Unit ko samjho · NISM Series X-A
Operational Aspects of Investment Management
15 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
Is unit mein kya hai
- A client completed KYC with one SEBI-registered intermediary last year. She now opens an account with another intermediary. What normally happens to her KYC?
- An investor wants to convert physical share certificates into demat form. Where does she submit the request and the certificates?
- What is rematerialisation of securities?
- A client wants her broker to debit shares from her demat account only to settle her own sales and to pledge them for margin. Which document is designed for these limited uses?
- Under SEBI's nomination rules in force from 1 September 2026, how many nominees can an investor name for a demat account?
- The single holder of a demat account dies, and a nominee is registered on the account. What does the nominee mainly need to submit to receive the securities?
- A mutual fund folio was opened for a minor with her father as guardian. She has now turned 18. What must happen before new transactions in the folio?
- A resident client moves abroad for good and becomes a non-resident Indian. What should he do about his resident accounts used for investing?
- An employer offers to pay an employee's mutual fund SIP straight from the company's bank account through payroll. How do mutual funds treat this payment?
- An investment adviser wants to help clients buy funds on a stock exchange mutual fund platform. Which statement is correct?
- Why would an investment adviser use transaction feeds from registrars or exchange platforms for its clients' folios?
- A client pledges mutual fund units to a bank for a loan, and a lien is marked on them. What can she do with the units while the lien stands?
- A client must send ₹5 lakh to a fund collection account, settled on its own and in real time on a working day. Which payment system fits?
- Which record best shows that a piece of investment advice was suitable for the client?
- A client changes her surname after marriage. What should she do so that her investment records match?
Zaroori ideas
Practice bank se · 1
A client completed KYC with one SEBI-registered intermediary last year. She now opens an account with another intermediary. What normally happens to her KYC?
The new intermediary can rely on her existing KYC record. KYC done with one SEBI-registered intermediary is uploaded to a KYC Registration Agency (KRA). Other intermediaries can fetch it, subject to their own checks. Remember: KYC done once and recorded with a KRA can be used across SEBI-registered intermediaries.
Hint Common mistake: Thinking each new intermediary must start the whole KYC process again.
X-A-226Practice bank se · 2
An investor wants to convert physical share certificates into demat form. Where does she submit the request and the certificates?
She submits a demat request form and the certificates to her depository participant (DP). The DP sends the request to the company's registrar. Once the registrar confirms, the depository credits her demat account. Remember: Demat requests go through the DP to the issuer's registrar, and the depository then credits the account.
Hint Common mistake: Assuming the stock exchange or the regulator converts physical certificates.
X-A-227Practice bank se · 3
What is rematerialisation of securities?
Rematerialisation turns electronic holdings back into physical certificates. It is the reverse of dematerialisation. The request goes through the investor's depository participant. Remember: Remat is the reverse of demat: electronic holdings become physical certificates again.
Hint Common mistake: Confusing rematerialisation with moving shares between demat accounts.
X-A-228Practice bank se · 4
A client wants her broker to debit shares from her demat account only to settle her own sales and to pledge them for margin. Which document is designed for these limited uses?
A Demat Debit and Pledge Instruction (DDPI) covers exactly these purposes. SEBI introduced it to limit what a broker can do with a client's demat account. It replaces a broad power of attorney for uses such as settling the client's own trades and pledging for margin. Remember: DDPI gives a limited, purpose-specific authority instead of a broad power of attorney.
Hint Common mistake: Signing a broad power of attorney when only limited authority is needed.
X-A-229Practice bank se · 5
Under SEBI's nomination rules in force from 1 September 2026, how many nominees can an investor name for a demat account?
An investor can name up to three nominees. SEBI's circular of 29 May 2026, in force from 1 September 2026, set this limit and replaced the earlier rules. If shares are not specified, the holding is split equally. Remember: From 1 September 2026, up to three nominees can be named, and an unspecified split is equal.
Hint Common mistake: Applying the 2025 limit of ten nominees, which the 2026 rules replaced.
X-A-230Practice bank se · 6
The single holder of a demat account dies, and a nominee is registered on the account. What does the nominee mainly need to submit to receive the securities?
