Nism 3 a - Compliance - Last Day Revision Test 2

NISM SERIES III A – SECURITIES INTERMEDIARIES COMPLIANCE ( NON FUND ) CERTIFICATION V.IMP LAST DAY REVISION EXAM 2

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LAST DAY REVISION EXAM 2

Question 1 (a) (b) (c) (d)

Question 2

Department of Financial Services administers government policies relating to ____________.

Public sector banks Term-lending financial institutions Life insurance and general insurance All of the above

As per SEBI (Issue of Capital and Disclosure Requirements - ICDR) Regulations, a copy of the resolution passed by the board of directors of the issuer for allotting specified securities to promoters towards amount received against promotersâ€™ contribution, before opening of the issue has to be submitted to _______ .

(d)

SEBI Stock Exchange Merchant Banker AMFI

Correct Answer 1

All of the above

Correct Answer 2

SEBI

(a) (b) (c)


Question 3

(a) (b)

Question 4

(a) (b) (c) (d)

Correct Answer 3 Answer Explanation

Correct Answer 4

Can SEBI prohibit any company from issuing prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities?

Yes No

As per the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, dealing in a security which is not intended to effect a transfer of beneficial ownership but to serve only as a device to ________ in the price of such security for wrongful gain or avoidance of loss.

inflate depress cause fluctuations all of the above

Yes The Section 11A of the SEBI Act states that without any prejudice to the provisions of the Companies Act 1956, SEBI may for the protection of investors prohibit any company from issuing prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities.

all of the above



Question 6

(a) (b) (c) (d)

As per the SEBI (Custodian of Securities) Regulations, an applicant for the Custodian of Securities should have a networth of minimum of

Rs 50 lakhs Rs 5 crores Rs 25 crores Rs 50 crores

As per the SEBI (Custodian of Securities) Regulations - every certificate granted to the applicant as a Custodian of Securities shall be valid for a period of ______ years from the date of registration or its renewal.

3 5 7 10

Correct Answer 5

Rs 50 crores

Correct Answer 6

3

Answer Explanation

Every certificate grated to the applicant as a Custodian of Securities shall be valid for a period of 3 years from the date of registration or its renewal.



Question 8

(a) (b)

To effectively implement the KYC guidelines, SEBI notified the ________.

SEBI (KYC Registration Agency) Regulations, 2011 SEBI (Self Regulatory Organization) Regulations, 2004 PMLA, 2002 None of the above

According to the SEBI (Stock Brokers and Sub Brokers) Regulations, the compliance officer shall immediately and independently report to SEBI any non-compliance observed by him. True or False ?

TRUE FALSE

Correct Answer 7

SEBI (KYC Registration Agency) Regulations, 2011

Correct Answer 8

TRUE


Question 9

(a) (b) (c) (d)

Question 10

(a) (b) (c) (d)

As per the SEBI (Prohibition of Fraudulent and Unfair Trade Prac-tices relating to securities Market) Regulations, in case of fraud, SEBI can ________ the proceeds or securities in respect of any transaction which is in violation of the SEBI regulations.

Impound Retain Both 1 and 2 SEBI does not have any such authority.

As per SEBI (Intermediaries) Regulations, 2008, what is the next step after receiving the recommendations of the designated authority who is appointed to enquire and recommend action in case of violation of rules of the securities market ?

Gives warning to the intermediary dismissing the recommendations Issues the recommended action without hearing the noticee issues a show cause notice to the intermediary as to why the recommended action should not be taken none of the above

Correct Answer 9

Both 1 and 2

Correct Answer 10

issues a show cause notice to the intermediary as to why the recommended action should not be taken

Answer Explanation

The designated authority shall, if there are reasonable grounds to do so, issue a show-cause notice to the concerned person requiring it to show cause as t o why the certificate of registration granted to it, should not be suspended or cancelled or why any other action provided in the regulations should not be taken.


Question 11

(a) (b)

Question 12

(a) (b) (c) (d)

As per SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to securities Market) Regulations, SEBI can, both impound and retain the proceeds or securities in respect of any transaction which is in violation or prima facie in violation of these regulations - True or False ?

