Class: XII
Capital Market Operations-(793)
Sample Question Paper 2019-20

SECTION–A

Answer any 10 questions out of the given 12 questions:

1. What are the two interdependent segments of securities market?  
Ans. Primary Market and Secondary Market

2. Define Demutualization?  
Ans. Demutualization: NSE set up with a pure demutualised governance structure, having ownership, management and trading with three different sets of people. 

3. Define dematerialization?  
Ans. The Procedure of transfer of securities from physical form to electronic form is called dematerialization.

4. How Net Worth of the member is calculated?  
Ans. The Net Worth of the member is calculated as summation of Capital and free reserves less non allowable assets.

5. What is unwarrantable business of the member?  
Ans. Unwarrantable business: effects purchases or sales for its constituent’s account or for any account in which it is directly or indirectly interested which purchases or sales are excessive in view of its constituent’s or its own means and financial resources or in view of the market for such security.

6. What is Unique Client Code?  
Ans. SEBI has made it mandatory for all trading members/brokers to use unique client codes for all clients

7. What is VSAT System?  
Ans. A very small aperture terminal (VSAT) is a two-way ground station that transmits and receives data from satellites. NSE has a main computer which is connected through Very Small Aperture Terminal (VSAT) installed at NSE office.

8. What pay in  day mean?  
Ans. Pay-in day is the day when the trading members/brokers are required to make payment of funds or delivery of securities to the clearing corporation of the Exchange for all transactions traded by or through them in the respective settlement period. Page 2 of  2

9. Describe Direct Payout to Investor?  
Ans. client receives the pay out of securities directly to their accounts on the pay-out day. The client receives payout to the extent of instructions received from the respective clearing members.

10. What is short delivery?  
Ans. A short delivery/failed delivery takes place when a broker, a custodian or the clearing corporation delivers fewer securities than what were contracted for either to another broker, a custodian or the clearing corporation on Pay in Day . 

11. Give an example of a company objection?  
Ans. A company objection(s) arise when documents for securities transfer are returned due to  signature mismatch or for any other reason. 

12. In which year SEBI Prohibition of Insider Trading Act was announced?  
Ans. The SEBI Prohibition of Insider Trading Act was announced in  992

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