Capital Market-1

CAPITAL MARKET-3rd Sem

Multiple Choice Multiple Answer

Question: Describe the regulatory aspects of mutual funds:-

Correct Answer: The Asset management company shall not launch any scheme till approval of trustees and offer document has been filed with the board, With each offer document pay filing fees, Offer document to contain disclosures



Multiple Choice Single Answer

Question: Who forms the Asset management company (AMC)?

Correct Answer: Group of trustees



Select The Blank

Question: The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.

Correct Answer: Scheduled Commercial Bank



Multiple Choice Multiple Answer

Question: What is the information to be placed before the board of directors as per the Kumarmangalam report?

Correct Answer: Annual operating plans, Capital budgets, Quarterly results



Multiple Choice Multiple Answer

Question: What are ESOP's?

Correct Answer: One of the methods of giving part ownership of the company to the employees, Employees can take part in the prosperity of the company, Is a reward and linked with the increase in the prices of the shares



Match The Following



Question
Correct Answer
Your Answer

Shareholders
Should effectively participate in general body meetings
Should effectively participate in general body meetings

Objective of Audit committee
Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders

Reasons of failures of corporate governance in spite of norms
Superficial commitment to vision, mission and values
Superficial commitment to vision, mission and values

Functions of Chief Executive, ED, Managers
Assisting the board in decision making process
Assisting the board in decision making process




Multiple Choice Multiple Answer

Question: How does SEBI react to the Scams in participatory notes issuance?

Correct Answer: Tighten FII regulations, Ensure participatory notes not misused by NRI, OCB controlled by Indians promoters



True/False

Question: Reliance group has added over 10000 crores in market capital.

Correct Answer: True



Select The Blank

Question: An acquirer who holds 15% or more but less than 75% of voting rights can acquire such additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.

Correct Answer: 0.05



Multiple Choice Single Answer

Question: What is the eligibility norm for an unlisted company for making an public issue as regards to its net worth?

Correct Answer: Net worth of the company should not be less than 1 crore



Multiple Choice Single Answer

Question: To make a public announcement the acquirer has to appoint:-

Correct Answer: Merchant Banker



True/False

Question: SEBI has taken an action to ban on Badla.

Correct Answer: True



Multiple Choice Multiple Answer

Question: The benefits of availing depository services are:-

Correct Answer: No stamp duty, Reduction in paperless work, Reduction in transaction cost



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



Select The Blank

Question: Directors should not be member of more than________ committees.

Correct Answer: 10



Select The Blank

Question: ________ is an international credit rating company.

Correct Answer: FITSCH



True/False

Question: The acquirer is required to appoint a merchant banker before making a PA.

Correct Answer: True



Select The Blank

Question: Hire Purchase transactions are liable to ________.

Correct Answer: Sales tax



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



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



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.



True/False

Question: Depositary facilitates transfers without having to handle money.

Correct Answer: False



Multiple Choice Single Answer

Question: What is the amount invested by the FII's in the Indian Capital market?

Correct Answer: US$14 bn



Multiple Choice Multiple Answer

Question: The features of mutual Fund are:-

Correct Answer: A trust that pools in savings and funds from large number of investors who have common financial goal, Issue units to investor which represent right in assets, Investments in mutual funds may be in the form of stock, bond, money market securities



Multiple Choice Multiple Answer

Question: What qualities do the merchant bankers need to possess?

Correct Answer: Knowledge and information about various aspects of capital markets, Ability to evaluate and analyze, Update the knowledge



Multiple Choice Multiple Answer

Question: Describe the stock lending mechanism:-

Correct Answer: Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates, Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date, Lender gets benefit of reasonable return called lending fee



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



Multiple Choice Single Answer

Question: When did the trading in foreign currency options start in India?

Correct Answer: 37809



Multiple Choice Single Answer

Question: What is the main objective of credit appraisal?

Correct Answer: Assess the repayment capacity



Select The Blank

Question: In the L & T reliance case, Reliance was fined ________.

Correct Answer: Rs. 5 lacs



Select The Blank

Question: SENSEX is calculated using ________ method.

Correct Answer: Market capitalization



Multiple Choice Single Answer

Question: Under section 11 B of SEBI act how many issuers were debarred?

Correct Answer: 1



Multiple Choice Single Answer

Question: What is the system of rolling settlement prevalent in the USA?

Correct Answer: Transaction + 3



Multiple Choice Single Answer

Question: What is the most important objective for an investor?

Correct Answer: Protection of the value of the investment



Multiple Choice Multiple Answer

Question: The following are some of the regulations governing the NBFC's issued by RBI:-

Correct Answer: All the NBFC's must register with RBI,Without the registration certificate no company can undertake activities of NBFC, All companies must be liquid assets equal to 15% of deposits



Multiple Choice Single Answer

Question: What do you mean by venture capital?

Correct Answer: Providing seed, start up capital and first stage financing



Multiple Choice Single Answer

Question: What was the turning point in the working of Indian capital markets?

Correct Answer: Establishment of NSE



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



True/False

Question: A portfolio manager has to assure a guaranteed return to his client.

Correct Answer: False



Multiple Choice Multiple Answer

Question: Describe E-trading:-

Correct Answer: Screen based trading in place of traditional ring, communication through the net, Operate in stock market privately through home or office



True/False

Question: The SEBI guidelines do not make it mandatory for the securities purchased under the buy back arrangement to be extinguished and physically destroyed.

Correct Answer: False



Multiple Choice Multiple Answer

Question: What are the SEBI guidelines for issue of debt instruments?

Correct Answer: Credit rating, Maturity more than 18 months appoint debenture trustee, Debenture redemption reserve to be created



Multiple Choice Multiple Answer

Question: Describe in brief the SEBI regulations for venture capital funds:-

Correct Answer: VCF's must be registered, Cannot carry out another activity, Must disclose investment strategy



Multiple Choice Single Answer

Question: What is the minimum number of days for which the bid should remain open in book building?

