Capital Mkt

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Information technology, communication and entertainment represent ________ stocks. Correct Answer ICE Your Answer ICE 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 True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Call option Multiple Choice Single Answer Question What percentage of funds should be invested in unlisted companies? Correct Answer 0.74 Your Answer 0.74 Multiple Choice Single Answer Question Who is responsible to get the securities listed on all the stock exchanges? Correct Answer Merchant banker Your Answer SEBI 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 Multiple Choice Single Answer Question What is the amount invested by the FII's in the Indian Capital market? Correct Answer US$14 bn Your Answer US$14 bn True/False Question The depository can legally transfer beneficial ownership. Correct Answer True Your Answer True Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 38200 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 , Offer document to contain disclosures

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Your 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 disclosures 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 Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer True Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On or before the expiry date True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the estimated figure of credit card defaults in India? Correct Answer 800 crores Your Answer 800 crores True/False Question Depositary facilitates transfers without having to handle money. Correct Answer False Your Answer False Select The Blank Question AA rated companies can raise ________ of its net worth. Correct Answer 2.5 times Your Answer 2 times Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Your Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Multiple Choice Multiple Answer Question What are the eligibility norms for an unlisted company for making a public issue? Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net worth

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Your Answer Issue size shall not exceed five times of its pre issue net worth , Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years Select The Blank Question Markets have moved away from Badla system to ________ . Correct Answer Derivatives Trading Your Answer Derivatives Trading Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5% Multiple Choice Single Answer Question How many members are appointed by the central government? Correct Answer 2 Your Answer 2 Multiple Choice Multiple Answer Question Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges? Correct Answer SCRA , Depository Act Your Answer SCRA , Depository Act Match The Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Decision making 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 Answer Question What does SEBI do with its power ? Correct Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer Your Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer

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True/False Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if there is an underlying asset. Correct Answer True Your Answer True True/False Question In order to dematerialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Match The Following Question Correct Answer Your Answer Portfolio Collection of assets Collection of assets Factors influencing portfolio decisions Business and Market risks Business and Market risks

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Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer False Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments Multiple Choice Multiple Answer Question What is dematerialization ? Correct Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP Your Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP , Selling shares 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 Your Answer Certificate of Deposit Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries 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 Answer Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore

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Your 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 Your 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 open ended schemes. Correct Answer True Your Answer False Multiple Choice Single Answer Question What is a put option? Correct Answer Right to sell Your Answer Right to sell True/False Question Venture capital finance is risk finance for entrepreneurial growth oriented companies. Correct Answer True Your Answer True

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer Without the registration certificate no company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must register with RBI 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of :Correct Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answer Software Your Answer Software Select The Blank

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Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1 Your Answer 0.3 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 Multiple Answer Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Your Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue?

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Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False 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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False 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 , Offer document to contain disclosures

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Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25 True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________.

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Correct Answer DP Your Answer DP

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of :Correct Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answer Software Your Answer Software Select The Blank

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Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID True/False Question Constant change would be one of the reasons for failure of corporate governance. Correct Answer True Your Answer False Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores True/False Question The company opting for an IPO should have net worth of at least Rs 1 crore in each of the preceding two years. Correct Answer True

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Your Answer False Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 Multiple Choice Multiple Answer Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments Match The Following Question Correct Answer Your Answer Castrol FY 2003 - 03 Dividend Rs145 crores FY 2003 - 03 Dividend Rs145 crores MS Verma committee Dual Flotation Dual Flotation Hero Honda FY 2003 - 03 Dividend Rs187 crores FY 2003 - 03 Dividend Rs187 crores VSNL FY 2003 - 03 Dividend Rs172 crores FY 2003 - 03 Dividend Rs172 crores Multiple Choice Single Answer Question 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 Answer Question When did the trading in foreign currency options start in India? Correct Answer 37809 Your Answer 37829 Multiple Choice Multiple Answer Question What is dematerialization ? Correct Answer Credited into investors account with his/ her DP , Physical certificates converted into electronic from Your Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1

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Your Answer 0.3 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 Multiple Answer Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Your Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue? Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False

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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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False 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 , Offer document to contain disclosures Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25 True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False

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True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP Your Answer DP

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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/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 True True/False Question In order to dematerialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Degree of popularity of the industry , Overall economic condition , Demand and supply capital Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Match The Following

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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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 ? 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 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. Correct Answer 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/False Question

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 Blank Question 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/False Question

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 NSE settlements in the country

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 Blank Question 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/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 institutional investors and underwriters. Correct Answer True

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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 :Correct Answer 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/False Question

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 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/False Question

A custodian can transfer beneficial ownership legally.

Correct Answer False 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? Correct Answer 0 Your Answer

0

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

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.

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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 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 , 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? Correct Answer 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 , If default subsists in respect of repayments of deposits, term loans to any financial institutions and redemption of preference shares or debentures True/False Question

The depository can legally transfer beneficial ownership.

Correct Answer True

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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 Interbank sale and (Repo) repurchase of securities

Operations in call money markets

Commercial paper

Means of raising short term debt by companies

Means of raising short term debt by companies

STCI

Operations in call money markets

Launched in fiscal 2004-05

Market stabilsation Bonds Launched in fiscal 200405

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 out of firm allotment in public issues right issues etc? Correct Answer 21 days Your Answer

21 days

True/False Question

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

True

Select The Blank Question The right to buy is called ________.

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Correct Answer Call option Your Answer

Call option

Multiple Choice Single Answer Question 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? Correct Answer 1 Your Answer

3

Select The Blank Question Among the closed schemes, 4 long term assurance schemes were launched with a return ranging between ________. Correct Answer 13 - 14% Your Answer

15 - 16%

Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk

By- [email protected] & [email protected]

Multiple Choice Single Answer Question 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 Answ er Question 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

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Multiple Choice Single Answer Question What was the objective of setting up the Securities Trading corporation of India Ltd? Correct Answer Your Answer

To promote secondary market in government securities To strengthen the capital markets

Multiple Choice Multiple Answer Question What are the salient features of Hire Purchase ? Correct Answer Your Answer

True/False Question Correct Answer Your 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 to make down payment 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

A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of open ended schemes. True True

Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Your Answer

Mutual funds Mutual funds

Multiple Choice Single Answer Question Who takes risk at the time of investment ? Correct Answer Your Answer

True/False Question Correct Answer Your Answer

Investor Investor

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

Select The Blank Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities. Correct Lead managers Answer Your Answer Lead managers

1

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True/False Question Correct Answer Your Answer

A credit card is a payment mechanism which enables the holder to buy goods and services on credit. True 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 Your Answer

ROC ROC

Select The Blank Question A company with highly rated instrument has the opportunity to ________ by quoting less interest rates. Correct Reduce the cost of borrowing Answer Your Answer Reduce the cost of borrowing

True/False Question Correct Answer Your Answer

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. True True

Multiple Choice Multiple Answer Question What are the norms for Approval of Housing finance companies by NHB? Correct Answer Your Answer

Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors 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 :-

2

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Correct Answer Your Answer

Hedging and arbitrage transactions Hedging and arbitrage transactions

Multiple Choice Multiple Answer Question How is price determined in an open offer? Correct Answer Your Answer

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

Sound General knowledge , Analytical ability and marketing skills , Experience 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 1 year Answer Your Answer 2 years

True/False Question Correct Answer Your Answer

In order to dematerialize the securities one has to fill DRF. True 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 Lead manager Answer Your Answer Lead manager

Select The Blank Question The process of securitisation involves transfer of assets to a person specially created called as ________. Correct Special purpose vehicle Answer Your Answer Trust

True/False Question Correct Answer

A custodian can transfer beneficial ownership legally. False

3

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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? Correct 0 Answer Your Answer 0

True/False Question Correct Answer Your Answer

The SEBI guidelines do not make it mandatory for the securities purchased under the buy back arrangement to be extinguished and physically destroyed. False False

Select The Blank Question BSE introduced an equity stock index known as ________. Correct Answer Your Answer

SENSEX 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 Board , Internal auditor , External auditor Answer Your Answer Board , Internal auditor , External auditor

Multiple Choice Multiple Answer Question Which companies have eroded market capitalization by Rs20 000 crores? Correct Answer Your Answer

Infosys , Satyam , Wipro Infosys , Satyam , Wipro

Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer 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. 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?

4

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Correct Answer Your Answer

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

True/False Question Correct Answer Your 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 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

The depository can legally transfer beneficial ownership. True True

Select The Blank Question For issues upto Rs. 50 crores the number of lead managers will not exceed ________. Correct Answer Your Answer

2 4

Match The Following Question

Correct Answer

Your Answer

Ready forward transaction (Repo) Interbank sale and repurchase of securities

Operations in call money markets

Commercial paper

Means of raising short term debt by companies

Means of raising short term debt by companies

STCI

Operations in call money markets Launched in fiscal 2004-05

Market stabilsation Bonds

Launched in fiscal 2004-05

True/False Question Correct Answer Your Answer

Interbank sale and repurchase of securities

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

Multiple Choice Single Answer Question What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment in public issues right issues etc? Correct 21 days Answer

5

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Your Answer

True/False Question Correct Answer Your Answer

21 days

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

Select The Blank Question The right to buy is called ________. Correct Answer Your Answer

Call option Call option

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

0.05 0.05

Multiple Choice Single Answer Question What was the turning point in the working of Indian capital markets? Correct Answer Your Answer

Establishment of NSE 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 Net worth of the company should not be less than 1 crore Answer 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? Correct Answer Your Answer

1 3

Select The Blank Question Among the closed schemes, 4 long term assurance schemes were launched with a return ranging between ________. Correct 13 - 14% Answer Your Answer 15 - 16%

6

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Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Your Answer

Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk 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 ? Correct 0.1 Answer Your Answer 0.25

Multiple Choice Multiple Answer Question What are the main features of commercial paper? Correct Answer Your Answer

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

Depository Depository

Multiple Choice Multiple Answer

Question Correct Answer Your Answer

The setting up of NSE consists of:Set up by IDBI , Equity paid up capital of Rs25 crores , Started operations in June 1994 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 Your Answer

Securities Contract Regulation Act Securities And Exchange Board of India

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is an internationa l 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.

7

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Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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 bn Your 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 crores Your 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 mutual funds 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answer Securities markets

8

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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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describe the stock lending mechanism:Correct Answer Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates , Lender is assured of getting equivalent the 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 securities at 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 to exceed 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 37809 Your 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 trus tees and asset management companies. Correct Answer False Your Answer False Select The Blank

9

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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 card Your Answer ATM card Select The Blank Question A ________ means any persons connected with a compan y 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 the shareholders 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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters.

10

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Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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 of credit 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 False Your 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 office Your Answer Screen based trading in place of traditional ring , Communication through the ne t , 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

11

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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 Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints about allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT

12

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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 False Your Answer True Multiple Choice Single Answer Question What percentage of funds should be invested in unlisted companies? Correct Answer 0.74 Your Answer 0.76 Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP Your Answer SEBI True/False Question The issue price for placement portion and net offer to public are not the same. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Degree of popularity of the industry , High profitability is one 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 instruments Your 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 capacity Your Answer Assess the repayment capacity True/False Question Mutual funds can do investments in any security issued by way of private placement by an associate or group company of the sponsor. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question What are participatory notes? Correct Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities Your Answer Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False

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Multiple Choice Multiple Answer Question Briefly describe the SEBI guidelines for the merchant bankers :Correct Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Your Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Select The Blank Question 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 GTB Your Answer UTI Bank with GTB True/False Question 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 False Your Answer True Multiple Choice Multiple Answer Question What are the eligibility norms for a listed company for making a public issue? Correct Answer If the issue size is less than five times pre issue net worth , If the issue size is more than or equal to five times pre issue networth then the listed company to take book building route , 60% of issue size 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 or equal 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 Answer Question Where is the difference in buying and selling dematerialized shares ? Correct Answer Process of delivery , Receipt of securities , Pledging the shares Your Answer Process of delivery , Receipt of securities , Pledging the shares , Sale of shares Multiple Choice Multiple Answer Question When is the public announcement required to be made? Correct Answer In case of indirect acquisition or change in control, 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 announcement Your 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 Answer Question 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 Multiple Choice Single Answer Question 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 Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Match The Following Question Correct Answer Your Answer Share buy back is a way of Returning surplus cash to the shareholders Siphoning of excess cash by the promoters 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 Answer Question The following are some of the procedures of converting physical holding into electronic form :Correct Answer Surrender certificates to DP , DP intimates request to depositary , DP submits the certificates to registrar Your 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 Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 25000 crores 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 Set up by IDBI , Equity paid up capital of Rs25 crores , Started operations in June 1994 Multiple Choice Single Answer Question 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/False Question Constant change would be one of the reasons for failure of corporate governance. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question Markets have moved away from Badla system to ________ . Correct Answer Derivatives Trading Your Answer Mutual Funds Trading True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question 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 opinion of board , Government regulations 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 Your 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 Answer Question How much percentage of company's revenue would be accounted for by the business with new name? Correct Answer 0.5 Your Answer 0.3 Select The Blank Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities.

