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NISM Series III-A: Securities Intermediaries Compliance (Non Fund) Certification Examination
1.Financialsystemsconsistofbanks,nonbanksand______________.
BullionMarkets
FinancialMarkets[CorrectanswerNOTselected]
Moneylenders
NGOs

2.Safekeepingandrecordkeepingofsecuritiesisdoneby___________.
Custodians[CorrectanswerNOTselected]
VentureCapitalFunds
Brokers
MutualFunds

3.Whoamongstthefollowingcollatesdataonsubscriptionsregardingprimaryissuances?
Banks
Custodians
VentureCapitalFunds
Registrars[CorrectanswerNOTselected]

4.AsperSecuritiesContractRegulationAct(SCRA),theterm'Security'excludeswhichofthefollowing?
Shares
Bonds
Derivatives
Bullion[CorrectanswerNOTselected]

5.UnhealthypracticeintheSecuritiesMarketsincludeswhichofthefollowing?
Disclosure
Transparency
InsiderTrading[CorrectanswerNOTselected]
Surveillance

6.WhichisthecentralbankinIndiawiththeresponsibilityofadministeringthemonetarypolicy?
StateBankofIndia
ReserveBankofIndia[CorrectanswerNOTselected]
CentralBankofIndia
Alloftheabove

7.Whichauthoritywassetupwiththeprimaryresponsibilityofpromotingoldageincomesecuritybyestablishing,developingand
regulatingpensionfunds?
AssociationofMutualFundsinIndia
InsuranceandRegulatoryDevelopmentAuthority
PensionFundRegulatoryDevelopmentAuthority[CorrectanswerNOTselected]
SecuritiesExchangeBoardofIndia

8."ThebyelawsofthestockexchangesaresameacrossexchangesandneedtobeapprovedbySEBI".StatewhetherTrueorFalse?
True

False[CorrectanswerNOTselected]

9.Primarily,complianceinvolves_____________.
Conformingtoarule,policy,standardorlaw[CorrectanswerNOTselected]
Recordkeeping
Reporting
Preventingfrauds

10.TheSEBI(Intermediaries)Regulations,2008,mandatestheappointmentofComplianceofficer.StateTrueorFalse?
True[CorrectanswerNOTselected]
False

11.CriticalReportingbyComplianceofficersincludewhichofthefollowing?
MoneyLaunderingActivities[CorrectanswerNOTselected]
SubmissionofBooksofAccounts
SaudaBook
Alloftheabove

12.AspertheSEBI(CertificationofAssociatedPersonsinSecuritiesMarkets)Regulations,2007,acertificateisvalidforaperiodof
______fromthedateofgrantofcertificateorrevalidationasthecasemaybe.
2years
5years
3years[CorrectanswerNOTselected]
7years

13.AllofthefollowingarethefunctionsofSEBIunderSEBIActof1992,EXCEPT:
Regulatingthebusinessinothersecuritiesmarketsbutnotinstockexchanges[CorrectanswerNOTselected]
Promotingandregulatingselfregulatoryorganisations
Regulatingsubstantialacquisitionofsharesandtakeoverofcompanies
Prohibitinginsidertradinginsecurities

14.CanSEBIprohibitanycompanyfromissuingprospectus,anyofferdocument,oradvertisementsolicitingmoneyfromthepublicfor
theissueofsecurities?StateYesorNo?
Yes[CorrectanswerNOTselected]
No

15.PenaltymaybepayablebyanintermediaryunderSEBIActifitfailsto:
Fileanyreturnorfurnishanyinformation,booksorotherdocumentswithinthetimespecifiedasintheregulations
Maintainbooksofaccountorrecords
BothI&II[CorrectanswerNOTselected]
Noneoftheabove

16.AnyintermediarycanappealtoSAT,ifithasbeenaggrievedbyanyorderpassedbySEBI.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

17.AsperSCRR,thetradingmembersofthestockexchangesarerequiredtomaintainthecounterfoilsorduplicatesofcontractnotes
issuedtoclientsforhowmanyyears?
3
5
2[CorrectanswerNOTselected]
7

18.MembersofthestockexchangesarerequiredtopreservewhichofthefollowingdocumentsaspertheSCRA.
Networthcertificate
Booksandaccountsandotherdocumentsforspecificperiodoftime[CorrectanswerNOTselected]
Registrationcertificate
Alloftheabove

Alloftheabove

19.SCRAprovidesforaprovisionthatastockbrokerofarecognisedstockexchangecanenterintoacontractinsecuritieswith
anotherstockbrokerafterobtaininghisconsent.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

20.Mannerinwhichthederivativescontractsandothercontractsshouldbedealtinthesecuritiesmarketareprescribedinwhichof
thefollowing?
PublicDebtAct
DepositoriesAct
CompaniesAct
SCRA,1956[CorrectanswerNOTselected]

