| Q 1. | The Depository Participant has to reconcile its record with the Depository on a _________ basis.
every 12 hours
daily
every Wednesday and Saturday
weekly
 CORRECT ANSWER  WRONG ANSWER
CORRECT ANSWER:daily Explanation:
The Depository Participant has to reconcile its records with its depository on a daily basis.
The depository system has been formulated to do this reconciliation automatically every day at the end of the day. |
| Q 2. | The Demat a/c nos. in India are always of ___ digits.
8
12
16
20
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:16 Explanation:
A Demat a/c has 16 digits. In CDSL the first 8 digits indicate the Depositiory Participant and the next 8 digits is the client's ID.
On NSDL also we have the same system, but the DP ID begins with letters 'IN' |
| Q 3. | When an application is made to transfer Government Securities (G-Secs) in SGL form to Depository account, the clients signature on the DRF-GS need be verified with that on the account opening form.
False
True
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:True |
| Q 4. | Who has the authority to cancel the registration of a Depository Participant ?
NSDL or CDSL
The Stock Exchange
SEBI
Finance Ministry under the instructions of RBI.
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:SEBI Explanation:
The certificate of registration granted to a DP may be cancelled by SEBI if it is found that:
• it is guilty of fraud, or has been convicted of an offence involving moral turpitude or
• it has been guilty of repeated defaults specified for suspension of the registration. |
| Q 5. | If there is no transaction in the d'mat account which has nil holdings, then the transaction statement should be provided at least once in ________ .
a month
a quarter
six months
a year
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:a year Explanation:
If there are no transactions and nil holdings, then the transaction/holding statement must be sent at least once in a year.
(If there are transactions in the demat account → Monthly statements must be sent and if there are no transactions but there is a balance - At least once in six months a statement must be sent).
|
| Q 6. | Which of the following is a Cash Corporate Action ?
Dividend
Bonus
Rights
All of the above
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:Dividend Explanation:
Cash corporate actions involve distribution of monetary benefits, e.g., dividend and interest etc.
Non-cash corporate actions involve distribution of benefits other than cash such as bonus issues, offer of shares on right basis, conversion of securities, etc.
|
| Q 7. | Persons who are holding shares in physical form can get them dematerialised by submitting them to ___________ .
their broker / sub broker
depository
depository participant
Bank
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:depository participant Explanation:
Investors have to submit the physical securities along with the DRF (Demat Requisition Form) to the Depository Participant (DP) with whom they have opened a d'mat account.
The DP will them send the physical securities to the Transfer Agent who will then dematerialise the shares after proper verification. |
| Q 8. | Voters ID cannot be accepted as an ID proof for opening Demat A/C. True or False ?
True
False
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:False Explanation:
The foll ID proofs are accepted for Opening a Demat Account : Passport, Voter ID Card, Driving license, PAN card with photograph.
Also Identity card/document with applicant’s Photo, issued by a) Central/State Government and its Departments, b) Statutory/Regulatory Authorities, c) Public Sector Undertakings, d) Scheduled Commercial Banks, e) Public Financial Institutions, f) Colleges affiliated to Universities, g) Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and h) Credit cards/Debit cards issued by Banks are accepted. |
| Q 9. | A Depository Participant may terminate/stop its operation by giving a ___ days notice to the Depository.
30
45
60
90
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:30 Explanation:
A Depository Participant may terminate its participation in the depository by giving a notice of not less than 30 days.
On receipt of such notice, the depository may cease to provide any service or act for the DP. The depository should notify the DP, other participants, clients of the surrendering DP and SEBI within seven days of this action. |
| Q 10. | Dated securities have a maturity period of ___________ .
Less than one year
More than one year
Between six months to one year
Usually more than 5 years
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:More than one year Explanation:
Dated Securities have a maturity period of more than one year. Treasury Bills have a maturity period of up to one year. |