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Correct Answer Lead managers Your Answer Lead managers Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answer Securities markets Your Answer Securities markets Multiple Choice Single Answer Question Crisil's AAA rating stands for :Correct Answer Highest safety Your Answer Highest safety True/False Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if there is an underlying asset. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the main advantage of a rolling settlement? Correct Answer Quicker payments Your Answer Quicker payments Multiple Choice Single Answer Question 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 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 be more than 5 crores 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 Match The Following Question Correct Answer Your Answer Portfolio Collection of assets Collection of assets Factors influencing portfolio decisions Business and Market risks To make timely decision regarding sale and purchase of securities Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms Portfolio Manager must fulfill the 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 investors Your Answer Small investors True/False Question The acquirer is required to appoint a merchant banker before making a PA. Correct Answer True Your 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 Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings

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Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank

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Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your 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 in opinion of board Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question 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 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 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 Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings

By- [email protected] & [email protected]

Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank

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Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your 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 in opinion of board Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question 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 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 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 Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question Who forms the Asset management company (AMC)? Correct Answer Group of trustees

By- [email protected] & [email protected]

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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings

By- [email protected] & [email protected]

Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank

By- [email protected] & [email protected]

Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your 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 in opinion of board Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question 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 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 False

By- [email protected] & [email protected]

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Which Act defines the term Stock Exchange? Correct Answer Securities Contract Regulation Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question Who forms the Asset management company (AMC)? Correct Answer Group of trustees

By- [email protected] & [email protected]

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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings

By- [email protected] & [email protected]

Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank

By- [email protected] & [email protected]

Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your Answer 45 Multiple Choice Multiple Answer Question When can an offer be withdrawn?

By- [email protected] & [email protected]

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 opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question 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 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 False

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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/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 True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Call option Multiple Choice Single Answer Question What percentage of funds should be invested in unlisted companies? Correct Answer 0.74 Your Answer 0.74 Multiple Choice Single Answer Question Who is responsible to get the securities listed on all the stock exchanges? Correct Answer Merchant banker Your Answer SEBI 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 Multiple Choice Single Answer Question What is the amount invested by the FII's in the Indian Capital market? Correct Answer US$14 bn Your Answer US$14 bn True/False Question The depository can legally transfer beneficial ownership. Correct Answer True Your Answer True Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 38200 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 , Offer document to contain disclosures

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Your 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 disclosures 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 Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer True Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On or before the expiry date True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the estimated figure of credit card defaults in India? Correct Answer 800 crores Your Answer 800 crores True/False Question Depositary facilitates transfers without having to handle money. Correct Answer False Your Answer False Select The Blank Question AA rated companies can raise ________ of its net worth. Correct Answer 2.5 times Your Answer 2 times Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Your Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Multiple Choice Multiple Answer Question What are the eligibility norms for an unlisted company for making a public issue? Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net worth

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Your Answer Issue size shall not exceed five times of its pre issue net worth , Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years Select The Blank Question Markets have moved away from Badla system to ________ . Correct Answer Derivatives Trading Your Answer Derivatives Trading Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5% Multiple Choice Single Answer Question How many members are appointed by the central government? Correct Answer 2 Your Answer 2 Multiple Choice Multiple Answer Question Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges? Correct Answer SCRA , Depository Act Your Answer SCRA , Depository Act Match The Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Decision making 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 Answer Question What does SEBI do with its power ? Correct Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer Your Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer

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True/False Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if there is an underlying asset. Correct Answer True Your Answer True True/False Question In order to dematerialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Match The Following Question Correct Answer Your Answer Portfolio Collection of assets Collection of assets Factors influencing portfolio decisions Business and Market risks Business and Market risks

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Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer False Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments Multiple Choice Multiple Answer Question What is dematerialization ? Correct Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP Your Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP , Selling shares 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 Your Answer Certificate of Deposit Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries 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 Answer Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore

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Your 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 Your 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 open ended schemes. Correct Answer True Your Answer False Multiple Choice Single Answer Question What is a put option? Correct Answer Right to sell Your Answer Right to sell True/False Question Venture capital finance is risk finance for entrepreneurial growth oriented companies. Correct Answer True Your Answer True

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of :Correct Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answer Software Your Answer Software Select The Blank

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Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID True/False Question Constant change would be one of the reasons for failure of corporate governance. Correct Answer True Your Answer False Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores True/False Question The company opting for an IPO should have net worth of at least Rs 1 crore in each of the preceding two years. Correct Answer True

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Your Answer False Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 Multiple Choice Multiple Answer Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments Match The Following Question Correct Answer Your Answer Castrol FY 2003 - 03 Dividend Rs145 crores FY 2003 - 03 Dividend Rs145 crores MS Verma committee Dual Flotation Dual Flotation Hero Honda FY 2003 - 03 Dividend Rs187 crores FY 2003 - 03 Dividend Rs187 crores VSNL FY 2003 - 03 Dividend Rs172 crores FY 2003 - 03 Dividend Rs172 crores Multiple Choice Single Answer Question 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 Answer Question When did the trading in foreign currency options start in India? Correct Answer 37809 Your Answer 37829 Multiple Choice Multiple Answer Question What is dematerialization ? Correct Answer Credited into investors account with his/ her DP , Physical certificates converted into electronic from Your Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1

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Your Answer 0.3 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 Multiple Answer Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Your Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue? Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False

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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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False 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 , Offer document to contain disclosures Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25 True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False

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True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP Your Answer DP

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer Without the registration certificate no company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must register with RBI 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of :Correct Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answer Software Your Answer Software Select The Blank

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Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1 Your Answer 0.3 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 Multiple Answer Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Your Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue?

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Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False 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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False 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 , Offer document to contain disclosures

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Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25 True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________.

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Correct Answer DP Your Answer DP

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The NSE Nifty index comprises of ________companies. Correct Answer 50 Your Answer 50 Match The Following Question Correct Answer Your Answer 0.1 Government decided to pay dividend Government decided to pay dividend 0.15 MF cannot invest as percentage of NAV in debt instrument issued by single issuer MF cannot invest as percentage of NAV in debt instrument issued by single issuer Annual statement of accounts of MF To be audited by auditor To be audited by auditor Rs. 8000 crores Current shortfall in UTI schemes Current shortfall in UTI schemes Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax 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 Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk 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 Your Answer Scheduled Commercial Bank True/False Question ISIN is a unique identification number for security. Correct Answer True Your Answer True Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments

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Your Answer instruments

Market for long term funds and investments in long te rm

Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Multiple Choice Single Answer Question 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 Multiple Answer Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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 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 , If default subsists in respect of repayments of deposits, term loans to any financial institutions and redemption of preference shares or debentures Multiple Choice Multiple Answer Question Briefly describe the SEBI guidelines for the merch ant 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 to disclosers, listing of instruments etc Your Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Multiple Choice Single Answer Question What is issued by mutual funds? Correct Answer Units Your Answer Units Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :-

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Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5% , No capital gains tax on investment made in equity after 1/3/03 held for 1 year Select The Blank Question The merchant bankers should act as ________ of the investor's money and put a lot of responsibility on them. Correct Answer Custodian Your Answer Custodian True/False Question Reliance group has added over 10000 crores in market capital. Correct Answer True Your Answer True Select The Blank Question BSE introduced an equity stock index known as ________. Correct Answer SENSEX Your Answer SENSEX Multiple Choice Single Answer Question Which company was responsible for spr eading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries 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 Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37834 Multiple Choice Single Answer Question What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment in public issues right issues etc? Correct Answer 21 days Your Answer 21 days 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question What is government's move towards Stock Exchanges ? Correct Answer Demutulisation Your Answer Dematerialization

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Multiple Choice Multiple Answer Question As per the recommendations of the Kumarmangalam Birla committee report who are the key components of an audit committee. Correct Answer External auditor , Board , Internal auditor Your Answer Board , Internal auditor , External auditor True/False Question SEBI can investigate and inspect books of accounts and records of insiders. Correct Answer True Your Answer True 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 the objective of a credit information comp any? Correct Answer To ascertain the credit worthiness of individuals/organizations and make the data available to all banks Your Answer To ascertain the credit worthiness of individuals/organizations and make the data available to all banks 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore Your Answer 1 Crore True/False Question A credit card is a payment mechanism which enables the holder to buy goods and services on credit. Correct Answer True Your Answer True Multiple Choice Single Answer Question When are VCF's entitled to get its units listed on stock exchange? Correct Answer After expiration of 3 years form date of issuance of units Your Answer After expiration of 3 years form date of issuance of units True/False Question Book building is a process whereby the price is determi ned 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

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Multiple Choice Single Answer Question 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 Answer Question What are the SEBI guidelines for issue of de bt 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 Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Match The Following 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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms Portfolio Manager must fulfill the capital adequacy norms 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 with 2 days , Annual disclosures Your 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 with 2 days , Annual disclosures Multiple Choice Multiple Answer Question What are the requirements regarding promoter's contribution and lock in? 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years Your 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years

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True/False Question Constant change would be one of the reasons for failure of corporate governance. Correct Answer True Your Answer True Select The Blank Question Final prospec tus in the book building p________ess is to be filed with the ROC. Correct Answer ROC Your Answer ROC Multiple Choice Single Answer Question Who forms the Asset management company (AMC)? Correct Answer Group of trustees Your Answer Group of trustees True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Single Answer Question How many companies are there to do business of credit rating? Correct Answer 4 Your Answer 4 Multiple Choice Multiple Answer Question What are the general obligations of mutual fund ? Correct Answer Every AMC should maintain proper books of accounts , Financial year for all schemes to end as on March 31 each year , Every mutual fund shall have the annual statements audited by auditor Your 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 statements audited 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 Your Answer 10 Select The Blank Question Directors should not be member of more than________ committees. Correct Answer 10 Your Answer 10

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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. Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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 bn Your 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 crores Your Answer 15000 crores Multiple Choice Multiple Answer

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Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answ er Securities markets 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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describ e 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 securities at 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 A nswer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 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

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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 37809 Your 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 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 card Your 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 the shareholders

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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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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

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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 of credit rating. Correct Answer Informa tion 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 False Your Answer False Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

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 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

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Multiple Choice Single Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints abo ut allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT

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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. Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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 bn Your 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 crores Your Answer 15000 crores Multiple Choice Multiple Answer

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Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answ er Securities markets 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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describ e 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 securities at 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 A nswer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 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

By- [email protected] & [email protected]

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 37809 Your 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 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 card Your 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 the shareholders

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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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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

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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 of credit rating. Correct Answer Informa tion 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 False Your Answer False Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

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 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

By- [email protected] & [email protected]

Multiple Choice Single Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints abo ut allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT

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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. Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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 bn Your 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 crores Your Answer 15000 crores Multiple Choice Multiple Answer

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Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answ er Securities markets 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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describ e 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 securities at 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 A nswer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 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

By- [email protected] & [email protected]

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 37809 Your 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 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 card Your 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 the shareholders

By- [email protected] & [email protected]

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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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

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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 of credit rating. Correct Answer Informa tion 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 False Your Answer False Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

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 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

By- [email protected] & [email protected]

Multiple Choice Single Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints abo ut allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT

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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/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 True True/False Question In order to dematerialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Degree of popularity of the industry , Overall economic condition , Demand and supply capital Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Match The Following

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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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans

By- [email protected] & [email protected]

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. Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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 bn Your 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 crores Your Answer 15000 crores Multiple Choice Multiple Answer

By- [email protected] & [email protected]

Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answ er Securities markets 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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describ e 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 securities at 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 A nswer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 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

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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 37809 Your 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 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 card Your 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 the shareholders

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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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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

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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 of credit rating. Correct Answer Informa tion 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 False Your Answer False Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

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 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

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Multiple Choice Single Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints abo ut allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The NSE Nifty index comprises of ________companies. Correct Answer 50 Your Answer 50 Match The Following Question Correct Answer Your Answer 0.1 Government decided to pay dividend Government decided to pay dividend 0.15 MF cannot invest as percentage of NAV in debt instrument issued by single issuer MF cannot invest as percentage of NAV in debt instrument issued by single issuer Annual statement of accounts of MF To be audited by auditor To be audited by auditor Rs. 8000 crores Current shortfall in UTI schemes Current shortfall in UTI schemes Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax 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 Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk 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 Your Answer Scheduled Commercial Bank True/False Question ISIN is a unique identification number for security. Correct Answer True Your Answer True Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments

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Your Answer instruments

Market for long term funds and investments in long te rm

Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Multiple Choice Single Answer Question 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 Multiple Answer Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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 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 , If default subsists in respect of repayments of deposits, term loans to any financial institutions and redemption of preference shares or debentures Multiple Choice Multiple Answer Question Briefly describe the SEBI guidelines for the merch ant 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 to disclosers, listing of instruments etc Your Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Multiple Choice Single Answer Question What is issued by mutual funds? Correct Answer Units Your Answer Units Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :-

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Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5% , No capital gains tax on investment made in equity after 1/3/03 held for 1 year Select The Blank Question The merchant bankers should act as ________ of the investor's money and put a lot of responsibility on them. Correct Answer Custodian Your Answer Custodian True/False Question Reliance group has added over 10000 crores in market capital. Correct Answer True Your Answer True Select The Blank Question BSE introduced an equity stock index known as ________. Correct Answer SENSEX Your Answer SENSEX Multiple Choice Single Answer Question Which company was responsible for spr eading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries 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 Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37834 Multiple Choice Single Answer Question What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment in public issues right issues etc? Correct Answer 21 days Your Answer 21 days 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question What is government's move towards Stock Exchanges ? Correct Answer Demutulisation Your Answer Dematerialization

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Multiple Choice Multiple Answer Question As per the recommendations of the Kumarmangalam Birla committee report who are the key components of an audit committee. Correct Answer External auditor , Board , Internal auditor Your Answer Board , Internal auditor , External auditor True/False Question SEBI can investigate and inspect books of accounts and records of insiders. Correct Answer True Your Answer True 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 the objective of a credit information comp any? Correct Answer To ascertain the credit worthiness of individuals/organizations and make the data available to all banks Your Answer To ascertain the credit worthiness of individuals/organizations and make the data available to all banks 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore Your Answer 1 Crore True/False Question A credit card is a payment mechanism which enables the holder to buy goods and services on credit. Correct Answer True Your Answer True Multiple Choice Single Answer Question When are VCF's entitled to get its units listed on stock exchange? Correct Answer After expiration of 3 years form date of issuance of units Your Answer After expiration of 3 years form date of issuance of units True/False Question Book building is a process whereby the price is determi ned 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