Correct Answer: 5 days



Match The Following



Question
Correct Answer
Your Answer

10 HDFC foreign currency deal
Global investors pumping funds in India
Specific Funds

0.57 FII current free float sensex company
FII free float stock
NIFTY companies

0.45 FII free float stock
NIFTY companies
FII's total free float sex and NIFTY

$ 476 mn Global investors pumping funds in India
Specific Funds
HDFC foreign currency deal




Match The Following



Question
Correct Answer
Your Answer

Collective investment companies directives
13
13

issuers debarred
1
1

promoters debarred
2
2

promoters warned
2
2






Match The Following



Question
Correct Answer
Your Answer

Portfolio
Collection of assets
Collection of assets

Factors influencing portfolio decisions
Business and Market risks
Business and Market risks

Code of conduct- Portfolio Manager
Observe high standard of integrity and fairness
Observe high standard of integrity and fairness

SEBI Regulations Portfolio Manager
must fulfill the capital adequacy norms
To make timely decision regarding sale and purchase of securities

Capital Market-6

capital Market-3rd sem

Match The Following



Question
Correct Answer
Your Answer

First stage financing
Provided to expand initial capital
Provided to expand initial capital

Overall economic conditions
Factor for obtaining value of a firm
Factor for obtaining value of a firm

Minimization of taxes
Investors ensures at the time of structuring the deal
Investors ensures at the time of structuring the deal

RS 25000
SEBI application fee
SEBI application fee




True/False

Question: Securitised assets give originators the ability to pass on or eliminate credit, interest rate and lending risks associated with the balance sheet funding.

Correct Answer: TRUE



Multiple Choice Single Answer

Question: By how many times the IPO size not exceed the pre issue net wroth of the company?

Correct Answer: 5 times'



Match The Following



Question
Correct Answer
Your Answer

Share buy back is a way of
Returning surplus cash to the shareholders
Returning surplus cash to the shareholders

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: What is the primary effect if a company does not extinguish the shares which are bought back?

Correct Answer: The company becomes its own shareholder



Select The Blank

Question: Largest deal struck on Day 1 of foreign currency option got underway in India was of ________.

Correct Answer: Standard Chartered Bank



Multiple Choice Single Answer

Question: What was the reason for not introducing rolling settlements earlier in India?

Correct Answer: Lack of depositories



Multiple Choice Single Answer

Question: What is the fee charged for making an application to the takeover panel for seeking exemption

Correct Answer: Rs. 25000/-



Select The Blank

Question: ________ operates both primary and secondary markets for CPs by quoting its bid and offering prices.

Correct Answer: DFHI



Match The Following



Question
Correct Answer
Your Answer

Load
Service charges for entry or exit into mutual fund schemes
Service charges for entry or exit into mutual fund schemes

Portfolio
Group of securities that find managers plan to invest
Group of securities that find managers plan to invest

AMC
Formed by a group of trustees
Formed by a group of trustees

NAV
Cumulative market value of assets net to its liabilities
Cumulative market value of assets net to its liabilities




Multiple Choice Single Answer

Question: What is the fee prescribed per report by SEBI (reporting of Acquisition arising out of firm allotment in public issues etc )?

Correct Answer: Rs. 10000/-



Multiple Choice Single Answer

Question: What is a more contemporary definition of corporate governance?

Correct Answer: Corporate Governance is all about promoting corporate fairness, transparency and accountability



True/False

Question: DRR is treated as part of general reserve for consideration of bonus issue of proposals.

Correct Answer: TRUE



Multiple Choice Single Answer

Question: How is a share buy back a useful mechanism in preventing hostile takeovers?

Correct Answer: Share buyback reduces the floating stock in the market thereby reducing the scope for a raider to acquire enough stock to gain management control.



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



Multiple Choice Single Answer

Question: What is a Point of sale terminal?

Correct Answer: Mechanism for collecting debit card payments



Multiple Choice Single Answer

Question: What was the objective of the Kumarmangalam Birla Committee on Corporate Governance?

Correct Answer: Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders



Select The Blank

Question: The service charge is levied for allowing subscribers for entry into or exit from mutual schemes is called as ________.

Correct Answer: Load



Multiple Choice Single Answer

Question: SEBI has recently allowed book building upto what extent?

Correct Answer: 1



Multiple Choice Single Answer

Question: What is the percentage of restriction on HFC's disbursement on project lending for refinance?

Correct Answer: 0.3



Multiple Choice Multiple Answer

Question: The following are some of the procedures of converting physical holding into electronic form:-

Correct Answer: Surrender certificates to DP, DP intimates request to depositary, DP submits the certificates to registrar



Select The Blank

Question: In the book building process pricing is determined on the basis of ________.

Correct Answer: Investor feedback



Select The Blank

Question: The company intending to buy back their shares must open a ________ account as per SEBI regulations.

Correct Answer: Escrow



Multiple Choice Multiple Answer

Question: What precautions are to be taken with respect to delivery instruction slip?

Correct Answer: DIS numbers are pre printed, Account number to be stamped, Investor should fill in target account id



Multiple Choice Single Answer

Question: The Money market mutual funds (MMMFs) can invest the funds in which of these securities?

Correct Answer: Call/notice money



True/False

Question: Bidder cannot revise his bids.

Correct Answer: False



Multiple Choice Single Answer

Question: What was the objective of setting up the Securities Trading corporation of India Ltd?

Correct Answer: To promote secondary market in government securities



True/False

Question: MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA.

Correct Answer: False



Match The Following



Question
Correct Answer
Your Answer

Looses the rights to vote
Non voting shares
Non voting shares

Book building
Bharati Televentures
Bharati Televentures

Depository
Bank of securities
Bank of securities

First to introduce rolling settlements in the country
NSE
NSE




Multiple Choice Multiple Answer

Question: What are the eligibility norms for a listed company for making a public issue?

Correct Answer: If the issue size is less than five times pre issue net worth, If the issue size is more than or equal to five times pre issue networth then the listed company to take book building route, 60% of issue size to be allotted to QIB's



Multiple Choice Single Answer

Question: How much percentage of company's revenue would be accounted for by the business with new name?

Correct Answer: 0.5



Multiple Choice Single Answer

Question: Who suffered heavy losses during bad times of stock markets?

Correct Answer: Small investors



Select The Blank

Question: Whose names appear in the register of the company.

