NISM Series II-A Registrars and Transfer Agents (Corporate)

What is the primary difference between an equity investor and a debt investor in a corporate entity?

• AEquity investors have a prior charge on the company's assets during liquidation, whereas…
• BDebt investors are creditors who receive fixed interest, while equity investors are owner…
• CEquity investors receive regular interest payments, while debt investors receive discreti…
• DDebt investors possess voting rights at general meetings, while equity investors do not h…

Which of the following best describes the economic role of the primary market in India?

• AIt facilitates the allocation of new capital from savers to corporate issuers for product…
• BIt provides a platform for investors to trade existing securities among themselves to get…
• CIt regulates the interest rates of corporate debt and banking deposits.
• DIt guarantees a fixed rate of return on equity capital to protect retail savers.

Under the Securities Contracts (Regulation) Act, 1956 (SCRA), which of the following is NOT classified under the definition of 'securities'?

• AShares, scrips, stocks, bonds, debentures, or other marketable securities of a like nature
• BGovernment securities and rights or interest in securities
• CA standard promissory note or bill of exchange issued by a partnership firm
• DUnits or any other instrument issued by any collective investment scheme to the investors

Which of the following is a fundamental right of an equity shareholder under the Companies Act, 2013?

• AThe right to receive a guaranteed annual dividend from the company.
• BThe right to daily management of the company's business operations.
• CThe right to demand refund of share capital at any time from the company's board.
• DThe right to vote on resolutions at the company's general meetings.

An equity dividend declared at the Annual General Meeting (AGM) must be paid to the eligible shareholders within how many days of its declaration?

• A15 days
• B30 days
• C45 days
• D60 days

According to SEBI (Buy-back of Securities) Regulations, what is the maximum limit for a buyback of equity shares from the paid-up capital and free reserves of a company through the board approval route?

• A10% of the total paid-up equity capital and free reserves
• B25% of the total paid-up equity capital and free reserves
• C15% of the total paid-up equity capital and free reserves
• D20% of the total paid-up equity capital and free reserves

When a listed company announces a rights issue, what is the document that allows an existing shareholder to transfer their right to subscribe to a third party?

• ALetter of Allotment
• BDemat Request Form
• CLetter of Renunciation
• DShare Transfer Deed

Which of the following statements is true regarding Differential Voting Rights (DVR) equity shares in India?

• AThey must have higher dividend rights but cannot have lower voting rights than ordinary s…
• BThey allow companies to raise equity capital without equivalent dilution of voting contro…
• CAny company can issue DVR shares without any profitability or track record compliance.
• DDVR holders are completely exempted from attending Annual General Meetings.

A listed company announces a stock split of face value from Rs. 10 to Rs. 2. What will be the immediate impact on the company's total paid-up share capital and the market price of the share?

• AThe total paid-up share capital will increase five-fold, and the market price will remain…
• BThe total paid-up share capital will decrease by 80%, and the market price will increase.
• CThe total paid-up share capital will remain unchanged, and the market price per share wil…
• DThe total paid-up share capital will remain unchanged, and the market price per share wil…

Which of the following features is typically associated with a standard debenture issued by an Indian corporate?

• AIt represents an ownership stake in the issuing company.
• BIt provides voting rights to the holder at general meetings.
• CIt represents a debt obligation of the company with a commitment to pay periodic interest.
• DThe returns on the debenture depend entirely on the company's quarterly profit levels.

If the market interest rates in the economy rise, what is the typical impact on the market price of existing fixed-rate corporate debentures?

• AThe market price of the debentures will decrease.
• BThe market price of the debentures will increase.
• CThe market price of the debentures will remain unchanged.
• DThe coupon rate of the existing debentures will automatically increase.

Which of the following credit rating symbols represents the highest degree of safety regarding timely servicing of financial obligations for long-term debt instruments in India?

• AA
• BAAA
• CBBB
• DAA

What is the primary role of a Debenture Trustee appointed under SEBI regulations?

• ATo manage the daily business operations of the company issuing the debentures.
• BTo sell the debentures in the market on behalf of the company.
• CTo audit the annual financial statements of the issuing company.
• DTo protect the interest of debenture holders and monitor the security creation.

Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. What is the minimum maturity period for Commercial Paper in India?

• A7 days
• B15 days
• C30 days
• D90 days

Under the Companies Act, 2013 and Ministry of Corporate Affairs rules, which of the following entities is fully exempted from creating a Debenture Redemption Reserve (DRR)?

• AAll private limited manufacturing companies.
• BAll public limited unlisted NBFCs.
• CAll Scheduled Commercial Banks and All-India Financial Institutions regulated by the RBI.
• DAll housing finance companies registered with the National Housing Bank.

What is a warrant issued by a corporate entity?

