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