Correct Answer: 45



Match The Following



Question
Correct Answer
Your Answer

0.1
Government decided to pay dividend
Government decided to pay dividend

0.15
MF cannot invest as percentage of NAV in debt instrument issued by single issuer
MF cannot invest as percentage of NAV in debt instrument issued by single issuer

annual statement of accounts of MF
To be audited by auditor
To be audited by auditor

Rs. 8000 crores
Current shortfall in UTI schemes
Current shortfall in UTI schemes




True/False

Question: SEBI can investigate and inspect books of accounts and records of insiders.

Correct Answer: True



Multiple Choice Multiple Answer

Question: What are the requirements regarding promoter's contribution and lock in?

Correct Answer: In case of IPO, promoters have to necessarily offer at least 20% of the post issue capital, In case of listed company promoters shall participate either to extent of 20% of proposed or post issue, In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years



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



True/False

Question: A credit card is a payment mechanism which enables the holder to buy goods and services on credit.

Correct Answer: True



Multiple Choice Multiple Answer

Question: What are the stages in the process of book building broadly divided into?

Correct Answer: Syndicate formation, Issue process, IPO



Select The Blank

Question: The VCs to flourish requires a well developed ________.

Correct Answer: Capital market



Multiple Choice Single Answer

Question: A rated company can raise deposit worth how many times its net worth?

Correct Answer: 4 times



Multiple Choice Single Answer

Question: What is the time frame stipulated by SEBI for members intending to avail of the buy back offer?

Correct Answer: Minimum 15 days and not exceeding 30 days



Multiple Choice Single Answer

Question: An AMC fees:-

Correct Answer: To be borne by the individual schemes



Multiple Choice Multiple Answer

Question: Where is the difference in buying and selling dematerialized shares?

Correct Answer: Process of delivery, Receipt of securities, Pledging the shares



Multiple Choice Multiple Answer

Question: What is transposition cum demat form?

Correct Answer: Helps in effect change in the order of names, Dematerialize the securities



Select The Blank

Question: It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities.

Correct Answer: Lead managers



True/False

Question: The buy back of shares by Indian corporates has been very successful in India.

Correct Answer: False



Multiple Choice Multiple Answer

Question: What information is required to be furnished to stock exchanges in compliance of SEBI regulations 1997?

Correct Answer: Details of proposed acquisition need to be filed with stock exchanges at least 4 days before the date, Any person holding more than 15% but less than 75% voting rights shall be disclosed with 2 days, Annual disclosures



Select The Blank

Question: One of the process of book building is that the issuer appoints a ________ also known as the book runner.

Correct Answer: Lead manager



Select The Blank

Question: Securities offered in a pledge can change if a ________ agrees.

Correct Answer: Pledgee



True/False

Question: Sweat equity shares are shares issued by company to employees or directors to discount.

Correct Answer: True



Multiple Choice Single Answer

Question: Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc?

Correct Answer: Regulation (3) 4



Multiple Choice Single Answer

Question: What is the most common complaint of the investors?

Correct Answer: Non receipt of refund orders and allotment advise



Multiple Choice Single Answer

Question: Of the net tangible assets how much percentage of assets should be held in monetary assets for a company to make an IPO?

Correct Answer: 0.5



Multiple Choice Single Answer

Question: Which stock exchange was used by ketan parekh for buying operations?

Correct Answer: Kolkatta



Multiple Choice Single Answer

Question: When is the security created from the date of issue of debenture?

Correct Answer: Within 6 months



True/False

Question: February UTI sought permission of SEBI to close 7 assured plans prematurely.

Correct Answer: True



Select The Blank

Question: A ________account is created for the purpose of distributing receivables to the investors on the securitisation deal.

Correct Answer: Escrow



Multiple Choice Single Answer

Question: What is the procedure for making an application to the takeover panel for seeking exemption?

Correct Answer: Acquirer to make an application in a standard format of SEBI



Multiple Choice Single Answer

Question: Under Sections 11 B how many promoters were debarred?

Correct Answer: 2



Multiple Choice Single Answer

Question: What has hurt the functioning of stock markets both primary and secondary?

Correct Answer: Unscrupulous promoters



Multiple Choice Single Answer

Question: What is the amount of net tangible assets, company should have to make an IPO?

Correct Answer: 3 crores

Capital Market-5

Capital Market- 3rd Sem

True/False

Question: The issue price for placement portion and net offer to public are not the same.

Correct Answer: False



Multiple Choice Multiple Answer

Question: What are the likely costs incurred by a credit card issuing bank?

Correct Answer: Membership fees to visa/MasterCard, Marketing cost, Administrative cost and cost of bad debts

Select The Blank

Question: The merger of GTB and UTI was called off due to intervention of ________

Correct Answer: SEBI and RBI



Select The Blank

Question: Cash Corporate benefit such as dividend / interest received is credited through ________ facility.

Correct Answer: ECS



Multiple Choice Single Answer

Question: What percentage of underwriting in the issues obligatory to the merchant bankers?

Correct Answer: 0.05



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



True/False

Question: The banks are flushed with funds due to less credit off take.

Correct Answer: True



True/False

Question: At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset.

Correct Answer: True



Multiple Choice Single Answer

Question: How much should be the minimum net worth of an AMC?

Correct Answer: Not less than 10 crores



Select The Blank

Question: While structuring the deal the entrepreneur seeks ________.

Correct Answer: Voting control



Multiple Choice Single Answer

Question: What is the minimum offer an acquirer can make?

Correct Answer: Min 20%



Multiple Choice Single Answer

Question: How many cases market manipulation and price rigging were investigated by SEBI?

Correct Answer: 202



True/False

Question: The company should have a track record of dividend payment of three years out of immediately preceding 5 years.

Correct Answer: True



True/False

Question: A bidder can request for a transaction registration slip as the proof of his having entered the bid.

Correct Answer: True



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



Multiple Choice Multiple Answer

Question: When is the public announcement required to be made?

Correct Answer: In case of indirect acquisition or change in control, the PA shall be made by acquirer within 3 months of conummation of such acquisition, The offer prices in such case shall be determined with reference to date of public announcement



Multiple Choice Single Answer

Question: High risk rating of Crisil is indicated by:-

Correct Answer: B



Multiple Choice Multiple Answer

Question: What is the procedure to make a public announcement?

