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