The nominee lodges a claim with the death certificate and the nominee's own KYC details. A registered nominee makes transmission simple. Court documents are mainly needed when there is no nominee. Remember: With a registered nominee, transmission needs mainly the death certificate and the nominee's KYC.
Hint Common mistake: Assuming a court document is always needed even when a nominee is registered.
X-A-231Practice bank se · 7
A mutual fund folio was opened for a minor with her father as guardian. She has now turned 18. What must happen before new transactions in the folio?
The folio must move to her own name, with her KYC and bank details. When a minor turns 18, the guardian can no longer act for her. New transactions wait until this change of status is done. Remember: When a minor turns 18, the account moves to the new adult's own KYC and bank details.
Hint Common mistake: Letting the guardian keep operating the account after the child turns 18.
X-A-232Practice bank se · 8
A resident client moves abroad for good and becomes a non-resident Indian. What should he do about his resident accounts used for investing?
He must report the change and move his accounts to NRI status. Under FEMA, a non-resident holds investments through non-resident accounts, such as NRO or NRE bank accounts. Resident accounts cannot simply carry on. Remember: A move from resident to non-resident must be reported so accounts are redesignated under FEMA.
Hint Common mistake: Treating residency as a tax-only matter and leaving resident accounts unchanged.
X-A-233Practice bank se · 9
An employer offers to pay an employee's mutual fund SIP straight from the company's bank account through payroll. How do mutual funds treat this payment?
It can be accepted as one of the listed exceptions, with declarations. Mutual funds refuse third-party payments in general. An employer paying through payroll deductions is one of the few cases allowed. Remember: Mutual funds refuse third-party payments except in a few listed cases, such as payroll payments by an employer.
Hint Common mistake: Assuming third-party payments are either always fine or never allowed.
X-A-234Practice bank se · 10
An investment adviser wants to help clients buy funds on a stock exchange mutual fund platform. Which statement is correct?
The adviser can transact direct plans for clients while earning no commission. SEBI lets registered advisers use exchange platforms for direct plans. Its rules bar any commission or referral fee for implementation services. Remember: An adviser may implement advice through direct plans, but may not earn commission on them.
Hint Common mistake: Thinking disclosure makes commission acceptable for an adviser.
X-A-235Practice bank se · 11
Why would an investment adviser use transaction feeds from registrars or exchange platforms for its clients' folios?
Feeds keep the adviser's record of each client's holdings up to date. Accurate records help the adviser monitor portfolios and review advice. They give no right to trade for the client. Remember: Transaction feeds keep client holdings records up to date for monitoring.
Hint Common mistake: Treating a data feed as authority to act on a client's account.
X-A-236Practice bank se · 12
A client pledges mutual fund units to a bank for a loan, and a lien is marked on them. What can she do with the units while the lien stands?
She cannot redeem, switch or transfer the units until the lien is released. A lien protects the lender's claim. She still owns the units, but their use is blocked. Remember: A lien blocks redemption, switch or transfer until release, but ownership stays with the investor.
Hint Common mistake: Treating a switch as allowed because it is not a cash redemption.
X-A-237Practice bank se · 13
A client must send ₹5 lakh to a fund collection account, settled on its own and in real time on a working day. Which payment system fits?
RTGS fits. It settles each payment individually and in real time, and suits large amounts. Remember: RTGS settles each payment individually in real time. NEFT settles in batches.
Hint Common mistake: Treating NEFT as real-time settlement.
X-A-238Practice bank se · 14
Which record best shows that a piece of investment advice was suitable for the client?
Suitability is shown by linking the advice and its reasons to the client's risk profile. SEBI requires advisers to keep risk profiling and suitability records with the advice given.
Hint Common mistake: Relying on a general risk note as proof that advice was suitable.
X-A-239Practice bank se · 15
A client changes her surname after marriage. What should she do so that her investment records match?
She updates her KYC with proof of the new name. The KYC update flows to the records linked to it. A change in name or address is handled through KYC. Remember: A name or address change is updated through KYC so every linked record matches.
Hint Common mistake: Assuming an unchanged PAN means no update is needed.
X-A-240