NISM Series 2A Mock Test 1: Free RTA Corporate Paper

How this mock is marked

• 50 questions, one mark each.
• 60 minutes on the clock. That is the real exam's pace: 120 minutes for 100 questions.
• A wrong answer loses nothing, so answer every question.
• You pass with 50% or more.
• Submit to see your score and the chapters to work on. Then check each right answer and why it is right.

What this paper covers

50 questions from 15 chapters. Each chapter gets a share that follows our question bank.

• Introduction to Securities: 4 questions.
• Characteristics of Equity Shares: 3 questions.
• Characteristics of Debt Securities: 3 questions.
• Characteristics of Other Securities: 4 questions.
• Basics of Mutual Funds: 3 questions.
• SEBI – Role and Regulations: 3 questions.
• Public Offer of Securities: 4 questions.
• Modes of allotment of shares other than Public Offers: 3 questions.
• Processes related to Public Offering of Shares: 3 questions.
• Roles and Responsibilities in a Public Issue: 4 questions.
• Depository Services: 3 questions.
• Processes Related to Depositories: 3 questions.
• Investor Interface with the R&T Agent: 4 questions.
• Secondary Market Transactions: 3 questions.
• Client Servicing: 3 questions.

By level: Beginner 15 · Intermediate 25 · Advanced 10.

Chapter split of Mock 1

How Mock 1 shares its questions between chapters and levels. This split belongs to this paper. The other mocks of this exam have their own.

• Introduction to Securities: Beginner 1 · Intermediate 2 · Advanced 1.
• Characteristics of Equity Shares: Beginner 1 · Intermediate 2 · Advanced 0.
• Characteristics of Debt Securities: Beginner 1 · Intermediate 1 · Advanced 1.
• Characteristics of Other Securities: Beginner 1 · Intermediate 2 · Advanced 1.
• Basics of Mutual Funds: Beginner 1 · Intermediate 2 · Advanced 0.
• SEBI – Role and Regulations: Beginner 1 · Intermediate 1 · Advanced 1.
• Public Offer of Securities: Beginner 1 · Intermediate 2 · Advanced 1.
• Modes of allotment of shares other than Public Offers: Beginner 1 · Intermediate 2 · Advanced 0.
• Processes related to Public Offering of Shares: Beginner 1 · Intermediate 1 · Advanced 1.
• Roles and Responsibilities in a Public Issue: Beginner 1 · Intermediate 2 · Advanced 1.
• Depository Services: Beginner 1 · Intermediate 2 · Advanced 0.
• Processes Related to Depositories: Beginner 1 · Intermediate 1 · Advanced 1.
• Investor Interface with the R&T Agent: Beginner 1 · Intermediate 2 · Advanced 1.
• Secondary Market Transactions: Beginner 1 · Intermediate 2 · Advanced 0.
• Client Servicing: Beginner 1 · Intermediate 1 · Advanced 1.

3 sample questions, with answers

These 3 questions are not in Mock 1, so reading them spoils nothing here. They come from Mock 3 of this exam. Each one shows the hint, the answer and why every wrong option is wrong.

1. Q1A scheme has ₹20 lakh net assets and 1 lakh units. It receives ₹4 lakh at current NAV, with no costs. What is the new NAV?

   • A

     Option A. ₹16.67

     Why it is wrong: ₹16.67 adds new units while ignoring the incoming cash.

   • B

     Option B. ₹4

     Why it is wrong: ₹4 is the inflow divided by the original units, not the scheme’s NAV.

   • C

     Option C. ₹24

     Why it is wrong: ₹24 adds the cash but ignores the newly issued units.

   • D

     Option D. ₹20 — Correct answer

   Answer: D. The new NAV remains ₹20. Starting NAV = ₹20 lakh ÷ 1 lakh = ₹20. New units = ₹4 lakh ÷ ₹20 = 20,000. New NAV = ₹24 lakh ÷ 1,20,000 units = ₹20. Remember: An inflow at current NAV does not by itself create a gain for existing unit holders.

   Hint, shown before you answer in practice mode: New money creates new units at the same value per unit. Common mistake: Treating new investors’ money as investment profit.

   II-A-049hardnumerical

   Study this unit

2. Q2A bond costs ₹950 and pays ₹80 interest plus ₹1,000 principal exactly one year later. What is its one-year yield to maturity?

   • A

     Option A. 8.00%

     Why it is wrong: 8.00% is the coupon rate on face value, not the return on ₹950.

   • B

     Option B. 8.42%

     Why it is wrong: 8.42% is the current yield and leaves out the ₹50 redemption gain.

   • C

     Option C. 13.68% — Correct answer

   • D

     Option D. 5.26%

     Why it is wrong: 5.26% counts only the redemption gain and omits the coupon.

   Answer: C. The one-year yield to maturity is about 13.68%. Total receipt = ₹80 + ₹1,000 = ₹1,080. Gain = ₹1,080 − ₹950 = ₹130. Yield = ₹130 ÷ ₹950 × 100 = 13.68%. Remember: For a one-year bond, yield to maturity includes every final cash flow.

   Hint, shown before you answer in practice mode: Include both the coupon and the difference between purchase price and redemption value. Common mistake: Using current yield when the question asks for yield to maturity.

   II-A-029hardnumerical

   Study this unit

3. Q3For 1,000 shares, bids are 400 at ₹100, 400 at ₹98 and 500 at ₹96. What is the highest price attracting demand for at least 1,000 shares?

   • A

     Option A. ₹96 — Correct answer

   • B

     Option B. ₹98

     Why it is wrong: ₹98 attracts only 800 shares at or above that price.

   • C

     Option C. ₹100

     Why it is wrong: ₹100 attracts only 400 shares.

   • D

     Option D. ₹97

     Why it is wrong: ₹97 still excludes the ₹96 bids and therefore attracts only 800 shares.

   Answer: A. The highest qualifying price is ₹96. Demand at ₹100 is 400 shares. At ₹98 it is 400 + 400 = 800. At ₹96 it is 400 + 400 + 500 = 1,300, which covers 1,000 shares. Remember: Price discovery uses cumulative demand at or above a tested price.

   Hint, shown before you answer in practice mode: At each tested price, include bids willing to pay that price or more. Common mistake: Comparing each bid group alone instead of building cumulative demand.

   II-A-089hardnumerical

   Study this unit

Then take Mock 2

Read the chapters your result names first. A new paper then shows whether those gaps have closed.