Correct Answer: Acquirer to appoint a Merchant Banker, PA to be made through Merchant Banker, PA to be made within four working days of entering an agreement to acquire shares



Multiple Choice Single Answer

Question: What is book building process?

Correct Answer: Company allot at 60% of the issue size to QIB



Multiple Choice Single Answer

Question: Crisil's AAA rating stands for:-

Correct Answer: Highest safety



Multiple Choice Single Answer

Question: When did the concept of corporate governance evolve?

Correct Answer: During the watergate scandal



Match The Following



Question
Correct Answer
Your Answer

Insurance
In favor of lessor and lessor's lenders in lease agreement
In favor of lessor and lessor's lenders in lease agreement

Inter corporate deposit
Sources of funds for finance companies
Sources of funds for finance companies

Leasing
Service tax imposed on interest
Service tax imposed on interest

stock on hire
Hire purchase price less the installments received
Hire purchase price less the installments received




Multiple Choice Single Answer

Question: Which company came out with the unique product of bonus debentures?

Correct Answer: Hindustan lever



Match The Following



Question
Correct Answer
Your Answer

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

Charge card
Form of plastic money
Form of plastic money




Select The Blank

Question: The appointment of a ________ is mandatory in a offer process.

Correct Answer: Merchant Banker



Match The Following



Question
Correct Answer
Your Answer

isIN
Unique identification number for security
Unique identification number for security

WDM
Market for pure debt instruments
Market for pure debt instruments

NSE
SET up by IDBI and other financial institutions
SET up by IDBI and other financial institutions

Custodian
Helps register and safeguard the securities of its clients
Helps register and safeguard the securities of its clients




Multiple Choice Single Answer

Question: Mutual funds have to register with:-

Correct Answer: SEBI



Select The Blank

Question: Criminal proceedings under section 24 regarding insider trading saw ________ cases.

Correct Answer: 28



Multiple Choice Single Answer

Question: What is the duration of short term funds in the Indian context?

Correct Answer: Upto 1 year



Multiple Choice Multiple Answer

Question: What is the procedure for action in case of default?

Correct Answer: Suspension of the certificate, Mutual fund / AMC cease to exist, Subject to the directions of the board with regard to records



Select The Blank

Question: An acquirer who holds ________ shares or voting rights of a target company can acquire further shares only after making PA to acquire at least additional 20% of target company from the shareholders through an open offer.

Correct Answer: 0.75



Select The Blank

Question: The liability of the underwriters in the MS shoes case was estimated to be ________.

Correct Answer: Rs. 500 crores



Multiple Choice Multiple Answer

Question: Describe some of the various types of mutual funds schemes offered?

Correct Answer: Open ended vs. closed ended, Pure income schemes, Tax saving schemes



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



Multiple Choice Multiple Answer

Question: What is an offer letter?

Correct Answer: Document addressed to the shareholders, Containing disclosures of the acquirer / PAC target company, Offer price



Select The Blank

Question: For an approval of HFC one of the norms is that the promoter's contribution has to be minimum ________ of paid up capital.

Correct Answer: 0.3



True/False

Question: The lease agreement provides for a transfer of ownership to the lessee either at the end of the period or during the period of lease.

Correct Answer: False



Multiple Choice Single Answer

Question: The capital Adequacy ratio for NBFC's has been fixed at:-

Correct Answer: 0.12 2



Multiple Choice Multiple Answer

Question: Who can buy or sell securities on containing the certificate of registration?

Correct Answer: Underwriter, Merchant banker, Investment advisor



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%



Select The Blank

Question: Most of the deals struck on the fist day of foreign currency options were of ________ maturity.

Correct Answer: 1 year



Multiple Choice Single Answer

Question: What is maximum percentage of regular expenses of the assets of a scheme?

Correct Answer: 0.03



Select The Blank

Question: In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes.

Correct Answer: 7



True/False

Question: Mutual funds can do investments in any security issued by way of private placement by an associate or group company of the sponsor.

Correct Answer: False



Multiple Choice Multiple Answer

Question: What are the features of a Certificate of deposit?

Correct Answer: It is a document title to a time deposit, Freely negotiable and marketable, Can be issued only by commercial banks



Select The Blank

Question: A significant portion of the investment through the participatory notes is managed by ________ entities.

Correct Answer: 114

Capital Market-4

Select The Blank

Question: The right to buy is called ________.

Correct Answer: Call option



Multiple Choice Single Answer

Question: What percentage of funds should be invested in unlisted companies?

Correct Answer: 0.74



Multiple Choice Single Answer

Question: Who is responsible to get the securities listed on all the stock exchanges?

Correct Answer: Merchant banker



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



Multiple Choice Single Answer

Question: Since when have the Indian Stock markets risen?

Correct Answer: 37775



Multiple Choice Multiple Answer

Question: Describe in brief the SEBI regulations for venture capital funds:-

Correct Answer: Must disclose investment strategy, VCF's must be registered, Cannot carry out another activity



Multiple Choice Multiple Answer

Question: Describe E-trading:-

Correct Answer: Screen based trading in place of traditional ring, Communication through the net, Operate in stock market privately through home or office



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



Multiple Choice Multiple Answer

Question: Which companies have eroded market capitalization by Rs 20,000 crores?

Correct Answer: Infosys, Satyam, Wipro



Multiple Choice Multiple Answer

Question: What does SEBI do with its power?

Correct Answer: Cancel certificate issued to custodian, Inspect books of DP, issuers or beneficiary owners, Investigate an acquirer



True/False

Question: Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if there is an underlying asset.

Correct Answer: True



Multiple Choice Multiple Answer

Question: What is dematerialization?

Correct Answer: Physical certificates converted into electronic from, Credited into investors account with his/ her DP



Select The Blank

Question: ________ is in the form of a usance promissory note payable after 45 days from the date of issue.

Correct Answer: Certificate of Deposit



Multiple Choice Single Answer

Question: What is the amount of net worth accompany should have for opting for an IPO?

Correct Answer: 1 Crore



Select The Blank

Question: The process of securitisation involves transfer of assets to a person specially created called as ________.

