Capital Market2

8/4/2019 Capital Market2

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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


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


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


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


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


Question: Which companies have eroded market capitalization by Rs 20,000 crores?

Correct Answer: Infosys, Satyam, Wipro


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


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


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.



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.



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.



Question: Deposits can be accepted for a maximum period of:-

Correct Answer: 5 years


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


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.


Select The Blank

Question: `

Correct Answer: 0.1


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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


Question: Which is the f avorite destination for venture funds?

Correct Answer: BPO


Question: Who issues participatory notes?

Correct Answer: Associates of India based foreign brokerages, Domestic institutional brokerages


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.


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.


True/False

Question: The acquirer is 3required to a ppoint a merchant banker before making a PA.



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


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.



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


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


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


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


Question: What is government's move towards Stock Exchanges?

Correct Answer: Demutulisation


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


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


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


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



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Question: How many companies are there to do business of credit rating?

Correct Answer: 4


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


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


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


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


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.



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


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


Question: Upto what percentage has the RBI permitted the banks to invest in the capital market?


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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Question: What was the percentage of public offer ing under the IPOs through the book building method?

Correct Answer: 0.1


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


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.



Question: To open a DP account, following things are required:-

Correct Answer: Proof of identity, Proof of address, PhotographCAPITAL MARKET-3rd Sem


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


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


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


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


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


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.


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.



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


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.



Question: The benefits of availing depository services are:-

Correct Answer: No stamp duty, Reduction in paperless work, Reduction in transaction cost


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.


Select The Blank

Question: Hire Purchase transactions are liable to ________.

Correct Answer: Sales tax


Question: What do you understand by capital markets?

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



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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


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.



Question: What is the amount invested by the FII's in the Indian Capital market?

Correct Answer: US$14 bn





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


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


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


Question: When did the trading in foreign currency options start in I ndia?

Correct Answer: 37809


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


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

Correct Answer: 1


Question: What is the system of rolling settlement prevalent in the USA?

Correct Answer: Transaction + 3


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Question: What is the most important objective for an investor?

Correct Answer: Protection of t he value of the investment


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


Question: What do you mean by venture ca pital?

Correct Answer: Providing seed, start up capital a nd first stage financing


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: 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.



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



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


Question: What is the minimum number of days for which the bid should remain open in book building?


Match The Following


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


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


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


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


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


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


Question: What was the reason for not introducing rolling settlements earlier in India?

Correct Answer: Lack of depositories


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


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


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/-


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.



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.


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


Question: What is a Poi nt of sale terminal?

Correct Answer: Mechanism for collecting debit card payments


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


Question: SEBI has recently allowed book building upto what extent?

Correct Answer: 1


Question: What is the percentage of restriction on HFC's disbursement on project lending for refinance?

Correct Answer: 0.3


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


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


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.



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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.


Match The Following


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


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


Question: How much percentage of company's revenue would be accounted for by the business with new name?

Correct Answer: 0.5


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


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.



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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________.


True/False

Question: A credit card is a payment mechanism which enables the holder to buy goods and services on cr edit.



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


Question: A rated company can raise deposit worth how many times its net worth?

Correct Answer: 4 times


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


Question: An AMC fees:-

Correct Answer: To be borne by the individual schemes


Question: Where is the difference in buying and selling dematerialized shares?

Correct Answer: Process of delivery, Receipt of securities, Pledging the shares


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.



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.



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


Question: What is the most common complaint of the investors?

Correct Answer: Non receipt of refund orders and allotment advise


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


Question: Which stock exchange was used by ketan parekh for buying operations?

Correct Answer: Kolkatta


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.


Select The Blank

Question: A ________account is created for the purpose of distributing receivables to the investors on the securitisation deal.

Correct Answer: Escrow


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


Question: Under Sections 11 B how many promoters were debarred?

Correct Answer: 2


Question: What has hurt the functioning of stock markets both primary and secondary?