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Multiple Choice Single Answer Question 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 Answer Question What are the SEBI guidelines for issue of de bt 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 Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Match The Following 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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms Portfolio Manager must fulfill the capital adequacy norms 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 with 2 days , Annual disclosures Your 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 with 2 days , Annual disclosures Multiple Choice Multiple Answer Question What are the requirements regarding promoter's contribution and lock in? 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years Your 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years

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True/False Question Constant change would be one of the reasons for failure of corporate governance. Correct Answer True Your Answer True Select The Blank Question Final prospec tus in the book building p________ess is to be filed with the ROC. Correct Answer ROC Your Answer ROC Multiple Choice Single Answer Question Who forms the Asset management company (AMC)? Correct Answer Group of trustees Your Answer Group of trustees True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Single Answer Question How many companies are there to do business of credit rating? Correct Answer 4 Your Answer 4 Multiple Choice Multiple Answer Question What are the general obligations of mutual fund ? Correct Answer Every AMC should maintain proper books of accounts , Financial year for all schemes to end as on March 31 each year , Every mutual fund shall have the annual statements audited by auditor Your 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 statements audited 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 Your Answer 10 Select The Blank Question Directors should not be member of more than________ committees. Correct Answer 10 Your Answer 10

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CAPITAL MARKET -AMITA LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Which Act defines the term Stock Exchange? Correct Answer Securities Contract Regulation Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 trustees 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer

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Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ 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 Banker Your Answer Merchant Banker 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your Answer 45

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Multiple Choice Multiple Answer Question 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 opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question 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 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 False

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CAPITAL MARKET ASSIGNMENTS LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Information technology, communication and entertainment represent ________ stocks. Correct Answer ICE Your Answer ICE 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 True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Call option Multiple Choice Single Answer Question What percentage of funds should be invested in unlisted companies? Correct Answer 0.74 Your Answer 0.74 Multiple Choice Single Answer Question Who is responsible to get the securities listed on all the stock exchanges? Correct Answer Merchant banker Your Answer SEBI 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 Multiple Choice Single Answer Question What is the amount invested by the FII's in the Indian Capital market? Correct Answ er US$14 bn Your Answer US$14 bn True/False Question The depository can legally transfer beneficial ownership. Correct Answer True Your Answer True Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 38200 Multiple Choice Multiple Answer Question Describe the regulatory aspects of mutual funds : -

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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 disclosures Your 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 disclosures Multiple Choice Multiple Answer Question Describe in brief the SEBI regulations for venture capita l funds :Correct Answer Must disclose investment strategy , VCF's must be registered , Cannot carry out another activity Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer True Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On or before the expiry date True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the estimated figure of credit card defaults in India? Correct Answer 800 crores Your Answer 800 crores True/False Question Depositary facilitates transfers without having to handle money. Correct Answer False Your Answer False Select The Blank Question AA rated companies can raise ________ of its net worth. Correct Answer 2.5 times Your Answer 2 times Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

Multiple Choice Multiple Answer

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Question What are the eligibility norms for an unlisted company for making a public issue? Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net worth Your Answer Issue size shall not exceed five times of its pre issue net worth , Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years Select The Blank Question Markets have moved away from Badla system to ________ . Correct Answer Derivatives Trading Your Answer Derivatives Trading Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5% Multiple Choice Single Answer Question How many members are appointed by the central government? Correct Answer 2 Your Answer 2 Multiple Choice Multiple Answer Question Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges? Correct Answer SCRA , Depository Act Your Answer SCRA , Depository Act Match The Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Decision making Multiple Choice Multiple Answer Question Which companies have eroded market capitalization by Rs20 000 crores?

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Correct Answer Infosys , Satyam , Wipro Your Answer Infosys , Satyam , Wipro Multiple Choice Multiple Answer Question What does SEBI do with its power ? Correct Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer Your 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 if there is an underlying asset. Correct Answer True Your Answer True True/False Question In order to dematerialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry

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Match The Following 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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer False Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds an d investments in long term instruments Multiple Choice Multiple Answer Question What is dematerialization ? Correct Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP Your Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP , Selling shares 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 Your Answer Certificate of Deposit Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries

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Your Answer

Reliance Industries

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 Answer Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore Your 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 Your Answer Special purpose vehicle True/False Question A mutual fund shall not invest more than 10% of is NAV in equ ity shares in cases of open ended schemes. Correct Answer True Your Answer False Multiple Choice Single Answer Question What is a put option? Correct Answer Right to sell Your Answer Right to sell True/False Question Venture capital finance is risk finance for entrepreneurial growth oriented companies. Correct Answer True Your Answer True ----------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The following are some of the regulations governing the NBFC's issued by RBI :-

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Correct Answer Without the registration certificate no company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must register with RBI 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of : Correct Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answ er Software Your Answer Software Select The Blank Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correc t Answer Mutual funds Your Answer Mutual funds

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Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1 Your Answer 0.3 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 Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue? Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes?

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Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False 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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False 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 , Offer document to contain disclosures Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25

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True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory n otes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP Your Answer DP -----------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Questi on Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer Without the registration certificate no company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must register with RBI 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of : Correc t Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answer Software Your Answer Software Select The Blank

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Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1 Your Answer 0.3 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 Multiple Answer Questi on Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional rin g , in stock market privately through home

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Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue? Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are no t permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False 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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False Multiple Choice Multiple Answer

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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 , Offer document to contain disclosures Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25 True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters

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Your Answer Tighten FII regulations , En sure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP Your Answer DP ----------------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question What is maximum percentage of regular expenses of the assets of a scheme? Correct Answer 0.03 Your Answer 0.1 Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters , Tighten FII regulations Multiple Choice Multiple Answer Question What are the requirements regarding promoter's contribution and lock in? 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years Your 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 10 years True/False Question Correct Answer Your Answer

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

Multiple Choice Multiple Answer Question 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 True/False Question At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset.

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Correct Answer Your Answer

True True

True/False Question The buy back of shares by Indian corporates has been very successful in India. Correct Answer False Your Answer True Select The Blank Question Directors should not be member of more than________ committees. Correct Answer 10 Your Answer 8 Multiple Choice Multiple Answer Question What are the stages in the process of book building broadly divided into? Correct Answer Syndicate formation , Issue process Your Answer Syndicate formation , Issue process , IPO 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 with 2 days , Annual disclosures Your 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 with 2 days , Annual disclosures Multiple Choice Multiple Answer Question What is an offer letter? Correct Answer Document addressed to the shareholders , Containing disclosures of the acquirer / PAC target company , Offer price Your Answer Document addressed to the shareholders , Containing disclosures of the acquirer / PAC target company , Offer price Multiple Choice Single Answer Question What is the main objective of credit appraisal ? Correct Answer Assess the repayment capacity Your Answer Assess the borrowing capacity Select The Blank Question SENSEX is calculated using ________ method. Correct Answer Market capitalization Your Answer Ratio analysis Multiple Choice Single Answer Question Which stock exchange was used by ketan parekh for buying operations? Correct Answer Kolkatta Your Answer Kolkatta Select The Blank

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Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities. Correct Answer Lead managers Your Answer Investors Select The Blank Question The VCs to flourish requires a well developed ________. Correct Answer Capital market Your Answer Capital market 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 True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer True Multiple Choice Single Answer Question What was the objective of the Kumarmangalam Birla Committee on Corporate Governance? Correct Answer Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders Your Answer Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders Match The Following Question Correct Answer

Your Answer

Looses the rights to vote

Non voting shares Non voting shares

Book building Depository

Bharati Televentures

Bank of securities

NSE

Bonus shares

First to introduce rolling settlements in the country NSE

BSE

True/False Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies. Correct Answer False Your Answer True True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer True

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Multiple Choice Single Answer Question A rated company can raise deposit worth how many times its net worth? Correct Answer 4 times Your Answer 2 times Multiple Choice Single Answer Question What is the time frame stipulated by SEBI for members intending to avail of the buy back offer? Correct Answer Minimum 15 days and not exceeding 30 days Your Answer 3 months from the date of the offer Match The Following Question Correct Answer Portfolio fairness

Your Answer

Collection of assets

Observe high standard of integrity and

Factors influencing portfolio decisions and Market risks

Business and Market risks

Business

Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Collection of shares and stocks SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms Portfolio Manager must fulfill the capital adequacy norms Multiple Choice Single Answer Question An AMC fees :Correct Answer To be borne by the individual schemes Your Answer To be borne by a group 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? Correct Answer 0 Your Answer 0 Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 5 days Multiple Choice Multiple Answer Question What is the procedure for action in case of default? Correct Answer Suspension of the certificate , Mutual fund / AMC cease to exist , Subject to the directions of the board with regard to records Your Answer Suspension of the certificate , Mutual fund / AMC cease to exist , Subject to the directions of the board with regard to records True/False Question Correct Answer Your Answer

ISIN is a unique identification number for security. True True

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Multiple Choice Single Answer Question What percentage of underwriting in the issues obligatory to the merchant bankers? Correct Answer 0.05 Your Answer 0.07 Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Interest tax Select The Blank Question A ________ can legally transfer beneficial ownership. Correct Answer Depository Your Answer Share holder 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 Merchant banker True/False Question Correct Answer Your Answer

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

Select The Blank Question With the introduction of ________ accounts the complaints about allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT Multiple Choice Single Answer Question 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 Answer Question Where is the difference in buying and selling dematerialized shares ? Correct Answer Process of delivery , Receipt of securities , Pledging the shares Your Answer Process of delivery , Receipt of securities , Pledging the shares 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 , If default subsists in respect of repayments of deposits,

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term loans to any financial institutions and redemption of preference shares or debentures 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 Your Answer Chemical Select The Blank Question BSE introduced an equity stock index known as ________. Correct Answer SENSEX Your Answer INDEX 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 the Kumarmangalam Birla report. Correct Answer True Your Answer False True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True Multiple Choice Single Answer Question Crisil's AAA rating stands for :Correct Answer Highest safety Your Answer Highest safety Select The Blank Question Securities offered in a pledge can change if a ________ agrees. Correct Answer Pledgee Your Answer DP Multiple Choice Multiple Answer Question Briefly describe the SEBI guidelines for the merchant bankers :Correct Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Your Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Multiple Choice Multiple Answer Question What is transposition cum demat form? Correct Answer Helps in effect change in the order of names , Dematerialize the securities Your Answer Helps in effect change in the order of names , Dematerialize the securities , Pledging the shares -------------------------------------------------------------

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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/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 True True/False Question In order to demater ialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Degree of popularity of the industry , Overall economic condition , Demand and supply capital Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Match The Following

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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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans ------------------------------------------------------------------------

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Which Act defines the term Stock Exchange? Correct Answer Securities Contract Regulation Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True

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True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question Who forms the Asset management company (AMC)? Correct Answer Group of trustees 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 True/False

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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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters

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Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker 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 wor th 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 Blank Question The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.

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Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your Answer 45 Multiple Choice Multiple Answer Question 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 opinion of board 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 True/False

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Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question Directo rs 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 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 False ---------------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What should be done if the address of investor changes? Correct Answer Inform DP and update records , Inform different companies Your Answer Inform DP and update records , Inform different companies , Inform SEBI

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Multiple Choice Single Answer Question What is the most common complaint of the investors? Correct Answer Non receipt of refund orders and allotment advise Your Answer No merchant bankers to the issue Multiple Choice Single Answer Question Of the net tangible assets how much percentage of assets should be held in monetary assets for a company to make an IPO? Correct Answer 0.5 Your Answer 0.5 Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer No stamp duty , Reduction in transaction cost , Holds funds in an account Multiple Choice Single Answer Question Which stock exchange was used by ketan parekh for buying operations? Correct Answer Kolkatta Your Answer Kolkatta 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? Correct Answer 0 Your Answer 0 True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question What are the limitations of refinance facility? Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of t otal 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 to exceed 15 % of NOF of NHB Multiple Choice Single Answer Question What was the percentage of public offering under the IPOs through the book building method ? Correct Answer 0.1 Your Answer 0.25 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 Multiple Choice Single Answer

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Question When is the security created from the date of issue of debenture? Correct Answer Within 6 months Your Answer Within 12 months True/False Question February UTI sought permission of SEBI to close 7 assured plans prematurely. Correct Answer True Your Answer True 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/False Question Reliance group has added over 10000 crores in market capital. Correct Answer True Your Answer True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Put option Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On the expiry date only Multiple Choice Multiple Answer Question 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 shares Your 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 , Company wants the employees to participate in the public issue due to under subscription LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What should be done if the address of investor changes? Correct Answer Inform DP and update records , Inform different companies Your Answer Inform DP and update records , Inform different companies , Inform SEBI Multiple Choice Single Answer Question What is the most common complaint of the investors? Correct Answer Non receipt of refund orders and allotment advise Your Answer No merchant bankers to the issue Multiple Choice Single Answer Question Of the net tangible assets how much percentage of assets shoul d be held in monetary assets for a company to make an IPO?

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Correct Answer 0.5 Your Answer 0.5 Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer No stamp duty , Reduction in transaction cost , Holds funds in an account Multiple Choice Single Answer Question Which stock exchange was used by ketan parekh for buyin g operations? Correct Answer Kolkatta Your Answer Kolkatta 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? Correct Answer 0 Your Answer 0 True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer False 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 to exceed 15 % of NOF of NHB Multiple Choice Single Answer Question What was the percentage of public offering under the IPOs through the book building method ? Correct Answer 0.1 Your Answer 0.25 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 Multiple Choice Single Answer Question When is the security created from the date of issue of debenture? Correct Answer Within 6 months Your Answer Within 12 months True/False Question February UTI sought permission of SEBI to close 7 assured plans prematurely. Correct Answer True Your Answer True

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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 Your Answer Trust True/False Question Reliance group has added over 10000 crores in market capital. Correct Answer True Your Answer True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Put option Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On the expiry date only Multiple Choice Multiple Answer Question 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 shares Your 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 , Company wants the employees to participate in the public issue due to under subscription Multiple Choice Multiple Answer Question Briefly describe the SEBI guidelines for the merchant bankers : Correct Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Your Answer Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc , Should have an authorization from SEBI True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True Select The Blank Question Securities offered in a pledge can change if a ________ agrees. Correct Answer Pledgee Your Answer Depositary ----------------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer

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Question Which Act defines the term Stock Exchange? Correct Answer Securities Contract Regulation Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question Who forms the Asset management company (AMC)?

