Unit ko samjho · NISM Series VII
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14 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
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- An eligible BSDA has securities counted for its maintenance-charge band valued at ₹6.5 lakh throughout the relevant billing period. Under the revised BSDA framework, what is the maximum annual maintenance charge, excluding taxes?
- How must a member hold a client’s funded shares under the margin trading facility?
- Under the ordinary PMS minimum-investment rule stated in SEBI’s investor guidance, what minimum applies to a new, non-accredited client of a standard discretionary PMS, excluding special routes?
- An IPO applicant has ₹30,000 blocked under ASBA. Shares worth ₹12,000 are allotted. Ignoring other account activity, what happens to the blocked amount after allotment is processed?
- Which allotment choice is described for investors on NSE’s MF Invest Platform?
- A portfolio manager carries out transactions according to the client’s specific investment decisions. The client retains the final buy-or-sell decision, while the manager executes it. Which service is described?
- An investor submits an IPO application through a participating bank’s ASBA facility. Which institution places the application-amount block in the investor’s bank account?
- A broker’s research report estimates a company’s value using its cash flows, debt, profitability and industry outlook. Which approach primarily underlies the report?
- Under a hypothetical MTF agreement, ₹2,00,000 is funded for 8 chargeable days. A principal repayment of ₹80,000 then leaves ₹1,20,000 funded for 12 more chargeable days. At simple interest of 18.25% per year on a 365-day basis, what total interest is due, ignoring charges?
- An investor redeems 1,500 mutual fund units at an applicable NAV of ₹32.40. The purchase NAV was ₹30. For this redemption, assume a 0.75% exit load on the full redemption value. Ignoring taxes and other deductions, what amount is payable?
- An investor holds 500 shares of A and 200 shares of B in one demat account. The investor wants a debit freeze on only 100 shares of A. Which scope is available under the investor’s freeze right?
- An investor makes three mutual fund purchases of ₹2,000 each at applicable NAVs of ₹20, ₹25 and ₹40. All money buys units and there are no deductions. What is the average acquisition cost per unit, rounded to two decimals?
- Physical certificates name joint holders R and S, while their demat account names the same holders in the order S and R. They want to dematerialise the certificates without changing the holders. Which facility addresses this order mismatch?
- In a book-built public issue, what information is gathered to help determine the issue price?
Zaroori ideas
Practice bank se · 1
An eligible BSDA has securities counted for its maintenance-charge band valued at ₹6.5 lakh throughout the relevant billing period. Under the revised BSDA framework, what is the maximum annual maintenance charge, excluding taxes?
₹100 is the annual ceiling for the stated band, not a fee the DP must always charge. The ₹6.5 lakh value lies above ₹4 lakh and does not exceed ₹10 lakh. The AMC table caps the charge for that eligible BSDA band at ₹100 a year. Nil charges apply to the lower band. The December 2025 amendment changes specified eligibility and valuation provisions, not this AMC table. Eligibility and the relevant valuation band are expressly assumed in the question. Remember: Check BSDA eligibility, the value band and whether the question asks for a ceiling.
Hint Common mistake: Using the nil-fee band for every BSDA, or treating the annual ceiling as a quarterly fee.
VII-038Practice bank se · 2
How must a member hold a client’s funded shares under the margin trading facility?
This answer identifies both the pledge form and the designated account. NSE’s MTF FAQ specifies a pledge from the respective client’s beneficial-owner account into the dedicated Client Securities under Funding Account. The question concerns the funded shares. An ordinary settlement pool or an ordinary margin-pledge account is not a substitute for that designated arrangement. Remember: For funded MTF shares, identify the dedicated account as well as the pledge form.
Hint Common mistake: Confusing funded shares, ordinary collateral and the broker’s proprietary securities.
VII-039Practice bank se · 3
Under the ordinary PMS minimum-investment rule stated in SEBI’s investor guidance, what minimum applies to a new, non-accredited client of a standard discretionary PMS, excluding special routes?
Provisionally correct. ₹50 lakh is the figure expressly stated in the inspected SEBI investor guidance. The inspected SEBI investor guidance states a standard PMS minimum investment of ₹50 lakh. The question excludes special routes. A September 2026 board decision describes a distinct PRIM approach, so its separate figure must not automatically be substituted into this ordinary-PMS question. This is a provisional source-scoped answer. The complete operative regulation and commencement of the approved 2026 changes must be checked before publication. Remember: Identify the client category, product route and operative regulatory version before using a minimum.
Hint Common mistake: Treating a board-approved special-route figure as a universal replacement for standard PMS.
VII-040Practice bank se · 4
An IPO applicant has ₹30,000 blocked under ASBA. Shares worth ₹12,000 are allotted. Ignoring other account activity, what happens to the blocked amount after allotment is processed?
The debit matches the allotment and the unused ₹18,000 is released. The allotment requires payment of ₹12,000, so that is the amount debited. Unused application amount = ₹30,000 − ₹12,000 = ₹18,000. Its block is released. The unused ₹18,000 did not need to leave the bank account. Describing it as money first paid away and later returned misunderstands the block mechanism. Remember: Under ASBA, separate the initial blocked amount from the final allotment debit.
Hint Common mistake: Treating blocked bank funds as money already transferred to the issuer.
VII-045Practice bank se · 5
Which allotment choice is described for investors on NSE’s MF Invest Platform?
This answer states both supported allotment choices. The inspected platform description expressly offers a demat or non-demat allotment choice. Neither single-mode answer captures that stated choice. Remember: Check the platform’s stated holding choices rather than assuming demat-only allotment.
Hint Common mistake: Assuming every product distributed through exchange infrastructure must be held only in demat form.
VII-067Practice bank se · 6
A portfolio manager carries out transactions according to the client’s specific investment decisions. The client retains the final buy-or-sell decision, while the manager executes it. Which service is described?
