capital market2
TRANSCRIPT
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Select The Blank
Question: The right to buy is called ________.
Correct Answer: Call option
Multiple Choice Single Answer
Question: What percentage of funds should be invested in unlisted companies?
Correct Answer: 0.74
Multiple Choice Single Answer
Question: Who is responsible to get t he securities listed on all the stock exchanges?
Correct Answer: Merchant banker
Select The Blank
Question: A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer.
Correct Answer: 0.1
Multiple Choice Single Answer
Question: Since when have the Indian Stock markets risen?
Correct Answer: 37775 3 jun-2003
Multiple Choice Multiple Answer
Question: Describe in brief the SEBI regulations for venture capital funds:-
Correct Answer: Must disclose investment strategy, VCF's must be registered, Cannot carry out another activity
Multiple Choice Multiple Answer
Question: Describe E-trading:-
Correct Answer: Screen based trading in place of traditional ring, Communication through the net, Operate in stock market privately through home or office
Multiple Choice Multiple Answer
Question: During the budget 2003 - 04, Finance Minister made some announcements which he hopes wi ll make investors think in terms of returning to s tock market:-
Correct Answer: No capital gains tax o n investment made in equity after 1/3/03 held for 1 year, Removal of income tax on dividends in the hands of receiver
Multiple Choice Multiple Answer
Question: Which companies have eroded market capitalization by Rs 20,000 crores?
Correct Answer: Infosys, Satyam, Wipro
Multiple Choice Multiple Answer
Question: What does SEBI do with its power?
Correct Answer: Cancel certificate issued to custodian, Inspect books of DP, issuers or beneficiary owners, Investigate an acquirer
True/False
Question: Amendment to SCRA will facilitate derivatives trading in interest rate futures and options i f there is an underlying asset.
Correct Answer: True
Multiple Choice Multiple Answer
Question: What is dematerialization?
Correct Answer: Physical certificates converted into electronic from, Credited into investors account with his/ her DP
Select The Blank
Question: ________ is in the form of a usance promissory note payable after 45 days from the date of issue.
Correct Answer: Certificate of Deposit
Multiple Choice Single Answer
Question: What is the amount of net worth accompany should have for opting for an IPO?
Correct Answer: 1 Crore
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Select The Blank
Question: The process of securitisation involves transfer of assets to a person specially created called as ________.
Correct Answer: Special purpose vehicle
True/False
Question: A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of o pen ended schemes.
Correct Answer: True
Multiple Choice Single Answer
Question: What is a put option?
Correct Answer: Right to sell
True/False
Question: Venture capital finance is risk fi nance for entrepreneurial growth oriented companies.
Correct Answer: True
Multiple Choice Single Answer
Question: Who can change the composition of securities?
Correct Answer: Fund manager
True/False
Question: Employee stock option scheme granted to the employee is tra nsferable.
Correct Answer: False
True/False
Question: Transactions that involve substantial payment towards goodwill, brand equity or intellectual property must be placed before the board of directors as per the recommendations of theKumarmangalam Birla report.
Correct Answer: True
Multiple Choice Single Answer
Question: Deposits can be accepted for a maximum period of:-
Correct Answer: 5 years
Multiple Choice Single Answer
Question: In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes?
Correct Answer: Software
Select The Blank
Question: In 2001 a case of rigging and short selling based insider t rading was noticed in the case of proposed merger of ________.
Correct Answer: UTI Bank with GTB
Select The Blank
Question: ________ are a kind of portfolio schemes.
Correct Answer: Mutual funds
Multiple Choice Single Answer
Question: What is equipment leasing?
Correct Answer: Contractual agreement where the lessor of e quipment transfers the right to use the equipment t o the lessee
True/False
Question: Mergers and amalgamations of companies are also covered under the SEBI r egulations 1997.
Correct Answer: False
Select The Blank
Question: `
Correct Answer: 0.1
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Multiple Choice Single Answer
Question: If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue?
Correct Answer: Through book building process
Multiple Choice Single Answer
Question: Which is the f avorite destination for venture funds?
Correct Answer: BPO
Multiple Choice Multiple Answer
Question: Who issues participatory notes?
Correct Answer: Associates of India based foreign brokerages, Domestic institutional brokerages
Multiple Choice Single Answer
Question: For a VCF to be registered with SEBI what is the registration fee?
Correct Answer: 5 lacs
Match The Following
QuestionCorrect AnswerYour Answer
Ready forward transaction (Repo)Interbank sale and repurchase of securitiesInterbank sale and repurchase of securities
Commercial paperMeans of raising short term debt by companiesMeans of raising short term debt by companies
STCIOperations in call money marketsOperations in call money markets
Market stabilsation BondsLaunched in fiscal 2004-05Launched in fiscal 2004-05
True/False
Question: Constant change would be one of the reasons for failure of corporate governance.
Correct Answer: True
True/False
Question: The company opting for an IPO should have net worth of at least Rs 1 crore in each of the preceding two years.
Correct Answer: True
True/False
Question: The acquirer is 3required to a ppoint a merchant banker before making a PA.
Correct Answer: True
Multiple Choice Multiple Answer
Question: The features of mutual Fund are:-
Correct Answer: A trust that pools in savings and funds from large nu mber of investors who have common financial goal, Issue units to investor which represent right in assets, Investments inmutual funds may be in the form of s tock, bond, money market securities
Multiple Choice Single Answer
Question: The process of 2share buy back must be completed within what period from the date of passing the resolution?
Correct Answer: 12 months
Select The Blank
Question: A ________ means any persons 2connected with a company and who i s reasonably having access to unpublished price sensitive information.
Correct Answer: Insider
Select The Blank
Question: The NSE Nifty index comprises of ________companies.
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Correct Answer: 50
True/False
Question: ISIN is a unique identification number for security.
Correct Answer: True
Multiple Choice Multiple Answer
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 institutionsand redemption of preference shares or debentures
Multiple Choice Multiple Answer
Question: Briefly describe the SEBI guidelines for the merchant bankers:-
Correct Answer: Should have an authorization from SEBI, Expertise good financial standing and high degree of professional integrity, Company abides by the various requirements relating todisclosers, listing of instruments etc
Multiple Choice Single Answer
Question: What is issued by mutual funds?
Correct Answer: Units
Select The Blank
Question: The merchant bankers should act as ________ of the i nvestor's money and put a lot of r esponsibility on them.
Correct Answer: Custodian
Select The Blank
Question: BSE introduced an equity stock index known as ________.
