Roles and Responsibilities in a Public Issue
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
- Depository Services10
- Processes Related to Depositories10
- Investor Interface with the R&T Agent10
- Secondary Market Transactions10
- Client Servicing10
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 | 6 of 100 marks (6%) |
Source: March 2025 Annexure I, Unit 10: Roles and Responsibilities in a Public Issue
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 If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.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 Roles and Responsibilities in a Public Issue, with answers
Q1What happens to application money initially under Application Supported by Blocked Amount, known as ASBA?
Option A. It is blocked in the applicant’s bank account — Correct answer
Option B. It is paid to the selling broker as brokerage
Why it is wrong: The subscription amount is not brokerage paid to a selling broker.
Option C. It becomes the registrar’s own cash immediately
Why it is wrong: The registrar does not take ownership of the applicant’s blocked money.
Option D. It is converted into a fixed deposit with the issuer
Why it is wrong: Blocking does not create a fixed deposit with the issuer.
Answer: A. ASBA initially blocks the application amount in the applicant’s bank account rather than immediately transferring it to the issuer. Remember: ASBA separates blocking application funds from the later allotment-related debit.
Hint, shown before you answer in practice mode: Blocking money restricts its use without immediately transferring ownership to the issuer. Common mistake: Treating a blocked balance as money already paid to the issuer.
II-A-091easyconceptual
Q2Which rejected-application information must an RTA preserve under the RTA Regulations, 2025?
Option A. Only the total count of successful applicants
Why it is wrong: Successful-applicant totals do not document rejected applications.
Option B. Only the highest bid price received
Why it is wrong: The highest bid price does not explain individual rejections.
Option C. Only the issuer’s expected listing price
Why it is wrong: An expected listing price is not a rejection record.
Option D. The rejected applications and reasons for rejection — Correct answer
Answer: D. The RTA must preserve rejected applications and their reasons for rejection under regulation 17(2)(b). Remember: Rejection records must show reasons rather than only a final outcome.
Hint, shown before you answer in practice mode: A review should be able to explain what happened to an unsuccessful application. Common mistake: Deleting unsuccessful applications once allotment is finished.
II-A-092easyregulatory
Q3Which role does a Self Certified Syndicate Bank perform in the ASBA application process?
Option A. Maintaining the investor’s electronic share ownership account
Why it is wrong: Electronic securities holdings are maintained through the depository system, not by ASBA blocking itself.
Option B. Setting the issuer’s future exchange trading price
Why it is wrong: A bank does not set the security’s future exchange price.
Option C. Choosing the company’s annual dividend rate
Why it is wrong: The issuer’s dividend decisions are not the bank’s ASBA function.
Option D. Blocking eligible application funds in the bank account — Correct answer
Answer: D. A Self Certified Syndicate Bank blocks eligible application funds in the bank account as part of the ASBA process. Remember: The ASBA bank handles the funds block while other intermediaries perform different issue functions.
Hint, shown before you answer in practice mode: Focus on the bank’s role in the movement and availability of money. Common mistake: Confusing the bank’s cash-blocking role with a depository participant’s role.
II-A-093easyconceptual
Q4₹1,00,000 is blocked for 500 shares at ₹200. The investor receives 230 shares at that price. What amount is released?
Option A. ₹54,000 — Correct answer
Option B. ₹2,70,000
Why it is wrong: ₹2,70,000 exceeds the amount originally blocked.
Option C. ₹1,00,000
Why it is wrong: ₹1,00,000 would be released only if none of it were needed for allotment.
Option D. ₹46,000
Why it is wrong: ₹46,000 is the amount payable for the allotted shares, not the released balance.
Answer: A. ₹54,000 is released. Allotment debit = 230 × ₹200 = ₹46,000. Released amount = ₹1,00,000 − ₹46,000 = ₹54,000. Remember: Partial allotment requires separating the actual debit from the unused blocked amount.
Hint, shown before you answer in practice mode: Only the amount needed for the allotted shares remains payable. Common mistake: Calling the allotment debit the refund or released amount.
II-A-094mediumnumerical
Q5An offer requires applications in multiples of 20 shares. An application requests 75 shares. What should the RTA identify?
Option A. An automatic request for exactly 80 shares
Why it is wrong: The RTA should not silently increase the investor’s requested quantity.
Option B. An automatic request for exactly 60 shares
Why it is wrong: The RTA should not silently reduce the investor’s requested quantity.
Option C. A mismatch with the stated application multiple — Correct answer
Option D. A valid application merely because funds are sufficient
Why it is wrong: Sufficient funds do not cure a quantity that fails the stated offer terms.
Answer: C. The RTA should identify a mismatch because 75 is not a multiple of the stated 20-share application lot. Remember: Application validity depends on the offer’s quantity conditions as well as payment.
Hint, shown before you answer in practice mode: Check the quantity condition separately from whether enough money is available. Common mistake: Changing an applicant’s instructions merely to make validation pass.
II-A-095mediumapplication
Q6An application’s tax identifier does not match the linked demat records. Which processing response best protects accurate allotment?
Option A. Create an extra demat account without the investor’s authority
Why it is wrong: Creating an account without authority is not a valid correction method.
