___________ assumes the counterparty risk of each member and guarantees financial settlement.
1.SEBI
2.Central Depository Services Ltd. (CDSL)
3.The National Depository Services Ltd. (NSDL)
4.The National Securities Clearing Corporation Ltd. (NSCCL)
100 shares of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, the settlement should take place on _____ _?
1. Wednesday (T+2)
2.Tuesday (T+1)
3.Thursday (T+3)
4.Friday (T+4)
For liquid securities, the VaR margins are based on the ________ of the Security.
1.volatility
2.returns
3.liquidity
4.exposure limit
If a client buys shares worth Rs. 5,25,000 and sells shares worth Rs. 4,75,000 through a broker, then the maximum brokerage payable to the broker is ___.
1.Rs. 25,000
2. Rs. 15,000
3. Rs. 10,000
4.Rs. 20,000
Institutional transactions are identified by the use of the ________ at the time of order entry.
1.user code
2.user id
3.participant code
4.client id
Penalties are charged to members for _____________
1.failure to fulfill their fund’s obligations
2.failure to fulfill their securities deliverable obligations
3.Margin Shortages
4.All of the above
The orders with ______ attribute disclose only a part of the total order quantity to the market.
1.Immediate or Cancel (IOC)
2.Stop Loss (SL)
3.Disclosed Quantity (DQ)
4.None of the above
What does ‘OM’ indicate as an activity in the ‘Activity Log’ screen in the NEAT system?
1.Order Matched
2.Order Cancelled
3.Trade Modified
4.Order Modified
Which of the following do not issue securities in the primary market?
1.FIIs
2.State Governments
3.Companies
4.None of the above
A preliminary prospectus is known as a
1.golden parachute.
2.red herring.
3.blue sky.
4.green shoe.
A trading member on the NSE has a branch order value of Rs. 950 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. 300 lakh and Rs. 400 lakh respectively. Delhi branch has one user ‘Z’ with user order value limit of Rs. 550 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?
1. Rs. 100 lakh
2.Any amount, as there is no restriction on User Order Value
3.Rs. 250 lakh
4.Rs. 150 lakh
A trading member on the NSE has set the branch order value unlimited for his Chennai branch and Rs. 800 lakh for Kolkata branch. Chennai branch has two users ‘X’ and ‘Y’ with user order limits of Rs. 550 lakh and Rs. 500 lakh respectively. Kolkata branch has one user ‘Z’ with the user order value limit of Rs. 550 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?
1.Not more than Rs. 950 lakh
2.Zero
3.unlimited
4.Rs. 250 lakh
A trading member shall be deemed guilty of misconduct if he fails to _______
1.submit its audited accounts to the Exchange
2. pay its subscription, fees, arbitration charges or any other money which may be due to the exchange
3.to submit or makes any false or misleading statement in its clearing forms
4.All of the above
A trading member shall be deemed guilty of un-businesslike conduct for any of the following or similar acts or omissions namely:
1. if it transacts its own business or the business of its constituent in fictitious names
2. If it makes a fictitious transaction
3. If it makes a fictitious transaction
4.all of the above
At the end of the trade cycle, the trades are _______ to determine the obligations of the trading members to deliver securities/funds as per the settlement schedule.
1.grossed
2.aggregated
3.netted
4.offset
Auction is held in PQR for 10,000 shares. The closing price of PQR on that day was Rs.259.00 The last traded price of PQR on that day was Rs.254.0 The close price of PQR last Friday was Rs.255.00 The previous day’s close price of PQR was Rs.264.00 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% )
1.Rs. 316.80
2.Rs. 390.65
3. Rs. 364
4.Rs. 394
Fixed Deposit Receipts (FDRs) issued by approved banks can be submitted as a(n) ___________ to NSCCL by trading members.
1.surety
2.indemnity
3.warranty
4.additional base capital
If a client buys shares worth Rs. 1,00,000 and sells shares worth Rs. 1,00,000 through a stock-broker, then the maximum brokerage payable is _______.
1. Rs. 4,000
2.Rs. 5,000
3.Rs. 2,000
4.Rs. 6,000
In case the security has not been traded on a particular day, ________ at the NSE is to be considered as the closing price.?
1.the average closing price for the last one week
2. the theoretical closing price
3. the latest available closing price
4.none of the above
In NSCCL, a _______ is a clearing member but not a trading member.
1.self-clearing member
2.participant
3.broker
4.custodian
Letter stock is
1.a handwritten certificate representing a corporate IOU.
2.a mass mailing offering a security for sale.
3. securities issued by the United States Postal Service.
4. privately placed common stock that cannot be immediately resold to the general public.
Mr. Desai has decided to deposit Rs. 200,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 8% how much would his deposit grow up to in 2 years?
1. 434,141.15
2.413,502.54
3.485,123.70
4.433,820.81
Mr. Shah has decided to deposit Rs. 300,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 12% how much would his deposit grow up to in 3 years?
1.1,234,146.15
2.1,113,502.54
3.1,085,123.70
4.1,083,467.63
No payment for transaction in which a Trading Member is taking a position as a principal will be allowed to be made from the client’s account?
1.True, unless his clients approve the payment
2.True
3.True, only if his clients are making payments on time
4.False
NSCCL becomes the legal counterparty to the net settlement obligations of every member. This principle is called ______.
