OP.

JINDAL MODERN SCHOOL HISAR

NCFM ONLINE EXAM (NSE)
CLASS -12TH
FACULTY: - SANJEEV GARG
1. Mark to Market Margin is ___________________
a) A notional loss which a trading member would incur
b) Actual loss which a trading member would incur
c) Both
d) None of the above

2. Every CM is required to open a

a) dedicated settlement a/c
b) dedicated saving a/c
c) dedicated current a/
d) all of the above

3.If the eighth and ninth character of the ISIN is mentioned as 16, what does it indicate
a. Security is regular return bond / promissory note
b. Certificate of deposit
c. Security is a floating rate bond
d. Security is deep discount bond

4.Who can set Branch Order Value limits on the NEAT system?
a) None of the above
b) Dealer
c) Corporate manager
d) Branch manager

5. Which of the following risk arise when failure of one of the parties to exchange his obligation leads to
failure by other parties?
a) Operational risk
b) Legal risk
c) System risk
d) Un systemic risk

6. Which of the following Act/Bills was passed to provide for the establishment of depositories in
securities with the objective of insuring free transferability of securities with speed
accuracy and security ?
a) The Depositories Act, 1996
b) The Companies Act, 1956
c) Indian Contract Act, 1872
d) Money Laundering Act, 2002
7. Bad deliveries are required to be reported to the clearing house within ______ days from the receipt
of documents. The delivering member is required to rectify these within ???.....days.
a) One, Two
b) Two, Three
c) Two, four
d) Two, two

8. Every broker shall make payments to his clients for the securities sold by his client with in
______________________of pay out.
a) 24 hours
b) 48 hours
c) 1 day
d) 2 days

9. The book type for Retail Debt Market is__________

a) RA
b) RB
c) RC
d) RD

10. The objective of the Depositories Act, 1996 is__________

a) Making securities of public limited companies freely transferable
b) Dematerializing the securities in the depository mode
c) Providing for maintenance of ownership records in a book entry form
d) All of the above

11. Units of liquid mutual funds or government securities funds with__________haircut.

a) 0.05
b) 0.1
c) 0.15
d) 0.2

13. Which of the following risk arise if the laws or regulation do not support enforcement of settlement
obligation or are uncertain ?
a) Operational risk
b) Legal risk
c) System risk
d) Counterparty risk

14. The first two characters in the ISIN code for a security represents______
a) Issuer Type
b) Security Type
c) Country Code
d) Company Identity
16. If Limit Price is not specified then_____price is taken as the limit price for the order
a) Trigger Price
b) Market Price
c) Last Traded Price
d) Previous day closing price

17. Non-Custodial institutional trades are identified by the use of participant code
a) NCFII
b) NCFI
c) NCIT
d) NTIC

18. Auctions for shares on the NSEIL are initiated by the____________

a) NSEIL
b) National Securities Clearing Corporation Limited
c) Any of the above
d) Cant say

19. The name of the ______ appears in the records of the issuer as registered owner of Demat securities
a) Depository
b) Actual owner
c) Beneficial owner
d) Depository participant

20. Penalties are charged to members for _______________

a) Having more than 100 clients
b) Gross exposure & turnover violations
c) doing excessive trading
d) having more than 500 branches

21. Penalty levied to a member for 1st instance of margin shortfall is_______________
a) 0.07% per day
b) 0.007% per day
c) 0.17% per day
d) 7% per day

22. Which agency links Clearing Members & NSCCL for funds settlement ?
a) Clearing Banks
b) Depositories
c) Clearing members
d) NSE

23. Who cannot be a member?

a) HUF
b) A partnership firm
c) A corporate entity
24. Which of the following is not a clearing bank of NSCCL ?
a) HDFC Bank
b) ICICI Bank
c) RBI
d) IDBI Bank

25. Settlement obligation ( delivery/ receipt/ positions) of members are determined by

_________________netting.
a) Multilateral
b) Unilateral
c) Bilateral
d) None of the above

27. Which of the following statement is True ?

a) Clearing members are responsible for settling their obligations as determined by the NSCCL.
b) Custodian can be a trading member
c) Clearing members are not required to open a dedicated clearing account with any of the clearing
banks.
d) Custodians are not required to maintain a clearing pool account with the depositories.

