Test Your NISM-Series-6: Depository Operations Mock Tests Knowledge in 5 Minutes

1. What is the minimum period DPs must preserve transaction records and client identification records from the date of cessation of the transaction?

A. 15 years B. 8 years C. 10 years D. 5 years

2. Which of the following is NOT directly a part of the Primary Market? (NISM workbook)

A. Exchanges B. Registrars and Transfer Agents C. Mutual Funds D. Merchant Bankers

3. An active ________ promotes the growth of the primary market and capital formation. (NISM workbook)

A. Secondary Market B. Forex Market C. Money Market D. Bullion Market

4. ______________ aims at streamlining settlement process by transfer of ownership of securities electronically by book entry without making the securities move from person to person. (NISM workbook)

A. SCRA, 1956 B. Depositories Act, 1996 C. SEBI Act, 1992 D. Companies Act, 2013

5. _______ has powers to register and regulate all market intermediaries in the securities market and also to penalise them. (NISM workbook)

A. IRDA B. Depositories C. SEBI D. RBI

6. With the introduction of depository system in India theft, forgery, mutilation of certificates became more prominent. (NISM workbook)

A. False B. True

7. During the time when there was no demat of securities, for transfer of securities, __________ was evidence of change of ownership. (NISM workbook)

A. Letter of acknowledgement from the transferee B. Endorsement of physical security C. Proof of Delivery

8. Depositories merely provide information to the issuer about the persons entitled to receive the corporate benefits and does not in any case take up the responsibility of distribution of corporate benefits. State True or False? (NISM workbook)

A. False B. True

9. A Depository Participant has to be registered with (NISM workbook)

A. Exchanges B. SEBI C. Depository D. None of the above

10. For registering as a DP, the application should be submitted __________. (NISM workbook)

A. to Depository, who will in turn forward it to SEBI after evaluation B. directly to SEBI and a copy should be sent to Depository for information only C. to Depository who will in evaluate and register the DP D. separately to Depository and SEBI