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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
Match The FollowingQuestion Correct Answer Your Answer
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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
Multiple Choice Single Answer
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
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 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
Multiple Choice Single Answer
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
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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
Multiple Choice Single Answer
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
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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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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?Correct Answer 8Your Answer 8
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 filing fees , Offerdocument to contain disclosures
Your 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 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
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) 4Your 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 moneyYour 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 thecompany
Match The FollowingQuestion Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate ingeneral body meetings
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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 , Experience
Your 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 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.
Correct Answer 0.05Your Answer 0.2
Select The BlankQuestion ________ is an international credit rating company.Correct Answer FITSCHYour Answer FITSCH
Select The Blank
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Question The appointment of a ________ is mandatory in a offer process.Correct Answer Merchant BankerYour Answer Merchant Banker
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
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 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
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 Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 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 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
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 register
of the company.Correct Answer 45Your Answer 45
Multiple Choice Multiple Answer
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 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 cost
Your 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/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
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?Correct Answer Establishment of NSEYour Answer Establishment of NSE
Multiple Choice Single Answer
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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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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
Question Correct Answer Your Answer
Looses the rights to vote Non voting shares Non voting shares
Book building Bharati Televentures Bharati Televentures
Depository Bank of securities Bank of securities
First to introduce rolling
settlements in the country
NSE NSE
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
Multiple Choice Multiple Answer
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.
Correct Answer False
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.
Multiple Choice Multiple Answer
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
Question Correct Answer Your Answer
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.
Correct Answer False
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
Your 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
Multiple Choice Single Answer
Question What was the objective of setting up the Securities Trading corporation of India Ltd?
Correct
Answer
To promote secondary market in government securities
Your Answer To strengthen the capital markets
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
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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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
Question Correct Answer Your Answer
Looses the rights to vote Non voting shares Non voting shares
Book building Bharati Televentures Bharati Televentures
Depository Bank of securities Bank of securities
First to introduce rolling
settlements in the country
NSE NSE
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
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
Your Answer Minimum paid up capital 1 crore , At least 2 directors , At least 50% loans in long term
nature
Multiple Choice Single Answer
Question A portfolio manager could undertake the following on behalf of his clients :-
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CorrectAnswer
Hedging and arbitrage transactions
Your Answer Hedging and arbitrage transactions
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
Your Answer Negotiated price , Price paid by acquirer , Average weekly high low of closing share of the
target company
Multiple Choice Multiple Answer
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
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
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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Your Answer False
Multiple Choice Single Answer
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
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
Board , Internal auditor , External auditor
Your Answer Board , Internal auditor , External auditor
Multiple Choice Multiple Answer
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.
Multiple Choice Multiple Answer
Question What are the different kinds of stock exchanges in India?
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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
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
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
Question Correct Answer Your Answer
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question 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 Answer
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
Your Answer Net worth of the company should not be less than 1 crore
Multiple Choice Single Answer
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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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
Multiple Choice Single Answer
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
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct
Answer
Securities Contract Regulation Act
Your Answer Securities And Exchange Board of India
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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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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
Multiple Choice Multiple Answer
Question 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
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.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
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?Correct Answer US$14 bnYour Answer US$14 bn
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 croresYour Answer 15000 crores
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 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.
Correct Answer False
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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Your Answer Clients
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
Your Answer Knowledge and information about various aspects of capital markets , Ability to evaluateand 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 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
Multiple Choice Multiple Answer
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
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
Your Answer 12 months
Match The Following
Question Correct Answer Your Answer
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
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809Your Answer 37829
Multiple Choice Single Answer
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.
Correct Answer False
Your Answer False
Select The Blank
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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
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning surplus cash to the
shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is done by 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
connected with the issue to SEBI.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
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.
Correct Answer False
Your Answer True
True/FalseQuestion RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
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.
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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
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 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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question 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
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.
Correct Answer FalseYour 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 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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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
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
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
Your Answer Reliance Industries
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 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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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question The buy back of shares by Indian corporates has been very successful in India.Correct Answer FalseYour Answer True
Multiple Choice Single Answer
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.
Correct Answer FalseYour Answer True
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
Multiple Choice Single Answer
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
Multiple Choice Single Answer
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.
Correct Answer False
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.
Correct Answer FalseYour Answer True
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
Match The FollowingQuestion Correct Answer Your Answer
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
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?Correct Answer The offer letter should contain true, factual and material information and should not be
misleading. , The company must pay the consideration only by the way of cash , The company should not
issue any fresh securities including bonus shares till the date of the closure of the offer.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?
Correct Answer 0.5Your Answer 0.3
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 %
Multiple Choice Single Answer
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
Match The FollowingQuestion Correct Answer Your Answer
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
Multiple Choice Single Answer
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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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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
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
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?Correct Answer 8Your Answer 8
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 filing fees , Offerdocument to contain disclosures
Your 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 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
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) 4Your 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 moneyYour 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 thecompany
Match The FollowingQuestion Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate ingeneral body meetings
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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 , Experience
Your 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 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.
Correct Answer 0.05Your Answer 0.2
Select The BlankQuestion ________ is an international credit rating company.Correct Answer FITSCHYour Answer FITSCH
Select The Blank
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Question The appointment of a ________ is mandatory in a offer process.Correct Answer Merchant BankerYour Answer Merchant Banker
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
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 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
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 Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 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 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
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 register
of the company.Correct Answer 45Your Answer 45
Multiple Choice Multiple Answer
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 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 cost
Your 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/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
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?Correct Answer Establishment of NSEYour Answer Establishment of NSE
Multiple Choice Single Answer
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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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
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 n