NISM Series IX: Merchant Banking Certification Examination – NISM 9

Who Should Prepare NISM Merchant Banking Certification Examination?

NISM Series 9 is also known as NISM Merchant Banking Certification Examination. As Derivative Market is huge topic.

NISM Merchant Banking exam is  must course for  those who perform SEBI regulated activities such as IPO, further public offer, Open Offer, Buy-back and Delisting or work as Compliance Officer in India. As SEBI has made few NISM Certification compulsory to work legally in India.

Study Material For NISM Merchant Banking:

You can buy NISM Series 9: Merchant Banking Certification Examination workbook from Amazon or you can get previous edition of Ebook of NISM Merchant Banking Exam from here free of cost.

We also provide free mock test. We have covered all NISM Series 9: NISM Merchant Banking Certification Examination questions and answers with detailed explanation for each question. This mock test also includes real life word problems and numericals as they also very important part of this modules.

There Are About 8 Units / Chapters In NISM Series 9:

Issue Management – Process and Underwriting, Introduction to the Merchant Banking, Other Merchant Banking Activities – Mergers, Acquisitions & Takeovers, Registration, Code of Conduct & General Obligations of Merchant Bankers in India, Issue Management – General Obligations of Merchant Bankers and Due Diligence are the most important chapters in NISM 9 Certification Examination and have most Weightage.

As you can see their are only 8 chapters in NISM Merchant Banking exam. And all of them have significant weightage. All chapters are important.

You should not ignore chapters like Issue Management – Important Terms, Introduction to the Capital Market and Other Merchant Banking Activities – Disinvestment, Buyback of Equity Shares despite having lowest weightage because they are very important chapters and can be covered in just few days.

NISM 9 Mock Test (Play And Earn):

This NISM 9 mock test is created by our very experienced teacher who have deep knowledge about Merchant Banking.

This is sample mock test of NISM Merchant Banking Exam. These questions are up to date with detailed explanation of every question. The answers are easy to understand and are 100% accurate.

#1. In the Growth option of Debt Mutual Fund scheme an Investor doesn't have

to pay tax on their income

to pay tax on their income

to pay tax on their income till the time capital gain is booked

to pay tax on their income till the time capital gain is booked

There is great advantage in the Growth option of Debt Mutual Fund scheme is that  an Investor doesn’t have to pay tax on their income till the time capital gain is booked.

#2. Short term or long term, Capital loss, can be set off against

Any other source of income

Any other source of income

same source of income

same source of income

Capital loss, can be set off against same source of income only.

Set off benefit means to adjust losses with the help of gains in funds and only pay tax for the left over profit. But  there is rule that you can compensate your losses only with gains of same income source and for this question income source is capital gains. So you can take set off benefits only through capital gains  to recover capital losses.

#3. Long term capital losses can only be set off against

Long term capital gain

Long term capital gain

Short term capital gain

Short term capital gain

Both Long term and Short term capital gain

Both Long term and Short term capital gain

Neither Long term nor Short term capital gain

Neither Long term nor Short term capital gain

Similarly, short term capital losses can only be set off against short term capital gains.

#4. In Growth Options, Fund Managers objective is to

look for stocks which expected to have growth in earnings and profitability lower than the economy.

look for stocks which expected to have growth in earnings and profitability lower than the economy.

look for stocks which expected to have growth in earnings and profitability higher than the economy.

look for stocks which expected to have growth in earnings and profitability higher than the economy.

#5. In National Pension Scheme (NPS), Auto choice subscriber's allocation of investments between the different asset class is

based on pre-determined ratio linked to the subscriber's age

based on pre-determined ratio linked to the subscriber's age

not based on pre-determined ratio linked to the subscriber's age

not based on pre-determined ratio linked to the subscriber's age

based on pre-determined ratio linked to the subscriber's net worth

based on pre-determined ratio linked to the subscriber's net worth

based on pre-determined ratio linked to the subscriber's education qualifications

based on pre-determined ratio linked to the subscriber's education qualifications

Auto choice subscriber’s allocation of investments between the different asset class (Equity and Debt) is determined through subscriber’s age.