• AA document that registers the signature of an investor for depository purposes.
• BAn option given to the holder to buy equity shares at a predetermined price within a spec…
• CA certificate that guarantees the payment of fixed dividends on preference shares.
• DA legal order issued by SEBI to freeze a promoter's demat account.

What is the key difference between an American Depository Receipt (ADR) and a Global Depository Receipt (GDR)?

• AADRs are denominated in Indian Rupees, whereas GDRs are denominated in US Dollars.
• BADRs are issued only to promoters, whereas GDRs are issued only to retail public.
• CADRs can only be issued by banks, whereas GDRs can be issued by any manufacturing firm.
• DADRs are traded on US stock exchanges, while GDRs are traded on non-US international exch…

Under SEBI (Alternative Investment Funds) Regulations, which category of AIFs includes Venture Capital Funds, SME Funds, Social Venture Funds, and Infrastructure Funds?

• ACategory I AIF
• BCategory II AIF
• CCategory III AIF
• DCategory IV AIF

In the organizational structure of a mutual fund in India, which entity holds the physical and electronic securities of the mutual fund schemes in custody?

• AAsset Management Company
• BSponsor
• CCustodian
• DRegistrar and Transfer Agent

Which entity is responsible for managing the investments of a mutual fund scheme by buying and selling securities?

• AThe Board of Trustees
• BAsset Management Company
• CThe Sponsor of the Mutual Fund
• DAssociation of Mutual Funds in India

What is a key characteristic of an open-ended mutual fund scheme?

• AUnits can be purchased and redeemed on an ongoing basis at Net Asset Value-based prices.
• BIt has a fixed maturity date, after which all funds are liquidated and paid to investors.
• CUnits can only be purchased during the Initial Offer period and cannot be redeemed until…
• DIt is mandatory for open-ended schemes to list and trade on a stock exchange.

Which of the following is a primary objective of the Securities and Exchange Board of India (SEBI)?

• ATo guarantee fixed profits for stockbrokers and merchant bankers.
• BTo audit and approve the tax returns of listed corporate entities.
• CTo act as a clearing bank for settle funds on stock exchanges.
• DTo protect the interests of investors in securities and promote the development of the se…

To act as a Registrar to an Issue and Share Transfer Agent (RTA), registration must be obtained under which regulations?

• ASEBI (Stock Brokers and Sub-Brokers) Regulations, 1992
• BSEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
• CSEBI (Depositories and Participants) Regulations, 2018
• DSEBI (Mutual Funds) Regulations, 1996

According to SEBI regulations, a Category I Registrar to an Issue and Share Transfer Agent (RTA) is authorized to carry out which of the following activities?

• ABoth Registrar to an Issue and Share Transfer Agent activities
• BOnly Share Transfer Agent activities for existing shareholders
• COnly Registrar to an Issue activities during public offerings
• DOnly clearing and settlement tasks on stock exchanges

What is the main restriction on a Category II RTA under SEBI regulations?

• AIt can only service foreign institutional investors.
• BIt cannot handle any dematerialization requests from depositories.
• CIt can act either as a Registrar to an Issue or as a Share Transfer Agent, but not both.
• DIt is restricted from servicing companies that have equity shares listed on BSE or NSE.

What is the minimum net worth requirement specified by SEBI for Category I Registrars to an Issue and Share Transfer Agents?

• ARs. 25 Lakhs
• BRs. 50 Lakhs
• CRs. 1 Crore
• DRs. 2 Crores

What is the minimum net worth requirement specified by SEBI for Category II Registrars to an Issue and Share Transfer Agents?

• ARs. 5 Lakhs
• BRs. 10 Lakhs
• CRs. 15 Lakhs
• DRs. 25 Lakhs

Under SEBI (Prohibition of Insider Trading) Regulations, who is classified as a 'Connected Person'?

• AAny person associated with the company in any capacity who has access to Unpublished Pric…
• BOnly the promoter of the company holding more than 50% shares.
• CAny client of the company who purchases its products in the retail market.
• DA shareholder who holds less than 1% of the equity capital of the company.

Which of the following constitutes Unpublished Price Sensitive Information (UPSI) under SEBI guidelines?

• AThe location of the company's regional head office.
• BThe product brochures and marketing campaigns scheduled for release.
• CFinancial results, dividends, change in capital structure, or mergers/acquisitions that a…
• DThe list of employees working in the administrative department.

Which of the following practices is strictly prohibited under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations (PFUTP)?

• ABuying shares in the secondary market based on publicly available annual reports.
• BCircular trading or creating a false or misleading appearance of trading volume in a secu…
• CSelling shares to book capital gains after a holding period of one year.
• DParticipating in a book-built public issue at the cap price.