Correct Answer: SENSEX
Multiple Choice Single Answer
Question: What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment i n public issues right issues etc?
Correct Answer: 21 days
Multiple Choice Single Answer
Question: What is government's move towards Stock Exchanges?
Correct Answer: Demutulisation
Multiple Choice Multiple Answer
Question: As per the recommendations of the Kumarmangalam Birla committee report who a re the key components of an audit committee.
Correct Answer: External auditor, Board, Internal auditor
Multiple Choice Single Answer
Question: What is the objective of a credit information company?
Correct Answer: To ascertain the credit worthiness of individuals/organizations and make the data available to all banks
Multiple Choice Single Answer
Question: When are VCF's entitled to get its units listed on stock exchange?
Correct Answer: After expiration of 3 years form date of issuance of units
Multiple Choice Single Answer
Question: A portfolio manager could undertake the following on behalf of his clients:-
Correct Answer: Hedging and arbitrage transactions
Select The Blank
Question: Final prospectus in the book building p________ess is to be f iled with the ROC.
Correct Answer: ROC
Multiple Choice Single Answer
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Question: How many companies are there to do business of credit rating?
Correct Answer: 4
Multiple Choice Multiple Answer
Question: What are the general obligations of mutual fund?
Correct Answer: Every AMC should maintain proper books of accounts, Financial year for all schemes to end as on March 31 each year, Every mutual fund shall have the annual statementsaudited by auditor
Select The Blank
Question: Recently, SEBI has allowed buy back of shares upto ________% of the total shares without requirement of a special resolution
Correct Answer: 10
Multiple Choice Multiple Answer
Question: What are the salient features of Hire Purchase?
Correct Answer: Finance company purchases the equipment supplier and lets it on hire, During the contract hirer can opt for an early repayment and purchase the asset, Hirer may be required tomake down payment
Multiple Choice Single Answer
Question: Who takes risk at t he time of investment?
Correct Answer: Investor
Select The Blank
Question: A company with highly rated i nstrument has t he opportunity to ________ by quoting less interest rates.
Correct Answer: Reduce the cost of borrowing
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question: Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a minimum period of:-
Correct Answer: 1 year
True/False
Question: A custodian can transfer beneficial ownership legally.
Correct Answer: False
Multiple Choice Single Answer
Question: Apart from the portfolio management fees what percentage of returns can the portfolio manager share fro m their client's profits?
Correct Answer: 0
Multiple Choice Multiple Answer
Question: What are the different kinds of stock exchanges in India?
Correct Answer: Voluntary non profit making organizations, Joint stock companies limited by shares, Joint stock companies Limited by guarantee
Select The Blank
Question: For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct Answer: 2
Multiple Choice Single Answer
Question: Upto what percentage has the RBI permitted the banks to invest in the capital market?
Correct Answer: 0.05
Select The Blank
Question: Among the closed schemes, 4 long term assurance schemes were launched with a ret urn ranging between ________.
Correct Answer: 13 - 14%
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Multiple Choice Single Answer
Question: What was the percentage of public offer ing under the IPOs through the book building method?
Correct Answer: 0.1
Multiple Choice Multiple Answer
Question: What are the main features of commercial paper?
Correct Answer: Short term financial instrument, Negotiable and transferable instrument, Co mpanies issue it for raising short term debt
Select The Blank
Question: A ________ can legally transfer beneficial ownership.
Correct Answer: Depository
Multiple Choice Multiple Answer
Question: The setting up of NSE consists of:-
Correct Answer: Set up by I DBI, Equity paid up capital of Rs25 crores, Started operations in June 1994
True/False
Question: institutional investors and underwriters.
Correct Answer: True
Multiple Choice Multiple Answer
Question: To open a DP account, following things are required:-
Correct Answer: Proof of identity, Proof of address, PhotographCAPITAL MARKET-3rd Sem
Multiple Choice Multiple Answer
Question: Describe the regulatory aspects of mutual funds:-
Correct Answer: The Asset management company shall not launch any scheme till approval of trustees and offer document has been filed with the board, With each offer document pay f iling fees,Offer document to contain disclosures
Multiple Choice Single Answer
Question: Who forms the Asset management company (AMC)?
Correct Answer: Group of trustees
Select The Blank
Question: The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.
Correct Answer: Scheduled Commercial Bank
Multiple Choice Multiple Answer
Question: What is the information to be placed before the board of directors as per the Kumarmangalam report?
Correct Answer: Annual operating plans, Capital budgets, Quarterly results
Multiple Choice Multiple Answer
Question: What are ESOP's?
Correct Answer: One of t he 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 increasein the prices of the shares
Match The Following
QuestionCorrect AnswerYour Answer
ShareholdersShould effectively participate in general body meetingsShould effectively participate in general body meetings
Objective of Audit committeeLook 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 normsSuperficial commitment to vision, mission and valuesSuperficial commitment to vision, mission and values
Functions of Chief Executive, ED, ManagersAssisting the board in decision making process
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Assisting the board in decision making process
Multiple Choice Multiple Answer
Question: How does SEBI react to the Scams in participatory notes issuance?
Correct Answer: Tighten FII regulations, Ensure participatory notes not misused by NRI, OCB controlled by Indians promoters
True/False
Question: Reliance group has added over 10000 crores in market capital.
Correct Answer: True
Select The Blank
Question: An acquirer who holds 15% or more but less than 75% of voting rights can acquire such additional shares as would entitle him to exercise more than ________ of voting rights in anfinancial year.
Correct Answer: 0.05
Multiple Choice Single Answer
Question: What is the eligibility norm for an unlisted company for making an public issue as regards to i ts net worth?
Correct Answer: Net worth of the company should not be less t han 1 crore
Multiple Choice Single Answer
Question: To make a public announcement the acquirer has to appoint:-
Correct Answer: Merchant Banker
True/False
Question: SEBI has taken an action to ban on Badla.
Correct Answer: True
Multiple Choice Multiple Answer
Question: The benefits of availing depository services are:-
Correct Answer: No stamp duty, Reduction in paperless work, Reduction in transaction cost
Multiple Choice Multiple Answer
Question: What are the facilities offered by NSDL?
Correct Answer: Enable surrender and withdrawal of securities to and from the depository, Maintain the investor's holdings in an elect ronic form, Effect settlement of securities traded on
exchanges
Select The Blank
Question: Directors should not be member of more than________ committees.
Correct Answer: 10
Select The Blank
Question: ________ is an international credit rating company.
Correct Answer: FITSCH
True/False
Question: The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer: True
Select The Blank
Question: Hire Purchase transactions are liable to ________.