Obviously, if NPS subscriber is elder person then their equity exposure will reduce as time passes but in case of young subscriber equity exposure should be more. As older person have less risk taking capacity than younger ones.

#6. Which among the following fund can private sector NPS subscriber can choose, under the active choice model?

Conservative Life Cycle Fund (LC-25)

Conservative Life Cycle Fund (LC-25)

Aggressive Life Cycle Fund (LC-75)

Aggressive Life Cycle Fund (LC-75)

Moderate Life Cycle Fund (LC-50)

Moderate Life Cycle Fund (LC-50)

All the options

All the options

Under the active choice model,  private sector NPS subscriber have right to manage their investment (with a rule that their investment shouldn’t have Equity exposure more than 75%).

 

So, under active choice model, NPS subscriber can invest in any kind of fund with above exception.

#7. For Individual and Hindu Undivided Family (HUF) investors, DDT in Equity is

5%

5%

20%

20%

10%

10%

30%

30%

For Individual and HUF Investors,

Direct Distribution Tax in Equity is 10% (11.648% with 12% surcharge and 4% cess).

#8. Which among the following option is correct?

NPS Subscribers in the government model do not have right to decide where their asset will be invested.

NPS Subscribers in the government model do not have right to decide where their asset will be invested.

NPS Subscribers in the private sector model do not have right to decide where their asset will be invested.

NPS Subscribers in the private sector model do not have right to decide where their asset will be invested.

In Both government and private sector model , NPS Subscribers have right to decide where their asset will be invested.

In Both government and private sector model , NPS Subscribers have right to decide where their asset will be invested.

In Both government and private sector model , NPS Subscribers do not have right to decide where their asset will be invested

In Both government and private sector model , NPS Subscribers do not have right to decide where their asset will be invested

In Private sector model NPS Subscribers have two choice:

1) Active choice = NPS Subscribers can manage their investment.

2) Auto choice = NPS Subscribers can’t manage their investment.

 

 

But in case of Active choice, there is a rule that Equity exposure shouldn’t exceed more than 75%.

 And in the Government model of NPS, only government decide to manage the investment.

#9. For Domestic Company, Dividend Distribution Tax (DDT) in Equity is 10% (11.648% with 12% surcharge and 4% cess).

True

True

False

False

Direct Distribution Tax in Equity is

10% (11.648% with 12% surcharge and 4% cess)

for Individuals, HUF, Domestic company as well as NRI. Remember it.

#10. In money market fund, for individuals and HUF investors DDT applicable is

10% (11.648% +with 12% surcharge and 4% cess).

10% (11.648% +with 12% surcharge and 4% cess).

29.12% (25%+with 12% surcharge and 4% cess).

29.12% (25%+with 12% surcharge and 4% cess).

24.12% (25% +with 12% surcharge and 4% cess).

24.12% (25% +with 12% surcharge and 4% cess).

25.68 % (25% +with 12% surcharge and 4% cess).

25.68 % (25% +with 12% surcharge and 4% cess).

In money market fund (not equity fund),

for individuals and HUF investors

DDT applicable is

29.12% (25% with 12% surcharge and 4% cess).

#11. Indexation Benefit is used to evade tax

True

True

False

False

Indexation Benefit is used to decreases  the  tax liability for the impact of Inflation.

For Instance, i put money on SBI Bank FD.

If Inflation rate is 4% and Interest rate is 7% then my actual Rate of return is (7-4=3%). So my actual gain is 3%.

If i pay tax for normal case then i have to pay tax for 7% gains.

But through help of indexation i need to pay tax for only 3% gains.

Finish

Results

 

 

Click here to Start : Part 5 of Premium NISM Mock Test of NISM V A

 

 

 

Click here to Start : Part 5 of Premium NISM Mock Test of NISM V A

 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges.

As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Past performance of securities/instruments is not indicative of their future performance. This post is only for Educational purpose.