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100+ Free NISM Series II-A (RTA Corporate) Practice Questions

Pass your NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents (Corporate) Certification Examination exam on the first try — instant access, no signup required.

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Key Facts: NISM Series II-A (RTA Corporate) Exam

100 questions

NISM Series II-A (Corporate RTA) has 100 multiple-choice questions

NISM - RTA assessment structure

2 hours

Candidates must complete the exam in 120 minutes

NISM - RTA assessment structure

50% pass

The passing score for NISM Series II-A is 50 out of 100 marks

NISM - RTA assessment structure

No negative marking

SEBI removed negative marking for this exam effective April 1, 2025

NISM - RTA assessment structure

Rs. 1,500

The certification examination fee is Rs. 1,500 (plus applicable GST)

NISM - RTA certification page

3 years

The RTA Corporate certificate remains valid for 3 years from the exam date

NISM - RTA certification page

15 chapters

The curriculum is divided into fifteen units covering RTA operations

NISM - RTA curriculum

100

Free original practice questions available here

OpenExamPrep

NISM-Series-II-A (RTA Corporate) is a SEBI-mandated certification from the National Institute of Securities Markets for personnel employed by corporate Registrars and Transfer Agents. The exam consists of 100 one-mark multiple-choice questions to be completed in 2 hours, with a 50% passing score and no negative marking. The fee is Rs. 1,500 and the certificate is valid for 3 years from the date of the exam. The syllabus is weighted toward depository processes (16%), SEBI regulations (14%), and investor interface (10%). This 100-question practice bank covers the full corporate RTA curriculum with comprehensive explanations.