Correct Answer: Unscrupulous promoters


Question: What is the amount of net tangible assets, company should have to make an IPO?

Correct Answer: 3 crores

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16/79

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.



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


Question: What percentage of underwriting in the i ssues obligatory to the merchant bankers?



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.


True/False

Question: At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset.



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


Question: What is the minimum offer an acquirer can make?

Correct Answer: Min 20%


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.


True/False

Question: A bidder can request for a transaction registration slip as the proof of his having entered the bid.



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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


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


Question: High risk rating of Crisil is indicated by:-

Correct Answer: B


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


Question: What is book building process?

Correct Answer: Company allot at 60% of the issue size to QIB


Question: Crisil's AAA rating stands for:-

Correct Answer: Highest safety


Question: When did the concept of corporate governance evolve?

Correct Answer: During the watergate scandal

Match The Following


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


Question: Which company came out with the unique product of bonus debentures?

Correct Answer: Hindustan lever

Match The Following


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.


Match The Following


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


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


Question: What is the duration of short term funds in the Indian context?

Correct Answer: Upto 1 year


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.


Select The Blank

Question: The liability of the underwriters in the MS shoes case was estimated to be ________.

Correct Answer: Rs. 500 crores


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


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



19/79

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.



Question: The capital Adequacy ratio for NBFC's has been fixed at:-

Correct Answer: 0.12 2


Question: Who can buy or sell securities on containing the certificate of registration?

Correct Answer: Underwriter, Merchant banker, Investment advisor


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.



Question: What is maximum percentage of regular expenses of t he assets of a scheme?


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.



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


Capital Market-4

Select The Blank

Question: The right to buy is called ________.

Correct Answer: Call option



20/79

Question: What percentage of funds should be invested in unlisted companies?



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


Question: Since when have the Indian Stock markets risen?




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



Correct Answer: Screen based trading in place of traditional ring, Communication through the net, Operate in stock market privately through home or office


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


Question: Which companies have eroded market capitalization by Rs 20,000 crores?



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.



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


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


21/79

Question: A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of o pen ended schemes.



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.



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.


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.



Question: Deposits can be accepted for a maximum period of:-

Correct Answer: 5 years


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


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.


Select The Blank

Question: `

Correct Answer: 0.1


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



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Question: Which is the f avorite destination for venture funds?

Correct Answer: BPO


Question: Who issues participatory notes?

Correct Answer: Associates of India based foreign brokerages, Domestic institutional brokerages


Question: For a VCF to be registered with SEBI what is the registration fee?


Match The Following


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.


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.


True/False

Question: The acquirer is 3required to a ppoint a merchant banker before making a PA.




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


Question: The process of 2share buy back must be completed within what period from the date of passing the resolution?


Select The Blank

Question: A ________ means any persons 2connected with a company and who i s reasonably having access to unpublished price sensitive information.


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.



23/79


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


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


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


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?



Question: What is government's move towards Stock Exchanges?

Correct Answer: Demutulisation


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


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


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


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


Question: How many companies are there to do business of credit rating?

Correct Answer: 4


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


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


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


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


Question: Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a minimum period of:-


True/False

Question: A custodian can transfer beneficial ownership legally.



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


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


Question: Upto what percentage has the RBI permitted the banks to invest in the capital market?


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%


Question: What was the percentage of public offer ing under the IPOs through the book building method?

Correct Answer: 0.1



25/79

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


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.



Question: To open a DP account, following things are required:-

Correct Answer: Proof of identity, Proof of address, Photograph


Capital Market-3CAPITAL MARKET-3rd Sem


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


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


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


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


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


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.


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.



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


Question: To make a public announcement the acquirer has to appoint:-


True/False

Question: SEBI has taken an action to ban on Badla.



Question: The benefits of availing depository services are:-

Correct Answer: No stamp duty, Reduction in paperless work, Reduction in transaction cost


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.


