Unit ko samjho · NISM Series VI
Functions of Depository Participant – Account Operations
14 questions is unit mein
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- An individual is the sole holder of one demat account and the first holder of another. Each holds ₹1 lakh of ordinary equity. Does the low combined value alone make the individual eligible for BSDA treatment?
- An otherwise eligible individual has ₹6.2 lakh of equity and ₹4.1 lakh of debt securities in the same account. None is excluded from BSDA valuation. What holding value is used for the current ₹10 lakh BSDA eligibility ceiling?
- Assume two otherwise eligible BSDAs remain in their stated valuation bands throughout the charging period. Account P holds ₹4 lakh and Account Q holds ₹7 lakh. What are their respective maximum annual maintenance charges, excluding any separately applicable tax?
- For a BSDA eligibility check, ordinary included securities are worth ₹9 lakh and separately held Zero Coupon Zero Principal bonds are shown at ₹2 lakh. Assume all other conditions are met. Under the current exclusion rule, what is the relevant eligibility value?
- At a scheduled review, a CDSL DP finds an existing regular account eligible for BSDA. The BO has not given authenticated, verifiable consent to remain in a regular account. What is the current prescribed approach?
- An eligible BSDA has nil annual maintenance charges. Which conclusion about other charges is justified?
- A joint demat account requires all holders’ signatures for a physical debit instruction. Only the first holder signs a transfer form. What should the DP do?
- An NSDL client wants internet access primarily to view demat balances and transaction information. Which named facility is intended for that purpose?
- An enrolled NSDL client wants to submit securities-delivery instructions electronically instead of delivering paper slips. Which facility most directly supports that activity?
- Which description correctly distinguishes the principal functions of CDSL’s easi and easiest services?
- A BO receives a genuine depository debit alert for a transfer they did not authorise. What is the most appropriate immediate response?
- A client loses an unused Delivery Instruction Slip booklet. What action best limits the risk of unauthorised paper instructions?
- An account statement begins with 700 shares. During the period, 150 shares are credited and 220 are debited. There are no other movements. What closing quantity should the BO expect?
- An electronic transfer page times out after the client presses Submit. The transaction status is unknown. What is the safest processing step before sending an identical instruction again?
Zaroori ideas
Practice bank se · 1
An individual is the sole holder of one demat account and the first holder of another. Each holds ₹1 lakh of ordinary equity. Does the low combined value alone make the individual eligible for BSDA treatment?
BSDA eligibility combines the holding-value test with account-ownership conditions. An individual must have only one demat account as sole or first holder and only one BSDA across depositories. In this example, low value does not cure having two accounts in the relevant ownership positions. Being a second holder elsewhere is a different fact and should not be confused with the stated case. Remember: Apply every BSDA eligibility condition, not just the value ceiling.
Hint Common mistake: Approving BSDA solely because the account balance is small.
VI-049Practice bank se · 2
An otherwise eligible individual has ₹6.2 lakh of equity and ₹4.1 lakh of debt securities in the same account. None is excluded from BSDA valuation. What holding value is used for the current ₹10 lakh BSDA eligibility ceiling?
The present BSDA test uses debt and other securities together. The eligible-value total is ₹6.2 lakh + ₹4.1 lakh = ₹10.3 lakh, above ₹10 lakh. Applying separate ceilings to debt and equity would incorrectly keep this account within the scheme. Regular-account treatment may therefore apply under the prescribed process. Remember: Combine the relevant debt and non-debt holdings before testing the BSDA ceiling.
Hint Common mistake: Treating the ₹10 lakh limit as available separately for each asset class.
VI-050Practice bank se · 3
Assume two otherwise eligible BSDAs remain in their stated valuation bands throughout the charging period. Account P holds ₹4 lakh and Account Q holds ₹7 lakh. What are their respective maximum annual maintenance charges, excluding any separately applicable tax?
The current table places holdings up to and including ₹4 lakh in the nil-AMC band. Holdings above ₹4 lakh and up to ₹10 lakh have a maximum AMC of ₹100. Thus P is at the inclusive upper boundary of the zero-charge band, while Q is in the next band. This is an AMC rule, not a statement that every service is free. Remember: Check whether a threshold includes equality before assigning the fee band.
Hint Common mistake: Charging the next band at exactly ₹4 lakh.
VI-051Practice bank se · 4
For a BSDA eligibility check, ordinary included securities are worth ₹9 lakh and separately held Zero Coupon Zero Principal bonds are shown at ₹2 lakh. Assume all other conditions are met. Under the current exclusion rule, what is the relevant eligibility value?
The current operating instructions exclude specified categories, including Zero Coupon Zero Principal bonds, from the BSDA eligibility valuation. The relevant total is therefore ₹9 lakh, not the ₹11 lakh displayed across both categories. The exclusion is a specific regulatory treatment. It does not mean all debt or all zero-coupon instruments are excluded. Remember: Apply named valuation exclusions narrowly. Do not extend them to unrelated instruments.
Hint Common mistake: Reading “ZCZP bonds excluded” as “all debt securities excluded”.
VI-052Practice bank se · 5
At a scheduled review, a CDSL DP finds an existing regular account eligible for BSDA. The BO has not given authenticated, verifiable consent to remain in a regular account. What is the current prescribed approach?
