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Question: When can an offer be withdrawn?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