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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Management and Margining | 18% | - Risk monitoring and control measures - Margining systems and methodologies - Types of risks in securities operations |
| Topic 2: Investor Protection | 7% | - Investor education and awareness initiatives - Investor rights and grievances redressal - Mechanisms for dispute resolution |
| Topic 3: Trading Operations | 15% | - Client onboarding and KYC norms - Order management and trade execution - Front office functions and processes |
| Topic 4: Securities Market Overview | 10% | - Types of securities and products - Structure and segments of Indian securities market - Market participants and their roles |
| Topic 5: Regulatory Framework | 15% | - Code of conduct and ethical practices - SEBI Act, Rules and Regulations - Compliance requirements for intermediaries |
| Topic 6: Market Microstructure | 12% | - Trading mechanisms and order types - Price discovery and market efficiency - Market indices and their calculation |
| Topic 7: Clearing and Settlement | 15% | - Settlement cycle and mechanisms - Clearing process and roles of clearing corporations - Delivery versus payment and settlement guarantee |
| Topic 8: Technology in Securities Markets | 8% | - Systems for trading, clearing and settlement - Emerging technologies and their impact - Data security and business continuity |
1. In the process of Broker Netting with the Clearing Corporation, what is the sequence of events regarding the determination of obligations?
A) Pay-in of funds Multilateral netting -> Pay-out of securities.
B) Bilateral netting between brokers -> Confirmation to CC -> Settlement.
C) Multilateral netting -> List of transactions sent to member -> Pay-in/Pay-out confirmation.
D) Gross settlement determination Netting within firm Multilateral netting.
E) List of transactions sent to member -> Multilateral netting -> Members informed of amount/securities to receive/pay.
2. For the purpose of corporate action adjustments in the Equity F&O segment, under what specific condition is a dividend deemed to be 'extra-ordinary', thereby necessitating an adjustment to the futures and options contracts?
A) If the dividend is declared as an 'interim' dividend rather than a 'final' dividend.
B) If the dividend yield exceeds the risk-free interest rate (MIBOR) prevailing on the declaration date.
C) If the dividend declared is more than 5% of the paid-up capital of the company.
D) If the dividend amount exceeds 10% of the closing price of the scrip on the record date.
E) If the dividend amount is at and above 2% of the market value of the underlying security.
3. Which regulatory framework governs the operationalization of the Bullion Exchange, Bullion Clearing Corporation, Bullion Depository, and Vault Manager within the IFSC?
A) RBI (Gold Monetization Scheme) Directions, 2015
B) SEBI (Vault Managers) Regulations, 2021
C) IFSCA (Bullion Exchange) Regulations, 2020
D) FEMA (Export of Goods and Services) Regulations, 2015
E) SEBI (Custodian of Securities) Regulations, 1996
4. In the context of the T+1 rolling settlement cycle for the Cash Segment, by what specific time must the custodial confirmation of trades be completed on the T+1 day to ensure the timely determination of final obligations by the Clearing Corporation?
A) By 4:15 PM on T Day
B) By 11:00 AM on T+1 Day
C) By 7:30 AM on T+1 Day
D) By 1:30 PM on T+1 Day
E) By 9:00 AM on T+1 Day
5. When a Partnership Firm registered under the Indian Partnership Act, 1932 applies for admission as a member of a Stock Exchange, which specific structural requirement must be identified and maintained as per Exchange norms?
A) The firm must convert to a Limited Liability Partnership within 1 year.
B) The applicant must identify a Dominant Promoter Group.
C) The firm must maintain a static profit-sharing ratio for 5 years.
D) A minimum of 51% of capital must be held by a designated clearing bank.
E) All partners must hold NISM Series-VII certification.
Solutions:
| Question # 1 Answer: E | Question # 2 Answer: E | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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