Correct Answer: Special purpose vehicle



True/False

Question: A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of open ended schemes.

Correct Answer: True



Multiple Choice Single Answer

Question: What is a put option?

Correct Answer: Right to sell



True/False

Question: Venture capital finance is risk finance for entrepreneurial growth oriented companies.

Correct Answer: True



Multiple Choice Single Answer

Question: Who can change the composition of securities?

Correct Answer: Fund manager



True/False

Question: Employee stock option scheme granted to the employee is transferable.

Correct Answer: False



True/False

Question: Transactions that involve substantial payment towards goodwill, brand equity or intellectual property must be placed before the board of directors as per the recommendations of the Kumarmangalam Birla report.

Correct Answer: True



Multiple Choice Single Answer

Question: Deposits can be accepted for a maximum period of:-

Correct Answer: 5 years



Multiple Choice Single Answer

Question: In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes?

Correct Answer: Software



Select The Blank

Question: In 2001 a case of rigging and short selling based insider trading was noticed in the case of proposed merger of ________.

Correct Answer: UTI Bank with GTB



Select The Blank

Question: ________ are a kind of portfolio schemes.

Correct Answer: Mutual funds



Multiple Choice Single Answer

Question: What is equipment leasing?

Correct Answer: Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee



True/False

Question: Mergers and amalgamations of companies are also covered under the SEBI regulations 1997.

Correct Answer: False



Select The Blank

Question: `

Correct Answer: 0.1



Multiple Choice Single Answer

Question: If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue?

Correct Answer: Through book building process



Multiple Choice Single Answer

Question: Which is the favorite destination for venture funds?

Correct Answer: BPO



Multiple Choice Multiple Answer

Question: Who issues participatory notes?

Correct Answer: Associates of India based foreign brokerages, Domestic institutional brokerages



Multiple Choice Single Answer

Question: For a VCF to be registered with SEBI what is the registration fee?

Correct Answer: 5 lacs



Match The Following



Question
Correct Answer
Your Answer

Ready forward transaction (Repo)
Interbank sale and repurchase of securities
Interbank sale and repurchase of securities

Commercial paper
Means of raising short term debt by companies
Means of raising short term debt by companies

STCI
Operations in call money markets
Operations in call money markets

Market stabilsation Bonds
Launched in fiscal 2004-05
Launched in fiscal 2004-05




True/False

Question: Constant change would be one of the reasons for failure of corporate governance.

Correct Answer: True



True/False

Question: The company opting for an IPO should have net worth of at least Rs 1 crore in each of the preceding two years.

Correct Answer: True



True/False

Question: The acquirer is 3required to appoint a merchant banker before making a PA.

Correct Answer: True



Multiple Choice Multiple Answer

Question: The features of mutual Fund are:-

Correct Answer: A trust that pools in savings and funds from large number of investors who have common financial goal, Issue units to investor which represent right in assets, Investments in mutual funds may be in the form of stock, bond, money market securities



Multiple Choice Single Answer

Question: The process of 2share buy back must be completed within what period from the date of passing the resolution?

Correct Answer: 12 months



Select The Blank

Question: A ________ means any persons 2connected with a company and who is reasonably having access to unpublished price sensitive information.

Correct Answer: Insider



Select The Blank

Question: The NSE Nifty index comprises of ________companies.

Correct Answer: 50



True/False

Question: ISIN is a unique identification number for security.

Correct Answer: True



Multiple Choice Multiple Answer

Question: Companies are not allowed to buy back securities:-

Correct Answer: Through any/ own subsidiary company, Through any/group of investment company, If default subsists in respect of repayments of deposits, term loans to any financial institutions and redemption of preference shares or debentures



Multiple Choice Multiple Answer

Question: Briefly describe the SEBI guidelines for the merchant bankers:-

Correct Answer: Should have an authorization from SEBI, Expertise good financial standing and high degree of professional integrity, Company abides by the various requirements relating to disclosers, listing of instruments etc



Multiple Choice Single Answer

Question: What is issued by mutual funds?

Correct Answer: Units



Select The Blank

Question: The merchant bankers should act as ________ of the investor's money and put a lot of responsibility on them.

Correct Answer: Custodian



Select The Blank

Question: BSE introduced an equity stock index known as ________.

Correct Answer: SENSEX



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



Multiple Choice Single Answer

Question: What is government's move towards Stock Exchanges?

Correct Answer: Demutulisation



Multiple Choice Multiple Answer

Question: As per the recommendations of the Kumarmangalam Birla committee report who are the key components of an audit committee.

Correct Answer: External auditor, Board, Internal auditor



Multiple Choice Single Answer

Question: What is the objective of a credit information company?

Correct Answer: To ascertain the credit worthiness of individuals/organizations and make the data available to all banks



Multiple Choice Single Answer

Question: When are VCF's entitled to get its units listed on stock exchange?

Correct Answer: After expiration of 3 years form date of issuance of units



Multiple Choice Single Answer

Question: A portfolio manager could undertake the following on behalf of his clients:-

Correct Answer: Hedging and arbitrage transactions



Select The Blank

Question: Final prospectus in the book building p________ess is to be filed with the ROC.

Correct Answer: ROC



Multiple Choice Single Answer

Question: How many companies are there to do business of credit rating?

Correct Answer: 4



Multiple Choice Multiple Answer

Question: What are the general obligations of mutual fund?

Correct Answer: Every AMC should maintain proper books of accounts, Financial year for all schemes to end as on March 31 each year, Every mutual fund shall have the annual statements audited by auditor



Select The Blank

Question: Recently, SEBI has allowed buy back of shares upto ________% of the total shares without requirement of a special resolution

Correct Answer: 10



Multiple Choice Multiple Answer

Question: What are the salient features of Hire Purchase?

Correct Answer: Finance company purchases the equipment supplier and lets it on hire, During the contract hirer can opt for an early repayment and purchase the asset, Hirer may be required to make down payment



Multiple Choice Single Answer

Question: Who takes risk at the time of investment?

Correct Answer: Investor



Select The Blank

Question: A company with highly rated instrument has the opportunity to ________ by quoting less interest rates.

Correct Answer: Reduce the cost of borrowing



Multiple Choice Multiple Answer

Question: How is price determined in an open offer?

