3rd sem finance all subjects

8/9/2019 3rd Sem Finance All Subjects

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3RD

SEMESTER

ASSIGNMENTS

FINANCE

SCDL


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ASSIGNMENTS


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CAPITAL MARKET -AMITA

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single AnswerQuestion Which Act defines the term Stock Exchange?Correct Answer Securities Contract Regulation ActYour Answer Securities Contract Regulation Act

Multiple Choice Multiple AnswerQuestion 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

Your Answer A registered account with a broker and a demat account , Bank payment gateway or onlinebanking facility , A net connection

Multiple Choice Single AnswerQuestion What do you understand by capital markets ?Correct Answer Market for long term funds and investments in long term instruments

Your Answer Market for long term funds and investments in long term instruments

True/FalseQuestion Sweat equity shares are shares issued by company to employees or directors to discount.Correct Answer True

Your Answer True

True/FalseQuestion Money market mutual funds are not permitted to invest in treasury bills and commercial paper.Correct Answer False

Your Answer False

Multiple Choice Single AnswerQuestion Under various SEBI regulations how many brokers suspended?Correct Answer 8Your Answer 8

Multiple Choice Multiple AnswerQuestion 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 disclosuresYour Answer With each offer document pay filing fees , Offer document to contain disclosures

Match The FollowingQuestion Correct Answer Your Answer

Charge card Form of plastic money Member establishment

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

Multiple Choice Single Answer


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Question Who forms the Asset management company (AMC)?Correct Answer Group of trusteesYour Answer Group of trustees

Select The BlankQuestion 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

Your Answer Scheduled Commercial Bank

Multiple Choice Single AnswerQuestion What is the amount invested by the FII's in the Indian Capital market?Correct Answer US$14 bn

Your Answer US$14 bn

Multiple Choice Single AnswerQuestion 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

Your Answer Regulation (3) 4

True/FalseQuestion 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 institutional investors and underwriters.

Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The Money market mutual funds (MMMFs) can invest the funds in which of these securities?

Correct Answer Call/notice money

Your Answer Call/notice money

Multiple Choice Multiple AnswerQuestion 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 resultsYour Answer Annual operating plans , Capital budgets , Quarterly results

True/FalseQuestion Bidder cannot revise his bids.

Correct Answer FalseYour Answer True

Multiple Choice Multiple AnswerQuestion 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 sharesYour Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of

giving part ownership of the company to the employees , Employees can take part in the prosperity of the

company



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

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

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

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

Multiple Choice Multiple AnswerQuestion 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 promotersYour Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled

by Indians promoters

Select The BlankQuestion While structuring the deal the entrepreneur seeks ________.Correct Answer Voting controlYour Answer Goodwill

True/FalseQuestion DRR is treated as part of general reserve for consideration of bonus issue of proposals.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion What must be the quality of a good portfolio manager?Correct Answer Sound General knowledge , Analytical ability and marketing skills , ExperienceYour Answer Sound General knowledge , Analytical ability and marketing skills , Experience

Multiple Choice Multiple AnswerQuestion 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 idYour Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in

target account id

True/False

Question Reliance group has added over 10000 crores in market capital.Correct Answer True

Your Answer False

Select The BlankQuestion 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 0.05Your Answer 0.2

Select The BlankQuestion ________ is an international credit rating company.

Correct Answer FITSCH


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Your Answer FITSCH

Select The Blank

Question The appointment of a ________ is mandatory in a offer process.Correct Answer Merchant BankerYour Answer Merchant Banker


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

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


maintained by them with ________.Correct Answer Scheduled Commercial BankYour Answer Scheduled Commercial Bank

Multiple Choice Single AnswerQuestion To make a public announcement the acquirer has to appoint :-Correct Answer Merchant BankerYour Answer Merchant Banker

Multiple Choice Single AnswerQuestion What is a more contemporary definition of corporate governance?Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and

accountabilityYour Answer Corporate Governance is all about promoting corporate fairness, transparency and

accountability

Multiple Choice Multiple AnswerQuestion 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 with2 days , Annual disclosures

Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with2 days

Multiple Choice Single AnswerQuestion Which company was responsible for spreading the equity culture in India ?Correct Answer Reliance Industries

Your Answer Reliance Industries

Select The BlankQuestion The merger of GTB and UTI was called off due to intervention of ________Correct Answer SEBI and RBIYour Answer SEBI and RBI

Select The BlankQuestion The Merchant banker will incorporate in the letter of offer the comments made by SEBI and

then send within ________ days from the date of PA to all shareholders whose names appear in the registerof the company.

Correct Answer 45

Your Answer 45


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Multiple Choice Multiple AnswerQuestion When can an offer be withdrawn?

Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as inopinion of boardYour Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion

of board

True/FalseQuestion The public cannot give their complaints or comments on the issuer company or others

connected with the issue to SEBI.Correct Answer FalseYour Answer False

True/FalseQuestion SEBI has taken an action to ban on Badla.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion The benefits of availing depository services are :-Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction costYour Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account

Multiple Choice Multiple AnswerQuestion 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 exchangesYour 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

True/FalseQuestion RBI has permitted all commercial banks, financial institutions and large corporates to issue

certificate of deposits.Correct Answer False

Your Answer True

Select The BlankQuestion Directors should not be member of more than________ committees.Correct Answer 10

Your Answer 10


Question What was the turning point in the working of Indian capital markets?Correct Answer Establishment of NSE

Your Answer Establishment of NSE

Multiple Choice Single AnswerQuestion Under section 11 B of SEBI act how many issuers were debarred?Correct Answer 1

Your Answer 1

True/FalseQuestion A portfolio manager need not necessarily sell or purchase securities separately for each client.Correct Answer False

Your Answer False


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Capital Market_2

- 1 -


Select The Blank

Question Information technology, communication and entertainment represent ________stocks.Correct Answer ICE

Your Answer ICE

True/FalseQuestion The public cannot give their complaints or comments on the issuer company or

others connected with the issue to SEBI.Correct Answer False

Your Answer True

True/FalseQuestion In order to dematerialize the securities one has to fill DRF.Correct Answer True

Your Answer True

Select The BlankQuestion 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 croresYour Answer 10 crores

Multiple Choice Multiple AnswerQuestion 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 , Thecompany should not issue any fresh securities including bonus shares till the date of the closure

of the offer.Your 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 closureof the offer.

Select The BlankQuestion The DP opens investor account in the system and gives an account number also

known as ________.Correct Answer BO IDYour Answer BO ID


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

Correct Answer 4 timesYour Answer 4 times

Multiple Choice Multiple AnswerQuestion 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 capitalYour Answer Overall economic condition , Demand and supply capital , Degree of popularity of

the industry

Match The Following


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Capital Market_2

- 2 -

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 highstandard of integrity and fairness

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

Multiple Choice Multiple AnswerQuestion What are the major factors influencing portfolio decisions?Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment

and interest rate risk

Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment andinterest rate risk

Multiple Choice Single AnswerQuestion The refinance made available to any HFC is not to be more than :-

Correct Answer 60% of its outstanding housing loansYour Answer 60% of its outstanding housing loans


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Question Which Act defines the term Stock Exchange?Correct Answer Securities Contract Regulation ActYour 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 facilityYour Answer A registered account with a broker and a demat account , Bank payment gateway or online

banking facility , A net connection

Multiple Choice Single AnswerQuestion What do you understand by capital markets ?Correct Answer Market for long term funds and investments in long term instrumentsYour Answer Market for long term funds and investments in long term instruments

True/FalseQuestion Sweat equity shares are shares issued by company to employees or directors to discount.Correct Answer TrueYour Answer True

True/FalseQuestion Money market mutual funds are not permitted to invest in treasury bills and commercial paper.Correct Answer FalseYour Answer False


Question Under various SEBI regulations how many brokers suspended?Correct Answer 8Your Answer 8


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 , Offerdocument to contain disclosures

Your Answer With each offer document pay filing fees , Offer document to contain disclosures






Multiple Choice Single AnswerQuestion Who forms the Asset management company (AMC)?

Correct Answer Group of trustees


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Your 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 bemaintained by them with ________.Correct Answer Scheduled Commercial BankYour Answer Scheduled Commercial Bank

Multiple Choice Single AnswerQuestion What is the amount invested by the FII's in the Indian Capital market?Correct Answer US$14 bnYour Answer US$14 bn


allot meant in public issues and rights issues etc?Correct Answer Regulation (3) 4Your Answer Regulation (3) 4


evident from the offers given by the various institutional investors and underwriters.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The Money market mutual funds (MMMFs) can invest the funds in which of these securities?Correct Answer Call/notice moneyYour Answer Call/notice money


report?Correct Answer Annual operating plans , Capital budgets , Quarterly resultsYour Answer Annual operating plans , Capital budgets , Quarterly results

True/FalseQuestion Bidder cannot revise his bids.Correct Answer FalseYour Answer True




giving part ownership of the company to the employees , Employees can take part in the prosperity of thecompany




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Select The BlankQuestion While structuring the deal the entrepreneur seeks ________.

Correct Answer Voting controlYour Answer Goodwill

True/FalseQuestion DRR is treated as part of general reserve for consideration of bonus issue of proposals.


Multiple Choice Multiple AnswerQuestion What must be the quality of a good portfolio manager?

Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience

Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience



target account id

True/False

Question Reliance group has added over 10000 crores in market capital.Correct Answer TrueYour Answer False

Select The Blank

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


Select The BlankQuestion ________ is an international credit rating company.Correct Answer FITSCHYour Answer FITSCH

Select The Blank


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Multiple Choice Single AnswerQuestion 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

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


maintained by them with ________.

Correct Answer Scheduled Commercial BankYour Answer Scheduled Commercial Bank

Multiple Choice Single AnswerQuestion To make a public announcement the acquirer has to appoint :-Correct Answer Merchant Banker

Your Answer Merchant Banker



accountability


Question What information is required to be furnished to stock exchanges in compliance of SEBI



Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with

2 days



Select The Blank

Question The merger of GTB and UTI was called off due to intervention of ________Correct Answer SEBI and RBI

Your Answer SEBI and RBI


then send within ________ days from the date of PA to all shareholders whose names appear in the register

of the company.Correct Answer 45Your Answer 45


Question When can an offer be withdrawn?


