CAPITAL MARKET

SCDLPGDBA

Capital Market -3rd sem
LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
SEBI has taken an action to ban on Badla.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year?
Correct Answer
15000 crores
Your Answer
15000 crores

True/False
Question
SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies.
Correct Answer
False
Your Answer
False

Select The Blank
Question
A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer.
Correct Answer
0.1
Your Answer
0.1

Select The Blank
Question
Securities offered in a pledge can change if a ________ agrees.
Correct Answer
Pledgee
Your Answer
Pledgee

True/False
Question
A bidder can request for a transaction registration slip as the proof of his having entered the bid.
Correct Answer
True
Your Answer
True

Select The Blank
Question
SENSEX is calculated using ________ method.
Correct Answer
Market capitalization
Your Answer
Market capitalization

Select The Blank
Question
AA rated companies can raise ________ of its net worth.
Correct Answer
2.5 times
Your Answer
2.5 times

Select The Blank
Question
In the book building process pricing is determined on the basis of ________.
Correct Answer
Investor feedback
Your Answer
Investor feedback

Multiple Choice Multiple Answer
Question
What is Sweat equity ?
Correct Answer
Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now
Your Answer
Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now

Multiple Choice Single Answer
Question
An AMC fees :-
Correct Answer
To be borne by the individual schemes
Your Answer
To be borne by banks

Multiple Choice Multiple Answer
Question
What are the objectives of NHB?
Correct Answer
To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations
Your Answer
To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations

Multiple Choice Multiple Answer
Question
What are participatory notes?
Correct Answer
Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities
Your Answer
Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities

Multiple Choice Multiple Answer
Question
When can an offer be withdrawn?
Correct Answer
Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board
Your Answer
Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board

True/False
Question
MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA.
Correct Answer
False
Your Answer
False

Select The Blank
Question
For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct Answer
2
Your Answer
2

Match The Following
Question
Correct Answer
Your Answer
Share buy back is a way of
Returning surplus cash to the shareholders
Have to consider buy back
Dutch Auction
Price of the Buy back is done by the shareholders
Price of the Buy back is done by the shareholders
Open market purchases
No minimum price stipulation
No minimum price stipulation
Companies holding more than 90% equity
Can be delisted
Can be delisted

Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer
1
Your Answer
1

Select The Blank
Question
The continuing growth in ________ was one of the factors that contributed to the growth of credit rating.
Correct Answer
Information technology
Your Answer
Information technology

Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital markets?
Correct Answer
Establishment of NSE
Your Answer
Establishment of NSE

Multiple Choice Single Answer
Question
What do you understand by capital markets ?
Correct Answer
Market for long term funds and investments in long term instruments
Your Answer
Market for long term funds and investments in long term instruments

Select The Blank
Question
In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes.
Correct Answer
7
Your Answer
7

Multiple Choice Multiple Answer
Question
What are the limitations of refinance facility?
Correct Answer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 15 % of NOF of NHB
Your Answer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 15 % of NOF of NHB

Multiple Choice Single Answer
Question
What is the amount invested by the FII's in the Indian Capital market?
Correct Answer
US$14 bn
Your Answer
US$14 bn

True/False
Question
The buy back of shares by Indian corporates has been very successful in India.
Correct Answer
False
Your Answer
False

Select The Blank
Question
The NSE Nifty index comprises of ________companies.
Correct Answer
50
Your Answer
50

Multiple Choice Single Answer
Question
Who is required to make a public announcement ?
Correct Answer
Acquirer
Your Answer
Acquirer

Multiple Choice Multiple Answer
Question
What are the norms for Approval of Housing finance companies by NHB?
Correct Answer
Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
Your Answer
Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors

Multiple Choice Multiple Answer
Question
What are the major factors influencing portfolio decisions?
Correct Answer
Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk
Your Answer
Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk

Multiple Choice Single Answer
Question
What was the reason for not introducing rolling settlements earlier in India?
Correct Answer
Lack of depositories
Your Answer
Lack of depositories

Multiple Choice Single Answer
Question
What is the main objective of the promoting Discount and finance house of India (DFHI) ?
Correct Answer
Increasing transactions of money market assets
Your Answer
Increasing transactions of money market assets

True/False
Question
A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :-
Correct Answer
No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver
Your Answer
No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5%

Multiple Choice Single Answer
Question
What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment in public issues right issues etc?
Correct Answer
21 days
Your Answer
21 days

Multiple Choice Multiple Answer
Question
Who can buy or sell securities on containing the certificate of registration?
Correct Answer
Underwriter , Merchant banker , Investment advisor
Your Answer
Merchant banker

Multiple Choice Single Answer
Question
Which company was responsible for spreading the equity culture in India ?
Correct Answer
Reliance Industries
Your Answer
Reliance Industries

Multiple Choice Single Answer
Question
When is the share of the target company deemed to be frequently traded
Correct Answer
If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5%
Your Answer
If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5%

Multiple Choice Multiple Answer
Question
What are the facilities offered by NSDL?
Correct Answer
Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer
Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Take active part in the trading of securities

Multiple Choice Single Answer
Question
What is a Point of sale terminal?
Correct Answer
Mechanism for collecting debit card payments
Your Answer
Member establishment where the sale is effected

Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer
Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer
Sound General knowledge , Analytical ability and marketing skills , Experience

True/False
Question
SEBI can investigate and inspect books of accounts and records of insiders.
Correct Answer
True
Your Answer
True

True/False
Question
The depository can legally transfer beneficial ownership.
Correct Answer
True
Your Answer
True

True/False
Question
The issue price for placement portion and net offer to public are not the same.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
What is Discretionary Portfolio management service ?
Correct Answer
Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.
Your Answer
Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.

Select The Blank
Question
In case of a public issue by a listed company participation by promoters in the proposed issues in excess of the required minimum percentage shall also be looked in for a period of ________.
Correct Answer
1 year
Your Answer
1 year

True/False
Question
RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.
Correct Answer
False
Your Answer
False

Match The Following
Question
Correct Answer
Your Answer
Charge card
Form of plastic money
Form of plastic money
Warning Bulletin
Authenticity test
Authenticity test
Credit information company
SBI, HDFC bank
SBI, HDFC bank
Credit card issuing company
Visa/Master Card
Visa/Master Card