Académique Documents
Professionnel Documents
Culture Documents
Match
1)
2)
Shareholders; Should effectively Objective of Audit committee ;Look into
participate in general body meetings defaults to depositors creditors
shareholders and debenture holders
Reasons of failures of corporate Superficial commitment to vision,
governance in spite of norms; mission and values
Functions of Chief Executive, ED, ;Assisting the board in decision making
Managers process
3)
Ready forward transaction (Repo) Interbank sale and repurchase of
securities
Commercial paper Means of raising short term debt by
companies
STCI Operations in call money markets
Market stabilsation Bonds Launched in fiscal 2004-05
4)
Charge card form of plastic money
Warning Bulletin Authenticity test
Credit information company SBI, HDFC bank
Credit card issuing company Visa/Master Card
5)
Shareholders should effectively participate in general
body meetings
Objective of Audit committee Look into defaults to depositors
creditors shareholders and debenture
holders
Reasons of failures of corporate Superficial commitment to vision,
governance in spite of norms mission and values
Functions of Chief Executive, ED, Assisting the board in decision making
Managers process
6)
Castrol FY 2003 – 03 Dividend Rs145 crores
MS Verma committee Dual Flotation
Hero Honda FY 2003 – 03 Dividend Rs187 crores
VSNL FY 2003 - 03 Dividend Rs172 crores
7)
8)
Share buy back is a way of returning surplus cash to the
shareholders
Dutch Auction Price of the Buy back is done by the shareholders
Open market purchases No minimum price stipulation
Companies holding more than 90% Can be delisted
equity
9)
10 HDFC foreign currency deal Global
investors pumping funds in India
Specific Funds
0.57 FII current free float sensex company
0.45 FII free float stock NIFTY companies
$ 476 mn Global investors pumping funds in
India Specific Funds
10)
ESPS Stock option method
Sweat equity Share issue for consideration other
than cash
Stock lending mechanism Introduced by SEBI in 1997
ESOP Recipe to make employees millionaires
1!)
0.1 Government decided to pay dividend
0.15 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
Rs. 8000 crores Current shortfall in UTI schemes
12)
1995 MS shoes scam
9/1/2001 SENSEX touched low of 2600
4/1/2001 Tata finance scam came to light
11/1/2001 Reliance sale of 10.5% stake in L&T to
grasim
13)
Rematerialisation RRF
NSE Settlement cycle T + 3
RBI Gilt securities mobilization
Non corporate benefit Bonus
Q As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds?
Correct Answer 4 times
Q What is the percentage of restriction on HFC's disbursement on project lending for refinance ?
Correct Answer 0.3
Q How many times Refinance cannot exceed net owned funds of Housing finance companies?
Correct Answer 5 times
Q For an approval of HFC one of the norms is that the promoter's contribution has to be minimum
________ of paid up capital.
Correct Answer 0.3
Q 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
Q 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
Q A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single
issuer.
Correct Answer 0.1
Q 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
Q What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Q How much should be the minimum post issue capital of the company?
Correct Answer 10 crores
Q What is the minimum number of days for which the bid should remain open in book building?
Correct Answer 5 days
Q What was the percentage of public offering under the IPOs through the book building method ?
Correct Answer 0.1
Q What is the amount of net worth accompany should have for opting for an IPO ?
Correct Answer 1 Crore
Q What is the amount of net tangible assets, company should have to make an IPO?
Correct Answer 3 crores
Q 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
Q 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
Q What is the limit for aggregate investment of FII's NRI's and OCB's?
Correct Answer 0.3
Q 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
Q 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
Q 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
Q 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
Q An acquirer who holds ________ shares or voting rights of a target company can acquire further
shares only after making PA to acquire at least additional 20% of target company from the shareholders
through an open offer.
Correct Answer 0.75
Q A rated company can raise deposit worth how many times its net worth?
Correct Answer 4 times
Q How much percentage of company's revenue would be accounted for by the business with new
name?
Correct Answer 0.5
Q Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a minimum period
of :-
Correct Answer 1 year
Q For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct Answer 2
Q 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
Q Among the closed schemes, 4 long term assurance schemes were launched with a return ranging
between ________.
Correct Answer 13 - 14%
Q The process of share buy back must be completed within what period from the date of passing the
resolution?
Correct Answer 12 months
Q 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
Q Recently, SEBI has allowed buy back of shares upto ________% of the total shares without
requirement of a special resolution
Correct Answer 10
Q Most of the deals struck on the fist day of foreign currency options were of ________ maturity.
Correct Answer 1 year
Q The liability of the underwriters in the MS shoes case was estimated to be ________.
Correct Answer Rs. 500 crores
Q How many points the sensex went up in January 2000 during the ketan parekh scam?
Correct Answer 700 points
Q A significant portion of the investment through the participatory notes is managed by ________
entities.
Correct Answer 114
Q 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
Q In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes.
Correct Answer 7
Question Information technology, communication and entertainment represent ________ stocks.
Correct Answer ICE
Your Answer ICE
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
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
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
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
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
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
SET 2
Question Information technology, communication and entertainment represent ________ stocks.
Correct Answer ICE
Your Answer ICE
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
Question Who is responsible to get the securities listed on all the stock exchanges?
Correct Answer Merchant banker
Your Answer SEBI
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
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
Question Money market mutual funds are not permitted to invest in treasury bills and commercial
paper.
Correct Answer False
Your Answer True
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
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%
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
Question Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Your Answer Infosys , Satyam , Wipro
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
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
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
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
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
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
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
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer False
Your Answer False
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
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Question What is the amount of net worth accompany should have for opting for an IPO ?