FALSE TRUE

Every member of a recognized stock exchange has to maintain and preserve the Counterfoils or duplicates of contract notes issued to clients for a period of _____ years

2 5 7 10

Correct Answer 11

TRUE

Correct Answer 12

2

Answer Explanation

Every member of a recognized stock exchange to maintain and preserve the following documents for a period of 2 years: • Member‟s contract books showing details of all contracts entered into by the member with other members of the same exchange or counterfoils or duplicates of memos of confirmation issued to such other members. • Counterfoils or duplicates of contract notes issued to clients. • Written consent of clients in respect of contracts entered into as principals.



Question 14

(a) (b)



A debenture trustee shall pay a sum of Rs. _______ as registration fees at the time of the grant of certificate by SEBI.

Rs 25 lakhs Rs 15 lakhs Rs 10 lakhs Rs 5 lakhs

As per the SEBI code of conduct for underwriters, an Underwriter is responsible for the acts or omissions only of its employees and not of agents in respect to the conduct of its business. State True or False ?

FALSE TRUE

Rs 10 lakhs Every debenture trustee shall pay a sum of Rs. 10 lakhs as registration fees at the time of the grant of certificate by SEBI and shall pay renewal fee of Rs. 5 lakh every three years from the fourth year from the date of initial registration.

FALSE The Underwriter is responsible for the acts or omissions of its employees and agents in respect to the conduct of its business.



Question 16

(a) (b) (c) (d)



The annual fees to keep the registration in force as custodian under the SEBI (Custodian of Securities) Regulations is ____________.

Rs. 10 lakh or 0.00025% of the assets under custody whichever is higher. Rs 25 lakh or 0.00025% of the assets under custody whichever is higher. Rs. 10 lakh or 0.00025% of the assets under custody whichever is l ower. Rs 25 lakh or 0.00025% of the assets under custody whichever is lower.

SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to securities Market) Regulations have been made in exercise of the powers conferred by __________.

Prevention of Money Laundering Act Companies Act Securities Contract ( Regulation ) Act SEBI Act

Rs. 10 lakh or 0.00025% of the assets under custody whichever is higher. On being granted the certificate of registration, the Custodian of securities need to pay registra-tion fee of Rs. 15 lakh to SEBI, and an annual fee of Rs. 10 lakh or 0.00025% of the „assets under custody‟ of the custodian of securities, whichever is higher.

SEBI Act The Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 prohibit fraudulent, unfair and manipulative trade practices in securities. These regulations have been made in exercise of the powers conferred by section 30 of the SEBI Act, 1992.


Question 17

(a) (b)


Fraud includes a willful misrepresentation of truth OR concealment of material fact, in order that another person may act, to his detriment. State whether True or False?

FALSE TRUE

_____________ appoints the Registrar of Companies.

SEBI Central Government Company Law Board RBI

Correct Answer 17

TRUE

Correct Answer 18

Central Government

Answer Explanation

Pursuant to Section 609(1) of the Companies Act, 1956, the Central Government has appointed Registrars at different places to discharge the function of registration of companies.


Question 19

(a) (b)




SEBI in the interest of the securities market may direct an intermediary to refund the money or securities collected from the investors, however no interest will be paid on it - State True or False ?

TRUE FALSE

______________ must be maintained by a Stock Broker while conducting his business.

High level of profits High level of Integrity Prominence amongst his clients All of the above

FALSE The refund can be with or without interest as per the decision of SEBI.

High level of Integrity As per the Code of Conduct for Brokers - A stock-broker, must maintain high standards of integrity, promptitude and fairness in the conduct of all its business.



Question 22

(a) (b) (c) (d)


Correct Answer 22

The certificate of registration granted as a Underwriter, and its renewal is valid for a period of _____ from the date of its issue to the applicant.

2 years 3 years 5 years 7 years

For SEBI to consider the application of registration as a credit rating agency of an entity promoted by a company, the promoter shall have a continuous networth of minimum __________ for the previous five year.

Rs 1 crore Rs 10 crores Rs 50 crores Rs 100 crores

3 years The certificate of registration so granted and its renewal is valid for a period of 3 years from the date of its issue to the applicant. An underwriter shall apply for renewal of registration three months prior to the expiry of the period of the certificate along with the appropriate fees as provided by in the regulations.