Option B. Quietly replace it with another applicant’s matching identifier
Why it is wrong: Another applicant’s identifier would misstate ownership and identity.
Option C. Investigate and follow the authorised correction or rejection process — Correct answer
Option D. Ignore the mismatch because the subscription amount is large
Why it is wrong: A large subscription does not justify ignoring identity validation.
Answer: C. The RTA should investigate and follow the authorised process because an identity mismatch must not be bypassed or corrected using another person’s information. Remember: Identity checks protect accurate allotment and must not be bypassed.
Hint, shown before you answer in practice mode: Validation should protect the correct investor identity rather than force a successful upload. Common mistake: Treating a successful computer upload as more important than correct investor identity.
II-A-096mediumapplication
Q7What should an RTA do when its issue-processing system identifies possible multiple applications by the same applicant?
Option A. Approve each automatically to maximise subscriptions
Why it is wrong: Automatic approval can defeat controls against impermissible multiple applications.
Option B. Scrutinise them and apply the relevant issue rules — Correct answer
Option C. Erase them without keeping any review record
Why it is wrong: Erasing records removes evidence needed to explain processing decisions.
Option D. Merge their payment details with an unrelated applicant
Why it is wrong: Combining unrelated applicants’ details undermines correct identity and payment records.
Answer: B. The RTA should scrutinise possible multiple applications under the applicable issue rules and bring relevant cases to the issuer and lead managers. Remember: Multiple-application checks require appropriate review and an audit trail.
Hint, shown before you answer in practice mode: Potential duplicates require a controlled review, not automatic acceptance or record deletion. Common mistake: Assuming every repeated record can be accepted or deleted without examination.
II-A-097mediumregulatory
Q8An investor approves a valid UPI mandate for an IPO application. Does this alone confirm that shares have been allotted?
Option A. No, because UPI can never be used in an IPO
Why it is wrong: UPI can be used through the applicable IPO application process for eligible investors.
Option B. Yes, it confirms the full requested quantity
Why it is wrong: Mandate approval does not guarantee full or partial allotment.
Option C. Yes, it confirms the final exchange selling price
Why it is wrong: It does not set any future exchange sale price.
Option D. No, mandate approval is separate from allotment — Correct answer
Answer: D. No, approving the mandate concerns the funds-blocking process and does not by itself confirm any allotment. Remember: Payment authorisation, funds blocking and share allotment are separate events.
Hint, shown before you answer in practice mode: Keep payment authorisation separate from the issue’s allotment decision. Common mistake: Treating a payment-mandate notification as an allotment confirmation.
II-A-098mediumapplication
Q9An application blocks money for 500 shares at the ₹180 cap price. Only 200 shares are allotted at ₹170. What amount should be unblocked?
Option A. ₹54,000
Why it is wrong: ₹54,000 charges the allotted shares at the cap price rather than the lower final price.
Option B. ₹34,000
Why it is wrong: ₹34,000 is the actual debit, not the amount to unblock.
Option C. ₹5,000
Why it is wrong: ₹5,000 considers only a price difference on all requested shares and ignores the unallotted quantity.
Option D. ₹56,000 — Correct answer
Answer: D. ₹56,000 should be unblocked. Original block = 500 × ₹180 = ₹90,000. Allotment debit = 200 × ₹170 = ₹34,000. Unblocked balance = ₹90,000 − ₹34,000 = ₹56,000. Remember: Unblocking must account for both partial allotment and any lower final price.
Hint, shown before you answer in practice mode: Use the cap price for the original block and the final price for the actual allotment debit. Common mistake: Applying one price to both the initial block and the final debit.
II-A-099hardnumerical
Q10An issue receives 1,200 applications for 20 shares each. It rejects 100 for identity failures and 50 different applications for payment failures. What quantity remains in valid demand?
Option A. 21,000 shares — Correct answer
Option B. 22,000 shares
Why it is wrong: 22,000 shares removes only the identity-failure applications.
Option C. 1,050 shares
Why it is wrong: 1,050 is the number of valid applications, not the number of shares requested.
Option D. 24,000 shares
Why it is wrong: 24,000 shares ignores both rejection groups.
Answer: A. Valid demand is 21,000 shares. Valid applications = 1,200 − 100 − 50 = 1,050. Valid share demand = 1,050 × 20 = 21,000 shares. Remember: Reconcile valid application counts before converting them into valid share demand.
Hint, shown before you answer in practice mode: The two rejection groups do not overlap, and the question asks for shares rather than applications. Common mistake: Mixing the units of applications and shares.
II-A-100hardnumerical
Roles and Responsibilities in a Public Issue: common questions
How many practice questions are there on Roles and Responsibilities in a Public Issue?
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 Roles and Responsibilities in a Public Issue?
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 Roles and Responsibilities in a Public Issue?
NISM's published syllabus outline gives it 6 of the paper's 100 marks, or 6% of the exam. It is quoted from the outline, not estimated. The published unit it comes from: March 2025 Annexure I, Unit 10: Roles and Responsibilities in a Public Issue
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.
Depository Services
10 questions on Depository Services. Its quiz opens on that unit.
Open Depository ServicesPaper Trading Try it on the practice trading desk