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Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as inopinion of board

Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion

of board


connected with the issue to SEBI.

Correct Answer FalseYour Answer False

True/FalseQuestion SEBI has taken an action to ban on Badla.


Multiple Choice Multiple AnswerQuestion The benefits of availing depository services are :-Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost

Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account




True/False

Question RBI has permitted all commercial banks, financial institutions and large corporates to issue

certificate of deposits.Correct Answer FalseYour Answer True

Select The Blank

Question Directors should not be member of more than________ committees.Correct Answer 10Your Answer 10


Question What was the turning point in the working of Indian capital markets?Correct Answer Establishment of NSEYour Answer Establishment of NSE


Question Under section 11 B of SEBI act how many issuers were debarred?Correct Answer 1Your Answer 1

True/False

Question A portfolio manager need not necessarily sell or purchase securities separately for each client.Correct Answer FalseYour Answer False


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Multiple Choice Single AnswerQuestion What was the objective of setting up the Securities Trading

corporation of India Ltd?Correct Answer To promote secondary market in government securities

Your Answer To strengthen the capital markets

Multiple Choice Multiple AnswerQuestion What are the salient features of Hire Purchase ?

Correct Answer Finance company purchases the equipment supplier and lets iton hire , During the contract hirer can opt for an early repayment

and purchase the asset , Hirer may be required to make downpayment

Your Answer During the contract hirer can opt for an early repayment andpurchase the asset , Hirer may be required to make downpayment , Finance company purchases the equipment supplierand lets it on hire

True/FalseQuestion mutual fund shall not invest more than 10% of is NAV in equity

shares in cases of open ended schemes.Correct Answer True

Your Answer True

Select The BlankQuestion _______ are a kind of portfolio schemes.

Correct Answer Mutual funds

Your Answer Mutual funds

Multiple Choice Single AnswerQuestion Who takes risk at the time of investment ?

Correct Answer Investor

Your Answer Investor

True/FalseQuestion MIBOR is a security. Derivatives based on this interest rate have

legal recognition under SCRA.Correct Answer False

Your Answer True


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Select The BlankQuestion It is the responsibility of the ________ to ensure the timely

refunds and allotments of the securities.Correct Answer Lead managers

Your Answer Lead managers

True/FalseQuestion A credit card is a payment mechanism which enables the holder

to buy goods and services on credit.Correct Answer True

Your Answer True

Match The Following


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

Select The BlankQuestion Final prospectus in the book building p________ess is to be filed

ith the ROC.Correct Answer ROC

Your Answer ROC

Select The BlankQuestion A company with highly rated instrument has the opportunity to

_______ by quoting less interest rates.Correct Answer Reduce the cost of borrowing

Your Answer Reduce the cost of borrowing

True/FalseQuestion Book building is a process whereby the price is determined on

the basis of actual demand as evident from the offers given bythe various institutional investors and underwriters.

Correct Answer True


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Your Answer True

Multiple Choice Multiple AnswerQuestion 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 auditorsYour Answer Minimum paid up capital 1 crore , At least 2 directors , At least

50% loans in long term nature

Multiple Choice Single AnswerQuestion A portfolio manager could undertake the following on behalf of

his clients :-Correct Answer Hedging and arbitrage transactions

Your Answer Hedging and arbitrage transactions

Multiple Choice Multiple AnswerQuestion How is price determined in an open offer?

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

Your Answer Negotiated price , Price paid by acquirer , Average weekly highlow of closing share of the target company


Question What must be the quality of a good portfolio manager?

Correct Answer Sound General knowledge , Analytical ability and marketingskills , Experience

Your Answer Experience , Sound General knowledge , Analytical ability andmarketing skills

Multiple Choice Single AnswerQuestion Renewal of portfolio fund on maturity shall be deemed as a fresh

placement for a minimum period of :-Correct Answer 1 year

Your Answer 2 years

True/FalseQuestion In order to dematerialize the securities one has to fill DRF.

Correct Answer True

Your Answer True

Select The Blank


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

Correct Answer Lead manager

Your Answer Lead manager

Select The BlankQuestion The process of securitisation involves transfer of assets to a

person specially created called as ________.Correct Answer Special purpose vehicle

Your Answer Trust

True/FalseQuestion A custodian can transfer beneficial ownership legally.

Correct Answer False

Your Answer False

Multiple Choice Single AnswerQuestion Apart from the portfolio management fees what percentage of

returns can the portfolio manager share from their client'sprofits?

Correct Answer 0

Your Answer 0

True/FalseQuestion The SEBI guidelines do not make it mandatory for the securities

purchased under the buy back arrangement to be extinguishedand physically destroyed.


Your Answer False

Select The BlankQuestion BSE introduced an equity stock index known as ________.

