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1. 1. Dematerialization of shares
A) is optional
B) is compulsory
C) is provisional
D) is mandatory
2. To sell any share of a listed company it should undergo the process of
a. rematerialisation
b. dematerialization
c. securitization
d. allotment
3. Dematerialisation and rematerialisation process is undertaken by the
a. stock exchange
b. depository participant
c. company
d. NSDL or CSDL
4. When a security is pledged to a bank, the benefits to be paid on this security shall be Paid to the
a. The Pledgor
b. bank to whom the securities are pledged
c. depository participant
d. will be retained by the company to be paid after the loan
is cleared

2. 5. Why an individual investor prefers broking firms over banks
a. banks brokering charges are more
b.trading tips by brokers are far superior than banks
c. settlement is flexible with the broker
d. all the above
6. In case of a brokerage house providing a demat account and a trading account ,online trading is
facilitated by
a. by collecting the required money from the investor in advance
b. by taking blank cheques drawn in favour of the brokerage house
c. insisting on a bank account with a bank with whom the broker has a tie up
d. obtaining an authorization to debit any bank account of the investor
7. In on line trading an investor can place orders of trade
e. within the trading hours of the stock exchange
f. anytime
g. during the time specified by the brokering house/brokering bank
h. none of the above
8. What does NIBIS stand for?
i. national inernet based information system
j. national institute for banking and insurance services
k. NSE’s integrated basic investment solutions
l. NSE’s internet based information system
9. What is book closure?
a. it is closing of books of accounts at the end of the year

3. b. closing of registers of investors in the records of the company
c. closing of public issue of shares
d. none of the above
10. Keeping record of all the investments in shares of an individual investor in the electronic form is
done by
a. depository participant
b. respective share issuing company
c. stock exchange
d. a depository
11. Dematerialisation of listed securities is made compulsory by
a. Govt. of India
b. stock exchange
c. NSDL/ CDSL
d. SEBI
13. The function of ascertaining pay-in or pay-out of brokers who have traded on the stock exchange
is performed by
a. Stock brokers
b. Stock Exchanges Forum
c. Clearing Corporation
d. NSDL
14. NEAT stands for
a. National Electronic Advanced Trading

4. b.. National Exchange for Advanced Trading
c.. National Exchange for Automatic Trading
d. NSE Exchange for Automatic Trading
15. Security Transaction Tax is paid by
a. purchaser of the shares only
b. seller of the share only
c. stock broker only
d. none of the above
16. Dematerialized Shares
a. bear distinctive numbers of shares.
b.. do not bear any number
c. bear the customer’s Client ID number.
d. DP account number
17. Who are the business partners of a depository
a. depository participants
b. clearing corporations/clearing houses
c. only a. d. both a and b
18. What is TIFD?
a. Trading Instructions For the depository
b. Transfer Instruction ForDemating
c. Transfer Instruction for delivery
d. Trading Instructions For the Depository

5. 19 Who destroys the physical securities in the process of demat
a. the issuer of the securities
b. the depository
c. the depository participant
d. the Registrar and Transfer Agent
20.What is meant by a bonus issue?
a. a book entry passed by the company issuing bonus
b. distribution of reserves and surpluses
c. allotment of additional shares
d. all the above
21. In off market transaction, settlement is
a. without using the broker
b. through the clearing house/ clearing corporation of stock exchange
c. through the depository participant
d. none of the above
22. A person who holds equity share capital of a company and whose
name is registered as beneficial owner in the records of the
depository is called
a. member of the company
b. lender of the company
c. creditor of the company
d. debtor of the company
23. Which of the following is a non-cash corporate action

6. a. Interest Payments
b. Dividends
c. Splitting of a share
d. None of the above
24. Securities that have already been issued are traded in the
a. primary market
b. secondary market
c. tertiary market
d. global market
25. ISIN is a unique identification number given to
a. while admitting a security of an issuer in the depository system
b. while converting physical shares to demat form
c. depository participant
d. identify the beneficial owner
26. When a bank decides to grant any loan against the security of shares, the loan amount is decided
based on the
a. current market price of the shares
b. face value of the shares
c. lower of the average market price during the preceding 12 months and current market price
d. valuation by bank’s approved valuers

7. 27. Freezing of DEMAT accounts
A) possible for debits
B) possible for credits
C) not permitted by Depositories
D) possible for both debits & credits.
28. Share holders of a Company can attend & vote in an AGM only if shares are held in
A)Physical form
B) Demat form
C) both a & b
D) none of the above