Correct Answer: Negotiated price, Price paid by acquirer, Average weekly high low of closing share of the target company



Multiple Choice Single Answer

Question: Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a minimum period of:-

Correct Answer: 1 year



True/False

Question: A custodian can transfer beneficial ownership legally.

Correct Answer: False



Multiple Choice Single Answer

Question: Apart from the portfolio management fees what percentage of returns can the portfolio manager share from their client's profits?

Correct Answer: 0



Multiple Choice Multiple Answer

Question: What are the different kinds of stock exchanges in India?

Correct Answer: Voluntary non profit making organizations, Joint stock companies limited by shares, Joint stock companies Limited by guarantee



Select The Blank

Question: For issues upto Rs. 50 crores the number of lead managers will not exceed ________.

Correct Answer: 2



Multiple Choice Single Answer

Question: Upto what percentage has the RBI permitted the banks to invest in the capital market?

Correct Answer: 0.05



Select The Blank

Question: Among the closed schemes, 4 long term assurance schemes were launched with a return ranging between ________.

Correct Answer: 13 - 14%



Multiple Choice Single Answer

Question: What was the percentage of public offering under the IPOs through the book building method?

Correct Answer: 0.1



Multiple Choice Multiple Answer

Question: What are the main features of commercial paper?

Correct Answer: Short term financial instrument, Negotiable and transferable instrument, Companies issue it for raising short term debt



Select The Blank

Question: A ________ can legally transfer beneficial ownership.

Correct Answer: Depository



Multiple Choice Multiple Answer

Question: The setting up of NSE consists of:-

Correct Answer: Set up by IDBI, Equity paid up capital of Rs25 crores, Started operations in June 1994



True/False

Question: institutional investors and underwriters.

Correct Answer: True



Multiple Choice Multiple Answer

Question: To open a DP account, following things are required:-

Correct Answer: Proof of identity, Proof of address, Photograph

Capital Market-3

CAPITAL MARKET-3rd Sem

Multiple Choice Multiple Answer

Question: Describe the regulatory aspects of mutual funds:-

Correct Answer: The Asset management company shall not launch any scheme till approval of trustees and offer document has been filed with the board, With each offer document pay filing fees, Offer document to contain disclosures



Multiple Choice Single Answer

Question: Who forms the Asset management company (AMC)?

Correct Answer: Group of trustees



Select The Blank

Question: The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.

Correct Answer: Scheduled Commercial Bank



Multiple Choice Multiple Answer

Question: What is the information to be placed before the board of directors as per the Kumarmangalam report?

Correct Answer: Annual operating plans, Capital budgets, Quarterly results



Multiple Choice Multiple Answer

Question: What are ESOP's?

Correct Answer: One of the methods of giving part ownership of the company to the employees, Employees can take part in the prosperity of the company, Is a reward and linked with the increase in the prices of the shares



Match The Following



Question
Correct Answer
Your Answer

Shareholders
Should effectively participate in general body meetings
Should effectively participate in general body meetings

Objective of Audit committee
Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders

Reasons of failures of corporate governance in spite of norms
Superficial commitment to vision, mission and values
Superficial commitment to vision, mission and values

Functions of Chief Executive, ED, Managers
Assisting the board in decision making process
Assisting the board in decision making process




Multiple Choice Multiple Answer

Question: How does SEBI react to the Scams in participatory notes issuance?

Correct Answer: Tighten FII regulations, Ensure participatory notes not misused by NRI, OCB controlled by Indians promoters



True/False

Question: Reliance group has added over 10000 crores in market capital.

Correct Answer: True



Select The Blank

Question: An acquirer who holds 15% or more but less than 75% of voting rights can acquire such additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.

Correct Answer: 0.05



Multiple Choice Single Answer

Question: What is the eligibility norm for an unlisted company for making an public issue as regards to its net worth?

Correct Answer: Net worth of the company should not be less than 1 crore



Multiple Choice Single Answer

Question: To make a public announcement the acquirer has to appoint:-

Correct Answer: Merchant Banker



True/False

Question: SEBI has taken an action to ban on Badla.

Correct Answer: True



Multiple Choice Multiple Answer

Question: The benefits of availing depository services are:-

Correct Answer: No stamp duty, Reduction in paperless work, Reduction in transaction cost



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



Select The Blank

Question: Directors should not be member of more than________ committees.

Correct Answer: 10



Select The Blank

Question: ________ is an international credit rating company.

Correct Answer: FITSCH



True/False

Question: The acquirer is required to appoint a merchant banker before making a PA.

Correct Answer: True



Select The Blank

Question: Hire Purchase transactions are liable to ________.

Correct Answer: Sales tax



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



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



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.



True/False

Question: Depositary facilitates transfers without having to handle money.

Correct Answer: False



Multiple Choice Single Answer

Question: What is the amount invested by the FII's in the Indian Capital market?

Correct Answer: US$14 bn



Multiple Choice Multiple Answer

Question: The features of mutual Fund are:-

Correct Answer: A trust that pools in savings and funds from large number of investors who have common financial goal, Issue units to investor which represent right in assets, Investments in mutual funds may be in the form of stock, bond, money market securities



Multiple Choice Multiple Answer

Question: What qualities do the merchant bankers need to possess?

Correct Answer: Knowledge and information about various aspects of capital markets, Ability to evaluate and analyze, Update the knowledge



Multiple Choice Multiple Answer

Question: Describe the stock lending mechanism:-

Correct Answer: Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates, Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date, Lender gets benefit of reasonable return called lending fee



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



Multiple Choice Single Answer

Question: When did the trading in foreign currency options start in India?

Correct Answer: 37809



Multiple Choice Single Answer

Question: What is the main objective of credit appraisal?

Correct Answer: Assess the repayment capacity



Select The Blank

Question: In the L & T reliance case, Reliance was fined ________.

Correct Answer: Rs. 5 lacs



Select The Blank

Question: SENSEX is calculated using ________ method.

Correct Answer: Market capitalization



Multiple Choice Single Answer

Question: Under section 11 B of SEBI act how many issuers were debarred?

Correct Answer: 1



Multiple Choice Single Answer

Question: What is the system of rolling settlement prevalent in the USA?