21.SEBIintheinterestofthesecuritiesmarketmaydirectanintermediarytorefundthemoneyorsecuritiescollectedfromthe
investorswithorwithoutinterest.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

22.Ifanapplicantisnotfoundtobea'fitandproperperson'canhegetregistrationcertificateunderSEBI(Intermediaries)Regulations
2008?
Yes
No[CorrectanswerNOTselected]

23.Alltheemployees,directorsetcoftheintermediaryneedtostrictlyadheretotheCodeofConductasprescribedintheSEBI
Regulations.StateWhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

24.Canacommonorderbepassedinrespectofanumberofnoticeeswherethesubjectmatterinquestionissubstantiallythesameor
similarinnature?
Yes[CorrectanswerNOTselected]
No

25.AsperSEBIInsiderTradingRegulations,whatistheminimumperiodofholdingforanyinvestmentmadebytheDirectors/partners
tobeconsideredasbeingheldforInvestmentpurpose?
60days
45days
30days[CorrectanswerNOTselected]
15days

26.Does'PriceSensitiveInformation'includedisposalofwhole/substantialpartoftheundertaking?
Yes[CorrectanswerNOTselected]
No

27.Therestrictionsoncommunicationunderinsidertradingdonotincludecommunicationsunderordinarycourseoflaw.State
whetherTrueorFalse?
True[CorrectanswerNOTselected]
False

28.TheobjectiveoftheSEBI(ProhibitionofInsiderTrading)Regulationistoprohibitinsiderfrom___________onmattersrelatingto
insidertrading?
Dealing
Communicating
Counselling
Alloftheabove[CorrectanswerNOTselected]

29.FraudincludesawillfulmisrepresentationoftruthORconcealmentofmaterialfact,inorderthatanotherpersonmayact,tohis
detriment.StatewhetherTrueorFalse?

True[CorrectanswerNOTselected]
False

30.TheSEBIFraudulentandUnfairTradePracticesRegulationsprohibitapersonto,directlyorindirectly_________securitiesina
fraudulentmanner.
Buy
Sell
DealIn
Alloftheabove[CorrectanswerNOTselected]

31.Fraudincludesanintermediaryprovidinghisclientswithsuchinformationrelatingtoasecurityascannotbeverifiedbytheclients
beforetheirdealinginsuchsecurity.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

32.Incasesoffraud,SEBIcan___________theregistrationofanintermediary?
Cancel
Suspend
Botha&b[CorrectanswerNOTselected]
Noneoftheabove

33.RecordoftransactionstobemaintainedunderthePreventionofMoneyLaunderingActincludesCashtransactionsofthevalueof
morethan________.
Rs.10lakh[CorrectanswerNOTselected]
Rs.20lakh
Rs.25lakh
Rs.1crore

34.FineincaseofmoneylaunderingshallextendtoRs_________andrigorousimprisonment.
Rs.5lakh[CorrectanswerNOTselected]
Rs.10lakh
Rs.15lakh
Rs.20lakh

35.Banks,FinancialInstitutionsandIntermediariesshall____________.
SuppressPreventionofMoneyLaunderingAct
OverlookPreventionofMoneyLaunderingAct
CondonePreventionofMoneyLaunderingAct
AdheretoPreventionofMoneyLaunderingAct[CorrectanswerNOTselected]

36.IsitrequiredtoverifythesourceoffundsaswellaswealthofPoliticallyExposedPersons??
Yes[CorrectanswerNOTselected]
No

37.ToeffectivelyimplementtheKYCguidelines,SEBInotifiedthe________.
SEBI(SelfRegulatoryOrganization)Regulations,2004
PMLA,2002
SEBI(KYCRegistrationAgency)Regulations,2011[CorrectanswerNOTselected]
Noneoftheabove

38.KRAshallhavesecuredatatransmissionlinkswith______thatuploadstheKYCdocumentsonitssystem.
OtherKRAs
Intermediaries
Exchanges
Both(a)and(b)[CorrectanswerNOTselected]

39.OncetheinitialKYCofthenewclientsaredone,theintermediaryshallimmediatelyuploadtheKYCinformationonthesystemofthe

KRAandsendtheKYC.
5workingdays
7workingdays
10workingdays[CorrectanswerNOTselected]
15workingdays

40.KRAsystemsshallclearlyindicatethestatusofclientsfallingunderPANexemptcategories.StatewhetherTRUEorFALSE?
True[CorrectanswerNOTselected]
False

41.Theapplicationforregistrationbyasubbrokerisrequiredtobeaccompaniedbyarecommendationletterfrom____________?
StockExchange
StockBroker[CorrectanswerNOTselected]
SEBI
Noneoftheabove