The current instructions require reassessment at the end of every quarter and conversion of eligible accounts, unless the BO specifically consents through an authenticated and verifiable channel to continue with a regular account. The default treatment is not dependent on a compulsory branch visit. The customer’s recorded choice, where validly given, must be respected. Remember: Current BSDA administration combines periodic review with a documented customer opt-out.
Hint Common mistake: Using an old once-a-year or opening-only review assumption.
VI-053Practice bank se · 6
An eligible BSDA has nil annual maintenance charges. Which conclusion about other charges is justified?
AMC is one fee category. The BSDA framework separately addresses statements and other services. It does not abolish every DP charge, broker charge or statutory tax. Other-service charging must follow the applicable BSDA and tariff rules, including the requirement not to charge BSDAs more than comparable non-BSDA services. Remember: Read each tariff component separately.
Hint Common mistake: Equating a basic-services account with an entirely cost-free securities relationship.
VI-054Practice bank se · 7
A joint demat account requires all holders’ signatures for a physical debit instruction. Only the first holder signs a transfer form. What should the DP do?
The account’s valid operating requirements govern authority for the debit. In this scenario all holders’ signatures are explicitly required, so a first-holder signature alone is insufficient. First-holder status does not convert jointly held securities into that person’s sole property. The destination holder cannot authorise a debit from somebody else’s joint account. Remember: Check the actual operating mandate and completeness of authority.
Hint Common mistake: Assuming the first name automatically has unrestricted debit power.
VI-055Practice bank se · 8
An NSDL client wants internet access primarily to view demat balances and transaction information. Which named facility is intended for that purpose?
IDeAS is NSDL’s internet-based account-information facility. Viewing a balance is distinct from issuing a delivery instruction or applying for a corporate action. The user should not confuse access to account information with an unrestricted authority to move securities. Remember: Match an electronic service to its actual function.
Hint Common mistake: Treating every online depository facility as a transaction-execution service.
VI-056Practice bank se · 9
An enrolled NSDL client wants to submit securities-delivery instructions electronically instead of delivering paper slips. Which facility most directly supports that activity?
SPEED-e enables electronic submission of depository instructions under its authentication and operating arrangements. The instruction must still be valid, within the user’s authority and subject to available balances and applicable restrictions. Electronic submission changes the channel. It does not exempt the transaction from controls. Remember: Digital delivery instructions still require authority and operational validation.
Hint Common mistake: Believing an online instruction automatically bypasses pledge or freeze restrictions.
VI-057Practice bank se · 10
Which description correctly distinguishes the principal functions of CDSL’s easi and easiest services?
The services differ in functionality: easi is associated with viewing holdings and transactions, while easiest adds an electronic route for permitted securities instructions. Registration, authentication and the applicable configuration matter. Neither service turns a depository account into a bank account or substitutes for exchange trade matching. Remember: Distinguish information access from the additional ability to submit instructions.
Hint Common mistake: Assuming a view-only registration authorises outward transfers.
VI-058Practice bank se · 11
A BO receives a genuine depository debit alert for a transfer they did not authorise. What is the most appropriate immediate response?
An alert helps the BO detect activity promptly. It is not evidence that the underlying instruction was valid. The BO should preserve the details and immediately use the DP’s verified reporting process, including protective restrictions where appropriate. Credentials should not be shared with somebody claiming to reverse a debit. Remember: Use transaction alerts as a control, and report unrecognised activity promptly.
Hint Common mistake: Treating automated notification as proof of customer authorisation.
VI-059Practice bank se · 12
A client loses an unused Delivery Instruction Slip booklet. What action best limits the risk of unauthorised paper instructions?
Unused instruction slips can be misused, particularly where signatures or details are compromised. The DP must be informed promptly so the relevant serials can be controlled and replacement procedures followed. Reporting to the issuer alone does not notify the intermediary that accepts and executes the client’s instructions. Remember: Protect instruction instruments before an unauthorised transaction occurs.
Hint Common mistake: Treating a lost DIS booklet as harmless because the demat holdings are electronic.
VI-060Practice bank se · 13
An account statement begins with 700 shares. During the period, 150 shares are credited and 220 are debited. There are no other movements. What closing quantity should the BO expect?
Closing quantity equals opening quantity plus credits minus debits: 700 + 150 − 220 = 630 shares. Credits increase holdings and debits reduce them. Reconciliation should use the same ISIN and period. Unrelated securities or unposted trade expectations should not be added to this ledger calculation. Remember: Reconcile holdings as an inventory: opening + credited − debited.
Hint Common mistake: Adding a debit because the transaction line shows a positive quantity.
VI-061Practice bank se · 14
An electronic transfer page times out after the client presses Submit. The transaction status is unknown. What is the safest processing step before sending an identical instruction again?
A timeout is a communication outcome, not a conclusive settlement status. The first request may have reached the system even though the acknowledgement did not reach the user. Checking status and reconciling the reference prevents duplicate debits while preserving a clear audit trail. A replacement should follow the prescribed process once the original state is established. Remember: Unknown status must be resolved before repeating a potentially effective instruction.
Hint Common mistake: Equating a browser error with proof that no instruction exists.
VI-062