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Correct Answer Group of trustees 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly r esults True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer

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Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 Blank

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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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is the eligibility n orm 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Select The Blank

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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 Blank Question 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 45 Your Answer 45 Multiple Choice Multiple Answer Question 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 opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surren der 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 Your 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 False Your Answer True Select The Blank Question Directors should not be member of more than________ committees. Correct Answer 10 Your Answer 10

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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 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 False ----------------------------------------------------------------------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. Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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.

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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 bn Your 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 crores Your 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 mutual funds 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answer Securities markets 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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describe the stock lending mechanism: Correct Answer Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates , Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee

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Your Answer Involves two parties one who is willing to lend and other who wishes to borrow securities at 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 to exceed 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 37809 Your 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 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 card Your Answer ATM card

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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 the shareholders 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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer

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Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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 regulat ions 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 of credit 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 False Your Answer False Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

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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 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 de bt 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 Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints about allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT -------------------------------------------------------------------------

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 ? 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 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. Correct Answer 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/False Question

MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA. Correct Answer False

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Your Answer

True

Select The Blank Question 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/False Question

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 NSE settlements in the country

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 Blank Question A company with highly rated instrument has the opportunity to ________ by quoting less interest rates. Correct Answer Reduce the cost of borrowing Your Answer True/False Question

Reduce the cost of borrowing

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 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 :Correct Answer 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/False Question

In order to dematerialize the securities one has to fill DRF.

Correct Answer True Your Answer

True

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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/False Question

A custodian can transfer beneficial ownership legally.

Correct Answer False 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? Correct Answer 0 Your Answer

0

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

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

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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 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 , 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? Correct Answer 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 , If default subsists in respect of repayments of deposits, term loans to any financial institutions and redemption of preference shares or debentures True/False Question

The depository can legally transfer beneficial ownership.

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Correct Answer 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 Interbank sale and (Repo) repurchase of securities

Operations in call money markets

Commercial paper

Means of raising short term debt by companies

Means of raising short term debt by companies

STCI

Operations in call money markets

Launched in fiscal 2004-05

Market stabilsation Bonds Launched in fiscal 200405

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 out of firm allotment in public issues right issues etc? Correct Answer 21 days Your Answer

21 days

True/False Question

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

True

Select The Blank

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Question

The right to buy is called ________.

Correct Answer Call option Your Answer

Call option

Multiple Choice Single Answer Question 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? Correct Answer 1 Your Answer

3

Select The Blank Question Among the closed schemes, 4 long term assurance schemes were launched with a return ranging between ________. Correct Answer 13 - 14% Your Answer

15 - 16%

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

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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 ? Correct Answer 0.1 Your Answer

0.25

Multiple Choice Multiple Answer Question 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

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CAPITAL MARKETS Q –1 Write a note on Indian Capital Markets Ans: Capital markets mean the market for all the financial instruments, short term and long term, as also commercial, industrial and government paper. The capital market is a market where borrowing and lending of long term funds takes place. The government both central and state raises money in the capital market, through the issue of government securities. Capital markets refer to all the institutes and mechanisms of raising medium and long-term funds, through various instruments available like shares, debentures, bonds etc. With the pace of economic reforms followed in India, the importance of capital markets has grown in the last ten years. The governments, through Reserve Bank of India, as well as financial institutions also raise a lot of money from these markets. The capital market serves a very useful purpose by pooling the savings of individuals and making them available to the business world. The Global and American depository markets perform these functions for companies across the globe.

The important constituents of Capital Market are:        

The Stock Exchanges Banks The investment trusts and companies Specialized financial institutions or development banks Mutual funds Post office savings banks Non-Banking financial institutions International financial investors and institutions

Since the liberalization of the Indian economy we have seen that foreign financial institutions have come to Indian capital markets in large numbers. These institutions have invested close to $14 billions in Indian markets. Till some years ago many Indians were uncomfortable with the idea of investing their money in stock markets. Many young Indians now look to stock markets as good place to make investments. Much credit for this transformation is rightly been given to late Mr. Dhirubhai Ambani, of Reliance Industries Ltd. Along with these developments the opening of mutual fund industry, first for banks and then for private players, has also helped in the spread of equity culture there have been many other developments that have taken place in the last few years. Some of these developments like scripless trading and establishment of Securities and Exchange Board of India as the regulatory authority for these markets have taken Indian markets to international standards. Many Indian companies have used the capital markets have used the capital markets in the last decade to raise large sums of money for their projects. It is expected that Rs 15000 crores are likely to be raised form primary markets alone. Another factor that has helped the development of these markets is that, Government of India is slowly disinvesting from the public sector companies. In the coming months two public sector companies viz. Maruti Udyog Ltd. and BPCL’s shares will be offered to the public through initial public offers.

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Indian debt markets are also sought to be made more vibrant. Recently the reserve Bank of India has allowed the participation of individuals in the government securities market, which till now was dominated by the banks, financial institutions and mutual funds. The Indian stock market has risen consistently since June 2003. The FII’s are putting more money in these markets, as they believe the valuations are very attractive and are likely to give good returns in short and medium term. The falling interest rates on bank deposits and bonds have probably forced many investors to look at stock markets again, as no other investment is likely to give the return that these markets can give. One interesting point to emerge is that the so-called old economy stocks are getting back in the limelight. The companies of Tata, Birla and Ambani groups have seen solid upward movement in their market capitalization. The Reliance group which has five listed companies has added over Rs 10000 crores in market cap since Apr’03. The current trend also shows that the three leading IT companies viz. Infosys, Satyam and Wipro have eroded their market cap by a whopping Rs 20000 crores. IN the financial year 2002-03 following Table you will find the figures of total dividend paid to the promoters HLL Reliance Hero Honda VSNL Castrol Nestle

Rs 624 cr Rs 325 cr Rs 187 cr Rs 172 cr Rs 145 cr Rs 102 cr

This is the list of companies whose promoters have received dividend in excess of Rs 100 crores. The government has decided to amend two acts namely Securities Contracts (Regulation) Act, and the Depository Act to remove some legal hurdles to the corporatisation and demutilisation of the stock exchanges The amendment to SCRA will facilitate the derivatives trading in the interest rate futures and options. The proposed amendment to the act will remove this hurdle and derivative trading can commence. Recently the finance ministry and the banking and capital market regulators have cleared the proposal to allow the banks to become members of stock exchanges and trade directly in interest rate derivate Another important step initiated by SEBI is that it is going allow Indian companies to issue equity simultaneously in the domestic and international markets. Thus government is now in the process of disinvesting from various companies in the first quarter of 2004. A slew of issues are round the corner. The government has decided to off load equity in such companies like ONGC for the first time. The government is also likely to disinvest equity in GAIL. One of the most attractive proposals that has come from the government this round of disinvestments is that the government has decided to issue the equity to the retail investors at a discount to their market price. The shinning India seems to be a big news overseas as well. Thus future of capital markets seems bright.

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Q –2 What are Mutual funds? What are the different types of Mutual funds? Ans: One can define a Mutual fund as a trust that pools in the savings and funds from a large number of investors who have a common financial goal. Mutual funds issue units to investors, which represent equitable rights in the assets of the mutual fund. Mutual fund by its nature is diversified i.e. its assets are invested in many different securities. Investments in the mutual funds may be in the form of stocks, bonds or money market securities or combination of these. There are a number of schemes of Mutual fund and all of them have different character and objective

Types of Scheme offered by the Mutual funds: Open-ended vs. Closed-ended Schemes: An open-ended scheme is a scheme, in which an investor can buy and sell units on daily bases; the scheme has a perpetual existence and a flexible, ever changing corpus. In these schemes the investor can invest or disinvest any amount, any time after the initial lock period. These are not listed in stock exchanges and can be only bought and sold to the mutual fund. A closed-ended scheme is one in which, the subscription period for the mutual fund remains open only for the specific period, called the subscription period. At the end of this period, the entire corpus is disinvested and the proceeds distributes to the various unit holders. Thus after final distribution, the scheme ceases to exist. They can be listed on the stock exchanges. Pure Growth Schemes A pure growth scheme aims at generating long-term capital appreciation for the investors. The objective is achieved by investing a substantial portion of the corpus in high growth equity shares to other equity-related instruments of corporate bodies. The dividend can be declared and distributed as and when the boards of trustees approve it but the principal remains capital appreciation. Pure income schemes Their aim is to generate and distribute regular income to the investors. This is done by investing a substantial portion of the corpus on high-income yield/fixed income instruments, such as debentures, bonds and so on. Balanced Schemes The aim of these schemes is both, to distribute regular income and also provide capital to investors by balancing the investments of the corpus between the high growth equity shares and the regular income earnings securities Tax saving scheme These schemes offer tax rebates to the investors under the income tax act, under sec 88(2), which entitles an investor 20% rebate in income tax upto a maximum investment of Rs 10000 per annum

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These are two types of mutual funds according to the investment target Debt-Oriented Schemes This type of schemes invest most of the funds in fixed income instruments like debentures of the private sector companies, public sector bonds, Government securities and money market instruments, the balance is invested in equity shares Equity-oriented Schemes These schemes invest the bulk of their funds in \equity shares and in fixed income avenues Sector funds Sector funds specialize in the stock of single industry or market sector. The fund’s portfolio is invested among a handful of stocks in the same industry and thus these can be regarded as aggressive funds. The diversification is lower in the case of these funds and hence the risk borne by the investor is higher. These sector fund buyers are likely to be more sophisticated and look for a balance between the diversification of a conventional fund and the narrow focus of buying shares in an individual company Money Market mutual funds These are designed as a conduit through which the investors can earn market related yield on the money market instruments The mutual fund industry is going through existing times these days. Many public sector and private sector banks who are active in mutual fund industry are restructuring their AMC’s. Many Indian companies are already running their mutual fund schemes in partnerships with foreign collaboration. HDFC and ICICI have both got such tie-ups. They are likely to introduce innovative products for the investors.

Q – 3 Explain the role of Merchant Bankers in the Initial Public Offerings? Ans: Merchant banks are a very important factor in the capital markets. They have a big role to \lay especially, in placing equity in the primary markets, through the Initial Public Offerings The merchant bankers help corporate to raise money from the markets through the issue of shares, debentures, bonds etc. they usually render the following services:       

Drafting of prospectus and getting it approved from the stock exchanges Obtaining consent/ acknowledgement from SEBI Appointing bankers, underwriters, brokers, advertisers, printers etc Obtaining the consent of all the agencies involved in the public issue. Holding road shows, to sell the issue Deciding the pattern of advertising Deciding the branches where application money should be collected. Page 4 of 19

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Deciding the dates of opening and closing of the issue Obtaining the daily report of application money collected at various branches Obtaining subscription to the issue. After the close of the issue, obtaining consent of stock exchanges for deciding basis of allotment etc.

The merchant bankers help the companies to determine their capital structure       

The merchant banker offer following services during the public issues: Preparing an action plan and budget for the total expenses for the issue Preparation of application to SEBI and assistance in obtaining the consent from SEBI Drafting of the prospectus Selection of underwriters, brokers etc. Selection of bankers to the issue Selection of advertising agency for publicity

Obtaining approval of the institutional underwriters and stock exchanges for publication of the prospectus. The responsibilities of merchant bankers in management of public issue are many. We have seen that many unscrupulous promoters have raised money from the market. It is therefore necessary that merchant bankers are satisfied with the viability of the project, which merchant bankers can then see to the investors with confidence. It is therefore important for the reputation of merchant bankers, to only associate themselves with good issues. The merchant bankers should act as the custodians of the investor’s money and this puts a lot of responsibility on them. They have to give a certificate to that effect to SEBI. It is responsibility of the merchant bankers to get the securities listed on all the stock exchanges mentioned in the prospectus. Non-receipt of refund orders and allotment advice within the stipulated period is a most common complaint of the investors. It is the responsibility of the lead managers/merchant bankers to ensure timely refunds and allotment of securities to the investors. The merchant bankers have to certify that they have verified everything and that they believe it to be true. This would ensure that all the fake companies, whose intention is to defraud the investors, do not have access to the market

Merchant Bankers need to posses following qualities They must have knowledge and information about the various aspects of the capital markets trends prevailing in the markets and the psychology of the investors  They must have the ability to evaluate and analyze various aspects concerning, the formation of an industrial project  Integrity and maintenance of high professional standards  They must be more involved with the clients and must update the knowledge 

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Q – 4 Write Notes on: A) B) C) D)

Book Building Depositories Rolling Settlements Non-Voting shares

Ans: A) Book Building - Companies generally raise capital through the public issue. In this system the issuer is not able to ascertain the price that the market may be willing to pay for the shares, before launching the issue. This is where book building can come to their aid. This is a mechanism whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and the underwriters. The book building process broadly involves two stages 1. Syndicate Formation 2. Issue process

The main steps in this process are:      

The issuer company appoints a Lead manager to the issue known as the Book Runners. The book runner forms a syndicate to procure subscriptions to the issue The syndicate members take steps for demand creation and for feedback. Orders are procured from investors BR builds the book. Based on the orders received from various bidders through the syndicate members, the BR determines the size and the price of the issue. BR to close the book in consultation with the Issuer and finalizes the allocation to the syndicate members who in turn enter into procurement agreement. Final prospectus is to be filled with Registrar of Companies along with procurement agreements. The placement portion is to close one day before the opening of the public creation.