The client decides and the manager carries out those decisions. The client controls the investment decision, so the manager does not have discretion to choose it. The manager still implements the decision. In the advisory-only distinction used by the source, the investor executes independently. Remember: Ask separately who decides and who executes.
Hint Common mistake: Calling any service without manager discretion advisory-only even when the manager implements the client’s decisions.
VII-070Practice bank se · 7
An investor submits an IPO application through a participating bank’s ASBA facility. Which institution places the application-amount block in the investor’s bank account?
The ASBA block is placed in the investor’s account through the participating bank. The application uses the bank’s ASBA route. The money remains in the investor’s bank account while blocked. The participating bank places that block. An exchange order, registrar record or broker ledger is not a substitute for it. Remember: In the bank-ASBA route, distinguish the bank block from the IPO order and allotment records.
Hint Common mistake: Assuming the broker or exchange physically holds the blocked application money.
VII-092Practice bank se · 8
A broker’s research report estimates a company’s value using its cash flows, debt, profitability and industry outlook. Which approach primarily underlies the report?
The report studies business finances and economic drivers of value. Cash flows, debt and profitability describe the company’s finances. Industry outlook adds business context. Using these to estimate value is fundamental analysis, not analysis primarily based on price charts or volumes. Remember: Company finances and business value point to fundamental research.
Hint Common mistake: Calling every report containing numbers a technical-analysis report.
VII-093Practice bank se · 9
Under a hypothetical MTF agreement, ₹2,00,000 is funded for 8 chargeable days. A principal repayment of ₹80,000 then leaves ₹1,20,000 funded for 12 more chargeable days. At simple interest of 18.25% per year on a 365-day basis, what total interest is due, ignoring charges?
This answer calculates interest separately on each outstanding principal and its chargeable days. Daily rate = 18.25% ÷ 365 = 0.05% = 0.0005. First period interest = ₹2,00,000 × 0.0005 × 8 = ₹800. Second period interest = ₹1,20,000 × 0.0005 × 12 = ₹720. Total interest = ₹800 + ₹720 = ₹1,520. The rate and day-count terms are hypothetical, not a prescribed MTF tariff. Remember: Split the timeline whenever the funded principal changes.
Hint Common mistake: Charging the original balance after repayment, or using the repayment amount as the remaining balance.
VII-094Practice bank se · 10
An investor redeems 1,500 mutual fund units at an applicable NAV of ₹32.40. The purchase NAV was ₹30. For this redemption, assume a 0.75% exit load on the full redemption value. Ignoring taxes and other deductions, what amount is payable?
This answer deducts the load on the full applicable redemption value. Gross redemption value = 1,500 × ₹32.40 = ₹48,600. Exit load = ₹48,600 × 0.0075 = ₹364.50. Net proceeds = ₹48,600 − ₹364.50 = ₹48,235.50. The purchase NAV is not the load base. Remember: Use the scheme’s stated load base and distinguish the deduction from the net payout.
Hint Common mistake: Treating exit load as a tax calculated only on profit.
VII-119Practice bank se · 11
An investor holds 500 shares of A and 200 shares of B in one demat account. The investor wants a debit freeze on only 100 shares of A. Which scope is available under the investor’s freeze right?
This answer matches the recognised specific-quantity facility. CDSL’s charter recognises freezing a demat account, specific securities or a specific quantity. The requested scope is the 100 specified shares of A. The question does not request freezing the remaining A shares or B. Remember: Choose the freeze scope that matches the investor’s instruction.
Hint Common mistake: Assuming demat freezing is always all-or-nothing.
VII-120Practice bank se · 12
An investor makes three mutual fund purchases of ₹2,000 each at applicable NAVs of ₹20, ₹25 and ₹40. All money buys units and there are no deductions. What is the average acquisition cost per unit, rounded to two decimals?
This answer divides total invested money by total acquired units. Units from the first purchase = ₹2,000 ÷ ₹20 = 100. Units from the second purchase = ₹2,000 ÷ ₹25 = 80. Units from the third = ₹2,000 ÷ ₹40 = 50. Total units = 100 + 80 + 50 = 230. Total amount invested = 3 × ₹2,000 = ₹6,000. Average acquisition cost = ₹6,000 ÷ 230 = ₹26.086956… per unit, rounded to ₹26.09. This is an accounting calculation for stated purchases, not a claim that periodic investment guarantees a profit. Remember: Aggregate units bought at each NAV before calculating the average acquisition cost.
Hint Common mistake: Averaging NAVs directly when equal cash buys different quantities.
VII-143Practice bank se · 13
Physical certificates name joint holders R and S, while their demat account names the same holders in the order S and R. They want to dematerialise the certificates without changing the holders. Which facility addresses this order mismatch?
This answer addresses the sequence of the same names together with dematerialisation. The names are the same but their sequence differs. There is no death or new owner in the scenario. CDSL describes transposition-cum-demat for reconciling the order of the same holders while dematerialising certificates, subject to the required documentation. Remember: A changed order of the same joint-holder names is a transposition issue.
Hint Common mistake: Confusing a sequence change with a transfer to different owners.
VII-144Practice bank se · 14
In a book-built public issue, what information is gathered to help determine the issue price?
The demand in bids is the information built into the book. Investor bids indicate quantities demanded at permitted prices during the issue process. The collected demand informs price discovery. The first secondary-market trade happens after the issue-pricing stage and is not the input described. This identifies the process, not a guarantee of allotment or a formula promising a particular listing price. Remember: Book building connects investor bids with issue-price discovery.
Hint Common mistake: Confusing the price discovered during an issue with the first secondary-market trading price.
VII-145Margin is the money a participant must keep in place to carry a leveraged position.
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