Client Servicing
10 questions. Each answer is explained.
Question 1 of 10Practice · Series II-A — Registrars to an Issue and Share Transfer Agents - Corporate
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Learn these topics
More units in NISM Series II-A
- Introduction to Securities10
- Characteristics of Equity Shares10
- Characteristics of Debt Securities10
- Characteristics of Other Securities10
- Basics of Mutual Funds10
- SEBI – Role and Regulations10
- Public Offer of Securities10
- Modes of allotment of shares other than Public Offers10
- Processes related to Public Offering of Shares10
- Roles and Responsibilities in a Public Issue10
- Depository Services10
- Processes Related to Depositories10
- Investor Interface with the R&T Agent10
- Secondary Market Transactions10
Exam format
| Questions | 100 · 1 mark each |
|---|---|
| Duration | 120 min · 2 hours |
| Pass mark | 50% · 50 of 100 marks |
| Negative marking | None · a wrong answer costs nothing beyond the mark |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | 7 of 100 marks (7%) |
Source: March 2025 Annexure I, Unit 15: Client Servicing
NISM Series II-A Registrars to an Issue and Share Transfer Agents - Corporate
Exam rules read on NISM's site on 31 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 31 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 10 questions on Client Servicing, with answers
Q1What does the First Time Right approach mean when processing an investor’s service request?
Option A. Passing every request to a different team immediately
Why it is wrong: Automatic referral does not by itself complete the request correctly.
Option B. Completing the request correctly without avoidable rework — Correct answer
Option C. Closing the request before checking its documents
Why it is wrong: Closing before checking documents can leave the investor’s request unresolved.
Option D. Giving the fastest answer even when it is unverified
Why it is wrong: An unverified fast answer can create errors and repeat contacts.
Answer: B. First Time Right means completing the request correctly without avoidable errors or repeated work. Remember: Correct, complete service matters more than a superficially fast closure.
Hint, shown before you answer in practice mode: Speed is useful only when the process is also accurate and complete. Common mistake: Measuring good service only by how quickly a ticket is closed.
II-A-141easyconceptual
Q2Which behaviour best demonstrates empathy when an investor is upset about a delayed service request?
Option A. Acknowledging the difficulty and listening before explaining next steps — Correct answer
Option B. Interrupting to explain that the office is busier than the investor
Why it is wrong: Comparing workloads dismisses the investor’s concern rather than understanding it.
Option C. Avoiding the issue and discussing market predictions
Why it is wrong: Changing the topic does not address the investor’s problem.
Option D. Blaming the investor before examining the request
Why it is wrong: Blame before investigation is neither fair nor empathetic.
Answer: A. Acknowledging the difficulty and listening demonstrates empathy while allowing the employee to explain a useful next step. Remember: Empathy recognises the concern without removing necessary verification or process controls.
Hint, shown before you answer in practice mode: Consider whether the response recognises the investor’s experience. Common mistake: Confusing an explanation of internal workload with understanding the investor’s difficulty.
II-A-142easyconceptual
Q3What is the purpose of a standard operating procedure in routine RTA client servicing?
Option A. Providing a consistent approved process for completing the work — Correct answer
Option B. Replacing every applicable law with an internal checklist
Why it is wrong: An internal checklist cannot override applicable law.
Option C. Allowing staff to invent different rules for each investor
Why it is wrong: Inventing different rules creates inconsistency rather than standardisation.
Option D. Guaranteeing that no request will ever need escalation
Why it is wrong: Some requests still need escalation or specialised review.
Answer: A. A standard operating procedure provides an approved, consistent process for completing work and handling relevant exceptions. Remember: Use standard procedures consistently and escalate exceptions appropriately.
Hint, shown before you answer in practice mode: A written process should support consistent work while remaining subject to higher requirements. Common mistake: Treating a checklist as either optional or more important than applicable law.
II-A-143easyconceptual
Q4An investor’s request lacks three required supporting items. How should the service team communicate the deficiencies to reduce repeat submissions?
Option A. Ask for every document the investor has ever received
Why it is wrong: Requesting unrelated documents creates unnecessary burden and can collect excess personal data.
Option B. Give one clear consolidated list of the missing items — Correct answer
Option C. Close the request without identifying what is missing
Why it is wrong: Closing without explaining deficiencies prevents the investor from correcting them.
Option D. Reveal one missing item after each new submission
Why it is wrong: Staggered disclosure creates avoidable repeated submissions.
Answer: B. The team should give a clear consolidated list so the investor can provide the required items together rather than discover deficiencies one at a time. Remember: Explain all identified deficiencies together in plain language.
Hint, shown before you answer in practice mode: Consider the information needed to make the investor’s next response complete. Common mistake: Sending repeated incomplete deficiency notices.
II-A-144mediumapplication
Q5Which information belongs in an RTA’s investor complaint register to support a proper audit trail?
Option A. Only the investor’s opinion of future share prices and dividends
Why it is wrong: Market opinions are not a substitute for the complaint’s facts and disposal record.
Option B. Only the number of emails deleted each month
Why it is wrong: Deleted-email counts do not explain the complaint or its handling.
Option C. Only the staff member’s final performance rating
Why it is wrong: A staff rating does not document the investor’s issue and resolution.
Option D. Receipt date, complaint details and how it was disposed of — Correct answer
Answer: D. The register should capture receipt date, complaint particulars and disposal details so the handling of the complaint can be traced. Remember: A complaint audit trail records the issue, timeline and outcome.
Hint, shown before you answer in practice mode: A later review should be able to reconstruct the complaint and its resolution. Common mistake: Keeping only a count of complaints rather than their processing history.