42.IstheStockbrokerrequiredtopreintimateSEBIaboutshiftingthelocationwhereitkeepsitsbooksofaccounts.StateYesorNo?
Yes
No[CorrectanswerNOTselected]

43.AstockBrokerwhendealingwithaclientmustdisclosewhetheritisactingasaPrincipal/agent.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

44.Whatarethedocumentsrequiredbeforeaclientstartstradingthroughabroker?
ClientAgreement
ContractNote
ClientapplicationForm
Both(a)&(c)[CorrectanswerNOTselected]

45.TheSEBI(MerchantBanking)Regulations,1992providefor__________.
Registrationofmerchantbankers[CorrectanswerNOTselected]
Generalobligationsofmerchantbankers
Generalresponsibilitiesofmerchantbankers
Alloftheabove

46.Theapplicantformerchantbankershouldhavenecessaryinfrastructurelike_________.
OfficespaceasperSEBIcriteria
Equipmentsinplace
Skilledandrelevantmanpower
Alloftheabove[CorrectanswerNOTselected]

47.TheapplicantformerchantbankershouldnecessarilyfulfilthecapitaladequacyrequirementasspecifiedintheSEBI(Merchant
Bankers)Regulation.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

48.Incaseofbuyback,thecompanyshallensurethatallthesecuritiesboughtbackareextinguishedwithin____daysofthelastdate
ofcompletionofbuyback.
4
7[CorrectanswerNOTselected]
10
15

49.Postissueactivities,generallycoordinatedbyLeadMerchantBanker,includewhichofthefollowing?
Decidingoncentresforholdingconferencesofstockbrokers,investors,etc.

Processingrematerialisationrequests
Finalisationofthebasisofallotment[CorrectanswerNOTselected]
Alloftheabove

50.AsperSEBI(ICDR)Regulation,onlyauditedandconsolidatedfinancialstatementsneedtobepreparedinaccordancetoGAAP.
StatewhetherTrueorFalse.
True
False[CorrectanswerNOTselected]

51.AsperSEBI(ICDR)Regulations,theminimumsubscriptiontobereceivedinanissuemustbeatleast_____oftheofferthrough
offerdocument.
65%
75%
80%
90%[CorrectanswerNOTselected]

52.AsperSEBI(ICDR)Regulation,anadvertisementmaybeissuedgivinganyimpressionthattheissuehasbeenfullysubscribedor
oversubscribedduringtheperiodtheissueisopenforsubscription,withpriorintimationtoSEBI.Statewhethertheabovestatementis
trueorfalse?
True
False[CorrectanswerNOTselected]

53.WhichActprovidesfortheestablishmentofdepositoriesinsecurities?
SEBIAct
CompaniesAct
DepositoriesAct[CorrectanswerNOTselected]
SecuritiesContracts(Regulation)Act

54.TheimmunitycanbegrantedbytheCentralGovernmentonrecommendationofSEBI,underDepositoriesActonlyifthepersonhas
madefulldisclosureoftheviolation.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

55.Anentityintendingtoactasadepositoryparticipantshouldenterintoanagreementwith_________intheprescribedformat.
Bank
Issuer
Depository[CorrectanswerNOTselected]
Broker

56.AspertheDepositoriesAct,failuretofurnishinformationorbooksordocumentsorreportsbythedepositoryorthedepository
participantoftheirfunctioningwillcarryafineofRs.onelakhsforeachdayoffailureorRs._______,whicheverisless.
Rs.OneCrore[CorrectanswerNOTselected]
Rs.TwoCrore
Rs.ThreeCrore
Rs.FourCrores

57.ForanentitytofunctionasaDepositoryParticipant,itismandatoryforittoberegisteredwithSEBIasaDepositoryParticipant.
StateTrueorFalse?
True[CorrectanswerNOTselected]
False

58.EveryDepositoryParticipantshouldputinplaceanadequatemechanismfor__________theinternalaccountingcontrols.
Reviewing
Monitoring
Evaluating
Alloftheabove[CorrectanswerNOTselected]

59.WhichofthefollowingisNOTtheactivityperformedbyBankerstoanIssue??

Acceptanceofapplicationmonies
Collectionofsecuritiestransactiontax[CorrectanswerNOTselected]
Acceptanceofcallmonies
Paymentofdividendorinterestwarrant

60.ABankertoanIssuehasallowedblankapplicationformsbearingbrokers'stamptobekeptatthebankpremises.HastheBanker
violatedtheCodeofConductprescribedbySEBI?
Yes[CorrectanswerNOTselected]
No

61.ApartfromSEBIregulations,BankerstoanIssueshallabidebytherelevantrulesandregulationsof________________.
CentralGovernment
RBI
IndianBanksAssociation
Alloftheabove[CorrectanswerNOTselected]