Correct Answer: Sales tax
Multiple Choice Single Answer
Question: What do you understand by capital markets?
Correct Answer: Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
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Question: What must be the quality o f a good portfolio manager?
Correct Answer: Sound General knowledge, Analytical ability and marketing skills, Experience
Multiple Choice Single Answer
Question: What is Discretionary Portfolio management service?
Correct Answer: Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.
True/False
Question: Depositary facilitates transfers without having to handle money.
Correct Answer: False
Multiple Choice Single Answer
Question: What is the amount invested by the FII's in the Indian Capital market?
Correct Answer: US$14 bn
Multiple Choice Multiple Answer
Question: The features of mutual Fund are:-
Correct Answer: A trust that pools in savings and funds from large nu mber of investors who have common financial goal, Issue units to investor which represent right in assets, Investments inmutual funds may be in the form of s tock, bond, money market securities
Multiple Choice Multiple Answer
Question: What qualities do the merchant bankers need to possess?
Correct Answer: Knowledge and information about various aspects of capital markets, Ability to evaluate and analyze, Update the knowledge
Multiple Choice Multiple Answer
Question: Describe the stock lending mechanism:-
Correct Answer: Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates, Lender is assured of getting equivalent the r elevant securities byNSSCL on the settlement date, Lender gets benefit of reasonable return called lending fee
Multiple Choice Multiple Answer
Question: What are the limitations of refinance facility?
Correct Answer: Cannot exceed 5 times NOF, Not to exceed 50% of to tal Loan funds of HFC's, Not t o exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question: When did the trading in foreign currency options start in I ndia?
Correct Answer: 37809
Multiple Choice Single Answer
Question: What is the main objective of credit appraisal?
Correct Answer: Assess the repayment capacity
Select The Blank
Question: In the L & T reliance case, Reliance was fi ned ________.
Correct Answer: Rs. 5 lacs
Select The Blank
Question: SENSEX is calculated using __ ______ method.
Correct Answer: Market capitalization
Multiple Choice Single Answer
Question: Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer: 1
Multiple Choice Single Answer
Question: What is the system of rolling settlement prevalent in the USA?
Correct Answer: Transaction + 3
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Multiple Choice Single Answer
Question: What is the most important objective for an investor?
Correct Answer: Protection of t he value of the investment
Multiple Choice Multiple Answer
Question: The following are some of the regulations governing the NBFC's issued by RBI:-
Correct Answer: All the NBFC's must register with RBI,Without the registration certificate no company can undertake activities of NBFC, All companies must be liquid a ssets equal to 15% ofdeposits
Multiple Choice Single Answer
Question: What do you mean by venture ca pital?
Correct Answer: Providing seed, start up capital a nd first stage financing
Multiple Choice Single Answer
Question: What was the t urning point in the working of I ndian capital markets?
Correct Answer: Establishment of NSE
Select The Blank
Question: The continuing growth in ________ was one of the factors that contributed to the growth of credit rating.
Correct Answer: Information technology
True/False
Question: A portfolio manager has to assure a guaranteed return to his client.
Correct Answer: False
Multiple Choice Multiple Answer
Question: Describe E-trading:-
Correct Answer: Screen based trading in place of traditional ring, communication through the net, Operate i n stock market privately through home or of fice
True/False
Question: The SEBI guidelines do not make it mandatory fo r the securities purchased under the buy back arrangement to be extinguished and physically destroyed.
Correct Answer: False
Multiple Choice Multiple Answer
Question: What are the SEBI guidelines for issue of debt instruments?
Correct Answer: Credit rating, Maturity more than 18 months appoint debenture trustee, Debenture redemption reserve to be created
Multiple Choice Multiple Answer
Question: Describe in brief the SEBI regulations for venture capital funds:-
Correct Answer: VCF's must be registered, Cannot carry out another activity, Must disclose investment strategy
Multiple Choice Single Answer
Question: What is the minimum number of days for which the bid should remain open in book building?
Correct Answer: 5 days
Match The Following
QuestionCorrect AnswerYour Answer
10 HDFC foreign currency dealGlobal investors pumping funds in IndiaSpecific Funds
0.57 FII current free float sensex companyFII free float stockNIFTY companies
0.45 FII free float stockNIFTY companiesFII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in I ndiaSpecific Funds
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HDFC foreign currency deal
Match The Following
QuestionCorrect AnswerYour Answer
Collective investment companies directives1313
issuers debarred11
promoters debarred22
promoters warned22
Match The Following
QuestionCorrect Answer
Your Answer
PortfolioCollection of assetsCollection of assets
Factors influencing portfolio decisionsBusiness and Market risksBusiness and Market risks
Code of conduct- Portfolio ManagerObserve high standard of integrity and fair nessObserve high standard of integrity and fair ness
SEBI Regulations Portfolio Managermust fulfill the ca pital adequacy normsTo make timely decision regarding sale and purchase of securities
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Capital Market-6
capital Market-3rd sem
Match The Following
QuestionCorrect AnswerYour Answer
First stage financingProvided to expand initial capitalProvided to expand initial capital
Overall economic conditionsFactor for obtaining value of a firmFactor for obtaining value of a firm
Minimization of taxesInvestors ensures at the time o f structuring the dealInvestors ensures at the time o f structuring the deal
RS 25000SEBI application feeSEBI application fee
True/False
Question: Securitised assets give originators the ability to pass on or eliminate credit, interest ra te and lending risks associated with the balance sheet f unding.
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?
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Correct Answer: 5 times'
Match The Following
QuestionCorrect AnswerYour Answer
Share buy back is a way ofReturning surplus cash to the shareholdersReturning surplus cash to the shareholders
Dutch AuctionPrice of the Buy back is done by the s hareholdersPrice of the Buy back is done by the s hareholders
Open market purchasesNo minimum price stipulationNo minimum price stipulation
Companies holding more than 90% equityCan be delistedCan 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 c ompany becomes i ts 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 t he 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
QuestionCorrect AnswerYour Answer
LoadService charges for entry or exit into mutual fund schemesService charges for entry or exit into mutual fund schemes
PortfolioGroup of securities that f ind managers plan to investGroup of securities that f ind managers plan to invest
AMCFormed by a group of t rusteesFormed by a group of t rustees
NAVCumulative 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
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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 Poi nt of sale terminal?
Correct Answer: Mechanism for collecting debit card payments
Multiple Choice Single Answer
Question: What was the objective of the Kumarmangalam Birla Co mmittee 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 t arget account id
Multiple Choice Single Answer
Question: The Money market mutual funds (MMMFs) can invest the funds in which of t hese securities?