B) Depository – A depository is an organization, which holds securities of investor in electric form at the request of the investor through a registered Depository Participant. It can be compared with a bank, which holds the funds for depositors. A Bank-Depository analogy is given below

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BANK DEPOSITORY – AN ANOLOGY BANK DEPOSITORY  Holds funds in an account  Hold securities in an account  Transfers funds between accounts on the instruction of the account holder

 Transfers securities between accounts on the instruction of the account holder

 Facilitates transfers without having to handle money

 Facilitates transfers of ownership without having to handle securities

 Facilitates safekeeping of money

 Facilitates safekeeping of shares

At present two Depositories viz. National Securities Depository Limited and Central Depository Services (I) Limited are registered with SEBI A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor. A DP can offer depository services only after it gets proper registration from SEBI. The minimum net worth stipulated by SEBI for a depository is Rs 100 crore.

Benefits of availing depository services        

A safe, convenient way to hold securities Immediate transfer of securities No stamp duty on transfer of securities Reduction in paperwork Reduction in transaction cost Nomination facility Transmission of securities is done by DP eliminating correspondence with companies Automatic credit into demat account of shares

C) Rolling Settlements – A rolling settlement is one in which trades outstanding at the end of the day have to be settled (payments made for purchases or deliveries in the case of sale of securities) ate the end of the settlement period. In a T + 5 rolling settlement, a transaction entered into Monday has to be settled on the fifth working day, which will be the subsequent Monday, when either pay in or pay out takes place. Most developed countries follow the rolling settlement system. UK and US follow a rolling settlement (T + 3) system. In India we are presently following the settlement cycle of T + 3. In rolling settlements, payments are quicker than in the weekly settlements, thus investors benefit from increasing liquidity. Rolling settlements necessarily require electronic transfer of funds and demat facilities in respect of securities being traded. This is because handling large volumes of paper on a daily basis is extremely difficult for the clearinghouses of stock exchanges.

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D) Non-Voting Shares – Shareholders have two right a) dividend and b) voting rights. In case of non-voting shares one right gets excluded i.e. the shareholder looses the right to vote, even though he is the member of the company. NVS therefore have to be more attractive than those that carry full voting rights are. This can be done in two ways a) by giving discount on the issue price and b) by giving higher dividend on these shares. Industry needs resources for modernization, expansion and new projects. But raising funds by way of equity share has an inherent danger of loosing control to others. The ability to raise debt has its own limitations. NVS can provide a way out to companies to garner of the promoters’ stake and control. There can always be investors who would prefer a higher return, rather than the right to vote. It is evident that very few shareholders actually turn up for the annual general meetings of the companies. They are not really interested in the affairs of the company or wish to participate in the affairs of the company.

Q – 5 Write a note on Money Markets. What is the wholesale Debt Market of NSE? Ans: The money market is a market for overnight to short-term funds, and for short-term money a financial asset that are close substitutes for money. The major participants in this market are the commercial banks, the other financial intermediaries, large corporate and the Reserve Bank of India. The objectives of these market are to provide:  A mechanism for evening out short-term surpluses and deficiencies  A focal point of central bank intervention for influencing liquidity in the economy  A reasonable access to the users of short-term funds to meet their requirements at realistic cost. In the money market the operations are for short d\duration, this is wholesale market. The volumes here are very large and therefore there is need for professionals to operate in these markets. Wholesale Debt Market WDM or money market is a market where pure debt instruments such as government securities, treasury bills, public sector bonds, corporate debentures, commercial paper, certificate of deposits etc. are traded  

A few large usually institutional investors an a very high volume of trade dominate his segment The exchange authorities closely monitor the settlements.

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Trades on this market are settled on the basis of trade for trade i.e. each transaction is settled individually. Each trade has a settlement date specified upfront at the time of order entry and is used as a matching parameter. Gift securities are immobilized with the RBI and they maintain a book entry of holders.

Money Market Instruments 1. “T” Bills 2. Commercial Paper (CP) 3. Certificates of Deposits (CDs) 4. Money Market Mutual Funds 5. Repos and Reserve repos Market

“T” Bill - “T” bills were introduces to stabilize the money market. They are sold on the basis of fortnightly auction, but the amount, however is not specified in advance. Commercial Paper Market - A CP is a short-term negotiable instrument, consisting of usance primary notes with a fixed maturity, indicating the short-term obligation of an issuer. Companies as a means of raising short-term debt, issue it. It is issued at a discount to face value basis but can also be issued in interest bearing form. A CP has several advantages to the issuer. It involves very little documentation. It is flexible in terms of maturity. It is unsecured. They are negotiable and transferable instruments and are highly liquid. Certificate of Deposits – A CD is a document title to a time deposit and can be distinguished from the conventional time deposit in respect of its free negotiability and hence marketable. CD's are a marketable receipt of funds deposited in a bank for a fixed period at a specified rate of interest. The CD can be issued only by scheduled commercial banks at a discount rate from the face value. The CD can be issued to individuals, companies, corporate, trust funds, association and so on. They are freely transferable by endorsement and delivery payable at a fixed date without any grace period Money Market Mutual funds – It is a conduit through which they can earn market related yield. MMMFs invest the funds collected from the investors in instruments like, a) Treasury bills and government securities, b) Call/Notice Money, c) commercial bills, d) commercial paper, e) Certificate of Deposit Repos and Reverse Repos – Repo/ ready forward /purchase (buy-back) transactions/deal is an agreement between a seller and buyer stipulating the sale and later repurchase of securities at a particular price and a date. It is essentially a short-term loan to the seller with securities issued as collateral. Similarly, the buyer purchases securities with an agreement to sell the same to the seller on agreed date in future at a prefixed price.

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Q – 7 What is meant by buyback of shares? What are the legal provisions for buyback in India? Ans: A company can buy-back their own shares or other specified securities including employees’ stock option from out of 1) Its free reserves 2) The securities premium account 3) The proceeds of an earlier issue other than fresh issue of shares made specifically for buyback purpose. The share buy-back falls under section 77 of companies act

Following condition have to met in the process of buy-back         

  

The buy-back has to be completed within 12 months of passing the special resolution Buy-back cannot exceed 25% of the total paid capital plus free reserves of the company. Post buy-back the debt equity ration shall not exceed 2:1. Shares that are eligible for buy-back have to be fully paid Before making purchases under this scheme companies have to file with Registrar of Companies and SEBI a declaration of solvency. The securities purchased under the buy-back arrangement should be extinguished and physically destroyed within seven days of the last date of the completion of the buy-back. A company which buys-back its securities is prohibited from further issue of securities within a period of two years, except bonus issues Companies are not allowed to buyback securities. A) Through any/ own subsidiary company, B) through any/ group of investment company The explanatory statement annexed to the notice should contain following additional disclosures – the minimum prices at which the buyback of securities would be made, the quantum of securities proposed to be tendered and the details of their transactions and their holdings for the last six months prior to the passing of the special resolution for the buyback including the information of the number of shares acquired, the price and the date of acquisition The company must open an escrow account and deposit the amount as required by the SEBI regulations The company has to appoint a merchant banker for the purpose of the buy-back. The offer should remain open to the members for period not less than fifteen days and not exceeding thirty days

Obligations of the company in share buy-back - The company has to ensure    

The letter of offer, the public announcement should contain true, factual and material information The company should not issue any securities including by way of bonus shares till the date of closure of the offer made under these regulations The company must pay the consideration only by way of cash The company should not withdraw the offer after the draft letter of offer is filled with SEBI or the public announcement in this regard is made.

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The promoter or the person in control should not deal in the securities of the company in the stock exchange during the period when the buy-back offer is open.

The effects of buyback  It is way of returning surplus cash to shareholders  Increase the underlying share value. The decrease in share capital will increase the earnings per share  It helps to support the prices during a period of temporary weakness  It helps the company to maintain target capital structure  This is a method used for down sizing, especially during declining sales  Share buy-back leads to erosion of the net worth of the company. This has negative effect on the creditors of the company.  If the shares are not extinguished then the company becomes its own shareholder. Recently SEBI has allowed buy-back of shares upto 10% of total shares, without the requirement of the special resolution. The only requirement is the board resolution passed to this effect. The company cannot issue fresh equity shares for 12 month after such a buy-back. The Indian experience of buy-back has displayed some curious results so far. The companies who went for buy-back immediately after it was allowed, seem to have paid a very high price for the buy-back. Due to this the market prices post buy-back did not rise. This trend has been visible even today. Another trend that is visible these days is that many MNCs are buying back their shares from the domestic market with the express purpose of delisting, these shares form the Indian stock markets. As per the company law if promoters hold more than 90% equity, then the company can be delisted. Many MNCs like Philips, Atlas Capco, and Cadbury are doing this.

Q – 8 Write a note on Portfolio Management. Ans: A portfolio is collection of assets. In portfolio management these assets are financial in nature. The portfolio manager invests the money in divers s\assets with the aim of maximizing return and minimizing the risk

Functions of Portfolio Management  To frame investment strategy  To provide a balanced portfolio, which will hedge against inflation and also optimize returns.  ]to make timely decisions regarding sale and purchase of securities.  To maximize after tax returns by investing part of the portfolio in tax savings investments. Page 11 of 19

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Advantages of portfolio management for individuals  Capital markets over a long period has always given a better return than any other investment  The investment in stock markets by individuals is a complicated business. It is better that a professional handles this.

Steps in portfolio Management  This is an ongoing process and following steps are taken:  Specification and qualification of investor objectives, constraints and preferences in the form of policy statement  Determination and quantification of capital market expectations for the economy, market sectors, industries and individual securities.  Allocation of assets and selection of individual securities  Performance measurement and evaluation of the portfolio to ensure that investor’s objectives are attained  Monitoring the performance  Rebalancing the portfolio whenever necessary

Factors that influence portfolio decisions: 

Investor’s characteristics - Characteristics such as age, health condition, personal habits, business or professional situation affect the risk taking ability of an investor. A young person for example may put emphasis on growth and lesser on liquidity.



Liquidity needs - Liquidity needs vary considerable among investors.



Tax considerations – different individuals have different incomes and have different tax liabilities. Tax treatment from income from investment can be different for different securities. High tax bracket investors are interested in investments that are designed to postpone a tax, or to reduce tax or avoid paying taxes. They will also be interested in investing in Tax-free instruments.



Safety of principal – the investor is expected to invest in such securities, which would increase in value proportionate to the inflation to protect from the purchasing power loss of the money.



Assurance of Income – Investors have different current income needs. If an investment income needed for current consumption, then this will become the prime objective

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

Investment Risk – All investors want maximum possible return from their investments, but are not always willing to take the necessary risk for such returns.



Interest rate risk – interest rate risk is the risk of loss of principal brought about the changes in the interest rate paid on new securities currently being issued. Increase or decrease in interest rate will have an effect on the market prices of such securities.

SEBI regulations governing Portfolio Management activities:  A portfolio manager must register himself with SEBI  The applicant needs to have necessary infrastructure.  He must have in his employment at least two persons who are experienced in the business of portfolio management  The applicant must fulfill the capital adequacy norms  The applicant must not be involved in any litigation  He must have the professional qualifications from a recognized institution in finance, law, accountancy or business management  The applicant has to pay registration fees as are in force.  The portfolio manager shall place the funds of all the clients in a separate account  The portfolio manager shall charge an agreed fee from the client for rendering portfolio management services without guaranteeing or assuring , either directly or indirectly any such return and such fee shall be independent of the return to the client.  The portfolio manager shall purchase or sell securities separately for each client.

Q – 9 Explain in brief the Derivative trading on stock exchanges. Ans: The Securities & Exchange Board of India (SEBI) has recently taken a decision to expand trading in derivatives to options on stock markets indices and on individual stocks. Derivatives allow investors to trade in instruments derived from the cash market where typically buyers take delivery on payment of cash. Such instruments – futures and options - allow investors to hedge their risk or even take speculative positions.  How can you Hedge using these instruments? – If you feel the market is going to fall and the value of your portfolio is going to diminish you take position on the futures market. If it rises , even though there is a loss on the futures position, the underlying cash portfolio rises and this helps risk minimization. It is for the reason that indices, which mirror closely\, a very wide basket of stocks, prove successful in index futures trading.  What is futures contract? – A futures contract is an agreement between buyer and a seller for the purchase and sale of a particular asset at a specific future date. In a futures contract, the price at which the assert would change hands in futures is agreed upon at the time of entering into the contract

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 What is the period for which a futures position could be taken? – Currently, both the stock exchanges have come out only with three contract: one month, two month and three months contracts each of which expires on the last Friday of the respective month.  What are the options? – Options are contract which go on a step further that futures contracts in the sense that they provide the buyer of the option the right, without the obligation, to buy or sell a specified asset at an agreed price on or up to a particular date. For acquiring this right, the buyer has to pay a premium to the seller. The seller on the other hand, has the obligation to buy or sell that specified asset at that agreed price. This makes options more of an insurance product where the downside risk is covered for the payment of a certain fixed premium.  For e.g. An investor buys a call option to purchase equity shares of BSES ltd at the end of 3-0 days at a price of Rs 200 at premium of rs 10. If the market price of the share on the day of expiry is say Rs 230, the investor will exercise the option and buy the share at Rs 200 and earn Rs 20 per share ( Rs 230 – Rs 200 – Rs 10). On the other hand, if the market price falls to say Rs 170, then the investor will not exercise the option, and the maximum loss to him will be only Rs 10 being the option premium paid. Thus the losses are limited while the profits are unlimited.  What is a call or put option? – the right to buy is called a call option while the right to sell is called a put option. The buyer of the call option can call upon the seller of the option and buy for him, the underlying instrument at any point of time on or before the expiry date by exercising his option at the agreed price.

