Series II-BNew
Registrars to an Issue and Share Transfer Agents - Mutual Fund
50 questionsPass mark 50%Negative marking None
NISM Series II-B practice questions
150 questions. Each answer is explained.
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Learn these topics
Practise one unit at a time
- Introduction to Securities5 questions · 20 of 100 marks in the exam (20%)
- Characteristic of Equities7 questions · 20 of 100 marks in the exam (20%)
- Characteristics of Debt Securities7 questions · 20 of 100 marks in the exam (20%)
- Characteristics of Other Securities5 questions · 20 of 100 marks in the exam (20%)
- SEBI- Role and Regulations6 questions · 20 of 100 marks in the exam (20%)
- Basics of Registrars and Transfer Agents12 questions · 25 of 100 marks in the exam (25%)
- Registrars and Transfer Agents Regulations12 questions · 25 of 100 marks in the exam (25%)
- Basics of Mutual Funds14 questions · 25 of 100 marks in the exam (25%)
- Structure and Constituents of Mutual Funds11 questions · 25 of 100 marks in the exam (25%)
- Mutual Fund Products12 questions · 25 of 100 marks in the exam (25%)
- Operational Concepts of Mutual Funds14 questions · 25 of 100 marks in the exam (25%)
- Investors in Mutual Funds10 questions · 30 of 100 marks in the exam (30%)
- Banking Operations in Mutual Funds12 questions · 30 of 100 marks in the exam (30%)
- Financial Transactions12 questions · 30 of 100 marks in the exam (30%)
- Non-Financial Transactions11 questions · 30 of 100 marks in the exam (30%)
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 |
NISM Series II-B Registrars to an Issue and Share Transfer Agents - Mutual Fund
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 If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.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.
5 sample questions with answers
The other 145 are on the unit pages above, written out the same way.
Q1Why are ordinary equity dividends considered uncertain?
Option A. They mature every year like a fixed deposit
Why it is wrong: Shares generally have no maturity repayment date.
Option B. They have a fixed coupon set at issue time
Why it is wrong: A fixed coupon is associated with debt.
Option C. They are paid before interest on company debt
Why it is wrong: Debt obligations normally rank ahead of discretionary equity payouts.
Option D. Companies need not declare a fixed dividend — Correct answer
Answer: D. Ordinary dividends depend on company decisions and available distributable profits.
Hint, shown before you answer in practice mode: Consider whether a shareholder has a fixed-payment contract.
II-B-003mediumconceptual
Q2Which instrument represents securities through certificates issued by a depositary arrangement?
Option A. Mutual fund folio
Why it is wrong: A folio is an investor account record.
Option B. Treasury bill
Why it is wrong: A treasury bill is short-term government debt.
Option C. Depository receipt — Correct answer
Option D. Preference share
Why it is wrong: A preference share is a class of share capital.
Answer: C. A depository receipt represents underlying securities held under a custody arrangement.
Hint, shown before you answer in practice mode: Think about holding local securities through a foreign-market instrument.
II-B-022easyconceptual
Q3What is a segregated portfolio in a mutual fund context?
Option A. A promise to redeem every unit at face value on demand
Why it is wrong: Separation does not eliminate investment losses.
Option B. Separate accounting of affected assets from the main portfolio — Correct answer
Option C. A second bank account belonging to the investor for scheme payouts
Why it is wrong: It is a portfolio structure, not an investor's bank account.
Option D. A guaranteed tax-free payout made from the main portfolio
Why it is wrong: Segregation does not guarantee tax treatment.
Answer: B. A segregated portfolio isolates specified affected assets from the main scheme portfolio under applicable rules.
Hint, shown before you answer in practice mode: Think about separating a distressed exposure.
II-B-049easyconceptual
Q4Which scheme is normally offered for subscription and redemption continuously at applicable NAV?
Option A. Closed-ended scheme during its defined term
Why it is wrong: A closed-ended fund does not ordinarily allow ongoing direct redemption.
Option B. Fixed-maturity bond
Why it is wrong: A bond is a separate debt instrument.
Option C. Open-ended scheme — Correct answer
Option D. Preference share
Why it is wrong: A preference share is not a fund subscription structure.
Answer: C. An open-ended mutual fund generally permits ongoing subscriptions and redemptions under its terms.
Hint, shown before you answer in practice mode: Think about ongoing unit entry and exit.
II-B-086easyconceptual
Q5Why is bank reconciliation important in a mutual fund subscription process?
Option A. It eliminates security price risk for the scheme's investors
Why it is wrong: Matching cash records does not eliminate market risk.
Option B. It creates higher coupon income on the scheme's debt holdings
Why it is wrong: Reconciliation does not set debt coupons.
Option C. It matches investor transaction records with actual bank movements — Correct answer
Option D. It chooses the portfolio benchmark used to report performance
Why it is wrong: Benchmark choice is unrelated to cash matching.
Answer: C. Bank reconciliation identifies discrepancies between recorded subscriptions and cash movements.
Hint, shown before you answer in practice mode: Follow the money through processing records.
II-B-122mediumconceptual
NISM Series II-B practice: common questions
Are these the real NISM Series II-B exam questions?
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 many practice questions are there for NISM Series II-B?
150 at the moment, across 15 practice topics, with one page per unit. It is a practice set, not a copy of the paper: the real NISM-Series-II-B: Registrars to an Issue and Share Transfer Agents - Mutual Fund Certification Examination has 100 questions.
Where are all the questions and answers?
On the 15 practice topics listed above. There are 5 in full. Each unit's page has the rest, with all four options, the correct answer and why each other option is wrong.
Does negative marking apply to NISM Series II-B?
No. NISM applies no negative marking to Series II-B. 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.
How do I book the NISM Series II-B exam?
You register and pay on NISM's own website, nism.ac.in. The steps and the fee change from time to time, so read them there on the day you book.
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.
See the exam these questions follow
The Registrars to an Issue and Share Transfer Agents - Mutual Fund exam page shows the question count, the time, the pass mark and the marking rule.
Open the NISM Series II-B exam pagePaper Trading Try it on the practice trading desk