NISM Series VI: Depository Operations Certification Mock Test - Free Demo /10 NISM Series VI – Depository Operations Certification Mock Test – Free Demo 1 / 10 1. A Depository Participant may terminate/stop its operation by giving a ___ days notice to the Depository. a) 60 b) 90 c) 30 d) 45 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. 2 / 10 2. Who has the authority to cancel the registration of a Depository Participant ? a) SEBI b) The Stock Exchange c) NSDL or CDSL d) Finance Ministry under the instructions of RBI. 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. 3 / 10 3. Is it true or false that a Voters ID cannot be accepted as an ID proof for opening a Demat account? a) True b) 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. 4 / 10 4. The Demat a/c nos. in India are always of ___ digits. a) 8 b) 12 c) 16 d) 20 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’ 5 / 10 5. If there is no activity in the demat account, the transaction statement should be provided at least once in ________ and should be sent directly to the client’s address. a) A year b) Six months c) A quarter d) A month Explanation:One annual physical statement of holding shall be sent to the stated address of the beneficial owner in respect of accounts with no transaction and nil balance even after the account has remained in such a state for one year. 6 / 10 6. Is it necessary to verify the client’s signature on the DRF-GS (Demat Request Form for Government Securities) with the signature on the account opening form when applying to transfer Government Securities (G-Secs) from SGL form to a Depository account? a) True b) False Explanation:When applying to transfer Government Securities (G-Secs) from SGL form to a Depository account using the DRF-GS (Demat Request Form for Government Securities), it is essential to verify the client’s signature on the DRF-GS with the signature on the account opening form. This verification ensures the authenticity and security of the transfer process. 7 / 10 7. Under what circumstances can a Registrar and Transfer Agent reject a Demat Requisition Form (DRF)? a) The securities to be Dematted are not attached with DRF b) The ISIN number of the security is wrongly mentioned c) The signatures in their records do not match with that on DRF d) All of the above. Explanation:A Demat Requisition Form (DRF) may be rejected by a Registrar and Transfer Agent for various reasons:Signature Mismatch: If the signatures on the DRF don’t match with the records.Missing Securities: If the securities meant for dematerialization are not attached with the DRF.Incorrect ISIN: If there is an error in mentioning the ISIN (International Securities Identification Number) of the security.“All of the above” accurately encompasses these potential reasons for rejection. 8 / 10 8. The Depository Participant has to reconcile its records with the Depository on a _________ basis. a) Daily b) Every 12 hours c) Weekly d) Every Wednesday and Saturday 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. 9 / 10 9. Dated securities have a maturity period of ___________ . a) Between six months to one year b) Less than one year c) More than one year d) Usually more than 5 years Explanation:Dated Securities have a maturity period of more than one year. Treasury Bills have a maturity period of up to one year. 10 / 10 10. Which of the following is considered a Cash Corporate Action? a) Bonus b) Rights c) Dividend d) All of the above 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. Your score is 0% Restart quiz Exit