II-A-145mediumregulatory
Q6An investor’s issue needs information from the issuer and the depository participant. How should the assigned RTA service employee coordinate it?
Option A. Choose an answer without waiting for the relevant records
Why it is wrong: An unsupported answer can misstate the record or the remedy.
Option B. Close the case because more than one organisation is involved
Why it is wrong: Multiple organisations do not justify abandoning the unresolved request.
Option C. Track the case and liaise with the relevant teams — Correct answer
Option D. Tell the investor to restart the same complaint separately each day
Why it is wrong: Daily restarts create duplication rather than effective coordination.
Answer: C. The employee should track the case and liaise with the relevant teams so the investor receives a coordinated and supported response. Remember: Cross-team dependencies need ownership and follow-through.
Hint, shown before you answer in practice mode: Coordination should reduce the investor’s burden without bypassing checks. Common mistake: Using another team’s involvement as a reason to stop managing the case.
II-A-146mediumapplication
Q7A verified request is under review and the employee cannot yet confirm the outcome. Which response is most appropriate?
Option A. Guarantee approval to prevent another telephone call
Why it is wrong: A guarantee without confirmation can mislead the investor.
Option B. Explain the current status and the next known review step — Correct answer
Option C. Say the request was completed without checking the record
Why it is wrong: Claiming completion without evidence misstates the request status.
Option D. Invent a rule that makes the investor ineligible
Why it is wrong: Inventing an eligibility rule is inaccurate and unfair.
Answer: B. The employee should explain the current status and next known review step without presenting an uncertain outcome as confirmed. Remember: Clear status communication should distinguish confirmed facts from pending decisions.
Hint, shown before you answer in practice mode: Communicate what is established rather than filling a gap with a promise. Common mistake: Making an unsupported promise merely to end the conversation.
II-A-147mediumapplication
Q8An investor needs accessibility assistance to submit a service request. Which approach best combines helpful service with protection of the investor?
Option A. Refuse the request solely because assistance is needed
Why it is wrong: A need for assistance is not a sound reason to refuse service.
Option B. Ask the investor to disclose every secret password to staff members
Why it is wrong: Sharing secret passwords creates an avoidable account-security risk.
Option C. Offer an approved accessible process while preserving identity checks — Correct answer
Option D. Skip all identity checks to make the process shorter
Why it is wrong: Skipping identity checks can expose the investor to unauthorised changes.
Answer: C. The team should offer an approved accessible process while preserving identity checks so assistance does not expose the investor’s account. Remember: Accessible service and secure verification should work together.
Hint, shown before you answer in practice mode: Assistance should remove unnecessary barriers without removing essential safeguards. Common mistake: Assuming accessibility requires weaker protection or automatic refusal.
II-A-148mediumapplication
Q9Several investors receive the same wrong deficiency notice because a service template is outdated. One case is corrected. What further response addresses the underlying failure?
Option A. Review affected cases and correct the template with an audit trail — Correct answer
Option B. Ask each investor to discover the error independently
Why it is wrong: Investors should not bear the burden of discovering an internal repeated error.
Option C. Keep the template unchanged to avoid recording an error
Why it is wrong: Keeping an incorrect template allows the failure to continue.
Option D. Close every similar case because one investor has been helped
Why it is wrong: One correction does not establish that other affected cases are resolved.
Answer: A. The team should review affected cases and correct the controlled template because resolving one ticket does not fix a repeated process error. Remember: Repeated service errors need both case-level remedies and process correction.
Hint, shown before you answer in practice mode: A repeated pattern indicates a process issue rather than an isolated complaint. Common mistake: Treating a systemic failure as solved after closing one complaint.
II-A-149hardapplication
Q10A dividend complaint is marked resolved after a payment instruction is sent. The payment then fails and the investor receives no money. What should the service team do?
Option A. Tell the investor to count the failed payment as a market loss
Why it is wrong: A failed dividend payment is not automatically an investment-market loss.
Option B. Investigate the failed payment and confirm the actual resolution — Correct answer
Option C. Keep it closed because sending an instruction proves receipt
Why it is wrong: An instruction and a successful credit are different events.
Option D. Create an unrelated share transfer to replace the missing payment
Why it is wrong: An unrelated securities transfer does not properly resolve the payment failure.
Answer: B. The team should investigate the failure and confirm the actual resolution because sending a payment instruction is not proof that the investor received the money. Remember: Complaint closure should be supported by evidence of the actual outcome.
Hint, shown before you answer in practice mode: Distinguish an action taken by the office from the investor’s issue being resolved. Common mistake: Measuring resolution by internal activity rather than the investor’s completed remedy.
II-A-150hardapplication
Client Servicing: common questions
How many practice questions are there on Client Servicing?
10 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 15 practice topics for NISM Series II-A, which has 150 questions in total.
Are these real NISM Series II-A questions on Client Servicing?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
How much of the NISM Series II-A exam is Client Servicing?
NISM's published syllabus outline gives it 7 of the paper's 100 marks, or 7% of the exam. It is quoted from the outline, not estimated. The published unit it comes from: March 2025 Annexure I, Unit 15: Client Servicing
Does negative marking apply to NISM Series II-A?
No. NISM applies no negative marking to Series II-A. A wrong answer costs nothing beyond the mark you did not earn, so a blank is never better than an attempt. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Try a paper on all of NISM Series II-A
This is the last unit of Registrars to an Issue and Share Transfer Agents - Corporate. The series page runs one quiz across every unit.
Open the NISM Series II-A practice pagePaper Trading Try it on the practice trading desk