Rs 100 crores


Question 23

(a) (b) (c) (d)

Question 24

(a) (b) (c) (d)

As per SEBI(Debenture Trustees) Regulations, debenture trustee shall communicate to the debenture holders on _____basis regarding compliance, defaults, etc. and the action taken regarding it.

Half Yearly Yearly Monthly Every 3 months

The Banker to an issue has to submit the collection figures to the Registrar to the Issue, the lead manager and the body corporate and such figures should be submitted within ______ working days from the issue closure date. seven

three six fifteen

Correct Answer 23

Half Yearly

Correct Answer 24

seven



Question 26

(a) (b) (c) (d)

The capital adequacy requirement to become a Debenture Trustee is __________ .

Total Assets of Rs 1 crore Total Assets of Rs 5 crores Networth of Rs 5 crores Networth of Rs 1 crore

As per the SEBI (Credit Rating Agencies) Regulations, a Credit Rating Agency on being granted the registration certificate shall pay to SEBI the registration fee of Rs. ______ lakhs

5 10 20 25

Correct Answer 25 Networth of Rs 1 crore Answer Explanation


As per SEBI (Debenture Trustees) Regulations, capital adequacy requirement shall not be less than the networth of one crore rupees, provided that a debenture trustee holding certificate of registration as on the date of commence-ment of the SEBI (Debenture trustees) (Amendment) Regulations, 2003 shall fulfil the networth requirements within two years from the date of such commencement.

20 The Credit Rating Agency on being granted the registration certificate shall pay to SEBI the registra-tion fee of Rs. 20 lakh. Application for renewal can be made to SEBI three months prior to the expiry of the certificate accompanied with the renewal fees. The renewal fee is Rs. 10 lakh.


Question 27

(a) (b)

Question 28 (a) (b)

SEBI in the interest of the securities market may direct an intermediary to refund the money or securities collected from the investors with or without interest. State whether True or False?

TRUE FALSE

Is it required to verify the source of funds as well as wealth of Politically Exposed Persons ?

Yes No

Correct Answer 27

TRUE

Correct Answer 28

Yes





Correct Answer 30

If a Credit Rating Agency has to change the rating defination, it can be done ____________.

only with the prior permission of SEBI only with the approvals of its shareholders only at certain periodic intervals All of the above

A SEBI registered stock broker can become a depository participant provided the stock broker has a minimum net worth of Rs._____ lakhs

10 25 50 100

only with the prior permission of SEBI Rating definition, as well as the structure for a particular rating product, shall not be changed by a credit rating agency, without prior information to SEBI.

50


Question 31

(a) (b)



Correct Answer 32

Can SEBI prohibit any company from issuing prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities? State Yes or No?

Yes No

Which of the following is not a security as per Securities Contract Regulation Act (SCRA) ?

Derivatives Bonds Bullion Shares

Yes The Section 11A of the SEBI Act states that without any prejudice to the provisions of the Companies Act 1956, SEBI may for the protection of investors prohibit any company from issuing prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities.

Bullion



Apart from SEBI Regulations, Bankers to an issue shall abide by the relevant rules and regulations of _______ .

Indian Bank Association Central Government RBI All of the above

Question 34

Post issue activities, generally co-ordinated by Lead Merchant Banker, include which of the following?

(a)

Finalisation of the basis of allotment Deciding on centres for holding conferences of stock brokers, investors, etc. Processing rematerialisation requests All of the above

(b) (c) (d)

Correct Answer 33

All of the above

Correct Answer 34

Finalisation of the basis of allotment


Question 35

(a) (b)




As per SEBI (ICDR) Regulation, only audited and consolidated financial statements need to be prepared in accordance to GAAP. State whether True or False.

TRUE FALSE

SEBI was set up under which act ?

Competition Act 2002 SEBI Act 1992 Securities Contract (Regulation) Act 1956 Securities Contract (Regulation) Rules 1957

FALSE In accordance with requirements of the ICDR, the information required includes audited consolidated or unconsolidated financial statements prepared in accordance with Indian GAAP standards.

SEBI Act 1992 The SEBI Act of 1992 was enacted upon “to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto”.