Correct Answer: Call/notice money
True/False
Question: Bidder cannot revise his bids.
Correct Answer: False
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Multiple Choice Single Answer
Question: What was the objective of set ting 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 re cognition under SCRA.
Correct Answer: False
Match The Following
QuestionCorrect AnswerYour Answer
Looses the rights to voteNon voting sharesNon voting shares
Book buildingBharati TeleventuresBharati Televentures
DepositoryBank of securitiesBank of securities
First to introduce rolling settlements i n the countryNSE
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 buildingroute, 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 s tock markets?
Correct Answer: Small investors
Select The Blank
Question: Whose names appear in the register of the company.
Correct Answer: 45
Match The Following
QuestionCorrect AnswerYour Answer
0.1Government decided to pay dividendGovernment decided to pay dividend
0.15MF cannot invest as percentage of NAV in debt instrument issued by single issuerMF cannot invest as percentage of NAV in debt instrument issued by single issuer
annual statement of accounts of MFTo be audited by auditorTo be audited by auditor
Rs. 8000 croresCurrent shortfall in UTI sc hemesCurrent shortfall in UTI sc hemes
True/False
Question: SEBI can investigate and inspect books of accounts and records of insiders.
Correct Answer: True
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Multiple Choice Multiple Answer
Question: What are the requirements regarding promoter's contribution and lock i n?
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 partici pate either to extent of 20% of proposedor 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 cr edit.
Correct Answer: True
Multiple Choice Multiple Answer
Question: What are the stages i n the process of book building broadly divided into?
Correct Answer: Syndicate formation, Issue process, IPO
Select The Blank
Question: The VCs to f lourish 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 re quired 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 bedisclosed with 2 days, Annual disclosures
Select The Blank
Question: One of the process of book building is that t he issuer appoints a ________ also known as the book runner.
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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 fro m 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
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Capital Market-5
Capital Market- 3rd Sem
True/False
Question: The issue price for placement portion and net offer to public are not the same.
Correct Answer: False
Multiple Choice Multiple Answer
Question: What are the likely costs incurred by a credit card i ssuing bank?
Correct Answer: Membership fees to visa/MasterCard, Marketing cost, Administrative cost and cost of bad debts
Select The Blank
Question: The merger of GTB and UTI was called off due to intervention of ________
Correct Answer: SEBI and RBI
Select The Blank
Question: Cash Corporate benefit such as dividend / interest received is credited through ________ facility.
Correct Answer: ECS
Multiple Choice Single Answer
Question: What percentage of underwriting in the i ssues obligatory to the merchant bankers?
Correct Answer: 0.05
Multiple Choice Multiple Answer
Question: When can an offer be withdrawn?
Correct Answer: Statutory approvals refused, Sole acquirer being person died, Ci rcumstances as in opinion of board
True/False
Question: The banks are flushed with funds due to less credit off take.
Correct Answer: True
True/False
Question: At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset.
Correct Answer: True
Multiple Choice Single Answer
Question: How much should be the minimum net wor th of an AMC?
Correct Answer: Not less t han 10 crores
Select The Blank
Question: While structuring the deal the entrepreneur seeks ________.
Correct Answer: Voting control
Multiple Choice Single Answer
Question: What is the minimum offer an acquirer can make?
Correct Answer: Min 20%
Multiple Choice Single Answer
Question: How many cases market manipulation and price rigging were i nvestigated by SEBI?
Correct Answer: 202
True/False
Question: The company should have a track record of dividend payment of three years out of i mmediately preceding 5 years.
Correct Answer: True
True/False
Question: A bidder can request for a transaction registration slip as the proof of his having entered the bid.
Correct Answer: True
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Multiple Choice Multiple Answer
Question: What is Sweat equity?
Correct Answer: Equity shares issued by the company to the employees, Issued to directors at a discount, For co nsideration other than cash for providing now
Multiple Choice Multiple Answer
Question: When is the public announcement required to be made?
Correct Answer: In case of indirect acquisition or change in control, t he PA shall be made by acquirer wi thin 3 months of conummation of s uch acquisition, The offer prices in such case shall bedetermined with reference to date of public announcement
Multiple Choice Single Answer
Question: High risk rating of Crisil is indicated by:-
Correct Answer: B
Multiple Choice Multiple Answer
Question: What is the procedure to make a public announcement?
Correct Answer: Acquirer to appoint a Merchant Banker, PA to be made through Merchant Banker, PA to be made within four working days of entering an agreement to acquire shares
Multiple Choice Single Answer
Question: What is book building process?
Correct Answer: Company allot at 60% of the issue size to QIB
Multiple Choice Single Answer
Question: Crisil's AAA rating stands for:-
Correct Answer: Highest safety
Multiple Choice Single Answer
Question: When did the concept of corporate governance evolve?
Correct Answer: During the watergate scandal
Match The Following
QuestionCorrect AnswerYour Answer
InsuranceIn favor of lessor and lessor's lenders in lease agreementIn favor of lessor and lessor's lenders in lease agreement
Inter corporate depositSources of funds for finance companiesSources of funds for finance companies
LeasingService tax imposed on interestService tax imposed on interest
stock on hireHire purchase price less the installments receivedHire purchase price less the installments received
Multiple Choice Single Answer
Question: Which company came out with the unique product of bonus debentures?
Correct Answer: Hindustan lever
Match The Following
QuestionCorrect AnswerYour Answer
Warning BulletinAuthenticity testAuthenticity test
Credit information companySBI, HDFC bankSBI, HDFC bank
Credit card i ssuing companyVisa/Master Card
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Visa/Master Card
Charge cardForm of plastic moneyForm of plastic money
Select The Blank
Question: The appointment of a ________ is mandatory in a offer process.
Correct Answer: Merchant Banker
Match The Following
QuestionCorrect AnswerYour Answer
isINUnique identification number for securityUnique identification number for security
WDMMarket for pure debt instrumentsMarket for pure debt instruments
NSESET up by IDBI and other financial institutionsSET up by IDBI and other financial institutions
CustodianHelps register and safeguard the securities of its clientsHelps register and safeguard the securities of its clients
Multiple Choice Single Answer
Question: Mutual funds have to register wit h:-
Correct Answer: SEBI
Select The Blank
Question: Criminal proceedings under section 24 regarding insider trading saw ________ cases.
Correct Answer: 28
Multiple Choice Single Answer
Question: What is the duration of short term funds in the Indian context?