1.notation’
2.settlement fulfillment’
3.novation
4.‘obligation guarantee’
NSE has implemented ______________ in compulsory rolling settlement with effect from July 02, 2001 .
1.securities-based market-wide circuit breakers
2.index-based market-wide circuit breakers
3.market-wide based securities-wise circuit breakers
4.None of the above
One of the Custodial Trade Reports is the ___________
1.Client Obligation Report
2.Custodial Trade Pending Confirmation
3.Clearing Member Report
4.None of the above
Rahul is supposed to receive Rs. 1,00,000 from Chandra after 3 years. If the interest rate is 8%, what is the present value of the amount due from Chandra?
1.71,686.34
2.79,383.22
3.81,232.25
4.91,444.9
Securities and funds pay out takes place on ______ working days after the trade date
1.‘T+3’
2.‘T+2’
3.‘T+1’
4.within 24 hours of sale
Securities Delivered Statement: This statement provides information on ______?
1.delivering center
2. total number of shares to deliver for each security
3.quantity delivered and quantity of shares delivered short
4.All of the above
Security sigma means the _______ of the security computed as at the end of the previous trading day.
1.means
2.volatility
3.impact cost
4.None of the above
Statement 1: An active buy order matches with the best passive sell order if the price of the passive sell order is less than or equal to the price of the active buy order. Statement 2 : An passive buy order matches with the best active sell order if the price of the passive buy order is less than or equal to the price of the active sell order. Which of the above statements is True?
1. Statement 2
2.Statement 1
3.Both Statements are true
4.Both Statements are False
Surveillance and Control (SURCON) is that period after market close during which, the users have _______ only.
1.order entry access
2.trade cancellation access
3.trade modification access
4. inquiry access
The branch manager receives End of Day reports for _________.
1.his own orders only
2.all dealers under the trading member
3.all the dealers under that branch
4.any authorized user
The following facility allows the user to have a drop-down list of client codes at the accounting field:
1.Client List Master
2.Client Database Master
3.Client Code Master
4.Client Master Maintenance
The Message Window in the NEAT system allows a user to view messages broadcast by the Exchange such as __________
1. corporate actions
2.market news
3.auctions related information
4.All of the above
The pre-set Market price protection percentage is by default set to _____ of the LTP
1.10%
2.2%
3.3%
4.5%
The stop loss orders are prioritized in the stop loss book with the __________________
1. most likely order to trigger first and the least likely to trigger last.
2.least likely order to trigger first and the most likely to trigger last.
3. time-price priority algorithm
4.None of the above
The trading members can participate in the Exchange initiated auctions by entering orders as a ______.
1.participant
2.initiator
3.solicitor
4.none of the above
Two buy orders enter into the system and are unmatched: 1) 200 shares @ Rs. 72.75 at time 10:30 a.m. 2) 300 shares @ Rs. 72.75 at a time at 10:31 a.m. Which order will get a priority for getting executed.
1.Order no. 1.
2.Order no. 2
3.both will have equal priority
4.none
Two buy orders enter into the system and are unmatched: 1) 200 shares @ Rs. 72.75 at time 10:30 a.m. 2) 300 shares @ Rs. 72.80 at a time at 10:31 a.m. Which order will get a priority for getting executed.
1.Order no. 1.
2.Order no. 2
3.both will have equal priority
4.None
Two sell orders enter into the system and are unmatched: 1) 200 shares @ Rs. 72.75 at time 10:30 a.m. 2) 300 shares @ Rs. 72.70 at time at 10:31 a.m. Which order will get a priority for getting executed.
1.Order no. 1.
2.Order no. 2
3.both will have equal priority
4.None
Upfront margin rates applicable for all securities in Trade for Trade – segment (TT) is ______.
1.50%
2.100%
3.200%
4.150%
What does ‘AUI’ indicate as a message code in ‘Full Message window’ in the NEAT system?
1.Auction Initiation Messages
2.Auction User Interface messages
3.All messages related to the user interface
4.All messages related to Auctions
What does ‘P’ indicate as a status in the ‘Auction Inquiry’ screen in the NEAT system?
1.Auction is pending and yet to begin
2.Auction is deleted.
3.There is no such status indicator as ‘P’ in the Auction Inquiry screen.
4. Auction is over.
When the user invokes the order entry screen, the field(s) that are (is) taken as default are (is) __________.
1.Symbol
2.Series
3.Book Type
4.All of the above
Where a recognized stock exchange acting in pursuance of any power given to it by its bye-laws, refuses to list the securities of any company, the company shall be entitled to be furnished with reasons for such refusal and the company may appeal to the _________ against such refusal.
1. SEBI
2.recognized the stock exchange
3.Securities Appellate Tribunal (SAT)
4.High Court
______ can be traded in the Limited Physical Market?
1.Illiquid shares
2.Futures and Options
3.Odd lots
4.Government Securities
______ is a volume related order condition.
1.An order with a limit price condition only
2.An order with a stop loss only
3.An order with a Disclosed Quantity (DQ)
4.None of the above
___________ assumes the counterparty risk of each member and guarantees financial settlement.
1. SEBI
2. Central Depository Services Ltd. (CDSL)
3.The National Depository Services Ltd. (NSDL)
4.The National Securities Clearing Corporation Ltd. (NSCCL)