Correct Answer SENSEX

Your Answer SENSEX

Multiple Choice Multiple AnswerQuestion As per the recommendations of the Kumarmangalam Birla

committee report who are the key components of an auditcommittee.


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Correct Answer Board , Internal auditor , External auditor

Your Answer Board , Internal auditor , External auditor

Multiple Choice Multiple AnswerQuestion Which companies have eroded market capitalization by Rs20

000 crores?Correct Answer Infosys , Satyam , Wipro

Your Answer Infosys , Satyam , Wipro

Multiple Choice Multiple AnswerQuestion What are the obligations of a company in a share buy back?

Correct Answer The offer letter should contain true, factual and materialinformation and should not be misleading. , The company mustpay the consideration only by the way of cash , The companyshould not issue any fresh securities including bonus shares tillthe date of the closure of the offer.

Your Answer The offer letter should contain true, factual and materialinformation and should not be misleading. , The company mustpay the consideration only by the way of cash , The companyshould not issue any fresh securities including bonus shares tillthe date of the closure of the offer.


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

Correct Answer oluntary non profit making organizations , Joint stockcompanies limited by shares , Joint stock companies Limited byguarantee

Your Answer oluntary non profit making organizations , Joint stockcompanies limited by shares , Private limited companies

Multiple Choice Multiple AnswerQuestion Companies are not allowed to buy back securities :-

Correct Answer Through any/ own subsidiary company , Through any/group ofinvestment company , If default subsists in respect of

repayments of deposits, term loans to any financial institutionsand redemption of preference shares or debentures

Your Answer Through any/ own subsidiary company , Through any/group ofinvestment company , If default subsists in respect ofrepayments of deposits, term loans to any financial institutionsand redemption of preference shares or debentures

True/FalseQuestion The depository can legally transfer beneficial ownership.

Correct Answer True


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Your Answer True

Select The BlankQuestion For issues upto Rs. 50 crores the number of lead managers will

not exceed ________.Correct Answer 2

Your Answer 4

Match The Following


Ready forward transaction

(Repo)

Interbank sale and

repurchase of securities

Operations in call money

marketsCommercial paper Means of raising short

term debt by companiesMeans of raising short termdebt by companies

STCI Operations in call moneymarkets

Launched in fiscal 2004-05

Market stabilsation Bonds Launched in fiscal 2004-05

Interbank sale andrepurchase of securities

True/FalseQuestion SEBI cannot investigate the affairs of mutual funds and their

trustees and asset management companies.


Your Answer False

Multiple Choice Single AnswerQuestion What is the time frame to submit a report to SEBI for acquisition

transactions arising out of firm allotment in public issues rightissues etc?

Correct Answer 21 days

Your Answer 21 days

True/FalseQuestion The acquirer is required to appoint a merchant banker before

making a PA.Correct Answer True

Your Answer True

Select The BlankQuestion The right to buy is called ________.


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Correct Answer Call option

Your Answer Call option

Multiple Choice Single AnswerQuestion Upto what percentage has the RBI permitted the banks to invest

in the capital market ?Correct Answer 0.05

Your Answer 0.05

Multiple Choice Single AnswerQuestion What was the turning point in the working of Indian capital

markets?Correct Answer Establishment of NSE

Your Answer Opening of Indian Capital Markets to FII's

Multiple Choice Single AnswerQuestion 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 AnswerQuestion Under section 11 B of SEBI act how many issuers were

debarred?Correct Answer 1

Your Answer 3

Select The BlankQuestion Among the closed schemes, 4 long term assurance schemes

ere launched with a return ranging between ________.Correct Answer 13 - 14%

Your Answer 15 - 16%

Multiple Choice Multiple AnswerQuestion What are the major factors influencing portfolio decisions?

Correct Answer Investor characteristics , Liquidity needs and tax considerations ,Investment and interest rate risk

Your Answer Investor characteristics , Liquidity needs and tax considerations ,Investment and interest rate risk


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Multiple Choice Single AnswerQuestion What was the percentage of public offering under the IPOs

through the book building method ?

Correct Answer 0.1

Your Answer 0.25

Multiple Choice Multiple AnswerQuestion What are the main features of commercial paper?

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

Your Answer Short term financial instrument , Negotiable and transferableinstrument , Companies issue it for raising short term debt

Select The BlankQuestion A ________ can legally transfer beneficial ownership.

Correct Answer Depository

Your Answer Depository

Multiple Choice Multiple AnswerQuestion The setting up of NSE consists of:-

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

Your Answer Equity paid up capital of Rs25 crores , Started operations inJune 1994 , There is a trading floor in this exchange

Multiple Choice Single AnswerQuestion Which Act defines the term Stock Exchange?

Correct Answer Securities Contract Regulation Act

Your Answer Securities And Exchange Board of India


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1


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

Correct

Answer

To promote secondary market in government securities

Your Answer To strengthen the capital markets


Question What are the salient features of Hire Purchase ?