Correct Answer: Upto 1 year
Multiple Choice Multiple Answer
Question: What is the procedure for action in case of default?
Correct Answer: Suspension of the certificate, Mutual fund / AMC cease to exist, Subject to the directions of the board with regard to records
Select The Blank
Question: An acquirer who holds ________ shares or voting rights of a target company can acquire further shares only after making PA to acquire at least additional 20% of target company fromthe shareholders through an open offer.
Correct Answer: 0.75
Select The Blank
Question: The liability of the underwriters in the MS shoes case was estimated to be ________.
Correct Answer: Rs. 500 crores
Multiple Choice Multiple Answer
Question: Describe some of the various types of mutual funds schemes offered?
Correct Answer: Open ended vs. closed ended, Pure i ncome schemes, Tax saving schemes
Multiple Choice Multiple Answer
Question: What are the objectives of NHB?
Correct Answer: To promote, establish, aid in promotion and support of housing finance institutions, To make loans advances or render any other form of financial assistance tofocusing finance institutions, To guarantee financial obligations
Multiple Choice Multiple Answer
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Question: What is an offer letter?
Correct Answer: Document addressed to the shareholders, Containing disclosures of the acquirer / PAC target company, Offer price
Select The Blank
Question: For an approval of HFC one of the norms is that the promoter's contribution has to be minimum ________ of paid up capital.
Correct Answer: 0.3
True/False
Question: The lease agreement provides for a transfer of ownership to the lessee either at t he end of the period or during the period of lease.
Correct Answer: False
Multiple Choice Single Answer
Question: The capital Adequacy ratio for NBFC's has been fixed at:-
Correct Answer: 0.12 2
Multiple Choice Multiple Answer
Question: Who can buy or sell securities on containing the certificate of registration?
Correct Answer: Underwriter, Merchant banker, Investment advisor
Multiple Choice Single Answer
Question: When is the share of the target company deemed to be frequently traded
Correct Answer: If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5%
Select The Blank
Question: Most of the deals struck on the fist day of foreign currency options were of ________ maturity.
Correct Answer: 1 year
Multiple Choice Single Answer
Question: What is maximum percentage of regular expenses of t he assets of a scheme?
Correct Answer: 0.03
Select The Blank
Question: In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes.
Correct Answer: 7
True/False
Question: Mutual funds can do investments in any security issued by way of private placement by an associate or group company of the sponsor.
Correct Answer: False
Multiple Choice Multiple Answer
Question: What are the features of a Certificate of deposit?
Correct Answer: It i s a document title to a time deposit, Freely negotiable and marketable, Can be is sued only by commercial banks
Select The Blank
Question: A significant portion of t he investment through the participatory notes is managed by ________ entities.
Correct Answer: 114
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Capital Market-4
Select The Blank
Question: The right to buy is called ________.
Correct Answer: Call option
Multiple Choice Single Answer
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Question: What percentage of funds should be invested in unlisted companies?
Correct Answer: 0.74
Multiple Choice Single Answer
Question: Who is responsible to get t he securities listed on all the stock exchanges?
Correct Answer: Merchant banker
Select The Blank
Question: A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer.
Correct Answer: 0.1
Multiple Choice Single Answer
Question: Since when have the Indian Stock markets risen?
Correct Answer: 37775
Multiple Choice Multiple Answer
Question: Describe in brief the SEBI regulations for venture capital funds:-
Correct Answer: Must disclose investment strategy, VCF's must be registered, Cannot carry out another activity
Multiple Choice Multiple Answer
Question: Describe E-trading:-
Correct Answer: Screen based trading in place of traditional ring, Communication through the net, Operate in stock market privately through home or office
Multiple Choice Multiple Answer
Question: During the budget 2003 - 04, Finance Minister made some announcements which he hopes wi ll make investors think in terms of returning to s tock market:-
Correct Answer: No capital gains tax o n investment made in equity after 1/3/03 held for 1 year, Removal of income tax on dividends in the hands of receiver
Multiple Choice Multiple Answer
Question: Which companies have eroded market capitalization by Rs 20,000 crores?
Correct Answer: Infosys, Satyam, Wipro
Multiple Choice Multiple Answer
Question: What does SEBI do with its power?
Correct Answer: Cancel certificate issued to custodian, Inspect books of DP, issuers or beneficiary owners, Investigate an acquirer
True/False
Question: Amendment to SCRA will facilitate derivatives trading in interest rate futures and options i f there is an underlying asset.
Correct Answer: True
Multiple Choice Multiple Answer
Question: What is dematerialization?
Correct Answer: Physical certificates converted into electronic from, Credited into investors account with his/ her DP
Select The Blank
Question: ________ is in the form of a usance promissory note payable after 45 days from the date of issue.
Correct Answer: Certificate of Deposit
Multiple Choice Single Answer
Question: What is the amount of net worth accompany should have for opting for an IPO?
Correct Answer: 1 Crore
Select The Blank
Question: The process of securitisation involves transfer of assets to a person specially created called as ________.
Correct Answer: Special purpose vehicle
True/False
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Question: A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of o pen ended schemes.
Correct Answer: True
Multiple Choice Single Answer
Question: What is a put option?
Correct Answer: Right to sell
True/False
Question: Venture capital finance is risk fi nance for entrepreneurial growth oriented companies.
Correct Answer: True
Multiple Choice Single Answer
Question: Who can change the composition of securities?
Correct Answer: Fund manager
True/False
Question: Employee stock option scheme granted to the employee is tra nsferable.
Correct Answer: False
True/False
Question: Transactions that involve substantial payment towards goodwill, brand equity or intellectual property must be placed before the board of directors as per the recommendations of theKumarmangalam Birla report.
Correct Answer: True
Multiple Choice Single Answer
Question: Deposits can be accepted for a maximum period of:-
Correct Answer: 5 years
Multiple Choice Single Answer
Question: In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes?
Correct Answer: Software
Select The Blank
Question: In 2001 a case of rigging and short selling based insider t rading was noticed in the case of proposed merger of ________.
Correct Answer: UTI Bank with GTB
Select The Blank
Question: ________ are a kind of portfolio schemes.
Correct Answer: Mutual funds
Multiple Choice Single Answer
Question: What is equipment leasing?
Correct Answer: Contractual agreement where the lessor of e quipment transfers the right to use the equipment t o the lessee
True/False
Question: Mergers and amalgamations of companies are also covered under the SEBI r egulations 1997.
Correct Answer: False
Select The Blank
Question: `
Correct Answer: 0.1
Multiple Choice Single Answer
Question: If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue?