Correct Answer: Transaction + 3



Multiple Choice Single Answer

Question: What is the most important objective for an investor?

Correct Answer: Protection of the value of the investment



Multiple Choice Multiple Answer

Question: The following are some of the regulations governing the NBFC's issued by RBI:-

Correct Answer: All the NBFC's must register with RBI,Without the registration certificate no company can undertake activities of NBFC, All companies must be liquid assets equal to 15% of deposits



Multiple Choice Single Answer

Question: What do you mean by venture capital?

Correct Answer: Providing seed, start up capital and first stage financing



Multiple Choice Single Answer

Question: What was the turning point in the working of Indian capital markets?

Correct Answer: Establishment of NSE



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



True/False

Question: A portfolio manager has to assure a guaranteed return to his client.

Correct Answer: False



Multiple Choice Multiple Answer

Question: Describe E-trading:-

Correct Answer: Screen based trading in place of traditional ring, communication through the net, Operate in stock market privately through home or office



True/False

Question: The SEBI guidelines do not make it mandatory for the securities purchased under the buy back arrangement to be extinguished and physically destroyed.

Correct Answer: False



Multiple Choice Multiple Answer

Question: What are the SEBI guidelines for issue of debt instruments?

Correct Answer: Credit rating, Maturity more than 18 months appoint debenture trustee, Debenture redemption reserve to be created



Multiple Choice Multiple Answer

Question: Describe in brief the SEBI regulations for venture capital funds:-

Correct Answer: VCF's must be registered, Cannot carry out another activity, Must disclose investment strategy



Multiple Choice Single Answer

Question: What is the minimum number of days for which the bid should remain open in book building?

Correct Answer: 5 days



Match The Following



Question
Correct Answer
Your Answer

10 HDFC foreign currency deal
Global investors pumping funds in India
Specific Funds

0.57 FII current free float sensex company
FII free float stock
NIFTY companies

0.45 FII free float stock
NIFTY companies
FII's total free float sex and NIFTY

$ 476 mn Global investors pumping funds in India
Specific Funds
HDFC foreign currency deal




Match The Following



Question
Correct Answer
Your Answer

Collective investment companies directives
13
13

issuers debarred
1
1

promoters debarred
2
2

promoters warned
2
2






Match The Following



Question
Correct Answer
Your Answer

Portfolio
Collection of assets
Collection of assets

Factors influencing portfolio decisions
Business and Market risks
Business and Market risks

Code of conduct- Portfolio Manager
Observe high standard of integrity and fairness
Observe high standard of integrity and fairness

SEBI Regulations Portfolio Manager
must fulfill the capital adequacy norms
To make timely decision regarding sale and purchase of securities

Capital Market-2

Capital Market





Multiple Choice Single Answer

Question: Who was the first to introduce rolling settlement in India?

Correct Answer: NSE



Multiple Choice Single Answer

Question: How many registration of issues were cancelled in the recent past?

Correct Answer: 1



Multiple Choice Single Answer

Question: When is a debenture redemption reserve created?

Correct Answer: In case the maturity period of debentures in more than 18 months



Multiple Choice Single Answer

Question: What is the main advantage of a rolling settlement?

Correct Answer: Quicker payments



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



Multiple Choice Single Answer

Question: What is the status of Stock exchanges today?

Correct Answer: Joint stock companies



Multiple Choice Single Answer

Question: How much should be the minimum post issue capital of the company?

Correct Answer: 10 crores



Multiple Choice Single Answer

Question: How many times Refinance cannot exceed net owned funds of Housing finance companies?

Correct Answer: 5 times



Multiple Choice Single Answer

Question: What is a call option?

Correct Answer: Right to buy



Select The Blank

Question: The Kumarmangalam Birla report stressed on the importance of ________ with respect to AGM's.

Correct Answer: Proxy voting / ballot systems



Multiple Choice Single Answer

Question: As per the recommendations of the Kumarmangalam Birla committee report what should be the combination of the board of directors in case of an executive chairman?

Correct Answer: Not less than 50% non executive directors



Multiple Choice Single Answer

Question: Which HFC's are not eligible to draw further refinance?

Correct Answer: Whose overdues of over 3 months exceed 5% of the aggregate demand for the year



Select The Blank

Question: Not more than ________ of funds may be invested by way of subscription to IPO of the company who's share are proposed to be listed.

Correct Answer: 0.25



Multiple Choice Single Answer

Question: What is credit rating?

Correct Answer: An isolated function of credit risk evaluation



Multiple Choice Single Answer

Question: What is an option?

Correct Answer: Contract giving the buyer the right to buy, sell specified quantity of underlying assets at a specific price on or before the specified time



True/False

Question: SEBI cannot investigate the affairs of mutual funds and their trustees and AMC.

Correct Answer: FALSE



Multiple Choice Single Ans

Question: By how many times the IPO size not exceed the pre issue net worth of the company?

Correct Answer: 5 times'



Select The Blank

Question: Final prospectus in the book building press is to be filed with the ROC.

Correct Answer: ROC



Multiple Choice Single Answer

Question: Who grants the recognition to stock exchange?

Correct Answer: Central Government, Ministry of Finance, Stock Exchange division



Multiple Choice Single Answer

Question: Who prescribes the format of application for various reports or documents?

Correct Answer: SEBI



Multiple Choice Single Answer

Question: What is net asset value of the funds?

Correct Answer: Cumulative market value of the assets net of its liabilities



Match The Following



Question
Correct Answer
Your Answer

No limit
Number of co managers
Bankers

Cat 1 merchant banker
Min net worth of Rs1 core
Min net worth of Rs1 core

Cat 2 merchant bankers
Net worth Rs. 50 lacs
Net worth Rs. 50 lacs

Issues above Rs 50 and Rs100 crores
Max number of lead managers will be 3
Min net worth of Rs. 100 cores




Multiple Choice Single Answer

Question: Who maintains an Escrow account in the process of securitisation?

Correct Answer: Trustee



True/False

Question: Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various

Correct Answer: TRUE



Multiple Choice Multiple Answer

Question: Which companies have eroded market capitalization by Rs20000 crores?

