 3.5 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q23 | Trade details for a security trading under the band of 10% are as follows, High price=55, Low price=45.45, Previous Close=50, Close price=55. Which of the following type of price band(s) it has touched during the trading day? [ 2 Marks ] (a) Upper band (b) Lower Band (c) Upper band as well as lower band (d) None of the above (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q24 | Price to Earnings Ratio is given by __________. [ 1 Mark ] (a) Face value of share / Dividend per share. (b) Face value of share / Earning per share. (c) Market value of share / Dividend per share. (d) Market price of a share / Earning per share. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q25 | Suppose the index based circuit breaker was triggered at 2000 points, then its second circuit breaker will reach at ________. (Previous day close of nifty was 1800) [ 2 Marks ] (a) 2070 (b) 2100 (c) 2200 (d) 2530 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q26 | As per the Securities Contracts (Regulation) Rules, 1957, every member of a recognized stock exchange shall maintain and preserve the counterfoils or duplicates of contract notes issued to clients for a period of _____ years. [ 2 Marks ] (a) 1 (b) 7 (c) 2 (d) 5 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q27 | While evaluating a project, a project should be accepted if _______. [ 1 Mark ] (a) The benefit cost ratio is zero (b) The net present value of the project is zero (c) The net present value of the project is positive (d) The benefit cost ratio is less than one (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q28 | Securities which have traded for less than 80% of the days and having Impact Cost more than 1 shall be categorized in VaR Group _____. [ 2 Marks ] (a) III (b) I (c) II (d) No Group (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q29 | Which of the following is not a case of market abuse? [ 2 Marks ] (a) Trading on the basis of published corporate information. (b) Dissemination of false or misleading market information through rumors. (c) Front running. (d) Trading on the basis of un-published price sensitive information. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q30 | What price band is applicable for scrips trading in the derivatives segment? [ 2 Marks ] (a) No band (b) 10% (c) 20% (d) 5% (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q31 | Register of transactions (Sauda Book) shall be preserved for a period of _____ years by the stock broker as per the Securities Contracts (Regulation) Rules, 1957. [ 2 Marks ] (a) 6 (b) 5 (c) 7 (d) 10 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q32 | Stock price of XYZ Ltd. is trading at Rs.115. The firm is expected to declare dividend of Rs.3.5 per share and is expected to grow at rate of 12.5 per cent per year. What is the cost of equity under dividend growth model? [ 2 Marks ] (a) 12.50% (b) 17.50% (c) 3.20% (d) 15.50% (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q33 | Marketwide circuit breakers are applied _____________. [ 2 Marks ] (a) To provide for a cooling-off period giving buyers and sellers time to assimilate information (b) To avoid the prices of securities from falling further (c) To allow buyers and sellers to take stock of the losses made by them (d) To avoid the prices of securities from rising further (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q34 | For a Client trading in F&O segment, the trading member is compulsorily required to upload which of the following details of the client? [ 2 Marks ] (a) Ration Card (b) Voter id (c) MAPIN (d) PAN (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q35 | Assume security A with a beta of 1.1 is being considered at a time when risk free rate of return is 5% and market return is expected to be 14%. What is the required rate of return according to Capital Asset Pricing Model? [ 2 Marks ] (a) 14.9 (b) 16.9 (c) 18.9 (d) 21.9 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q36 | In case of 75% book building option adopted by an issuer company which of the following holds good? [ 2 Marks ] (a) Not less than 10% of the net offer to the public should be available for allocation to non Qualified Institutional Buyers and not more than 50% of net offer to the public should be available for allocation to Qualified Institutional Buyers. (b) Not less than 25% of the net offer to the public should be available for allocation to non Qualified Institutional Buyers and not more than 50% of net offer to the public should be available for allocation to Qualified Institutional Buyers. (c) Not less than 25% of the net offer to the public should be available for allocation to Qualified Institutional Buyers and not more than 50% of net offer to the public should be available for allocation to non Qualified Institutional Buyers. (d) Not less than 50% of the net offer to the public should be available for allocation to non Qualified Institutional Buyers and not more than 75% of net offer to the public should be available for allocation to Qualified Institutional Buyers. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q37 | 'Documents register showing full particulars of shares and securities received and delivered' shall be preserved for a period of _____ years by the stock broker as per the Securities Contracts (Regulation) Rules, 1957. [ 2 Marks ] (a) 7 (b) 6 (c) 10 (d) 5 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q38 | Every recognized stock exchange furnishes a copy of the annual report, as per the Securities Contracts (Regulation) Act, 1956 to ______________. [ 2 Marks ] (a) Securities and Exchange Board of India (b) Registrar of Companies (c) Securities Appellate Tribunal (d) Company Law Board (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q39 | Which of the following is NOT included in the code of conduct for stock-broker holding a certificate? [ 2 Marks ] (a) Exercise of Due Skill and Care. (b) Integrity in conduct of business. (c) Manipulative transactions. (d) Advertisement and Publicity. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q40 | MS Pvt. Ltd. Group III scrip has a scrip VaR of 9 and the Index VaR is 7. The VaR rate applicable for the scrip would be____%. [ 2 Marks ] (a) 67.66 (b) 60.62 (c) 54.56 (d) 77.65 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q41 | A trading member has two clients with the following positions.
(a) 22500; 13278; 5139; 5276 (b) -22178; -5098; 5098; -4706 (c) 322; 8180; 41; 570 (d) -322; -8180; -41; -570 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q42 | Following is accepted towards cash component of members additional capital: [ 2 Marks ] (a) NSC certificates (b) Equity mutual funds (c) Government securities (d) Gold (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q43 | A trading member has two clients with the following positions.
(a) 300; 950 (b) -300; -950 (c) 4100; 18050 (d) -3800; -18000 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q44 | What is the average cost of capital of XYZ Ltd.? If the cost of capital from each source such as debt, preferred stock and equity is 8%, 18% and 30% respectively and being financed with 30% from debt, 30% from preferred stock and 40% from the equity. [ 2 Marks ] (a) 17% (b) 18.40% (c) 19.80% (d) 22% (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q45 | Which of the following is NOT the function of Securities Appellate Tribunal? [ 2 Marks ] (a) Receiving evidence on affidavits. (b) Calling for information from intermediaries and self-regulatory organizations in the securities market. (c) Summoning and enforcing the attendance of any person and examining him on oath. (d) Dismissing an application for default. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q46 | The stock returns of the Company ABC Ltd. for past 5 years are 5%, 10%, 25%, 45%, and 40%. What is the standard Deviation of the returns for the Company ABC Ltd.? [ 2 Marks ] (a) Insufficient data to calculate Std Deviation (b) 250 (c) 35.36 (d) 15.81 (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q47 | A security in Trade for Trade segment must be settled on ________. [ 2 Marks ] (a) At the discretion of the clearing corporation (b) Net Basis (c) Gross basis (d) At the discretion of the clearing member (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q48 | The index based circuit filters are applicable at the following stages of index movement: [ 2 Marks ] (a) 5%, 10%, 20% (b) 10%, 20%, 30% (c) 10%, 15%, 20% (d) 2%,5%,10% (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q49 | Alerts for the Preliminary analysis and Investigation process are received from _________. [ 2 Marks ] (a) The surveillance group. (b) Regulatory bodies. (c) Investors/members. (d) All of the above. (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q50 | Which VaR group securities are accepted as collaterals by NSCCL? [ 2 Marks ] (a) Group I (b) Group II (c) Group III (d) All Group (e) I am not attempting the question | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 comment:
Thank you for your feedback. We're glad you enjoyed the post. Feel free to share it with others you think may benefit from this information.
Nifty Trading
Post a Comment