Under SEBI (Listing Obligations and Disclosure Requirements) Regulations (LODR), listed companies must appoint a compliance officer. Who is typically designated as the compliance officer?

• AThe Chief Executive Officer
• BThe Statutory Auditor
• CThe Chief Marketing Officer
• DThe Company Secretary

Under SEBI LODR Regulations, listed companies are required to submit their shareholding pattern to the stock exchanges within how many days of the end of each quarter?

• A21 days
• B30 days
• C45 days
• D15 days

Under the SEBI RTA Regulations, for what minimum period is an RTA required to preserve books of accounts and records?

• A3 years
• B5 years
• C8 years
• D10 years

When SEBI decides to conduct an inspection of the books and records of an RTA, how much notice must it give to the RTA under ordinary circumstances?

• ANo notice is required; all inspections are surprise visits.
• B10 days
• C30 days
• D5 days

An RTA aggrieved by an order passed by SEBI may file an appeal before which of the following bodies?

• ASupreme Court of India directly
• BHigh Court of the state where the RTA is located
• CReserve Bank of India
• DSecurities Appellate Tribunal (SAT)

What is the primary difference between an Initial Public Offer (IPO) and a Further Public Offer (FPO)?

• AIPO shares can only be bought by QIBs, whereas FPO shares are open to retail investors.
• BIPO is the first public issue of shares by an unlisted company, while FPO is a subsequent…
• CAn IPO does not require SEBI approval, whereas an FPO requires prior clearance from SEBI.
• DIn an IPO, only promoters sell shares, whereas in an FPO, new shares are created.

What is an Offer for Sale (OFS) in the context of a public issue?

• AExisting shareholders sell their holdings to the public; the company does not receive new…
• BA company issues fresh equity shares to the public to finance project expansions.
• CA company offers shares to its employees at a discount under an ESOP.
• DA promoter pledges their shares to a commercial bank to raise a loan.

Under the Companies Act, 2013, what is the maximum number of persons to whom a private placement offer can be made in a financial year (excluding QIBs and employees)?

• A50
• B100
• C200
• D500

According to SEBI ICDR Regulations, what is the minimum subscription requirement for a public issue of equity shares?

• A75% of the offer size
• B80% of the offer size
• C95% of the offer size
• D90% of the offer size

To be eligible to make a public issue under the profitability route of SEBI (Issue of Capital and Disclosure Requirements) Regulations, a company must have net tangible assets of at least Rs. 3 Crores in each of the preceding:

• AThree full years
• BFive full years
• CTwo full years
• DOne year

Which of the following is true regarding a bonus share issue by a corporate entity?

• ABonus shares are issued to promoters only at a deep discount.
• BBonus shares are paid out of the cash accounts, reducing the company's liquid cash reserv…
• CBonus shares are issued free of cost to existing shareholders out of free reserves or sha…
• DIssuing bonus shares requires approval from the Reserve Bank of India.

Which of the following best describes a preferential allotment of shares?

• AAllotment of shares to existing retail shareholders in a public book-built issue.
• BAllotment of shares to a select group of persons on a private placement basis at a price…
• CAllotment of shares to employees under the sweat equity guidelines.
• DAllotment of shares to depository participants during dematerialization requests.

What is a Draft Red Herring Prospectus (DRHP) in a public issue?

• AA preliminary registration document submitted to SEBI containing issue details but omitti…
• BThe final prospectus registered with the Registrar of Companies containing the exact issu…
• CA booklet containing application forms distributed at bank branches.
• DThe confirmation document sent to investors after their bids are successful.

In a public issue, what does the acronym ASBA stand for?

• AAllocation Supported by Banking Agreement
• BAllotment System for Bid Analysis
• CAssociated Share Bankers Association
• DApplication Supported by Blocked Amount

In a book-building public issue, what is the maximum price band (the difference between the floor price and the cap price) permitted under SEBI regulations?

• ACap price cannot exceed 110% of the floor price.
• BCap price cannot exceed 120% of the floor price.
• CCap price cannot exceed 130% of the floor price.
• DCap price cannot exceed 150% of the floor price.

Which category of investors is eligible to bid at the 'Cut-off Price' in a book-built public issue?

• AQualified Institutional Buyers (QIBs)
• BNon-Institutional Investors (NIIs) bidding above Rs. 2 Lakhs
• CRetail Individual Investors (RIIs) bidding up to Rs. 2 Lakhs
• DForeign Portfolio Investors (FPIs)

Under the ASBA mechanism, when are the investor's funds actually debited from their self-designated bank account?

• AOnly after the final allotment is determined, to the extent of the shares allotted.
• BImmediately when the bid is entered on the stock exchange terminal.
• COn the day the public issue closes for bidding.
• DWithin 2 days of the prospectus being registered with the RoC.