Unit ko samjho · NISM Series II-A
Processes Related to Depositories
10 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
- What does rematerialisation normally mean in the securities holding process?
- Which transfer is an off-market transfer in the depository context?
- When securities move between eligible accounts maintained through different depositories, what type of delivery is involved?
- An investor submits physical certificates for dematerialisation. Why should the RTA validate the certificates and holder details before confirmation?
- An issuer needs to determine which demat holders qualify for a record-date corporate action. Which information should the RTA use?
- An eligible holder is due 400 bonus shares. A verified posting has credited only 250. How many additional shares are needed to complete the entitlement?
- A merger gives three acquiring-company shares for every seven target-company shares. What new allotment is due on 700 eligible target shares?
- Before dematerialising a listed company’s newly issued securities, what listing-related check does the RTA code of conduct require?
- Issued capital comprises 15 lakh shares. Reconciled records show 7 lakh with one depository, 6 lakh with another and 1.8 lakh physical. What unexplained gap remains?
- A holder has 100 shares of ₹10 face value. A one-for-four bonus is completed, then every share splits into five ₹2 shares. What is the final holding?
Zaroori ideas
Practice bank se · 1
What does rematerialisation normally mean in the securities holding process?
Rematerialisation converts eligible electronic securities holdings back into physical certificate form through the prescribed process. Remember: Rematerialisation changes the form of an eligible holding rather than its owner.
Hint This process reverses the usual change from paper holding to electronic holding. Common mistake: Confusing a reverse holding-form process with a market sale.
II-A-111Practice bank se · 2
Which transfer is an off-market transfer in the depository context?
An off-market transfer occurs outside the exchange clearing and settlement process, such as an eligible direct transfer between demat accounts. Remember: Off-market refers to the transfer route, not necessarily to whether the security is listed.
Hint The distinction concerns whether the transfer passes through the exchange transaction-settlement route. Common mistake: Assuming a listed share can move only through an exchange trade.
II-A-112Practice bank se · 3
When securities move between eligible accounts maintained through different depositories, what type of delivery is involved?
Inter-depository delivery moves eligible securities between accounts maintained through different depositories. Remember: Inter-depository delivery links accounts across depository systems.
Hint The two accounts belong to different depository systems. Common mistake: Treating a change of depository as a new corporate action.
II-A-113Practice bank se · 4
An investor submits physical certificates for dematerialisation. Why should the RTA validate the certificates and holder details before confirmation?
The RTA validates the documents and holder details to ensure that a genuine holding is credited to the proper account. Remember: Dematerialisation confirmation requires checks on the security and its rightful holder.
Hint Confirmation should establish entitlement and authenticity rather than create new investment value. Common mistake: Approving electronic credit merely because a certificate was submitted.
II-A-114Practice bank se · 5
An issuer needs to determine which demat holders qualify for a record-date corporate action. Which information should the RTA use?
The RTA should use the relevant beneficial-owner position supplied through the depositories to determine record-date entitlements. Remember: Corporate-action processing needs the correct date-specific ownership records.
Hint Eligibility must be linked to the relevant ownership snapshot, not to who contacts the office first. Common mistake: Using the most convenient list instead of the relevant ownership snapshot.
II-A-115Practice bank se · 6
An eligible holder is due 400 bonus shares. A verified posting has credited only 250. How many additional shares are needed to complete the entitlement?
An additional 150 shares are needed. Calculation: 400 shares due − 250 already credited = 150 shares. Remember: Correct only the verified missing balance and avoid duplicate credits.
Hint Compare the verified credit with the total entitlement before making any corrective posting. Common mistake: Reposting the entire entitlement after a partial credit.
II-A-116Practice bank se · 7
A merger gives three acquiring-company shares for every seven target-company shares. What new allotment is due on 700 eligible target shares?
The merger allotment is 300 acquiring-company shares. Calculation: 700 ÷ 7 × 3 = 300 shares. Remember: Merger allotments follow the approved exchange ratio.
Hint Apply the approved share-exchange ratio in the stated direction. Common mistake: Applying the merger ratio in reverse.
II-A-117Practice bank se · 8
Before dematerialising a listed company’s newly issued securities, what listing-related check does the RTA code of conduct require?
The RTA must verify listing permission for the securities being dematerialised under the specific listing-related duty in its code of conduct. Remember: Confirm required permissions for the particular securities being processed.
Hint Approval for an earlier issue and approval for the securities now being processed are not necessarily identical. Common mistake: Assuming a company-level listing automatically validates every later issue.
II-A-118Practice bank se · 9
Issued capital comprises 15 lakh shares. Reconciled records show 7 lakh with one depository, 6 lakh with another and 1.8 lakh physical. What unexplained gap remains?
The unexplained shortfall is 20,000 shares. Recorded shares = 7 lakh + 6 lakh + 1.8 lakh = 14.8 lakh. Difference = 15 lakh − 14.8 lakh = 0.2 lakh = 20,000 shares. Remember: An unexplained capital-reconciliation difference needs investigation, not a balancing credit.
Hint Add the three recorded categories before comparing them with the issued-share total. Common mistake: Confusing the total of one holding category with the reconciliation difference.
II-A-119Practice bank se · 10
A holder has 100 shares of ₹10 face value. A one-for-four bonus is completed, then every share splits into five ₹2 shares. What is the final holding?
The final holding is 625 shares. Bonus shares = 100 ÷ 4 = 25. Post-bonus holding = 125. After the five-for-one split, quantity = 125 × 5 = 625 shares. Remember: For successive corporate actions, carry the updated holding into the next calculation.
Hint Apply the second action to the holding after the first action is completed. Common mistake: Applying every action independently to the original holding.
II-A-120