Question 37

(a) (b) (c) (d)

Question 38

(a) (b)



To bring in uniformity in the KYC procedure across intermediaries, the In Person Verification (IPV) has to be done by which of the foll intermediaries -

Stock Brokers KRAs & Depository Participants Venture Capital Funds and Collective Investment Schemes All of the above

Can a common order be passed in respect of a number of noticees where the subject matter in question is substantially the same or similar in nature?

Yes No

All of the above To bring in uniformity in the KYC procedure across intermediaries, the IPV requirements for all the intermediaries have been streamlined by SEBI. Intermediaries registered with SEBI as Stock Brokers, KRAs, Depository Participants, Mutual Funds, Portfolio Managers, Venture Capital Funds and Collective Investment Schemes need to mandatorily carry out IPV for all their clients.

Yes As per the SEBI (Intermediaries) Regulations - Action in case of default - The Designated member may pass a common order in respect of a number of notices where the subject matter in question is substantially the same or similar in nature.


Question 39

(a) (b) (c) (d)

Question 40

(a) (b)



A Merchant Banker has to disclose its track record for a period of _______ from the date of listing for each public issue managed by the merchant banker.

5 Financial Years 4 Calendar years 3 Financial Years 4 Financial Years

A member of a recognised stock exchange can enter into a contract as a principal with another member who is also a member of a recognised stock exchange after obtaining his consent - True or False ?

TRUE FALSE

3 Financial Years As per SEBI, the merchant bankers shall disclose the track record of the performance of the public issues managed by them. The track record shall be disclosed for a period of three financial years from the date of listing for each public issue managed by the merchant banker. This information should be made available on the website and a reference to the same should be made in the offer document.

TRUE Section 15 of SCRA provides that no member of a recognised stock exchange shall in respect of any securities enter into any contract as a principal with any person other than a member of a recognised stock exchange, unless he has secured the consent or authority of such person and discloses in the note, memorandum or agreement of sale or purchase that he is acting as a principal.



Question 42

The certificate of registration as Underwriter is valid for a period of how many years ?

2 3 5 10

As per Securities Contracts (Regulation) Rules - SCRR, the trading members of the stock exchanges are required to maintain the counterfoils or duplicates of contract notes issued to clients for how many years?

(d)

1 2 3 5

Correct Answer 41

3

Correct Answer 42

2

(a) (b) (c)

Answer Explanation

Rule 15(2) od SCRR requires every member of a recognized stock exchange to maintain and preserve the following documents for a period of 2 years: • Member‟s contract books showing details of all contracts entered into by the member with other members of the same exchange or counterfoils or duplicates of memos of confirmation issued to such other members. • Counterfoils or duplicates of contract notes issued to clients. • Written consent of clients in respect of contracts entered into as principals.


Question 43 (a) (b) (c)

(d)

Question 44

(a) (b)

As per the SEBI (Underwriters) Regulations - code of conduct, the underwriters shall not be a party to or instrumental for ____________.

creation of false market price rigging or manipulation passing of unpublished price sensitive information in respect of securities which are listed and proposed to be listed in any stock exchange to any person or intermediary. All of the above

Any person aggrieved by an order of the SEBI may prefer an appeal to the Securities Appellate Tribunal within a period of 60 days from the date on which a copy of the order made by SEBI has been received by such person. True or False ?

TRUE FALSE

Correct Answer 43

All of the above

Correct Answer 44

FALSE

Answer Explanation

An appeal shall be filed within a period of 45 days and not 60 days. (Any person aggrieved by any decision of the Securities Appellate Tribunal may file an appeal to the Supreme Court within 60 days).



Question 46

(a) (b) (c) (d)

__________of SEBI act relates to defaults by mutual funds(MFs) and prescribes penalties.

Section 15A Section 15B Section 15C Section 15D

In case of buy-back, the company shall ensure that all the securities bought back are extinguished within ____ days of the last date of completion of buy-back. 4

6 7 15

Correct Answer 45

Section 15D

Correct Answer 46

7


Question 47

(a) (b) (c) (d)



Correct Answer 48

As per SEBI (Substantial Acquisition of Shares & Takeovers - SAST) Regulations, within how many days a merchant banker has to make an open offer before making the public announcement of entering into an agreement for acquisition of shares or voting rights ?