CorrectAnswer

Finance company purchases the equipment supplier and lets it on hire , During thecontract hirer can opt for an early repayment and purchase the asset , Hirer may be

required to make down payment

Your Answer During the contract hirer can opt for an early repayment and purchase the asset , Hirer

may be required to make down payment , Finance company purchases the equipment

supplier and lets it on hire

True/False

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

ended schemes.

CorrectAnswer

True

Your Answer True

Select The Blank

Question ________ are a kind of portfolio schemes.

Correct

Answer

Mutual funds

Your Answer Mutual funds


Question Who takes risk at the time of investment ?

Correct

Answer

Investor

Your Answer Investor

True/FalseQuestion MIBOR is a security. Derivatives based on this interest rate have legal recognition under

SCRA.

Correct

Answer

False

Your Answer True

Select The Blank

Question It is the responsibility of the ___ ____ to ensure the timely refunds and allotments of thesecurities.

Correct

Answer

Lead managers

Your Answer Lead managers


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2

True/False

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

services on credit.

CorrectAnswer

True

Your Answer True

Match The Following


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

Select The Blank

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

Correct

Answer

ROC

Your Answer ROC

Select The BlankQuestion company with highly rated instrument has the opportunity to ________ by quoting less

interest rates.Correct

Answer

Reduce the cost of borrowing

Your Answer Reduce the cost of borrowing

True/FalseQuestion 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 institutional investors and underwriters.

Correct

Answer

True

Your Answer True


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

Your Answer Minimum paid up capital 1 crore , At least 2 directors , At least 50% loans in long term

nature


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


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3

CorrectAnswer

Hedging and arbitrage transactions

Your Answer Hedging and arbitrage transactions


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

Your Answer Negotiated price , Price paid by acquirer , Average weekly high low of closing share of the

target company


Question What must be the quality of a good portfolio manager?

Correct

Answer

Sound General knowledge , Analytical ability and marketing skills , Experience

Your Answer Experience , Sound General knowledge , Analytical ability and marketing skills


Question Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a

minimum period of :-Correct

Answer

1 year

Your Answer 2 years

True/FalseQuestion In order to dematerialize the securities one has to fill DRF.

Correct

Answer

True

Your Answer True

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

Your Answer Lead manager

Select The Blank

Question The process of securitisation involves transfer of assets to a person specially created

called as ________.Correct

Answer

Special purpose vehicle

Your Answer Trust

True/FalseQuestion A custodian can transfer beneficial ownership legally.

CorrectAnswer

False


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4

Your Answer False


Question Apart from the portfolio management fees what percentage of returns can the portfolio

manager share from their client's profits?

CorrectAnswer

0

Your Answer 0

True/FalseQuestion 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

Your Answer False

Select The Blank

Question BSE introduced an equity stock index known as ________.

Correct

Answer

SENSEX

Your Answer SENSEX


Question As per the recommendations of the Kumarmangalam Birla committee report who are the

key components of an audit committee.Correct

Answer

Board , Internal auditor , External auditor

Your Answer Board , Internal auditor , External auditor


Question Which companies have eroded market capitalization by Rs20 000 crores?

Correct

Answer

Infosys , Satyam , Wipro

Your Answer Infosys , Satyam , Wipro

Multiple Choice Multiple AnswerQuestion 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.Your 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.


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


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5

CorrectAnswer

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

Your Answer Voluntary non profit making organizations , Joint stock companies limited by shares ,

Private limited companies


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

Your Answer Through any/ own subsidiary company , Through any/group of investment company , Ifdefault subsists in respect of repayments of deposits, term loans to any financial

institutions and redemption of preference shares or debentures

True/FalseQuestion The depository can legally transfer beneficial ownership.

CorrectAnswer True

Your Answer True

Select The Blank

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

Correct

Answer

2

Your Answer 4

Match The Following


Ready forward transaction (Repo) Interbank sale and repurchase ofsecurities

Operations in call money markets

Commercial paper Means of raising short term debtby companies

Means of raising short term debtby companies

STCI Operations in call money markets Launched in fiscal 2004-05

Market stabilsation Bonds Launched in fiscal 2004-05 Interbank sale and repurchase of

securities

True/False

Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset

management companies.

Correct

Answer

False

Your Answer False


Question What is the time frame to submit a report to SEBI for acquisition transactions arising outof firm allotment in public issues right issues etc?

CorrectAnswer

21 days


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Your Answer 21 days

True/False

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

CorrectAnswer

True

Your Answer True

Select The Blank

Question The right to buy is called ________.

CorrectAnswer

Call option

Your Answer Call option

Multiple Choice Single AnswerQuestion Upto what percentage has the RBI permitted the banks to invest in the capital market ?

Correct

Answer

0.05

Your Answer 0.05


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

Correct

Answer

Establishment of NSE



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



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

CorrectAnswer

1

Your Answer 3

Select The BlankQuestion Among the closed schemes, 4 long term assurance schemes were launched with a return

ranging between ________.

Correct

Answer

13 - 14%

Your Answer 15 - 16%


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7

Multiple Choice Multiple AnswerQuestion What are the major factors influencing portfolio decisions?

Correct

Answer

Investor characteristics , Liquidity needs and tax considerations , Investment and interest

rate risk

Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest

rate risk


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

method ?