Sample NISM Series II-A (RTA Corporate) Practice Questions

Try these sample questions to test your NISM Series II-A (RTA Corporate) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary difference between an equity investor and a debt investor in a corporate entity?
A.Equity investors have a prior charge on the company's assets during liquidation, whereas debt investors have a residual claim.
B.Debt investors are creditors who receive fixed interest, while equity investors are owners who share in the profits and losses.
C.Equity investors receive regular interest payments, while debt investors receive discretionary dividends based on board approvals.
D.Debt investors possess voting rights at general meetings, while equity investors do not have any voting rights.
Explanation: Equity shares represent ownership capital in a company, meaning equity investors share in the profits/losses through dividends and capital appreciation but have a residual claim. Debt instruments like debentures represent borrowed capital, and debt investors are creditors entitled to fixed interest payments regardless of profits.
2Which of the following best describes the economic role of the primary market in India?
A.It facilitates the allocation of new capital from savers to corporate issuers for productive investments.
B.It provides a platform for investors to trade existing securities among themselves to get liquidity.
C.It regulates the interest rates of corporate debt and banking deposits.
D.It guarantees a fixed rate of return on equity capital to protect retail savers.
Explanation: The primary market is the channel through which companies raise fresh capital from the public or institutions for the first time (such as through IPOs). The secondary market, by contrast, is where already-issued securities are traded among investors for liquidity.
3Under the Securities Contracts (Regulation) Act, 1956 (SCRA), which of the following is NOT classified under the definition of 'securities'?
A.Shares, scrips, stocks, bonds, debentures, or other marketable securities of a like nature
B.Government securities and rights or interest in securities
C.A standard promissory note or bill of exchange issued by a partnership firm
D.Units or any other instrument issued by any collective investment scheme to the investors
Explanation: The definition of 'securities' under Section 2(h) of the SCRA includes shares, bonds, debentures, government securities, derivatives, and units of collective investment schemes. It does not cover private bills of exchange or promissory notes issued by partnership firms, which are governed by the Negotiable Instruments Act.
4Which of the following is a fundamental right of an equity shareholder under the Companies Act, 2013?
A.The right to receive a guaranteed annual dividend from the company.
B.The right to daily management of the company's business operations.
C.The right to demand refund of share capital at any time from the company's board.
D.The right to vote on resolutions at the company's general meetings.
Explanation: Equity shareholders are the owners of the company and have the statutory right to vote on key corporate resolutions (like merger approvals, appointment of directors, and auditor selection) at general meetings. They do not have rights to guaranteed dividends or daily management.
5An equity dividend declared at the Annual General Meeting (AGM) must be paid to the eligible shareholders within how many days of its declaration?
A.15 days
B.30 days
C.45 days
D.60 days
Explanation: According to Section 127 of the Companies Act, 2013, once a dividend is declared by the shareholders at an AGM, the company must pay it to the eligible shareholders or dispatch the dividend warrant within 30 days of declaration. Failure to do so attracts penal interest and penalties for the directors.
6According 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?
A.10% of the total paid-up equity capital and free reserves
B.25% of the total paid-up equity capital and free reserves
C.15% of the total paid-up equity capital and free reserves
D.20% of the total paid-up equity capital and free reserves
Explanation: Under Section 68 of the Companies Act, 2013 and SEBI Buy-back Regulations, a company's board of directors can approve a buyback of up to 10% of the total paid-up equity capital and free reserves of the company. Any buyback exceeding 10% and up to 25% requires a special resolution passed by the shareholders.
7When 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?
A.Letter of Allotment
B.Demat Request Form
C.Letter of Renunciation
D.Share Transfer Deed
Explanation: A rights issue is an offer to existing shareholders to buy additional shares. If the rights are renounceable, shareholders can decline the offer and sell their rights to others using a 'Letter of Renunciation' or by trading the rights entitlements on the stock exchange.
8Which of the following statements is true regarding Differential Voting Rights (DVR) equity shares in India?
A.They must have higher dividend rights but cannot have lower voting rights than ordinary shares.
B.They allow companies to raise equity capital without equivalent dilution of voting control.
C.Any company can issue DVR shares without any profitability or track record compliance.
D.DVR holders are completely exempted from attending Annual General Meetings.
Explanation: Differential Voting Rights (DVR) shares are equity shares that carry different voting and/or dividend rights compared to ordinary equity shares. They are typically used by promoters to raise capital from public investors without losing voting control of the company.
9A 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?
A.The total paid-up share capital will increase five-fold, and the market price will remain unchanged.
B.The total paid-up share capital will decrease by 80%, and the market price will increase.
C.The total paid-up share capital will remain unchanged, and the market price per share will increase five-fold.
D.The total paid-up share capital will remain unchanged, and the market price per share will decrease five-fold.
Explanation: A stock split divides the face value of a share, which increases the number of shares outstanding proportionally while keeping the total paid-up capital of the company the same. The market price per share will adjust downward by the split ratio (five-fold reduction in this case) to reflect the split.
10Which of the following features is typically associated with a standard debenture issued by an Indian corporate?
A.It represents an ownership stake in the issuing company.
B.It provides voting rights to the holder at general meetings.
C.It represents a debt obligation of the company with a commitment to pay periodic interest.
D.The returns on the debenture depend entirely on the company's quarterly profit levels.
Explanation: A debenture is a debt security issued by a company to raise capital from the public or institutions. Debenture holders are creditors of the company, entitled to receive regular interest (coupon) and principal repayment at maturity, irrespective of the company's profits.

About the NISM Series II-A (RTA Corporate) Exam

NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents (Corporate) is a SEBI-mandated certification administered by the National Institute of Securities Markets. It is the requisite standard for associated persons employed by Registrars to an Issue and Share Transfer Agents who perform investor/issuer interaction, process applications, handle corporate actions, or manage investor grievances. The syllabus covers the structure of Indian securities markets; characteristics of equity, debt, and mutual funds; SEBI regulations governing RTAs and depositories; processes for public offerings, allotment, and depository operations; and client servicing standards. The examination consists of 100 multiple-choice questions of 1 mark each, to be completed in 2 hours. There is no negative marking, the passing score is 50%, and the certificate is valid for 3 years.

Assessment

100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from fifteen chapters covering securities markets, SEBI regulations, depository services, public offerings, and investor interface.

Time Limit

2 hours (120 minutes).

Passing Score

50% (50 out of 100 marks). There is no negative marking.

Exam Fee

Rs. 1,500 (plus applicable payment gateway charges and GST). (National Institute of Securities Markets (NISM), established by SEBI.)

NISM Series II-A (RTA Corporate) Exam Content Outline

3%

Introduction to Securities

Introduction to securities, features, classification, capital allocation, and primary and secondary markets.