Correct Answer: Infosys, Satyam, Wipro



Match The Following



Question
Correct Answer
Your Answer


ESPS
Stock option method
Stock option method


Sweat equity
Share issue for
consideration other than cash
Share issue for consideration other than cash

stock lending mechanism
Introduced by SEBI in 1997
Introduced by SEBI in 1997


ESOP
Recipe to make employees millionaires
Recipe to make employees millionaires





Multiple Choice Single Answer

Question: For a VCF to be registered with SEBI what is the registration fee ?

Correct Answer: 5 lacs



Multiple Choice Multiple Answer

Question: What should be done if the address of investor changes?

Correct Answer: Inform DP and update records, Inform different companies



Match The Following



Question
Correct Answer
Your Answer

1995
MS shoes scam
MS shoes scam

9/1/2001
SENSEX touched low of 2600
UTI GTB merger

4/1/2001
Tata finance scam came to light
Tata finance scam came to light

11/1/2001
Reliance sale of 10.5% stake in L&T to grasim
Reliance sale of 10.5% stake in L&T to grasim




Multiple Choice Single Answer

Question: How many points the sensex went up in January 2000 during the ketan parekh scam?

Correct Answer: 700 points



Match The Following



Question
Correct Answer
Your Answer

Rematerialisation
RRF
RRF

NSE
Settlement cycle T + 3
Settlement cycle T + 3

RBI
Gilt securities mobilization
Gilt securities mobilization

Non corporate benefit
Bonus
Bonus




Multiple Choice Multiple Answer

Question: Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges?

Correct Answer: SCRA, Depository Act



True/False

Question: The depository can legally transfer beneficial ownership.

Correct Answer: True



Multiple Choice Single Answer

Question: When can the American style option exercised?

Correct Answer: On or before the expiry date



Multiple Choice Single Answer

Question: What is the estimated figure of credit card defaults in India?

Correct Answer: 800 crores



Select The Blank

Question: AA rated companies can raise ________ of its net worth.

Correct Answer: 2.5 times



Multiple Choice Multiple Answer

Question: What are the eligibility norms for an unlisted company for making a public issue?

Correct Answer: Pre issue net worth not less than 1 crores in the last 3 years, Track record of distributable profits for at least 3 years, Issue size shall not exceed five times of its pre issue net worth



Select The Blank

Question: Markets have moved away from Badla system to ________.

Correct Answer: Derivatives Trading



Multiple Choice Single Answer

Question: How many members are appointed by the central government?

Correct Answer: 2



Match The Following



Question
Correct Answer
Your Answer

Castrol
FY 2003 - 03 Dividend Rs145 crores
FY 2003 - 03 Dividend Rs145 crores

MS Verma committee
Dual Flotation
Dual Flotation

Hero Honda
FY 2003 - 03 Dividend Rs187 crores
FY 2003 - 03 Dividend Rs187 crores

VSNL
FY 2003 - 03 Dividend Rs172 crores
FY 2003 - 03 Dividend Rs172 crores




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



Multiple Choice Single Answer

Question: What is the limit for aggregate investment of FII's NRI's and OCB's?

Correct Answer: 0.3



True/False

Question: Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned.

Correct 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



Select The Blank

Question: The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company.

Correct Answer: 4



Multiple Choice Single Answer

Question: What is the objective of public announcement?

Correct Answer: Ensure that the shareholders of the target company are aware of the exit opportunity available to them



Select The Blank

Question: When one decides to have the shares in an electronic form one has to approach ________.

Correct Answer: DP



True/False

Question: If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document.

Correct Answer: False



Select The Blank

Question: As per SEBI regulations, PMS must not be involved in any litigation connected with ________.

Correct Answer: Securities markets



True/False

Question: The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.

Correct Answer: False



True/False

Question: A portfolio manager need not necessarily sell or purchase securities separately for each client.

Correct Answer: False



True/False

Question: RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.

Correct Answer: False



Multiple Choice Single Answer

Question: As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds?

Correct Answer: 4 times



Select The Blank

Question: With the introduction of ________ accounts the complaints about allotment have surely gone down.

Correct Answer: DEMAT



Multiple Choice Single Answer

Question: The process of share buy back must be completed within what period from the date of passing the resolution?

Correct Answer: 12 months



True/False

Question: SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies.

Correct Answer: False



Select The Blank

Question: Recently many banks have started issuing ________ which could also be used as a debit card.

Correct Answer: ATM card



Select The Blank

Question: A ________ means any persons connected with a company and who is reasonably having access to unpublished price sensitive information.

Correct Answer: Insider



Multiple Choice Single Answer

Question: Which company was responsible for spreading the equity culture in India?

Correct Answer: Reliance Industries



Select The Blank

Question: Information technology, communication and entertainment represent ________ stocks.

Correct Answer: ICE



True/False

Question: In order to dematerialize the securities one has to fill DRF.

Correct Answer: True



Select The Blank

Question: In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form.

Correct Answer: 10 crores



Multiple Choice Multiple Answer

Question: What are the obligations of a company in a share buy back?

Correct Answer: The offer letter should contain true, factual and material information and should not be misleading., The company must pay the consideration only by the way of cash, The company should not issue any fresh securities including bonus shares till the date of the closure of the offer.



Select The Blank

Question: The DP opens investor account in the system and gives an account number also known as ________.

Correct Answer: BO ID



Multiple Choice Multiple Answer

Question: What are the factors that determine the value of a firm?

Correct Answer: Degree of popularity of the industry, Overall economic condition, Demand and supply capital



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



Multiple Choice Single Answer

Question: The refinance made available to any HFC is not to be more than:-

Correct Answer: 60% of its outstanding housing loans



Multiple Choice Single Answer

Question: Which Act defines the term Stock Exchange?

Correct Answer: Securities Contract Regulation Act



Multiple Choice Multiple Answer

Question: What are the preconditions for trading on the net?

Correct Answer: A net connection, A registered account with a broker and a demat account, Bank payment gateway or online banking facility



True/False

Question: Money market mutual funds are not permitted to invest in treasury bills and commercial paper.

Correct Answer: False



Multiple Choice Single Answer

Question: Under various SEBI regulations how many brokers suspended?

Correct Answer: 8