Correct Answer: Through book building process
Multiple Choice Single Answer
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Question: Which is the f avorite destination for venture funds?
Correct Answer: BPO
Multiple Choice Multiple Answer
Question: Who issues participatory notes?
Correct Answer: Associates of India based foreign brokerages, Domestic institutional brokerages
Multiple Choice Single Answer
Question: For a VCF to be registered with SEBI what is the registration fee?
Correct Answer: 5 lacs
Match The Following
QuestionCorrect AnswerYour Answer
Ready forward transaction (Repo)Interbank sale and repurchase of securitiesInterbank sale and repurchase of securities
Commercial paperMeans of raising short term debt by companiesMeans of raising short term debt by companies
STCI
Operations in call money marketsOperations in call money markets
Market stabilsation BondsLaunched in fiscal 2004-05Launched in fiscal 2004-05
True/False
Question: Constant change would be one of the reasons for failure of corporate governance.
Correct Answer: True
True/False
Question: The company opting for an IPO should have net worth of at least Rs 1 crore in each of the preceding two years.
Correct Answer: True
True/False
Question: The acquirer is 3required to a ppoint a merchant banker before making a PA.
Correct Answer: True
Multiple Choice Multiple Answer
Question: The features of mutual Fund are:-
Correct Answer: A trust that pools in savings and funds from large number of investors who have common financial goal, Issue units to investor which represent right in assets,Investments in mutual funds may be in the form of stock, bond, money market securities
Multiple Choice Single Answer
Question: The process of 2share buy back must be completed within what period from the date of passing the resolution?
Correct Answer: 12 months
Select The Blank
Question: A ________ means any persons 2connected with a company and who i s reasonably having access to unpublished price sensitive information.
Correct Answer: Insider
Select The Blank
Question: The NSE Nifty index comprises of ________companies.
Correct Answer: 50
True/False
Question: ISIN is a unique identification number for security.
Correct Answer: True
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Multiple Choice Multiple Answer
Question: Companies are not allowed to buy back securities:-
Correct Answer: Through any/ own subsidiary company, Through any/group of investment company, If de fault subsists in respect of repayments of deposits, term loans to anyfinancial institutions and redemption of preference shares or debentures
Multiple Choice Multiple Answer
Question: Briefly describe the SEBI guidelines for the merchant bankers:-
Correct Answer: Should have an authorization from SEBI, Expertise good financial standing and high degree of professional integrity, Company abides by the various requirements relating todisclosers, listing of instruments etc
Multiple Choice Single Answer
Question: What is issued by mutual funds?
Correct Answer: Units
Select The Blank
Question: The merchant bankers should act as ________ of the i nvestor's money and put a lot of r esponsibility on them.
Correct Answer: Custodian
Select The Blank
Question: BSE introduced an equity stock index known as ________.
Correct Answer: SENSEX
Multiple Choice Single Answer
Question: What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment i n public issues right issues etc?
Correct Answer: 21 days
Multiple Choice Single Answer
Question: What is government's move towards Stock Exchanges?
Correct Answer: Demutulisation
Multiple Choice Multiple Answer
Question: As per the recommendations of the Kumarmangalam Birla committee report who are the key components of an audit committee.
Correct Answer: External auditor, Board, Internal auditor
Multiple Choice Single Answer
Question: What is the objective of a credit information company?
Correct Answer: To ascertain the credit worthiness of individuals/organizations and make the data available to all banks
Multiple Choice Single Answer
Question: When are VCF's entitled to get its units listed on stock exchange?
Correct Answer: After expiration of 3 years form date of issuance of units
Multiple Choice Single Answer
Question: A portfolio manager could undertake the following on behalf of his clients:-
Correct Answer: Hedging and arbitrage transactions
Select The Blank
Question: Final prospectus in the book building p________ess is to be f iled with the ROC.
Correct Answer: ROC
Multiple Choice Single Answer
Question: How many companies are there to do business of credit rating?
Correct Answer: 4
Multiple Choice Multiple Answer
Question: What are the general obligations of mutual fund?
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Correct Answer: Every AMC should maintain proper books of accounts, Financial year for all schemes to end as on March 31 each year, Every mutual fund shall have the annual statementsaudited by auditor
Select The Blank
Question: Recently, SEBI has allowed buy back of shares upto ________% of the total shares without requirement of a special resolution
Correct Answer: 10
Multiple Choice Multiple Answer
Question: What are the salient features of Hire Purchase?
Correct Answer: Finance company purchases the equipment supplier and lets it on hire, During the contract hirer can opt for an early repayment and purchase the asset, Hirer may be required tomake down payment
Multiple Choice Single Answer
Question: Who takes risk at t he time of investment?
Correct Answer: Investor
Select The Blank
Question: A company with highly rated i nstrument has t he opportunity to ________ by quoting less interest rates.
Correct Answer: Reduce the cost of borrowing
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question: Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a minimum period of:-
Correct Answer: 1 year
True/False
Question: A custodian can transfer beneficial ownership legally.
Correct Answer: False
Multiple Choice Single Answer
Question: Apart from the portfolio management fees what percentage of returns can the portfolio manager share fro m their client's profits?
Correct Answer: 0
Multiple Choice Multiple Answer
Question: What are the different kinds of stock exchanges in India?
Correct Answer: Voluntary non profit making organizations, Joint stock companies limited by shares, Joint stock companies Limited by guarantee
Select The Blank
Question: For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct Answer: 2
Multiple Choice Single Answer
Question: Upto what percentage has the RBI permitted the banks to invest in the capital market?
Correct Answer: 0.05
Select The Blank
Question: Among the closed schemes, 4 long term assurance schemes were launched with a ret urn ranging between ________.
Correct Answer: 13 - 14%
Multiple Choice Single Answer
Question: What was the percentage of public offer ing under the IPOs through the book building method?
Correct Answer: 0.1
Multiple Choice Multiple Answer
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Question: What are the main features of commercial paper?
Correct Answer: Short term financial instrument, Negotiable and transferable instrument, Co mpanies issue it for raising short term debt
Select The Blank
Question: A ________ can legally transfer beneficial ownership.
Correct Answer: Depository
Multiple Choice Multiple Answer
Question: The setting up of NSE consists of:-
Correct Answer: Set up by I DBI, Equity paid up capital of Rs25 crores, Started operations in June 1994
True/False
Question: institutional investors and underwriters.
