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