6%

Characteristics of Equity Shares

Equity shares features, voting rights, dividend distribution, buyback of shares, and rights issues.

6%

Characteristics of Debt Securities

Debt features, yield to maturity, coupon rates, credit ratings, and types of debt instruments.

3%

Characteristics of Other Securities

Warrants, convertible debentures, depository receipts (ADRs/GDRs), ETFs, and AIFs.

3%

Basics of Mutual Funds

Structure of mutual funds in India, role of AMC, trustees, and types of mutual fund schemes.

14%

SEBI - Role and Regulations

Regulatory framework of SEBI, SEBI RTA Regulations, Insider Trading regulations, and PFUTP guidelines.

5%

Public Offer of Securities

IPO, FPO, rights issue, private placement, and eligibility criteria for public offerings.

2%

Modes of allotment of shares other than Public Offers

Bonus issues, rights allotments, ESOPs, and preferential allotments.

8%

Processes related to Public Offering of shares

Application processes, ASBA system, book building, pricing, bid procedures, and registrar's role.

6%

Roles and Responsibilities in a Public Issue

Intermediaries in a public issue, merchant bankers, underwriters, registrars, and escrow collection banks.

6%

Depository Services

Role of depositories (NSDL, CDSL), Depository Participants, and account opening requirements.

16%

Processes related to Depositories

Dematerialization (demat), rematerialization (remat), pledge and hypothecation, and transfer of securities.

10%

Investor interface with the R&T Agent

Service standards, processing transfers, transmissions, nominations, and corporate action servicing.

5%

Secondary Market Transactions

Trade execution, clearing and settlement process, role of clearing corporations, and margin requirements.

7%

Client Servicing

Investor grievance redressal, SCORES mechanism, service level agreements, and data security standards.

How to Pass the NISM Series II-A (RTA Corporate) Exam

What You Need to Know

  • Passing score: 50% (50 out of 100 marks). There is no negative marking.
  • Assessment: 100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from fifteen chapters covering securities markets, SEBI regulations, depository services, public offerings, and investor interface.
  • Time limit: 2 hours (120 minutes).
  • Exam fee: Rs. 1,500 (plus applicable payment gateway charges and GST).

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

NISM Series II-A (RTA Corporate) Study Tips from Top Performers

1Focus heavily on high-weight chapters: Processes related to Depositories represents 16% and SEBI - Role and Regulations is 14%, together making up 30% of the exam.
2Understand the dematerialization (demat) and rematerialization (remat) workflows thoroughly, including timelines, forms required (DRF/RRF), and the roles of the investor, DP, depository, and RTA.
3Learn the difference between various modes of allotment like bonus issues, rights issues, ESOPs, and preferential allotments, and pay close attention to book-building processes and the ASBA payment system.
4Get familiar with SEBI RTA Regulations, insider trading codes, and the prohibition of fraudulent and unfair trade practices (PFUTP) as regulatory compliance is tested extensively.
5Study corporate action servicing workflows (such as dividend processing, stock splits, mergers, and buybacks) since RTAs play a central role in their execution.
6Take timed mock tests. Even though there is no negative marking, managing your time to cover all 100 questions within 120 minutes is critical.

Frequently Asked Questions

How many questions are on the NISM Series II-A exam and what is the duration?

The exam consists of 100 multiple-choice questions of 1 mark each, and must be completed in 2 hours (120 minutes).

What is the passing score for NISM Series II-A?

The passing score is 50%, which means you must score at least 50 out of 100 marks to pass.

Is there negative marking in the NISM Series II-A exam?

No. Effective April 1, 2025, SEBI has removed negative marking for this examination. Every incorrect answer earns zero marks, with no deductions.

What is the fee and validity for the NISM Series II-A certificate?

The examination fee is Rs. 1,500 plus applicable GST. The certificate is valid for 3 years from the date of passing the exam.

Who needs to take the NISM Series II-A Corporate exam?

It is mandated by SEBI for associated persons of corporate Registrars to an Issue and Share Transfer Agents (RTAs) who deal with investors, process applications, handle corporate actions, or manage investor grievances.