Correct Answer: True
Multiple Choice Multiple Answer
Question: To open a DP account, following things are required:-
Correct Answer: Proof of identity, Proof of address, Photograph
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Capital Market-3CAPITAL MARKET-3rd Sem
Multiple Choice Multiple Answer
Question: Describe the regulatory aspects of mutual funds:-
Correct Answer: The Asset management company shall not launch any scheme till approval of trustees and offer document has been filed with the board, With each offer document pay f iling fees,Offer document to contain disclosures
Multiple Choice Single Answer
Question: Who forms the Asset management company (AMC)?
Correct Answer: Group of trustees
Select The Blank
Question: The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.
Correct Answer: Scheduled Commercial Bank
Multiple Choice Multiple Answer
Question: What is the information to be placed before the board of directors as per the Kumarmangalam report?
Correct Answer: Annual operating plans, Capital budgets, Quarterly results
Multiple Choice Multiple Answer
Question: What are ESOP's?
Correct Answer: One of t he 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 increasein the prices of the shares
Match The Following
QuestionCorrect AnswerYour Answer
ShareholdersShould effectively participate in general body meetingsShould effectively participate in general body meetings
Objective of Audit committeeLook 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 normsSuperficial commitment to vision, mission and valuesSuperficial commitment to vision, mission and values
Functions of Chief Executive, ED, ManagersAssisting the board in decision making process
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Assisting the board in decision making process
Multiple Choice Multiple Answer
Question: How does SEBI react to the Scams in participatory notes issuance?
Correct Answer: Tighten FII regulations, Ensure participatory notes not misused by NRI, OCB controlled by Indians promoters
True/False
Question: Reliance group has added over 10000 crores in market capital.
Correct Answer: True
Select The Blank
Question: An acquirer who holds 15% or more but less than 75% of voting rights can acquire such additional shares as would entitle him to exercise more than ________ of voting rights in anfinancial year.
Correct Answer: 0.05
Multiple Choice Single Answer
Question: What is the eligibility norm for an unlisted company for making an public issue as regards to i ts net worth?
Correct Answer: Net worth of the company should not be less t han 1 crore
Multiple Choice Single Answer
Question: To make a public announcement the acquirer has to appoint:-
Correct Answer: Merchant Banker
True/False
Question: SEBI has taken an action to ban on Badla.
Correct Answer: True
Multiple Choice Multiple Answer
Question: The benefits of availing depository services are:-
Correct Answer: No stamp duty, Reduction in paperless work, Reduction in transaction cost
Multiple Choice Multiple Answer
Question: What are the facilities offered by NSDL?
Correct Answer: Enable surrender and withdrawal of securities to and from the depository, Maintain the investor's holdings in an elect ronic form, Effect settlement of securities traded on
exchanges
Select The Blank
Question: Directors should not be member of more than________ committees.
Correct Answer: 10
Select The Blank
Question: ________ is an international credit rating company.
Correct Answer: FITSCH
True/False
Question: The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer: True
Select The Blank
Question: Hire Purchase transactions are liable to ________.
Correct Answer: Sales tax
Multiple Choice Single Answer
Question: What do you understand by capital markets?
Correct Answer: Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
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Question: What must be the quality o f a good portfolio manager?
Correct Answer: Sound General knowledge, Analytical ability and marketing skills, Experience
Multiple Choice Single Answer
Question: What is Discretionary Portfolio management service?
Correct Answer: Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.
True/False
Question: Depositary facilitates transfers without having to handle money.
Correct Answer: False
Multiple Choice Single Answer
Question: What is the amount invested by the FII's in the Indian Capital market?
Correct Answer: US$14 bn
Multiple Choice Multiple Answer
Question: The features of mutual Fund are:-
Correct Answer: A trust that pools in savings and funds from large nu mber of investors who have common financial goal, Issue units to investor which represent right in assets, Investments inmutual funds may be in the form of s tock, bond, money market securities
Multiple Choice Multiple Answer
Question: What qualities do the merchant bankers need to possess?
Correct Answer: Knowledge and information about various aspects of capital markets, Ability to evaluate and analyze, Update the knowledge
Multiple Choice Multiple Answer
Question: Describe the stock lending mechanism:-
Correct Answer: Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates, Lender is assured of getting equivalent the r elevant securities byNSSCL on the settlement date, Lender gets benefit of reasonable return called lending fee
Multiple Choice Multiple Answer
Question: What are the limitations of refinance facility?
Correct Answer: Cannot exceed 5 times NOF, Not to exceed 50% of to tal Loan funds of HFC's, Not t o exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question: When did the trading in foreign currency options start in I ndia?
Correct Answer: 37809
Multiple Choice Single Answer
Question: What is the main objective of credit appraisal?
Correct Answer: Assess the repayment capacity
Select The Blank
Question: In the L & T reliance case, Reliance was fi ned ________.
Correct Answer: Rs. 5 lacs
Select The Blank
Question: SENSEX is calculated using __ ______ method.
Correct Answer: Market capitalization
Multiple Choice Single Answer
Question: Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer: 1
Multiple Choice Single Answer
Question: What is the system of rolling settlement prevalent in the USA?
Correct Answer: Transaction + 3
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Multiple Choice Single Answer
Question: What is the most important objective for an investor?
Correct Answer: Protection of t he value of the investment
Multiple Choice Multiple Answer
Question: The following are some of the regulations governing the NBFC's issued by RBI:-
Correct Answer: All the NBFC's must register with RBI,Without the registration certificate no company can undertake activities of NBFC, All companies must be liquid a ssets equal to 15% ofdeposits
Multiple Choice Single Answer
Question: What do you mean by venture ca pital?
Correct Answer: Providing seed, start up capital a nd first stage financing
Multiple Choice Single Answer
Question: What was the t urning point in the working of I ndian capital markets?
Correct Answer: Establishment of NSE
Select The Blank
Question: The continuing growth in ________ was one of the factors that contributed to the growth of credit rating.
Correct Answer: Information technology
True/False
Question: A portfolio manager has to assure a guaranteed return to his client.
Correct Answer: False
Multiple Choice Multiple Answer
Question: Describe E-trading:-
Correct Answer: Screen based trading in place of traditional ring, communication through the net, Operate i n stock market privately through home or of fice
True/False
Question: The SEBI guidelines do not make it mandatory fo r the securities purchased under the buy back arrangement to be extinguished and physically destroyed.
Correct Answer: False
Multiple Choice Multiple Answer
Question: What are the SEBI guidelines for issue of debt instruments?