62.UndertheCodeofConduct,SEBIprescribesBankerstoanIssueagainsttheirparticipationin____________.
Creationoffalsemarket
Priceriggingormanipulation
Passingofunpublishedpricesensitiveinformation
Alloftheabove[CorrectanswerNOTselected]

63.ThecertificateofregistrationasUnderwriterisvalidforaperiodof_____years.
1
2
3[CorrectanswerNOTselected]
4

64.AfirmhasappliedtoSEBIforgrantofcertificateasanunderwriter.Thefirmdoesnothavepastexperienceinunderwriting.Asper
theSEBIguidelines,aminimumofhowmanyemployeesofthefirmshallhaveexperienceinunderwriting?
1
2[CorrectanswerNOTselected]
3
4

65.Thedocuments,booksofaccountsandotherrecordsrelatingtoitsunderwritingactivitiesshouldbepreservedforaminimum
periodof________yearsbytheUnderwriter.
3
5[CorrectanswerNOTselected]
7
10

66.SEBIregulationsprescribethatunderwritersshouldinformSEBIofanyactiontakenbyotherregulatorsonsuchunderwriter.
True[CorrectanswerNOTselected]
False

67.AsperSEBI(DebentureTrustees)Regulations,whichofthefollowingcanapplytoregisteraDebentureTrustee?
ScheduledBank
PublicFinanceInstitution
InsuranceCompany
Alloftheabove[CorrectanswerNOTselected]

68.AspertheSEBI(DebentureTrustee)Regulations,thecertificateofregistrationasDebentureTrusteeisvalidforaperiodof_____
years.
1
2
3[CorrectanswerNOTselected]

69.AspertheSEBI(DebentureTrustees)Regulations,debenturetrusteeshallcommunicatetothedebentureholderson
_______________basisregardingcompliance,defaults,etcandtheactiontakenbyit.
Monthly
Quarterly
Halfyearly[CorrectanswerNOTselected]
Annually

70.ThedebenturetrusteeshallcomplywiththeawardofOmbudsmanpassedundertheSecuritiesandExchangeBoardofIndia
(Ombudsman)Regulations,2003.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

71.ForSEBItoconsidertheapplicationofregistrationasacreditratingagencyofanentitypromotedbyacompany,thepromotershall
haveacontinuousnetworthofminimum__________forthepreviousfiveyear.
Rs.1crore
Rs.10crore
Rs.100crore[CorrectanswerNOTselected]
Rs.1000crore

72.AspertheSEBI(CreditRatingAgencies)Regulations,thecertificateofregistrationascreditratingagencyisvalidforaperiodof
_____years.
1
2
3[CorrectanswerNOTselected]
4

73.Whatistherenewalfeetokeeptheregistrationinforceascreditratingagency?
Rs.10lakh[CorrectanswerNOTselected]
Rs.50lakh
Rs.20lakh
Rs.25lakh

74.Acreditratingagencyencourageditsclientfacingemployeestoassureahigherratingtotheclientsthanthecompetitors.Isita
violationaspertheSEBIcodeofconductofcreditratingagencies?
Yes[CorrectanswerNOTselected]
No

75.Apersonwhocarriesonorproposedtocarryonthebusinessofprovidingcustodialservicesiscalled_________________.
Depository
Custodian[CorrectanswerNOTselected]
Debenturetrustee
Underwriter

76.Thecertificateofregistrationascustodianisvalidforaperiodof_____yearsaspertheSEBI(CustodianofSecurities)Regulations.
1
2
3[CorrectanswerNOTselected]
4

77.Thecustodianshouldsegregatehiscustodialactivitiesfromhisotheractivities.StatewhetherTrueorFalse?
True[CorrectanswerNOTselected]
False

78.AspertheSEBI(CustodianofSecurities)Regulations,everycustodianshallmaintaintherecordsanddocumentsforaminimum
periodof________years.
3
5[CorrectanswerNOTselected]

5[CorrectanswerNOTselected]
7
10

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NationalInstituteofSecuritiesMarketsadministersCertificationexaminationsandContinuingProfessionalEducationprogramsasperSEBI(Certificationof
AssociatedPersonsinSecuritiesMarkets)Regulation2007.NISMdevelops/approvescontentforvariousmodulesaspertestobjectivesfortheexamination/
ContinuingProfessionalEducationprograms.Similarly,NISMalsodevelopsexaminationsforrespectivemodules.NISMdoesnotprovideanytraining,for
preparationofexaminations,directlyorindirectlytoparticipantswhodesiretoappearforNISMexaminations.However,thereareorganisations/entitiesthatare
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ItisspecificallybeingbroughttothenoticeofallconcernedthatNISMisnotdirectlyorindirectlyassociatedwithsuchtrainingprogramsormodeltestpapersor
anykindoftraininginanyformforhelpingpassNISMcertificationexaminations.Further,NISMhasnotauthorisedanyorganisation/personasauthorised
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