CorrectAnswer

0.1

Your Answer 0.25

Multiple Choice Multiple AnswerQuestion 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

Your 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

Your Answer Depository


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

Your Answer Equity paid up capital of Rs25 crores , Started operations in June 1994 , There is a

trading floor in this exchange


Question Which Act defines the term Stock Exchange?

Correct

Answer

Securities Contract Regulation Act

Your Answer Securities And Exchange Board of India


Select The Blank

Question ________ is an international credit rating company.

Correct Answer FITSCH

Your Answer Crisil

True/False

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


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8

Correct Answer True

Your Answer True

Select The BlankQuestion Hire Purchase transactions are liable to ________.

Correct Answer Sales tax

Your Answer Sales tax

Multiple Choice Single AnswerQuestion What do you understand by capital markets ?

Correct Answer Market for long term funds and investments in long term instruments

Your Answer Market for long term funds and investments in long term instruments


Question What must be the quality of a good portfolio manager?Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience



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.Your 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

Your Answer True


Question What is the amount invested by the FII's in the Indian Capital market?Correct Answer US$14 bnYour Answer US$14 bn


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 croresYour Answer 15000 crores


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 mutualfunds may be in the form of stock, bond, money market securities

Your 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

True/FalseQuestion 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.


Your Answer True

Select The BlankQuestion As per SEBI regulations, PMS must not be involved in any litigation connected with ________.

Correct Answer Securities markets


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9

Your Answer Clients


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

Your Answer Knowledge and information about various aspects of capital markets , Ability to evaluateand analyze , Update the knowledge


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

Your Answer Involves two parties one who is willing to lend and other who wishes to borrow securitiesat market related rates , Lender gets benefit of reasonable return called lending fee


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

Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not toexceed 15 % of NOF of NHB


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

the resolution?Correct Answer 12 months

Your Answer 12 months

Match The Following


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


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

Correct Answer 37809Your Answer 37829


Question What is the main objective of credit appraisal ?

Correct Answer Assess the repayment capacity

Your Answer Assess the age of the person borrowing

True/False

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

companies.


Your Answer False

Select The Blank


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10

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

Correct Answer Rs. 5 lacs

Your Answer Rs. 5 lacs

Select The Blank

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

Correct Answer ATM cardYour 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

Your Answer Insider

Select The Blank

Question SENSEX is calculated using ________ method.

Correct Answer Market capitalization

Your Answer Weighted

Match The Following


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 theshareholders

Open market purchases No minimum price stipulation No minimum price stipulation

Companies holding more than 90% equity Can be delisted Can be delisted

True/False

Question The public cannot give their complaints or comments on the issuer company or others



Your Answer False


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

Correct Answer 1

Your Answer 1

True/False

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


Your Answer True

True/FalseQuestion RBI has permitted all commercial banks, financial institutions and large corporates to issue

certificate of deposits.


Your Answer True


evident from the offers given by the various institutional investors and underwriters.


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11

Correct Answer True

Your Answer True

Multiple Choice Single AnswerQuestion What is the system of rolling settlement prevalent in the USA ?

Correct Answer Transaction + 3

Your Answer Transaction + 3

Multiple Choice Single AnswerQuestion What is the most important objective for an investor?

Correct Answer Protection of the value of the investment

Your Answer Profit maximization


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

Your 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


Question What do you mean by venture capital?Correct Answer Providing seed, start up capital and first stage financing

Your Answer Providing seed, start up capital and first stage financing


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 ofcredit rating.

Correct Answer Information technology

Your Answer Information technology

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

Your Answer 3 years

True/False

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



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 officeYour Answer Screen based trading in place of traditional ring , Communication through the net ,

Operate in stock market privately through home or office

Select The Blank

Question The Kumarmangalam Birla report stressed on the importance of ________ with respect to

AGM's.Correct Answer Proxy voting / ballot systems

Your Answer Proxy voting / ballot systems


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12

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

Your Answer False


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

Your Answer Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture

redemption reserve to be created

Multiple Choice Single AnswerQuestion Which company was responsible for spreading the equity culture in India ?

Correct Answer Reliance Industries



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 investmentstrategy

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

strategy

Multiple Choice Single AnswerQuestion What is the minimum number of days for which the bid should remain open in book building?

Correct Answer 5 days

Your Answer 7 days

Multiple Choice Single AnswerQuestion As per RBI regulation, bank borrowings should not exceed how many times of the net owned

funds?

Correct Answer 4 times

Your Answer 4 times

Select The Blank

Question With the introduction of ________ accounts the complaints about allotment have surely gonedown.

Correct Answer DEMAT

Your Answer DEMAT


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True/False

Question The buy back of shares by Indian corporates has been very successful in India.Correct Answer FalseYour Answer True


Question What percentage of funds should be invested in unlisted companies?Correct Answer 0.74Your Answer 0.76

Select The Blank

Question When one decides to have the shares in an electronic form one has to approach ________.Correct Answer DPYour Answer SEBI

True/FalseQuestion The issue price for placement portion and net offer to public are not the same.