4 working days 7 working days 15 working days 30 working days

Which of the following come under the scope of compliance ? Checklists

Compliance's and redressing investor grievances Minutes of Board Meeting All of the above

4 working days The acquirer company is required to appoint a SEBI registered Merchant Banker, as a manager to the open offer before making the public announcement. The public announcement shall be made by the merchant banker not later than 4 working days of entering into an agreement for acquisition of shares or voting rights or deciding to acquire shares or voting rights.

Compliance's and redressing investor grievances


Question 49 (a) (b)

Question 50

(a) (b) (c) (d)


Correct Answer 50

State True or False - The SEBI Act vests SEBI with the power to issue the certificate of registration to Securities MArket Intermediaries.

TRUE FALSE

Any person aggrieved by any decision or order of the Securities Appellate Tribunal may file an appeal to the Supreme Court within ______ days from the date of communication of the decision or order of the SAT to him.

30 60 75 90

TRUE Section 12 of SEBI Act vests SEBI with the power to issue the certificate of registration without which no stockbroker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser or such other intermediary who may be associated with the securities market shall buy, sell or deal in securities.

60



Question 52

(a) (b)



The guaranteeing of trades done on an registered securities market is done by ____________.

Nationalised Banks Clearing House Merchant Bankers The Stock Broker who executes the trade

An intermediary cannot sponsor or cause to be sponsored or carry on or caused to be carried on any venture capital funds or collective investment schemes including mutual funds if the same does not obtain a certificate of registration from the SEBI - True or False ?

TRUE FALSE

Clearing House Clearing House is the intermediary which performs two important functions: a) aggregating transactions over a trading period, netting the positions to determine the liabilities of members and ensures movement of funds and securities to meet respective liabilities; and b) guarantee those trades, in the event of default by either buyer or seller.

TRUE As per the rules of registration of Intermediaries, SEBI can suspend or cancel a certificate of registration after giving the person concerned a reasonable opportunity of presenting his case if he sponsors any venture capital funds or collective investment schemes including mutual funds if the same does not obtain a certificate of registration from the SEBI.


Question 53

(a) (b)


Correct Answer 53

All the employees, directors etc of the intermediary need to strictly adhere to the Code of Conduct as prescribed in the SEBI Regulations. State Whether True or False?

TRUE FALSE

___________ carries out the inspection and investigation of the books and accounts maintained by the members of the Stock Exchange.

the respective Stock Exchange Economic Offence Wing Ministry of Finance None of the above

TRUE

Correct Answer 54 None of the above Answer Explanation

Regulation 19 of the SEBI (Stock Brokers and Sub-Brokers) Regulations gives the SEBI Board the right to inspect. SEBI may appoint inspecting authority to undertake inspection of the books of account, other records and documents of the stock brokers, with or without notice.


Question 55

(a) (b) (c) (d)

Question 56

(a) (b) (c) (d)

As per the Code of Conduct for the Debenture Trustees, a Debenture Trustee is responsible for the acts or omissions of its __________ in respect to the conduct of its business.

Employees Agents Both 1 and 2 None of the above

Whenever there is a violation of any regulations, the designated authority issues a show cause notice. The show-cause notice shall specify the period ,not exceeding _________, within which reply should be submitted in written representation along with documentary evidence, if any, in support of the representation to the designated authority.

7 days 15 days 21 days 30 days

Correct Answer 55

Both 1 and 2

Correct Answer 56

21 days



Question 58

(a) (b) (c) (d)



The Department of Disinvestment is concerned with which of the following options?

Pension Regulation and Reforms Direct Taxes Disinvestment of Public Sector units All of the above

_______ is the central nodal agency responsible for receiving, processing, analyzing and disseminating information regarding suspicious financial transactions in order to support anti-money laundering efforts.

Financial Intelligence Unit - India (FIU-I) Economic Offence Wing (EOW) SEBI RBI

Disinvestment of Public Sector units Department of Disinvestment oversees, among other things, all matters relating to the disinvestment of Central Government equity from Central Public Sector undertakings. The department is also concerned with the financial policy relating to the utilization of proceeds of disinvestment.

