3 Month Ro Training Test - T+7 & Dpc

It is compulsory to change the password within 15 days. This is likely because using the same password for an extended period of time increases the risk of it being compromised. Changing the password regularly helps to enhance security and protect against unauthorized access to personal or sensitive information.

If the client buys shares using exposure on Day X, his shares will be squared off on Day X + 7 trading days. This means that the client will have 7 trading days to hold the shares before they are automatically sold.

The correct answer is 18% per annum. This means that the interest charged to clients is 18% of the principal amount on an annual basis. This is a common way for financial institutions to calculate and charge interest on loans or investments. It is important to note that the other options, such as 18% per month or per day, would result in significantly higher interest charges over time.

The client will not be charged DPC (Delivery Plus Charges) because they have made the payment on Thursday, which is within the T+2 settlement cycle. DPC is charged when the client fails to make the payment within the stipulated time, resulting in the shares being delivered to them in an auction market. Since the client has made the payment on time, they will not incur any additional charges.

The client will receive the stocks in his demat account on Monday. Typically, it takes two business days for the settlement of stock transactions in most markets. Since the client bought the stocks on Thursday, the two business days would be Friday and Monday. Therefore, the stocks will be received in his demat account on Monday.

If the client purchases shares on Wednesday, the shares will be squared off on the next Friday. This implies that the client will hold the shares for two trading days, Thursday and Friday, before they are squared off.

If the client has purchased stock using exposure on Friday, T+7 days would mean the transaction is settled 7 days after the trade date. Since the trade was done on Friday, the next Tuesday would be T+7 days.

The DPC (Delivery versus Payment) process typically starts on the next trading day after the shares are bought. In this case, the client bought shares on Tuesday, so the DPC would start on the next trading day, which is Thursday.

The DPC for a client started on Friday, which means that the client had the opportunity to buy shares using Exposure after the DPC. Since Monday is the first business day after Friday, it is not possible for the client to have bought the shares on Monday. Similarly, Tuesday is the second business day after Friday, so it is also not possible for the client to have bought the shares on Tuesday. Thursday is the fourth business day after Friday, which is too late for the client to have bought the shares. Therefore, the only remaining option is Wednesday, which is the third business day after Friday and the correct answer.

The client will be charged for 10 days of DPC. This is because the client bought the shares on 20th July 2016 and sold them on 28th July 2016, which is a total of 9 days. However, DPC charges are typically calculated including both the buy and sell dates, so the client will be charged for 10 days in total.