28. India VIX is lunched by NSE in ________

a) 9-Jan
b) 10-Jan
c) 8-Apr
d) 9-Mar

31. Which screen appears with the following details User ID, Trading Member ID, Password, New
Password ?
a) ODIN
b) NEAT
c) BOLT
d) All of the above

32. ________report gives detail of the auctioned delivers for which the valuation price exceeds the
auction traded price.
a) Auction Difference statement
b) Auction Square up Credit statement
c) Auction Square up Debit statement
d) All of the above

33. For liquid securities, the VAR margins are based on the ________of the security
a) Volatility
b) Returns
c) Liquidity
d) Exposure Limit
34. What the user can view from market watch window?
a) The total buy order quantity available at best buy price
b) Best buy price/ Best sell price
c) The last trade price
d) All the above

35. ___________________allows the user to disclose only a portion of the order quantity to the market.
a) An order with a limit price
b) A stop loss order
c) An order with a Disclosed Quantity (DQ)
d) None of the above

36. ___________is a confirmation of trade(s) done on a particular day for and on behalf of a client
a) Sale note
a) Purchase note
b) Trade slip
c) Contract note

37. Quantity freeze - lesser of____________

a) 0.5% of issue size
b) 25000 shares
c) Rs. 2.5 crores
d) All of the above

38. Which is the third window from the top of the NEAT screen ?
a) Market by price
b) Activity Log
c) Market Watch
d) Previous Trade

39. NSEs Certification in Financial Markets (NCFM) is an

a) On-line examination mandatory to take up membership on the NSE
b) On-line examination but not mandatory to take up membership on the NSE
c) On-line examination to become an arbitrator of NSE
d) On-line examination to become a director of brokers of NSE

40. Activities in the Activity Log screen on the NEAT system are displayed in ______
a) Chronological order where within the order number the details appear with the oldest activity first
and the latest last
b) Descending order of order numbers
c) Ascending order of order numbers
d) Reverse chronological order
41. Stop loss orders are released into the market when the traded price for that security in the normal
market reaches or surpasses the___________
a) Market price
b) Trigger price
c) Limit price
d) Exchange price

42. __________obligated the depositories to maintain ownership records of securities and effect changes
in such records electronically at the behest of the owner of the securities
a) The Depositories Act 1996
b) The SEBI Act 1992
c) The Securities Contract Regulation Act 1956 SCRA 1956
d) The Companies Act 1956

43. If the third character of the ISIN is mentioned as F, what does it indicate ?
a) Central Government is issuer
b) State Government is the issuer
c) Units issued by Mutual Fund
d) Issuer is a Banking Company

44. Securities Name, Book Closure Date, Record Date, Tick Size, Rating and Remarks are displayed
in_______
a) Market by Price
b) Market Watch
c) Activity Log
d) Security Descriptor

45. What does SPD indicate as message code in Full Message Window in the NEAT system
a) Security Suspension De-suspension
b) There is no such message code as SPD in the Full Message Window
c) All messages related to suspension for trading of listed securities only
d) All messages related to securities only

46. What are the timings for trading ?

a) 9:15 a.m. to 3:30 p.m.
b) 11:00 a.m.
c) 09:55 a.m. to 3:30 p.m.
d) 10:00 a.m.

47. 100 shares of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between,
settlement should take place on ______
a) Wednesday T +2
b) Tuesday T+1
c) Thursday T + 3
d) Friday T + 4
48. If a price outside the operational range is entered, the order results in a __________________
a) Quantity Freeze
b) Price Freeze
c) Market Freeze
d) Security Freeze

49. Rs. 100 lakh is the_________ for a corporate member in capital market and F&O segment of NSEIL
?
a) Maximum networth
b) Minimum base capital
c) Maximum base capital
d) Minimum net worth

50 Which of the following is FALSE about the NEAT system?

a) It has improved information efficiency by allowing faster incorporation of price sensitive
information into market prices.
b) NEAT has lent considerable depth in the market by enabling large number of members all over the
country to trade simultaneously.
c) A single consolidated order book for each stock displays, on a real time basis, buy and sell orders
originating from all over the country.
d) It provides an audit trial for high value transactions only.

51. Penalty points are charged to members for ___________________

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

52. Which of the following is not the participant in the auction market ?
a) Initiator
b) Administrator
c) Competitor
d) Solicitor

53. _________price is the price for orders after the orders get triggered from the stop loss book
a) Limit
b) Trigger

54. Order entry can be carried out in RETDEBT market by selecting _______ in the book type field
a) BT
b) RD
c) RL
d) SL
55. Who is a DP
a) Branch of Public Sector Bank
b) Franchise of Private Sector Bank
c) Authorized agent or participant of depository
d) Custodians of the securities

56. In Demutualized exchange

a) Ownership, Trading, Management are in the hands of three different sets of people
b) Ownership, Trading, Management are in the hands of same set of people
c) Ownership, Trading, Management are in the hands of SEBI
d) None of the above

57. Who regulates securities market in India?

a) NSE/ BSE
b) SEBI
c) RBI
d) Department of economic

58. In NSEIL the minimum paid-up capital requirement for a member ( a corporate) in Capital Market
segment is _______
a) Rs 75 Lacs
b) Rs 100 Lacs
c) Rs 50 Lacs
d) Rs 30 Lacs

60. ______are orders for which price is specified as MKT at the time the order is entered
a) Day order
b) IOC
c) Market Order
d) Stop Loss Order