Multiple Choice Multiple AnswerQuestion What are the factors that determine the value of a firm?

Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of theindustry

Your Answer Overall economic condition , Degree of popularity of the industry , High profitability isone of the criteria


Question What do you understand by capital markets ?Correct Answer Market for long term funds and investments in long term instrumentsYour Answer Market for long term funds and investments in long term instruments


Question What is the main objective of credit appraisal ?Correct Answer Assess the repayment capacityYour Answer Assess the repayment capacity

True/False

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


Your Answer True

Multiple Choice Multiple AnswerQuestion 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 securitiesYour Answer Instruments used but investors not register with SEBI , Investors interested in taking

exposure in Indian securities

True/FalseQuestion Employee stock option scheme granted to the employee is transferable.Correct Answer False

Your Answer False


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Multiple Choice Multiple AnswerQuestion Briefly describe the SEBI guidelines for the merchant bankers :-

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

Your Answer Should have an authorization from SEBI , Expertise good financial standing and highdegree of professional integrity , Company abides by the various requirements relating to disclosers, listing

of instruments etc

Select The BlankQuestion 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 GTBYour Answer UTI Bank with GTB

True/FalseQuestion 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.


Multiple Choice Multiple AnswerQuestion 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 thanor equal to five times pre issue networth then the listed company to take book building route , 60% of issuesize to be allotted to QIB's

Your Answer If the issue size is less than five times pre issue net worth , If the issue size is more than orequal 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 Multiple AnswerQuestion Where is the difference in buying and selling dematerialized shares ?Correct Answer Process of delivery , Receipt of securities , Pledging the sharesYour Answer Process of delivery , Receipt of securities , Pledging the shares , Sale of shares

Multiple Choice Multiple AnswerQuestion 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 announcementYour Answer The offer prices in such case shall be determined with reference to date of public

announcement , PA shall be made by the target company , In case of indirect acquisition or change in

control, the PA shall be made by acquirer within 3 months of conummation of such acquisition

Multiple Choice Multiple AnswerQuestion 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 debtYour Answer Short term financial instrument , Negotiable and transferable instrument , Companies issue

it for raising short term debt

Multiple Choice Single AnswerQuestion What is the amount invested by the FII's in the Indian Capital market?Correct Answer US$14 bn

Your Answer US$18 bn


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Multiple Choice Single AnswerQuestion Which company was responsible for spreading the equity culture in India ?

Correct Answer Reliance IndustriesYour Answer Reliance Industries


Share buy back is a way of Returning surplus cash to the shareholders Siphoning of excess cash by thepromoters

Dutch Auction Price of the Buy back is done by the shareholders No minimum price stipulation

Open market purchases No minimum price stipulation Returning surplus cash to the shareholders

Companies holding more than 90% equity Can be delisted Have to consider buy back

Multiple Choice Multiple AnswerQuestion 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 registrarYour Answer DP intimates request to depositary , DP submits the certificates to registrar , The pledgee

has to confirm the request through his her DP

Multiple Choice Single AnswerQuestion 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

Your Answer 25000 crores

Multiple Choice Multiple AnswerQuestion 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

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

Multiple Choice Single AnswerQuestion What is issued by mutual funds?Correct Answer Units

Your Answer Units

Select The Blank

Question AA rated companies can raise ________ of its net worth.Correct Answer 2.5 times

Your Answer 1.5 times

True/FalseQuestion Constant change would be one of the reasons for failure of corporate governance.Correct Answer True

Your Answer True

Multiple Choice Single AnswerQuestion Upto what percentage has the RBI permitted the banks to invest in the capital market ?Correct Answer 0.05

Your Answer 0.05


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Multiple Choice Single AnswerQuestion For a VCF to be registered with SEBI what is the registration fee ?

Correct Answer 5 lacsYour Answer 5 lacs

Select The BlankQuestion ________ are a kind of portfolio schemes.

Correct Answer Mutual fundsYour Answer Mutual funds

Select The BlankQuestion Markets have moved away from Badla system to ________ .

Correct Answer Derivatives TradingYour Answer Mutual Funds Trading

True/FalseQuestion Bidder cannot revise his bids.Correct Answer False

Your Answer True

True/FalseQuestion A portfolio manager has to assure a guaranteed return to his client.Correct Answer False

Your Answer False

Multiple Choice Multiple AnswerQuestion When can an offer be withdrawn?Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in

opinion of board

Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinionof board , Government regulations

Select The BlankQuestion The service charge is levied for allowing subscribers for entry into or exit from mutual schemes

is called as ________.Correct Answer LoadYour Answer AMC


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.Your 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

Multiple Choice Single AnswerQuestion How much percentage of company's revenue would be accounted for by the business with new

name?


Select The BlankQuestion It is the responsibility of the ________ to ensure the timely refunds and allotments of the

securities.