Select The Blank

Question: Hire Purchase transactions are liable to ________.

Correct Answer: Sales tax


Question: What do you understand by capital markets?

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



27/79

Question: What must be the quality o f a good portfolio manager?

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


Question: What is Discretionary Portfolio management service?

Correct Answer: Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.

True/False

Question: Depositary facilitates transfers without having to handle money.



Question: What is the amount invested by the FII's in the Indian Capital market?

Correct Answer: US$14 bn





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


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


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


Question: When did the trading in foreign currency options start in I ndia?



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


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

Correct Answer: 1


Question: What is the system of rolling settlement prevalent in the USA?

Correct Answer: Transaction + 3


28/79


Question: What is the most important objective for an investor?

Correct Answer: Protection of t he value of the investment


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


Question: What do you mean by venture ca pital?

Correct Answer: Providing seed, start up capital a nd first stage financing


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: 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.



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



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


Question: What is the minimum number of days for which the bid should remain open in book building?


Match The Following


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


29/79

HDFC foreign currency deal

Match The Following


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


Question: Who was the first to introduce rolling settlement in India?

Correct Answer: NSE


Question: How many registration of issues were cancelled in the recent past?

Correct Answer: 1


Question: When is a debenture redemption reserve created?

Correct Answer: In case the maturity period of debentures in more than 18 months


Question: What is the main advantage of a rolling settlement?

Correct Answer: Quicker payments


Question: What is the ma in objective of the promoting Discount and finance house of India (DFHI)?


30/79

Correct Answer: Increasing transactions of money market assets


Question: What is the status of Stock exchanges today?

Correct Answer: Joint s tock companies


Question: How much should be the minimum post issue capital of the company?



Question: How many times Refinance cannot exceed net owned funds of Housing finance companies?



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


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


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.



Question: What is credit rating?

Correct Answer: An isolated function of cr edit risk evaluation


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


Question: Who grants the recognition to stock exchange?


31/79

Correct Answer: Central Government, Ministry of Finance, Stock Exchange division


Question: Who prescribes the format of application for various reports or documents?

Correct Answer: SEBI


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


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


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



Question: Which companies have eroded market c apitalization by Rs20000 crores?


Match The Following


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


Question: For a VCF to be registered with SEBI what is the registration fee ?




32/79

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


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


Question: How many points the sensex went up in January 2000 during the ketan parekh scam?

Correct Answer: 700 points

Match The Following


RematerialisationRRFRRF

NSESettlement cycle T + 3Settlement cycle T + 3

RBIGilt securities mobilizationGilt securities mobilization

Non corporate benefitBonusBonus


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.



Question: When can the American style option exercised?

Correct Answer: On or before the expiry date


Question: What is the estimated figure of credit card defaults in India?


Select The Blank

Question: AA rated companies can raise ________ of its net worth.

Correct Answer: 2.5 times


Question: What are the eligibility norms for an unlisted company for making a public issue?


33/79

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


Question: How many members are appointed by the central government?

Correct Answer: 2

Match The Following


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


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


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.



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?


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


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.



34/79

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.


True/False

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


True/False

Question: RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.



Question: As per RBI re gulation, bank borrowings should not exceed how many times of the net owned funds?


Select The Blank

Question: With the introduction of __ ______ accounts the complaints about allotment have surely gone down.

Correct Answer: DEMAT


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


True/False

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


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.



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.


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.



35/79


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


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


Question: What are the major factors influencing portfolio decisions?

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


Question: The refinance made available to any HFC is not to be more than:-

Correct Answer: 60% of it s outstanding housing loans


Question: Which Act defines the term Stock Exchange?

Correct Answer: Securities Contract Regulation Act


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.



Question: Under various SEBI regulations how many brokers suspended?

Correct Answer: 8


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


36/79

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


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


Question

An AMC fees :-

Correct Answer

To be borne by the individual schemes

Your Answer

To be borne by banks


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

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Capital Market2