Financial Intelligence Unit - India (FIU-I) FIU-I is an independent body reporting directly to the Economic Intelligence Council headed by the Finance Minister and is the central nodal agency responsible for receiving, processing, analyzing and disseminating information regarding suspicious financial transactions in order to support anti-money laundering efforts




Which of the following is/are considered critical reporting for a Compliance Officer ?

Money Laundering Activities Submission of books of accounts Submission of sauda books All of the above

The objective of the SEBI (Prohibition of Insider Trading) Regulation is to prohibit insider from ___________ on matters relating to insider trading?

Dealing Counselling Communicating All of the above

Correct Answer 59

Money Laundering Activities

Correct Answer 60

All of the above


Question 61

(a) (b)

Question 62

Self Regulatory Organisations need to conform to the conditions as laid down under SEBI (Intermediaries) Regulations, 2008 - State True or False ?

FALSE TRUE

A KYC Registering Agency (KRA) need not have a electronic connectivity in order to establish interoperability with KRA's - State True or False ?

(b)

TRUE FALSE

Correct Answer 61

FALSE

(a)

Answer Explanation


For recognition as an SRO, certain conditions have to be met as prescribed under the SEBI (Self Regulatory Organizations) Regulations, 2004.

FALSE KRA has to have a electronic connectivity in order to establish interoperability with other KRA's.



Question 64

(a) (b) (c) (d)



Which of these organisations are not covered under PLMA ?

Mutual Funds Manufacturing Firms taking Fixed Deposits for business expansion Stock Brokers Sub Brokers

As per SEBI (Depositories and Participants) Regulations code of conduct, a Depository Participant shall not make untrue statements or suppress any material fact in any __________ furnished to SEBI.

Information Reports Documents All of the above

Manufacturing Firms taking Fixed Deposits for business expansion The PMLA ie. Prevention of Money Laundering Act covers all Financial Intermediaries, and this includes Mutual Funds, Stock and Sub Brokers.

All of the above A Participant shall not make any untrue statement or suppress any material fact in any documents, reports, papers or information furnished to SEBI.



The functions of SEBI as per the SEBI Act includes __________.

Promoting and regulating self-regulatory organisations Regulating substantial acquisition of shares and take-over of companies Regulating the business in stock exchanges and any other securities markets All of the above

Question 66

Dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves fraud and may include an intermediary promising a certain price in respect of buying or selling of a security to a client and ___________.

(a)

waiting till a discrepancy arises in the price of such security and retaining the difference in prices as profit for himself. promising an opposite transaction at a different price to another client promising an opposite transaction at a different price at a later date to same client all of the above

(b) (c) (d)

Correct Answer 65

All of the above

Correct Answer 66

waiting till a discrepancy arises in the price of such security and retaining the difference in prices as profit for himself.


Question 67

(a) (b) (c) (d)




As per Section 19A of the Depositories Act, the penalty for delay in dematerialization or issue of certificate of securities is Rs. _____ per day or Rs 1 crore which ever is less.

25000 50000 1 lakh 3 lakhs

Which following is/are deemed to be price sensitive information ?

Issue of securities or buy back of securities Amalgamation, mergers or takeovers Periodic financial results of the company All of the above

1 lakh Penalties for delay in dematerialization or issue of certificate of securities is Rs. 1 crore or Rs.1 lakh for each day of default, whichever is less.

All of the above Price sensitive information is any information which if published, is likely to materially affect the price of securities of that company. The following are deemed to be price sensitive information: - Periodic financial results of the company. - Intended declaration of dividends (both interim and final). -Issue of securities or buy back of securities. -Any major expansion plans or execution of new projects. -Amalgamation, mergers or takeovers. - Disposal of the whole or substantial part of the undertaking. -Any significant changes in policies, plans or operations of t he company.



Question 70

(a) (b)


Correct Answer 70

Interest rate futures can have the underlying as ___________.

Government Securities T Bills Both 1 and 2 None of the above

As an integral part of Client Due Diligence, an intermediary has to verify the customer identity using reliable, independent source documents, data or in-formation - True or False ?

TRUE FALSE

Both 1 and 2 Interest-rate Futures are contracts in which the underlying asset is a debt security, like futures on Treasury Bills (T-Bills), Commercial Paper (CP) or Government Securities.

TRUE


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