Stocks to be eligible for options trading should meet the following criteria: 1) The Market capitalization during the preceding six months and average free float market capitalization (non-promoter holding in the stock) should not be less than Rs 750 crore. 2) The stock should appear in the list of top 200 scrips based on the average daily volume during the preceding six months. 3) The stocks should be traded at least 90% of the trading days during the preceding six months 4) Non promoter holding in the company should be at least 30%

Q – 12 Write a note on Credit and Debit Cards. Comment on future of plastic money in India Ans: Today’s world is known as the world of plastic money, in the form of Credit Cards, Debit cards and Charged Cards. As these cards are very convenient they have become very popular

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over the last few years in India. Today we find that most banks are offering these cards to their customers.

Parties to the Transaction The issuers are mainly Banks. The banks charge upto 3% from the member establishment. They charge an annual fee from their customers. The credit period made available to the customers is about 30 to 45 days but this comes with a very high cost of around 2.5% per month. Card Holders The cardholders include both the individuals and the business organizations. Member Establishments (MEs) These are the establishments enlisted by the card issuers, who accept payment through cards for goods sold or services rendered. Mes are enlisted after taking into consideration their reputation, integrity, standing and popularity. Normally, the transactions against an individual credit card should not exceed the floor limit. They have to pay to the issuer a certain percentage of discount on the purchases made against the cards. Clearing Agencies A card issuer affiliates itself with Master card International or Visa International the two leading international card issuers, which act as clearing agencies. These companies also allow the issuing banks to use their logo on their cards. A credit card is a payment mechanism, which enables the holder to buy goods and services on credit. This credit is given by the issuing bank to the cardholder. Concept of Debit Card Unlike a credit card that is a pay later product, a Debit card is a pay now product where the customers account with the issuer is immediately debited to the extent of the value of the transaction. The debit card program needs terminal, known as the Point of sale Terminal. For making the payment the card is inserted in the machine. The machine places an automatic call, checks the balance in the account and reduces the balance to the extent of the invoice. As far as the banks are concerned this mechanism is least risky, as the bank extend no credit to the customer In both type of cards when a cardholder makes a purchase he hands over the card to the ME. ME checks the number on the card against the Hot List or Warning Bulletin provided to him by the issuer. This is the authenticity test, which proves whether the cardholder is genuine owner of the card or not. The cardholder is also required to sign the voucher, and this signature has to tally with the one on the credit card. Collection After the purchase is transacted the ME approaches the issuing bank or its clearing representative and claims the amount through the copy of the sales voucher. The bank in turn discounts this and makes payment to the establishment.

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IN India the credit card business has been growing very fast, with the advent of new private sector banks, pushing this business very aggressively. Many Indians are now willing to use the credit cards regularly especially in the urban areas. Banks are offering various facilities like free accident insurance cover, low yearly fees, rewards points, loans on credit cards etc. We must also look at the problems associates with the business of credit cards. It has been reported that in India the bad debts on account of credit cards are already amounting to the staggering Rs 800 creores and increasing day by day. It is important that the banks offer credit cards to individuals and organizations who have good reputation and good credit history. Credit appraisal of the customers must be done strictly. People who own more than one card are able to defraud many banks. Efforts are now on to gather credit information from different sources and make this data available to all banks.

Q – 14 Write Notes On: A) Eligibility for refinance by NHB B) Differentiate between lease and HP C) SEBI regulations for Portfolio Management D) Corporate governance Ans: A) Eligibility for refinance by NHB – These days Housing finance is in the limelight. Housing finance is offered by many specialized Housing Finance Companies approved by the regulator National Housing Banks (NHB), a subsidiary of reserve Bank of India. Annual limits are fixed for the HFCs on various parameters such as average refinance drawn during the pervious years, repayment of refinance earlier availed from it and the overall borrowing limit prescribed under the refinance policy. The refinance made available to any HFC is not to be more than 60% of its outstanding housing loans at any point of time. The HFCs, whose overdues of over three months exceed five percent of the aggregate demand for the year, are ineligible to draw further refinance.     

The Limits of Refinance Cannot exceed 5 times of Net Owner Funds of HFC Not to exceed 50% of total loan funds of HFCs Not to exceed 15% of Net owner funds of NHB, 25% if HFC is sponsored by scheduled banks Demand overdue for more than 3 months, not to exceed 5% of aggregate demand Restricted to 30% of HFCs disbursement on project handling

Regulatory guidelines of NHB  Capital adequacy norms – By ensuring a minimum capital adequacy ration, the regulations are assured that sufficient capital is existent so as to withstand the abnormal shocks in the financial system,

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 NHB has specified that of the total receivables of the housing finance company, at least 95% of the total money should be recovered.  NHB does not specify any norms as far as determination of money.  Reporting norms All HFC’s are mandatory required to file annual return with NHB, with a copy to RBU stating  Particulars of Deposits  Particulars of exempted borrowings not counted as deposits  Statement showing net owned funds, statement showing outstanding loans and advances  Statement of investments  Statement relating to deposits and maintenance of liquid assets. B) Differentiate between lease and HP – Lease An equipment lease can be defined as a contractual arrangement where the Lessor of equipment transfers the right to use the equipment to the lessee for an agreed period of time in return for rental. At the end of the period the asset reverts back to the lessor, unless there is a provision

Advantages of Lease  Flexibility  Tax benefits  Less paperwork  Convenience  100% financing  Better utilization of own funds The lessee is now expected to capitalize the leased assets in his book and claim depreciation on these assets as far as book profits are concerned. The lessee however is allowed to claim lease rentals as tax-deductible expense as far as Income Tax Act is concerned. The lease agreement does not provide for a transfer of ownership to the lessee either at the ender of the lease period. The lease rentals are so structured as to recover the entire investment cost during the primary period. Typically the lease rentals are payable in equated monthly installments at the beginning of every month. As per the existing provisions of income tax act, the lease income is taxed in the hands of the lessor as business income and the lessor claims the tax relevant depreciation on the equipment leased as a tax-deductible expense. Service tax has been imposed on the interest portion of the lease rental; this tax has been increased in this year’s budget from 5% to 8%. Some states also impose sales tax on lease transactions, following the 46th constitutional amendment. In a financial lease, lessee is under obligation to pay lease rental regardless of its financial condition Hire Purchase A H.P can be defined as a contractual arrangement under which the owner lets his goods on hire to the hirer and offers an option to the hirer for purchasing the goods in accordance with the terms of contract.

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Features  The finance company purchases the equipment from the equipment supplier and lets it on hire to the hirer  The hirer may be required to make a down payment and the balance can be repaid in maximum 60 months  The interest is calculated on the basis of flat rate of interest.  During the currency of the contract the hirer can opt for an early repayment and purchase the asset. The hirer, exercising this option, is required to pay the remaining amount of hire purchase installments less an interest rebate. Tax and Accounting Aspects Hire purchase transactions are liable to sales tax. The cash purchase price of the asset is capitalized and the capital content of the hire purchase installments is recorded as a liability. Depreciation is charged on the cash purchase price of the asset in line. The hire purchase price less the installments received is shown as a receivable (stock on hire) and the finance income component of these installments is shown as a current liability.

C) SEBI regulations for Portfolio Management –  A portfolio manager must register himself with SEBI  The applicant needs to have necessary infrastructure.  He must have in his employment at least two persons who are experienced in the business of portfolio management  The applicant must fulfill the capital adequacy norms  The applicant must not be involved in any litigation  He must have the professional qualifications from a recognized institution in finance, law, accountancy or business management  The applicant has to pay registration fees as are in force.  The portfolio manager shall place the funds of all the clients in a separate account  The portfolio manager shall charge an agreed fee from the client for rendering portfolio management services without guaranteeing or assuring, either directly or indirectly any such return and such fee shall be independent of the return to the client.  The portfolio manager shall purchase or sell securities separately for each client.

D) Corporate governance – As stated by Nobel Laureate Milton Friedman “Corporate Governance is to conduct business in accordance with shareholders’ desire while confirming to local laws and customs”. Corporate Governance is all about promoting Corporate Fairness, Transparency and Accountability. For implementing Corporate Governance, Cadbury Committee was set up. The report submitted by Sir Cadbury proved to be a landmark in the field of Corporate Governance. The objective of the committee was “enhancement of the long term shareholders’ value, while at the same time protecting the interest of other stakeholders

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The key recommendations of the report were  Board of Directors – The board has 5 Basic Responsibilities 1. Overseeing Strategic Development and Planning 2. Management selection 3. Maintenance if Good Member Relations 4. Protecting and optimizing the organizations Assets 5. Fulfilling Legal requirements  Composition of the Board of Directors – lay emphasis on the caliber of the nonexclusive directors  Audit Committee – Acc to this the key components are the Board, the internal auditor and the outside auditors  Disclosure of Remuneration Package  Board Meetings – should be held at least four times in a year  Functions of Management – Chief executive, executive-directors and the key managers 1. Assisting the Board in its decision making process 2. Implementing the policies 3. Ensuring compliance 4. Providing timely, accurate, substantive and material information.  Shareholders 1. Have certain rights and responsibilities 2. Effectively participate in General Body Meetings 3. Should demand complete information

Information to be placed before Board of Directors           

Annual Operating plans Capital Budgets Quarterly results Minutes of meetings of audit committee and other committees of the board The information on recruitment and remuneration of senior officers Fatal or serious accidents, dangerous occurrences Any issue, which involves possible public or product liability claims of substantial nature Details of any joint venture Transactions that involve substantial payment towards Goodwill Significant labour problems and their proposed solutions Sale of material nature of investments, subsidiaries, assets, which is not in normal course of business

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CAPITAL MARKET ASSIGNMENTS LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Information technology, communication and entertainment represent ________ stocks. Correct Answer ICE Your Answer ICE 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 True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Call option Multiple Choice Single Answer Question What percentage of funds should be invested in unlisted companies? Correct Answer 0.74 Your Answer 0.74 Multiple Choice Single Answer Question Who is responsible to get the securities listed on all the stock exchanges? Correct Answer Merchant banker Your Answer SEBI 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 Multiple Choice Single Answer Question What is the amount invested by the FII's in the Indian Capital market? Correct Answ er US$14 bn Your Answer US$14 bn True/False Question The depository can legally transfer beneficial ownership. Correct Answer True Your Answer True Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 38200 Multiple Choice Multiple Answer Question Describe the regulatory aspects of mutual funds : -

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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 disclosures Your 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 disclosures Multiple Choice Multiple Answer Question Describe in brief the SEBI regulations for venture capita l funds :Correct Answer Must disclose investment strategy , VCF's must be registered , Cannot carry out another activity Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer True Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On or before the expiry date True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is the estimated figure of credit card defaults in India? Correct Answer 800 crores Your Answer 800 crores True/False Question Depositary facilitates transfers without having to handle money. Correct Answer False Your Answer False Select The Blank Question AA rated companies can raise ________ of its net worth. Correct Answer 2.5 times Your Answer 2 times Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

Multiple Choice Multiple Answer

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Question What are the eligibility norms for an unlisted company for making a public issue? Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net worth Your Answer Issue size shall not exceed five times of its pre issue net worth , Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years Select The Blank Question Markets have moved away from Badla system to ________ . Correct Answer Derivatives Trading Your Answer Derivatives Trading Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5% Multiple Choice Single Answer Question How many members are appointed by the central government? Correct Answer 2 Your Answer 2 Multiple Choice Multiple Answer Question Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges? Correct Answer SCRA , Depository Act Your Answer SCRA , Depository Act Match The Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Decision making Multiple Choice Multiple Answer Question Which companies have eroded market capitalization by Rs20 000 crores?

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Correct Answer Infosys , Satyam , Wipro Your Answer Infosys , Satyam , Wipro Multiple Choice Multiple Answer Question What does SEBI do with its power ? Correct Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer Your 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 if there is an underlying asset. Correct Answer True Your Answer True True/False Question In order to dematerialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry

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Match The Following 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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer False Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds an d investments in long term instruments Multiple Choice Multiple Answer Question What is dematerialization ? Correct Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP Your Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP , Selling shares 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 Your Answer Certificate of Deposit Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries

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Your Answer

Reliance Industries

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 Answer Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore Your 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 Your Answer Special purpose vehicle True/False Question A mutual fund shall not invest more than 10% of is NAV in equ ity shares in cases of open ended schemes. Correct Answer True Your Answer False Multiple Choice Single Answer Question What is a put option? Correct Answer Right to sell Your Answer Right to sell True/False Question Venture capital finance is risk finance for entrepreneurial growth oriented companies. Correct Answer True Your Answer True ----------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The following are some of the regulations governing the NBFC's issued by RBI :-

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Correct Answer Without the registration certificate no company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must register with RBI 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of : Correct Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answ er Software Your Answer Software Select The Blank Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correc t Answer Mutual funds Your Answer Mutual funds

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Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1 Your Answer 0.3 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 Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue? Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes?