Correct Answer: Credit rating, Maturity more than 18 months appoint debenture trustee, Debenture redemption reserve to be created
Multiple Choice Multiple Answer
Question: Describe in brief the SEBI regulations for venture capital funds:-
Correct Answer: VCF's must be registered, Cannot carry out another activity, Must disclose investment strategy
Multiple Choice Single Answer
Question: What is the minimum number of days for which the bid should remain open in book building?
Correct Answer: 5 days
Match The Following
QuestionCorrect AnswerYour Answer
10 HDFC foreign currency dealGlobal investors pumping funds in IndiaSpecific Funds
0.57 FII current free float sensex companyFII free float stockNIFTY companies
0.45 FII free float stockNIFTY companiesFII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in I ndiaSpecific Funds
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HDFC foreign currency deal
Match The Following
QuestionCorrect AnswerYour Answer
Collective investment companies directives1313
issuers debarred11
promoters debarred22
promoters warned22
Match The Following
QuestionCorrect Answer
Your Answer
PortfolioCollection of assetsCollection of assets
Factors influencing portfolio decisionsBusiness and Market risksBusiness and Market risks
Code of conduct- Portfolio ManagerObserve high standard of integrity and fairnessObserve high standard of integrity and fairness
SEBI Regulations Portfolio Managermust fulfill the capital adequacy normsTo make timely decision regarding sale and purchase of securities
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Capital Market-2Capital 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 ma in objective of the promoting Discount and finance house of India (DFHI)?
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Correct Answer: Increasing transactions of money market assets
Multiple Choice Single Answer
Question: What is the status of Stock exchanges today?
Correct Answer: Joint s tock 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 r eport 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 a n executive chairman?
Correct Answer: Not less t han 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 cr edit risk evaluation
Multiple Choice Single Answer
Question: What is an o ption?
Correct Answer: Contract giving the buyer the right to buy, sell specified quantity of underlying assets at a specific price o n 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 wit h the ROC.
Correct Answer: ROC
Multiple Choice Single Answer
Question: Who grants the recognition to stock exchange?
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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 t he assets net of its liabilities
Match The Following
QuestionCorrect AnswerYour Answer
No limitNumber of co managersBankers
Cat 1 merchant bankerMin net worth of Rs1 coreMin net worth of Rs1 core
Cat 2 merchant bankersNet worth Rs. 50 lacsNet worth Rs. 50 lacs
Issues above Rs 50 and Rs100 croresMax number of lead managers will be 3Min 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 c apitalization by Rs20000 crores?
Correct Answer: Infosys, Satyam, Wipro
Match The Following
QuestionCorrect AnswerYour Answer
ESPSStock option methodStock option method
Sweat equityShare issue forconsideration other than cashShare issue for consideration other than cash
stock lending mechanismIntroduced by SEBI in 1997Introduced by SEBI in 1997
ESOPRecipe to make employees millionairesRecipe 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
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Question: What should be done if t he address of investor changes?
Correct Answer: Inform DP and update r ecords, Inform different companies
Match The Following
QuestionCorrect AnswerYour Answer
1995MS shoes scamMS shoes scam
9/1/2001SENSEX touched low of 2600UTI GTB merger
4/1/2001Tata finance scam came to lightTata finance scam came to light
11/1/2001Reliance sale of 10.5% stake in L&T to grasimReliance 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
QuestionCorrect AnswerYour Answer
RematerialisationRRFRRF
NSESettlement cycle T + 3Settlement cycle T + 3
RBIGilt securities mobilizationGilt securities mobilization
Non corporate benefitBonusBonus
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?
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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 networth
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
QuestionCorrect AnswerYour Answer
CastrolFY 2003 - 03 Dividend Rs145 croresFY 2003 - 03 Dividend Rs145 crores
MS Verma committeeDual FlotationDual Flotation
Hero HondaFY 2003 - 03 Dividend Rs187 crores
FY 2003 - 03 Dividend Rs187 crores
VSNLFY 2003 - 03 Dividend Rs172 croresFY 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 e xpected 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 t he target company are aware of t he exit opportunity available to them
Select The Blank
Question: When one decides to have the s hares 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 t he ratings need not be disclosed in the document.
Correct Answer: False
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Select The Blank
Question: As per SEBI re gulations, 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 t he issuer company or others connected with the iss ue 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 re gulation, 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 ca rd.
Correct Answer: ATM card
Select The Blank
Question: A ________ means any persons connected with a company and who i s 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 I ndustries
Select The Blank
Question: Information technology, communication and entertainment represent ________ stocks.
Correct Answer: ICE
True/False
Question: In order to dematerialize the sec urities one has to fill DRF.
Correct Answer: True
Select The Blank
Question: In case of a n IPO of any security of issue size of Rs________ or more security shall be issued only in demat form.
Correct Answer: 10 crores
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Multiple Choice Multiple Answer
Question: What are the obligations of a company in a share buy back?
Correct Answer: The offer lett er should contain true, factual and material i nformation and should not be misleading., The company must pay the co nsideration 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.
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 it s 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 c onnection, A registered account with a broker and a demat account, Bank payment gateway o r online banking facility
True/False
Question: Money market mutual funds are not permitted t o invest in tr easury bills and commercial paper.
Correct Answer: False
Multiple Choice Single Answer
Question: Under various SEBI regulations how many brokers suspended?
Correct Answer: 8
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
Your Answer
15000 crores
True/False
Question
SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies.
Correct Answer
False
Your Answer
False
Select The Blank
Question
A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer.
Correct Answer
0.1
Your Answer
0.1
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Select The Blank
Question
Securities offered in a pledge can change if a ________ agrees.
Correct Answer
Pledgee
Your Answer
Pledgee
True/False
Question
A bidder can request for a transaction registration slip as the proof of his having entered the bid.
Correct Answer
True
Your Answer
True
Select The Blank
Question
SENSEX is calculated using ________ method.
Correct Answer
Market capitalization
Your Answer
Market capitalization
Select The Blank
Question
AA rated companies can raise ________ of its net worth.
Correct Answer
2.5 times
Your Answer
2.5 times
Select The Blank
Question
In the book building process pricing is determined on the basis of ________.
Correct Answer
Investor feedback
Your Answer
Investor feedback
Multiple Choice Multiple Answer
Question
What is Sweat equity ?
Correct Answer
Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now
Your Answer
Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now
Multiple Choice Single Answer
Question
An AMC fees :-
Correct Answer
To be borne by the individual schemes
Your Answer
To be borne by banks
Multiple Choice Multiple Answer
Question
What are the objectives of NHB?
Correct Answer
To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial a