Registrars and Transfer Agents Regulations
12 questions. Each answer is explained.
Question 1 of 10Practice · Series II-B — Registrars to an Issue and Share Transfer Agents - Mutual Fund
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Learn these topics
More units in NISM Series II-B
- Introduction to Securities5
- Characteristic of Equities7
- Characteristics of Debt Securities7
- Characteristics of Other Securities5
- SEBI- Role and Regulations6
- Basics of Registrars and Transfer Agents12
- Basics of Mutual Funds14
- Structure and Constituents of Mutual Funds11
- Mutual Fund Products12
- Operational Concepts of Mutual Funds14
- Investors in Mutual Funds10
- Banking Operations in Mutual Funds12
- Financial Transactions12
- Non-Financial Transactions11
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 | 25 of 100 marks (25%) |
That figure belongs to one published unit covered under these headings — Registrars and Transfer Agents Regulations and Basics of Registrars and Transfer Agents and Basics of Mutual Funds — so the marks belong to the whole group. They are quoted together because no source divides them among its headings.
Source: March 2025 Annexure I, Units 6 to 8 (Basics of Registrars and Transfer Agents to Basics of Mutual Funds): 25%
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 If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.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.
All 12 questions on Registrars and Transfer Agents Regulations, with answers
Q1Which SEBI framework specifically regulates registrar and transfer agents in 2026?
Option A. Only the Depositories Act, 1996 with no separate SEBI regulations
Why it is wrong: Depository law does not replace the RTA regulatory framework.
Option B. Only the Companies Act, 2013 through its share transfer provisions
Why it is wrong: Company law is not the only RTA regulatory source.
Option C. SEBI RTA Regulations, 1993 still in force without subsequent replacement
Why it is wrong: The older framework is no longer the latest standalone RTA regulations.
Option D. SEBI Registrars to an Issue and Share Transfer Agents Regulations, 2025 — Correct answer
Answer: D. The SEBI RTA Regulations, 2025 are the current dedicated RTA framework.
Hint, shown before you answer in practice mode: Check the year of the most recent RTA-specific regulations.
II-B-043mediumregulatory
Q2What is the purpose of registering a securities-market RTA with the regulator?
Option A. Establishing authorised intermediary status and oversight — Correct answer
Option B. Eliminating investor identity checks for registered entities
Why it is wrong: Regulated RTAs still need compliance controls.
Option C. Allowing private use of client data for the RTA's own marketing
Why it is wrong: Registration never removes confidentiality obligations.
Option D. Guaranteeing future scheme returns to unit holders
Why it is wrong: Registration cannot guarantee market results.
Answer: A. Registration places an RTA within the regulatory framework for permitted activities and supervision.
Hint, shown before you answer in practice mode: Think about lawful supervision of an intermediary.
II-B-044easyconceptual
Q3What is the primary purpose of a systems audit at a mutual fund servicing organisation?
Option A. Offer investors guaranteed profit
Why it is wrong: An audit cannot guarantee market performance.
Option B. Evaluate controls, technology and processing risks — Correct answer
Option C. Choose a fund's top-performing stocks
Why it is wrong: Fund selection is not the role of a systems audit.
Option D. Replace the annual fund investment objective
Why it is wrong: The objective belongs to scheme governance.
Answer: B. A systems audit examines whether technology and controls support reliable and secure operations.
Hint, shown before you answer in practice mode: Think about checking systems rather than evaluating stock picks.
II-B-045mediumconceptual
Q4Which practice most directly improves protection of investor records?
Option A. Deleting security logs each evening
Why it is wrong: Deleting logs removes evidence of access and changes.
Option B. One shared password for every staff member
Why it is wrong: Shared credentials prevent proper accountability.
Option C. Role-based access controls with logged changes — Correct answer
Option D. Unrestricted downloads of identity documents
Why it is wrong: Unrestricted access creates privacy and fraud risks.
Answer: C. Restricted access and audit logs help protect investor records against misuse.
Hint, shown before you answer in practice mode: Think about tracing who changed personal data.
II-B-046mediumconceptual
Q5A transaction processor discovers an unauthorised change to bank details. What should be done first?
Option A. Tell other investors to change banks before the fraud spreads
Why it is wrong: Other accounts are not the specific incident response.
Option B. Process the payout immediately to the newly recorded account
Why it is wrong: Processing could transfer money to the wrong account.
Option C. Erase the edit history so that the change cannot be traced
Why it is wrong: Erasure destroys investigation evidence.
Option D. Restrict further misuse and escalate under incident procedures — Correct answer
Answer: D. The RTA should contain the incident and preserve evidence for investigation and correction.
Hint, shown before you answer in practice mode: Consider fraud containment and an audit trail.
II-B-047mediumapplication
Q6Why are beneficial-ownership checks important in securities intermediation?
Option A. They help identify persons who ultimately own or control an account — Correct answer
Option B. They decide the daily NAV of a scheme without any valuation process
Why it is wrong: NAV still requires portfolio valuation.
Option C. They replace transaction records entirely once the owner is known
Why it is wrong: Identifying control does not remove accounting duties.
Option D. They guarantee portfolio liquidity for every account holder
Why it is wrong: Ownership checks do not create a ready market.
Answer: A. Ultimate beneficial owner checks seek to identify the individuals who ultimately own or control relevant entities.
Hint, shown before you answer in practice mode: Think beyond the immediate name on a form.
II-B-048mediumconceptual
Q7What 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
Q8A fund creates a segregated portfolio after a qualifying credit event. What must the RTA protect?
Option A. A single undifferentiated balance for every investor
Why it is wrong: Investor entitlements must remain individually accurate.
Option B. Automatic transfer to unrelated folios
Why it is wrong: Unrelated accounts are not entitled to units.
Option C. Correct records of each eligible investor's resulting units — Correct answer
Option D. Deletion of pre-event holdings
Why it is wrong: Historical holdings are needed to establish entitlements.
Answer: C. The RTA must accurately track investor entitlements in the main and segregated portfolios.
Hint, shown before you answer in practice mode: Follow entitlement records across the portfolio split.
II-B-050hardapplication
Q9What does a documented maker-checker control require for a sensitive change?
Option A. The requester approves every own change
Why it is wrong: Self-approval defeats independent checking.
Option B. No review for electronic changes
Why it is wrong: Digital changes can also create fraud risk.
Option C. Investor accounts are updated from verbal requests only
Why it is wrong: Sensitive changes require appropriate verification.
Option D. One person initiates and another authorised person verifies — Correct answer
Answer: D. Maker-checker control separates transaction initiation from independent approval.
Hint, shown before you answer in practice mode: Think about independent checking of an entry.
II-B-051easyconceptual
Q10Why should an RTA retain evidence of investor request processing?
Option A. To support traceability and regulatory review — Correct answer
Option B. To generate guaranteed fund returns for unit holders
Why it is wrong: Records do not remove investment risk.
Option C. To bypass investor consent checks on later requests
Why it is wrong: Documenting processing cannot excuse consent requirements.
Option D. To avoid reconciling payment records with the bank
Why it is wrong: Evidence complements reconciliation rather than replacing it.
Answer: A. A documented audit trail supports investigation, accountability and review of investor transactions.
Hint, shown before you answer in practice mode: Consider what an auditor must be able to reconstruct.
II-B-052mediumconceptual
Q11Which authority may inspect an RTA under applicable securities-market regulations?
Option A. Any investor without restriction
Why it is wrong: Investors cannot conduct official regulatory inspections.
Option B. SEBI acting within its statutory powers — Correct answer
Option C. An unrelated company director acting privately
Why it is wrong: Private individuals do not gain SEBI inspection authority.
Option D. Any distributor acting as a regulator
Why it is wrong: A distributor has no general regulatory inspection powers.
Answer: B. SEBI is empowered to supervise and inspect regulated intermediaries under the relevant framework.
Hint, shown before you answer in practice mode: Identify the statutory intermediary supervisor.
II-B-053mediumregulatory
Q12An RTA changes its transaction platform. Which control is most important before full production use?
Option A. Removing time stamps to simplify processing on the new platform
Why it is wrong: Receipt-time evidence remains important.
Option B. Switching off exception alerts after migration to reduce noise
Why it is wrong: Alerts help identify processing failures.
Option C. Testing record integrity, access control and recovery arrangements — Correct answer
Option D. Deleting the previous reconciliation reports to free up storage
Why it is wrong: Past reports may be needed to detect migration errors.
Answer: C. Controls for data integrity, access and recoverability reduce operational risk during system migration.
Hint, shown before you answer in practice mode: Think about a safe, verifiable system migration.
II-B-054hardapplication
Registrars and Transfer Agents Regulations: common questions
How many practice questions are there on Registrars and Transfer Agents Regulations?
12 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-B, which has 150 questions in total.
Are these real NISM Series II-B questions on Registrars and Transfer Agents Regulations?
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-B exam is Registrars and Transfer Agents Regulations?
NISM's published syllabus outline gives it 25 of the paper's 100 marks, or 25% of the exam. That figure covers one published unit taught here under more than one heading (Registrars and Transfer Agents Regulations and Basics of Registrars and Transfer Agents and Basics of Mutual Funds). So it is the marks for the group, not for this page alone. No source splits it, so it is not split here. The published unit it comes from: March 2025 Annexure I, Units 6 to 8 (Basics of Registrars and Transfer Agents to Basics of Mutual Funds): 25%
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.
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.
Basics of Mutual Funds
14 questions on Basics of Mutual Funds. Its quiz opens on that unit.
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