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Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False 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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False 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 , Offer document to contain disclosures Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25

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True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory n otes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP Your Answer DP -----------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer Fund manager True/False Questi on Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer Without the registration certificate no company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must register with RBI 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 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 the Kumarmangalam Birla report. Correct Answer True Your Answer True 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 Answer Question Deposits can be accepted for a maximum period of : Correc t Answer 5 years Your Answer 10 years Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer 37775 Multiple Choice Single Answer Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answer Software Your Answer Software Select The Blank

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Question 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 GTB Your Answer OBC with GTB Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer Mutual funds Multiple Choice Single Answer Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Your Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry True/False Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Your Answer False Select The Blank Question No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1 Your Answer 0.3 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 Multiple Answer Questi on Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional rin g , in stock market privately through home

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Multiple Choice Single Answer Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue? Correct Answer Through book building process Your Answer Through book building process Multiple Choice Single Answer Question Which is the favorite destination for venture funds? Correct Answer BPO Your Answer BPO Multiple Choice Multiple Answer Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Single Answer Question For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Your Answer 5 lacs Match The Following Question Correct Answer Your Answer Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and repurchase of securities Commercial paper Means of raising short term debt by companies Means of raising short term debt by companies STCI Operations in call money markets Operations in call money markets Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05 True/False Question Money market mutual funds are no t permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False 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 , Any appointment of auditors True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer False Multiple Choice Multiple Answer

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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 , Offer document to contain disclosures Your 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 disclosures Multiple Choice Single Answer Question What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Your Answer 0.25 True/False Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores Select The Blank Question The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Your Answer 4 Multiple Choice Single Answer Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Your Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them True/False Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer False True/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters

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Your Answer Tighten FII regulations , En sure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP Your Answer DP ----------------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question What is maximum percentage of regular expenses of the assets of a scheme? Correct Answer 0.03 Your Answer 0.1 Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters , Tighten FII regulations Multiple Choice Multiple Answer Question What are the requirements regarding promoter's contribution and lock in? 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years Your 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 10 years True/False Question Correct Answer Your Answer

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

Multiple Choice Multiple Answer Question 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 True/False Question At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset.

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Correct Answer Your Answer

True True

True/False Question The buy back of shares by Indian corporates has been very successful in India. Correct Answer False Your Answer True Select The Blank Question Directors should not be member of more than________ committees. Correct Answer 10 Your Answer 8 Multiple Choice Multiple Answer Question What are the stages in the process of book building broadly divided into? Correct Answer Syndicate formation , Issue process Your Answer Syndicate formation , Issue process , IPO 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 with 2 days , Annual disclosures Your 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 with 2 days , Annual disclosures Multiple Choice Multiple Answer Question What is an offer letter? Correct Answer Document addressed to the shareholders , Containing disclosures of the acquirer / PAC target company , Offer price Your Answer Document addressed to the shareholders , Containing disclosures of the acquirer / PAC target company , Offer price Multiple Choice Single Answer Question What is the main objective of credit appraisal ? Correct Answer Assess the repayment capacity Your Answer Assess the borrowing capacity Select The Blank Question SENSEX is calculated using ________ method. Correct Answer Market capitalization Your Answer Ratio analysis Multiple Choice Single Answer Question Which stock exchange was used by ketan parekh for buying operations? Correct Answer Kolkatta Your Answer Kolkatta Select The Blank

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Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities. Correct Answer Lead managers Your Answer Investors Select The Blank Question The VCs to flourish requires a well developed ________. Correct Answer Capital market Your Answer Capital market 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 True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer True Multiple Choice Single Answer Question What was the objective of the Kumarmangalam Birla Committee on Corporate Governance? Correct Answer Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders Your Answer Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders Match The Following Question Correct Answer

Your Answer

Looses the rights to vote

Non voting shares Non voting shares

Book building Depository

Bharati Televentures

Bank of securities

NSE

Bonus shares

First to introduce rolling settlements in the country NSE

BSE

True/False Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies. Correct Answer False Your Answer True True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer True

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Multiple Choice Single Answer Question A rated company can raise deposit worth how many times its net worth? Correct Answer 4 times Your Answer 2 times Multiple Choice Single Answer Question What is the time frame stipulated by SEBI for members intending to avail of the buy back offer? Correct Answer Minimum 15 days and not exceeding 30 days Your Answer 3 months from the date of the offer Match The Following Question Correct Answer Portfolio fairness

Your Answer

Collection of assets

Observe high standard of integrity and

Factors influencing portfolio decisions and Market risks

Business and Market risks

Business

Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Collection of shares and stocks SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms Portfolio Manager must fulfill the capital adequacy norms Multiple Choice Single Answer Question An AMC fees :Correct Answer To be borne by the individual schemes Your Answer To be borne by a group 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? Correct Answer 0 Your Answer 0 Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 5 days Multiple Choice Multiple Answer Question What is the procedure for action in case of default? Correct Answer Suspension of the certificate , Mutual fund / AMC cease to exist , Subject to the directions of the board with regard to records Your Answer Suspension of the certificate , Mutual fund / AMC cease to exist , Subject to the directions of the board with regard to records True/False Question Correct Answer Your Answer

ISIN is a unique identification number for security. True True

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Multiple Choice Single Answer Question What percentage of underwriting in the issues obligatory to the merchant bankers? Correct Answer 0.05 Your Answer 0.07 Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Interest tax Select The Blank Question A ________ can legally transfer beneficial ownership. Correct Answer Depository Your Answer Share holder 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 Merchant banker True/False Question Correct Answer Your Answer

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

Select The Blank Question With the introduction of ________ accounts the complaints about allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT Multiple Choice Single Answer Question 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 Answer Question Where is the difference in buying and selling dematerialized shares ? Correct Answer Process of delivery , Receipt of securities , Pledging the shares Your Answer Process of delivery , Receipt of securities , Pledging the shares 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 , If default subsists in respect of repayments of deposits,

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term loans to any financial institutions and redemption of preference shares or debentures 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 Your Answer Chemical Select The Blank Question BSE introduced an equity stock index known as ________. Correct Answer SENSEX Your Answer INDEX 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 the Kumarmangalam Birla report. Correct Answer True Your Answer False True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True Multiple Choice Single Answer Question Crisil's AAA rating stands for :Correct Answer Highest safety Your Answer Highest safety Select The Blank Question Securities offered in a pledge can change if a ________ agrees. Correct Answer Pledgee Your Answer DP Multiple Choice Multiple Answer Question Briefly describe the SEBI guidelines for the merchant bankers :Correct Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Your Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Multiple Choice Multiple Answer Question What is transposition cum demat form? Correct Answer Helps in effect change in the order of names , Dematerialize the securities Your Answer Helps in effect change in the order of names , Dematerialize the securities , Pledging the shares -------------------------------------------------------------

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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/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 True True/False Question In order to demater ialize the securities one has to fill DRF. Correct Answer True Your Answer True Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer 10 crores Multiple Choice Multiple Answer Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. 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. Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer BO ID Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Degree of popularity of the industry , Overall economic condition , Demand and supply capital Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Match The Following

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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 high standard of integrity and fairness SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely decision regarding sale and purchase of securities Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer 60% of its outstanding housing loans ------------------------------------------------------------------------

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Which Act defines the term Stock Exchange? Correct Answer Securities Contract Regulation Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True

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True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question Who forms the Asset management company (AMC)? Correct Answer Group of trustees 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 True/False

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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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters

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Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker 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 wor th 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 Blank Question The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.

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Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your Answer 45 Multiple Choice Multiple Answer Question 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 opinion of board 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 True/False

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Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question Directo rs 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 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 False ---------------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What should be done if the address of investor changes? Correct Answer Inform DP and update records , Inform different companies Your Answer Inform DP and update records , Inform different companies , Inform SEBI

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Multiple Choice Single Answer Question What is the most common complaint of the investors? Correct Answer Non receipt of refund orders and allotment advise Your Answer No merchant bankers to the issue Multiple Choice Single Answer Question Of the net tangible assets how much percentage of assets should be held in monetary assets for a company to make an IPO? Correct Answer 0.5 Your Answer 0.5 Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer No stamp duty , Reduction in transaction cost , Holds funds in an account Multiple Choice Single Answer Question Which stock exchange was used by ketan parekh for buying operations? Correct Answer Kolkatta Your Answer Kolkatta 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? Correct Answer 0 Your Answer 0 True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question What are the limitations of refinance facility? Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of t otal 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 to exceed 15 % of NOF of NHB Multiple Choice Single Answer Question What was the percentage of public offering under the IPOs through the book building method ? Correct Answer 0.1 Your Answer 0.25 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 Multiple Choice Single Answer

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Question When is the security created from the date of issue of debenture? Correct Answer Within 6 months Your Answer Within 12 months True/False Question February UTI sought permission of SEBI to close 7 assured plans prematurely. Correct Answer True Your Answer True 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/False Question Reliance group has added over 10000 crores in market capital. Correct Answer True Your Answer True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Put option Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On the expiry date only Multiple Choice Multiple Answer Question 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 shares Your 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 , Company wants the employees to participate in the public issue due to under subscription LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What should be done if the address of investor changes? Correct Answer Inform DP and update records , Inform different companies Your Answer Inform DP and update records , Inform different companies , Inform SEBI Multiple Choice Single Answer Question What is the most common complaint of the investors? Correct Answer Non receipt of refund orders and allotment advise Your Answer No merchant bankers to the issue Multiple Choice Single Answer Question Of the net tangible assets how much percentage of assets shoul d be held in monetary assets for a company to make an IPO?

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Correct Answer 0.5 Your Answer 0.5 Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer No stamp duty , Reduction in transaction cost , Holds funds in an account Multiple Choice Single Answer Question Which stock exchange was used by ketan parekh for buyin g operations? Correct Answer Kolkatta Your Answer Kolkatta 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? Correct Answer 0 Your Answer 0 True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer False 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 to exceed 15 % of NOF of NHB Multiple Choice Single Answer Question What was the percentage of public offering under the IPOs through the book building method ? Correct Answer 0.1 Your Answer 0.25 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 Multiple Choice Single Answer Question When is the security created from the date of issue of debenture? Correct Answer Within 6 months Your Answer Within 12 months True/False Question February UTI sought permission of SEBI to close 7 assured plans prematurely. Correct Answer True Your Answer True

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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 Your Answer Trust True/False Question Reliance group has added over 10000 crores in market capital. Correct Answer True Your Answer True Select The Blank Question The right to buy is called ________. Correct Answer Call option Your Answer Put option Multiple Choice Single Answer Question When can the American style option exercised? Correct Answer On or before the expiry date Your Answer On the expiry date only Multiple Choice Multiple Answer Question 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 shares Your 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 , Company wants the employees to participate in the public issue due to under subscription Multiple Choice Multiple Answer Question Briefly describe the SEBI guidelines for the merchant bankers : Correct Answer Should have an authorization from SEBI , Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Your Answer Expertise good financial standing and high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc , Should have an authorization from SEBI True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True Select The Blank Question Securities offered in a pledge can change if a ________ agrees. Correct Answer Pledgee Your Answer Depositary ----------------------------------------------------------------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer

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Question Which Act defines the term Stock Exchange? Correct Answer Securities Contract Regulation Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question Who forms the Asset management company (AMC)?

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Correct Answer Group of trustees 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly r esults True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer

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Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 Blank

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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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is the eligibility n orm 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Select The Blank

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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 Blank Question 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 45 Your Answer 45 Multiple Choice Multiple Answer Question 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 opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are : Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surren der 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 Your 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 False Your Answer True Select The Blank Question Directors should not be member of more than________ committees. Correct Answer 10 Your Answer 10

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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 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 False ----------------------------------------------------------------------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. Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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.

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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 bn Your 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 crores Your 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 mutual funds 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answer Securities markets 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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describe the stock lending mechanism: Correct Answer Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates , Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee

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Your Answer Involves two parties one who is willing to lend and other who wishes to borrow securities at 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 to exceed 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 37809 Your 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 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 card Your Answer ATM card

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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 the shareholders 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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer

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Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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 regulat ions 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 of credit 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 False Your Answer False Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

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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 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 de bt 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 Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints about allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT -------------------------------------------------------------------------

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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. Correct Answer True Your Answer True Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer Sales tax Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments 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 bn Your 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 crores Your Answer 15000 crores Multiple Choice Multiple Answer

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Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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/False Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer True Select The Blank Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answ er Securities markets 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 evaluate and analyze , Update the knowledge Multiple Choice Multiple Answer Question Describ e 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 securities at 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 A nswer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 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

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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 37809 Your 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 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 card Your 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 the shareholders

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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/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer True 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer Transaction + 3 Multiple Choice Single Answer Question 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

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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 of credit rating. Correct Answer Informa tion 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 False Your Answer False Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading Communication through the net , Operate or office Your Answer Screen based trading in Communication through the net , Operate or office

in place of traditional ring , in stock market privately through home place of traditional ring , in stock market privately through home

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 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

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Multiple Choice Single Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Multiple Choice Single Answer Question What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days Your Answer 7 days Multiple Choice Single Answer Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Your Answer 4 times Select The Blank Question With the introduction of ________ accounts the complaints abo ut allotment have surely gone down. Correct Answer DEMAT Your Answer DEMAT

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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 Act Your Answer Securities Contract Regulation Act Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A registered account with a broker and a demat account , Bank payment gateway or online banking facility , A net connection Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Your Answer True True/False Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Your Answer False Multiple Choice Single Answer Question Under various SEBI regulations how many brokers suspended? Correct Answer 8 Your 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 , Offer document to contain disclosures Your Answer With each offer document pay filing fees , Offer document to contain disclosures Match The Following Question 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 Question 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 be maintained by them with ________. Correct Answer Scheduled Commercial Bank Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question 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 Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer Regulation (3) 4 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 institutional investors and underwriters. Correct Answer True Your Answer True Multiple Choice Single Answer Question 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 Answer Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Your Answer Annual operating plans , Capital budgets , Quarterly results True/False Question Bidder cannot revise his bids. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 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 shares Your 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 Following Question Correct Answer Your Answer Shareholders Should effectively participate in general body meetings Should effectively participate in general body meetings

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Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders Look into defaults to depositors creditors shareholders and debenture holders Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission and values Superficial commitment to vision, mission and values Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the board in decision making process Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Select The Blank Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Your Answer Goodwill True/False Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Your Answer True 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 Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your 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 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 an financial year. Correct Answer 0.05 Your Answer 0.2 Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer FITSCH Select The Blank

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Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Your Answer Merchant Banker 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 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 Your Answer Scheduled Commercial Bank Multiple Choice Single Answer Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Your Answer Merchant Banker Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your 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 with 2 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 Answer Question 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 Blank Question 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 45 Your 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 in opinion of board Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board 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 True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your 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 False Your Answer True Select The Blank Question 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 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 False

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What are participatory notes? Correct Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities Your Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities Multiple Choice Multiple Answer Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Select The Blank Question A ________account is created for the purpose of distributing receivables to the investors on the securitisation deal. Correct Answer Escrow Your Answer

Escrow

True/False Question

Bidder cannot revise his bids.