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Correct Answer Lead managersYour Answer Lead managers

Select The BlankQuestion As per SEBI regulations, PMS must not be involved in any litigation connected with ________.Correct Answer Securities marketsYour Answer Securities markets

Multiple Choice Single AnswerQuestion Crisil's AAA rating stands for :-Correct Answer Highest safetyYour Answer Highest safety

True/FalseQuestion Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if

there is an underlying asset.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion What is the main advantage of a rolling settlement?Correct Answer Quicker paymentsYour Answer Quicker payments

Multiple Choice Single AnswerQuestion What is the minimum offer an acquirer can make ?Correct Answer Min 20%Your Answer Min 15 %


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

Correct Answer Net worth of the company should not be less than 1 croreYour Answer Net worth of the company should be more than 5 crores

Multiple Choice Single AnswerQuestion What was the turning point in the working of Indian capital markets?Correct Answer Establishment of NSEYour Answer Establishment of NSE


Portfolio Collection of assets Collection of assets

Factors influencing portfolio decisions Business and Market risks To make timely decision regarding saleand purchase of securities

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

SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms Portfolio Manager must fulfillthe capital adequacy norms



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Question Who suffered heavy losses during bad times of stock markets?Correct Answer Small investorsYour Answer Small investors

True/FalseQuestion The acquirer is required to appoint a merchant banker before making a PA.Correct Answer TrueYour Answer True


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banking facility , A net connection

Multiple Choice Single AnswerQuestion What do you understand by capital markets ?Correct Answer Market for long term funds and investments in long term instrumentsYour Answer Market for long term funds and investments in long term instruments

True/FalseQuestion Sweat equity shares are shares issued by company to employees or directors to discount.Correct Answer TrueYour Answer True

True/FalseQuestion Money market mutual funds are not permitted to invest in treasury bills and commercial paper.Correct Answer FalseYour Answer False


Question Under various SEBI regulations how many brokers suspended?Correct Answer 8Your Answer 8


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 , Offerdocument to contain disclosures

Your Answer With each offer document pay filing fees , Offer document to contain disclosures






Multiple Choice Single AnswerQuestion Who forms the Asset management company (AMC)?

Correct Answer Group of trustees


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Your 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 bemaintained by them with ________.Correct Answer Scheduled Commercial BankYour Answer Scheduled Commercial Bank

Multiple Choice Single AnswerQuestion What is the amount invested by the FII's in the Indian Capital market?Correct Answer US$14 bnYour Answer US$14 bn


allot meant in public issues and rights issues etc?Correct Answer Regulation (3) 4Your Answer Regulation (3) 4


evident from the offers given by the various institutional investors and underwriters.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The Money market mutual funds (MMMFs) can invest the funds in which of these securities?Correct Answer Call/notice moneyYour Answer Call/notice money


report?Correct Answer Annual operating plans , Capital budgets , Quarterly resultsYour Answer Annual operating plans , Capital budgets , Quarterly results

True/FalseQuestion Bidder cannot revise his bids.Correct Answer FalseYour Answer True




giving part ownership of the company to the employees , Employees can take part in the prosperity of thecompany




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Select The BlankQuestion While structuring the deal the entrepreneur seeks ________.

Correct Answer Voting controlYour Answer Goodwill

True/FalseQuestion DRR is treated as part of general reserve for consideration of bonus issue of proposals.


Multiple Choice Multiple AnswerQuestion What must be the quality of a good portfolio manager?

Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience




target account id

True/False

Question Reliance group has added over 10000 crores in market capital.Correct Answer TrueYour Answer False

Select The Blank

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


Select The BlankQuestion ________ is an international credit rating company.Correct Answer FITSCHYour Answer FITSCH

Select The Blank


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Multiple Choice Single AnswerQuestion 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



maintained by them with ________.

Correct Answer Scheduled Commercial BankYour Answer Scheduled Commercial Bank

Multiple Choice Single AnswerQuestion To make a public announcement the acquirer has to appoint :-Correct Answer Merchant Banker

Your Answer Merchant Banker



accountability


Question What information is required to be furnished to stock exchanges in compliance of SEBI



Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with

2 days



Select The Blank

Question The merger of GTB and UTI was called off due to intervention of ________Correct Answer SEBI and RBI

Your Answer SEBI and RBI


then send within ________ days from the date of PA to all shareholders whose names appear in the register

of the company.Correct Answer 45Your Answer 45


Question When can an offer be withdrawn?


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Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as inopinion of board

Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion

of board




True/FalseQuestion SEBI has taken an action to ban on Badla.


Multiple Choice Multiple AnswerQuestion The benefits of availing depository services are :-Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost

Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account




True/False

Question RBI has permitted all commercial banks, financial institutions and large corporates to issue

certificate of deposits.Correct Answer FalseYour Answer True

Select The Blank

Question Directors should not be member of more than________ committees.Correct Answer 10Your Answer 10


Question What was the turning point in the working of Indian capital markets?Correct Answer Establishment of NSEYour Answer Establishment of NSE


Question Under section 11 B of SEBI act how many issuers were debarred?Correct Answer 1Your Answer 1

True/False

Question A portfolio manager need not necessarily sell or purchase securities separately for each client.Correct Answer FalseYour Answer False


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banking facility , A n

3rd sem finance all subjects

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