Correct Answer False Your Answer

False

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 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 Your Answer

Acquirer to make an application in a standard format of SEBI

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Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer

BO ID

True/False Question

The depository can legally transfer beneficial ownership.

Correct Answer True Your Answer

True

Multiple Choice Multiple Answer Question What are the requirements regarding promoter's contribution and lock in? 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years Your 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 participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years 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 , If default subsists in respect of repayments of deposits, term loans to any financial institutions and redemption of preference shares or debentures Select The Blank Question ________ is an international credit rating company. Correct Answer FITSCH Your Answer

FITSCH

Select The Blank

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Question

BSE introduced an equity stock index known as ________.

Correct Answer SENSEX Your Answer

SENSEX

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 credit card is a payment mechanism which enables the holder to buy goods and services on credit. Correct Answer True Your Answer

True

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 Select The Blank Question Criminal proceedings under section 24 regarding insider trading saw ________ cases. Correct Answer 28 Your Answer

28

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 the Kumarmangalam Birla report. Correct Answer True Your Answer

True

True/False

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Question

At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset. Correct Answer True Your Answer

True

Select The Blank Question Most of the deals struck on the fist day of foreign currency options were of ________ maturity. Correct Answer 1 year Your Answer

6 months

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 institutional investors and underwriters. Correct Answer True Your Answer

False

Match The Following Question

Correct Answer

Share buy back is a way of

Returning surplus cash to No minimum price the shareholders stipulation

Dutch Auction

Price of the Buy back is Price of the Buy back is done by the shareholders done by the shareholders

Open market purchases

No minimum price stipulation

Companies holding more Can be delisted than 90% equity

Your Answer

Returning surplus cash to the shareholders Can be delisted

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 Your Answer

4

True/False Question

Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if there is an underlying asset. Correct Answer True

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Your Answer

True

True/False Question

MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA. Correct Answer False Your Answer

True

Multiple Choice Multiple Answer Question What are the likely costs incurred by a credit card issuing bank? Correct Answer Membership fees to visa/MasterCard , Marketing cost , Administrative cost and cost of bad debts Your Answer Membership fees to visa/MasterCard , Marketing cost , Administrative cost and cost of bad debts Select The Blank Question In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes. Correct Answer 7 Your Answer

7

True/False Question

Employee stock option scheme granted to the employee is transferable. Correct Answer False Your Answer

False

Multiple Choice Single Answer Question What is a more contemporary definition of corporate governance? Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and accountability Your Answer To conduct business in accordance with the shareholders interest while conforming to the local laws and customs 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 promote secondary market in government securities

Multiple Choice Single Answer

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Question

Under Sections 11 B how many promoters were debarred?

Correct Answer 2 Your Answer

2

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 with 2 days , Annual disclosures Your 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 with 2 days , Bank statements Multiple Choice Multiple Answer Question What should be done if the address of investor changes? Correct Answer Inform DP and update records , Inform different companies Your Answer

Inform DP and update records , Inform different companies , Inform SEBI

Multiple Choice Multiple Answer Question What are the objectives of NHB? Correct Answer To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations Your 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 to focusing finance institutions Multiple Choice Multiple Answer Question What is an offer letter? Correct Answer Document addressed to the shareholders , Containing disclosures of the acquirer / PAC target company , Offer price Your Answer Document addressed to the shareholders , Containing disclosures of the acquirer / PAC target company , Offer price Multiple Choice Single Answer Question What has hurt the functioning of stock markets both primary and secondary? Correct Answer Unscrupulous promoters Your Answer

Non receipt of refund orders and allotment advise

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Multiple Choice Single Answer Question What is the amount of net tangible assets, company should have to make an IPO? Correct Answer 3 crores Your Answer

3 crores

Multiple Choice Single Answer Question A rated company can raise deposit worth how many times its net worth? Correct Answer 4 times Your Answer

3 times

Multiple Choice Single Answer Question What was the objective of the Kumarmangalam Birla Committee on Corporate Governance? Correct Answer Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders Your Answer Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders 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

True

Select The Blank Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities. Correct Answer Lead managers Your Answer

SEBI

Match The Following Question

Correct Answer

Your Answer

10

HDFC foreign currency deal

HDFC foreign currency deal

0.57

FII current free float sensex company

FII current free float sensex company

0.45

FII free float stock NIFTY FII free float stock NIFTY companies companies

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$ 476 mn

Global investors pumping Global investors pumping funds in India Specific funds in India Specific Funds Funds

Multiple Choice Multiple Answer Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities 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 Multiple Choice Single Answer Question What is the main objective of credit appraisal ? Correct Answer Assess the repayment capacity Your Answer

Assess the repayment capacity

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

Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer

10000 crores

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

Multiple Choice Multiple Answer

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Question

What are the main features of commercial paper?

Correct Answer Short term financial instrument , Negotiable and transferable instrument , 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

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The NSE Nifty index comprises of ________companies. Correct Answer 50 Your Answer

50

Select The Blank Question In the L & T reliance case, Reliance was fined ________. Correct Answer Rs. 5 lacs Your Answer

Rs. 5 lacs

Select The Blank Question In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Your Answer

10 crores

Multiple Choice Single Answer Question How is a share buy back a useful mechanism in preventing hostile takeovers? Correct Answer Share buyback reduces the floating stock in the market thereby reducing the scope for a raider to acquire enough stock to gain management control. Your 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. True/False Question

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

False

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

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Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer

Sales tax

Multiple Choice Multiple Answer Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Your Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer

15000 crores

True/False Question

A credit card is a payment mechanism which enables the holder to buy goods and services on credit. Correct Answer True Your Answer

True

True/False Question

A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer

False

Multiple Choice Single Answer Question Since when have the Indian Stock markets risen ? Correct Answer 37775 Your Answer

37775

Multiple Choice Multiple Answer

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Question

What are the factors that determine the value of a firm?

Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Multiple Choice Single Answer Question Who was the first to introduce rolling settlement in India? Correct Answer NSE Your Answer

NSE

Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer

Mutual funds

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 True/False Question

The company opting for an IPO should have net worth of at least Rs 1 crore in each of the preceding two years. Correct Answer True Your Answer

True

Match The Following Question

Correct Answer

Your Answer

Castrol

FY 2003 - 03 Dividend Rs145 crores

FY 2003 - 03 Dividend Rs145 crores

MS Verma committee

Dual Flotation

Dual Flotation

Hero Honda

FY 2003 - 03 Dividend Rs187 crores

FY 2003 - 03 Dividend Rs187 crores

VSNL

FY 2003 - 03 Dividend Rs172 crores

FY 2003 - 03 Dividend Rs172 crores

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

US$14 bn

True/False Question

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

True

Multiple Choice Single Answer Question When did the trading in foreign currency options start in India? Correct Answer 37809 Your Answer

37809

Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments Your Answer Market for long term funds and investments in long term instruments True/False Question

SEBI has taken an action to ban on Badla.

Correct Answer True Your Answer

True

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

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

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Your Answer

Merchant Banker

Multiple Choice Single Answer Question How many registration of issues were cancelled in the recent past? Correct Answer 1 Your Answer

1

True/False Question

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 False Your Answer

False

Multiple Choice Multiple Answer Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Your Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility Multiple Choice Multiple Answer Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Multiple Choice Single Answer Question Under section 11 B of SEBI act how many issuers were debarred? Correct Answer 1 Your Answer

1

Multiple Choice Single Answer Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Your Answer

Regulation (3) 4

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True/False Question

Reliance group has added over 10000 crores in market capital.

Correct Answer True Your Answer

True

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

Merchant Banker

Multiple Choice Single Answer Question 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 investment strategy Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy Match The Following Question

Correct Answer

Your Answer

ISIN

Unique identification number for security

Unique identification number for security

WDM

Market for pure debt instruments

Market for pure debt instruments

NSE

SET up by IDBI and other SET up by IDBI and other financial institutions financial institutions

custodian

Helps register and Helps register and safeguard the securities of safeguard the securities of its clients its clients

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.

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Multiple Choice Single Answer Question How much percentage of company's revenue would be accounted for by the business with new name? Correct Answer 0.5 Your Answer

0.5

True/False Question

Bidder cannot revise his bids.

Correct Answer False Your Answer

False

Multiple Choice Single Answer Question Who can change the composition of securities? Correct Answer Fund manager Your Answer

Fund manager

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

Select The Blank Question 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 45 Your Answer

45

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 , Offer document to contain disclosures Your 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 disclosures

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Select The Blank Question In the book building process pricing is determined on the basis of ________. Correct Answer Investor feedback Your Answer

Investor feedback

Multiple Choice Multiple Answer Question What 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 Select The Blank Question Recently many banks have started issuing ________ which could also be used as a debit card. Correct Answer ATM card Your Answer

ATM card

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

2.5 times

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question

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

True

Multiple Choice Single Answer Question What is the most important objective for an investor? Correct Answer Protection of the value of the investment Your Answer

Protection of the value of the investment

Select The Blank Question BSE introduced an equity stock index known as ________. Correct Answer SENSEX Your Answer

SENSEX

True/False Question

A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer

False

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. 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 , If default subsists in respect of repayments of deposits, term loans to any financial institutions

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and redemption of preference shares or debentures Select The Blank Question In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes. Correct Answer 7 Your Answer

7

True/False Question

The company opting for an IPO should have net worth of at least Rs 1 crore in each of the preceding two years. Correct Answer True Your Answer

True

Select The Blank Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds Your Answer

Mutual funds

Match The Following Question

Correct Answer

Your Answer

Insurance

In favor of lessor and lessor's lenders in lease agreement

Sources of funds for finance companies

Inter corporate deposit

Sources of funds for finance companies

Service tax imposed on interest

Leasing

Service tax imposed on interest

In favor of lessor and lessor's lenders in lease agreement

Stock on hire

Hire purchase price less the installments received

Liquid asset

Multiple Choice Multiple Answer Question What are the likely costs incurred by a credit card issuing bank? Correct Answer Membership fees to visa/MasterCard , Marketing cost , Administrative cost and cost of bad debts Your Answer Membership fees to visa/MasterCard , Marketing cost , Administrative cost and cost of bad debts True/False

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Question

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

True

Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Multiple Choice Single Answer Question What is a put option? Correct Answer Right to sell Your Answer

Right to sell

True/False Question

If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Your Answer

False

Select The Blank Question SENSEX is calculated using ________ method. Correct Answer Market capitalization Your Answer

Market capitalization

Multiple Choice Single Answer Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Your Answer

60% of its outstanding housing loans

Match The Following

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Question

Correct Answer

Your Answer

No limit

Number of co managers

Bankers

Cat 1 merchant banker

Min net worth of Rs1 core Min net worth of Rs1 core

Cat 2 merchant bankers

Net worth Rs. 50 lacs

Net worth Rs. 50 lacs

Issues above Rs 50 and Rs100 crores

Max number of lead managers will be 3

Min net worth of Rs. 100 cores

Select The Blank Question Recently many banks have started issuing ________ which could also be used as a debit card. Correct Answer ATM card Your Answer

ATM card

Multiple Choice Single Answer Question Who maintains an Escrow account in the process of securitisation ? Correct Answer Trustee Your Answer

Trustee

Multiple Choice Single Answer Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore Your Answer

1 Crore

Multiple Choice Multiple Answer Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages Multiple Choice Multiple Answer Question What are the general obligations of mutual fund ? Correct Answer Every AMC should maintain proper books of accounts , Financial year for all schemes to end as on March 31 each year , Every mutual fund shall have the annual statements audited by auditor Your Answer Every AMC should maintain proper books of accounts , Financial year for all schemes to end as on March 31 each year , Every

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mutual fund shall have the annual statements audited by auditor Select The Blank Question Cash Corporate benefit such as dividend / interest received is credited through ________ facility. Correct Answer ECS Your Answer

ECS

Multiple Choice Multiple Answer Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Your Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Multiple Choice Multiple Answer Question 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 shares Your 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 shares True/False Question

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

False

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 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

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Your Answer

Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters

Multiple Choice Single Answer Question What is mortgage backed securitisation? Correct Answer Securitisation dealing with mortgages Your Answer

Securitisation dealing with backing of assets

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

Multiple Choice Single Answer Question What is maximum percentage of regular expenses of the assets of a scheme? Correct Answer 0.03 Your Answer

0.05

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 Your Answer

Standard Chartered Bank

Multiple Choice Single Answer Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Your Answer

Transaction + 3

Multiple Choice Single Answer Question How many members are appointed by the central government? Correct Answer 2 Your Answer

2

Select The Blank

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Question

Markets have moved away from Badla system to ________ .

Correct Answer Derivatives Trading Your Answer

Derivatives Trading

Select The Blank Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Your Answer

Sales tax

Multiple Choice Multiple Answer Question What are the factors that determine the value of a firm? Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of the industry Multiple Choice Multiple Answer Question To open a DP account, following things are required :Correct Answer Proof of identity , Proof of address , Photograph Your Answer

Proof of identity , Proof of address , Photograph

True/False Question

A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Your Answer

False

True/False Question

SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies. Correct Answer False Your Answer

True

Multiple Choice Single Answer Question When is a debenture redemption reserve created? Correct Answer In case the maturity period of debentures in more than 18 months Your Answer In case the maturity period is less than 6 months

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Select The Blank Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Your Answer

BO ID

Select The Blank Question Among the closed schemes, 4 long term assurance schemes were launched with a return ranging between ________. Correct Answer 13 - 14% Your Answer

13 - 14%

Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question What is the main advantage of a rolling settlement? Correct Answer Quicker payments Your Answer

Quicker payments

True/False Question

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

True

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