Correct Answer 1 Crore
Your Answer 1 Crore
Question The process of securitization involves transfer of assets to a person specially created
called as ________.
Correct Answer Special purpose vehicle
Your Answer Special purpose vehicle
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
Question Venture capital finance is risk finance for entrepreneurial growth oriented companies.
Correct Answer True
SET 3
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
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
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Question In the wake of boom of which sector the Indian mutual fund launched various sector
specific schemes?
Correct Answer Software
Your Answer Software
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
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
Question Mergers and amalgamations of companies are also covered under the SEBI regulations
1997.
Correct Answer False
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
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Question Money market mutual funds are not permitted to invest in treasury bills and commercial
paper.
Correct Answer False
Question What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
Question What is the limit for aggregate investment of FII's NRI's and OCB's?
Correct Answer 0.3
Question Acquisition finance, which provide funding for acquiring another company are often
closely held or fairly owned.
Correct Answer True
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
Question The acquirer is required to make the PA within ________ working days of entering into
an agreement to acquire shares or deciding to acquire share's voting rights of target company.
Correct Answer 4
Question 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
Question When one decides to have the shares in an electronic form one has to approach
________.
Correct Answer DP
SET 4
Question Sweat equity shares are shares issued by company to employees or directors to
discount.
Correct Answer True
Question Money market mutual funds are not permitted to invest in treasury bills and commercial
paper.
Correct Answer False
Question The portfolio manager has to place the funds of all their clients in a separate account to
be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Question 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
Question The Money market mutual funds (MMMFs) can invest the funds in which of these
securities?
Correct Answer Call/notice money
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
Question Bidder cannot revise his bids.
Correct Answer False
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
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
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
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
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
Question What is the eligibility norm for an unlisted company for making an public issue as regards
to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Question The portfolio manager has to place the funds of all their clients in a separate account to
be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
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
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
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer False
Question Directors should not be member of more than________ committees.
Correct Answer 10
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
SET 5
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
Question Largest deal struck on Day 1 of foreign currency option got underway in India was of
________.
Correct Answer Standard Chartered Bank
Question The portfolio manager has to place the funds of all their clients in a separate account to
be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Question What 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
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
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
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
Question Who prescribes the format of application for various reports or documents ?
Correct Answer SEBI
Question Sweat equity shares are shares issued by company to employees or directors to
discount.
Correct Answer True
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Question An acquirer who holds ________ shares or voting rights of a target company can acquire
further shares only after making PA to acquire at least additional 20% of target company from the
shareholders through an open offer.
Correct Answer 0.75
Question What was the reason for not introducing rolling settlements earlier in India?
Correct Answer Lack of depositories
Your Answer Investors not having demat accounts
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Question As per SEBI regulations, PMS must not be involved in any litigation connected with
________.
Correct Answer Securities markets
Your Answer Banks
Question Venture capital finance is risk finance for entrepreneurial growth oriented companies.
Correct Answer True
Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if
there is an underlying asset.
Correct Answer True
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
Question When is the share of the target company deemed to be frequently traded
Correct Answer If the turnover in the preceding 6 months prior to the month in which PA is made is
m ore than 5%
Your Answer If the turnover in the preceding 6 months prior to the month in which PA is made is m
ore than 5%
Question When is the security created from the date of issue of debenture?
Correct Answer Within 6 months
Question When one decides to have the shares in an electronic form one has to approach
________.
Correct Answer DP
Question Merchant bankers do not have to sign in the prospectus but they have to give a certificate
to which entity ?
Correct Answer SEBI
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
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Question Money market mutual funds are not permitted to invest in treasury bills and commercial
paper.
Correct Answer False
SET 6
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
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
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Question At the inception of the hire purchases transaction the finance company records the hire
purchase installment receivable as current asset.
Correct Answer True
Question The buy back of shares by Indian corporates has been very successful in India.
Correct Answer False
Question What are the stages in the process of book building broadly divided into?
Correct Answer Syndicate formation , Issue process
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
Question Which stock exchange was used by ketan parekh for buying operations?
Correct Answer Kolkatta
Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the
securities.
Correct Answer Lead managers
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
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
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
Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset
management companies.
Correct Answer False
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Question A rated company can raise deposit worth how many times its net worth?
Correct Answer 4 times
Question What is the time frame stipulated by SEBI for members intending to avail of the buy
back offer?
Correct Answer Minimum 15 days and not exceeding 30 days
Question Apart from the portfolio management fees what percentage of returns can the portfolio
manager share from their client's profits?
Correct Answer 0
Question What is the minimum number of days for which the bid should remain open in book
building?
Correct Answer 5 days
Question What percentage of underwriting in the issues obligatory to the merchant bankers?
Correct Answer 0.05
Question One of the process of book building is that the issuer appoints a ________ also known
as the book runner.
Correct Answer Lead manager
Question With the introduction of ________ accounts the complaints about allotment have surely
gone down.
Correct Answer DEMAT
Question What was the percentage of public offering under the IPOs through the book building
method ?
Correct Answer 0.1
Question The continuing growth in ________ was one of the factors that contributed to the growth
of credit rating.
Correct Answer Information technology
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
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
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
SET 7
Question The buy back of shares by Indian corporates has been very successful in India.
Correct Answer False
Question The issue price for placement portion and net offer to public are not the same.
Correct Answer False
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
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
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
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
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
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
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
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
Question Constant change would be one of the reasons for failure of corporate governance.
Correct Answer True
Question Upto what percentage has the RBI permitted the banks to invest in the capital market ?
Correct Answer 0.05
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Question The service charge is levied for allowing subscribers for entry into or exit from mutual
schemes is called as ________.
Correct Answer Load
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
Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the
securities.
Correct Answer Lead managers
Question As per SEBI regulations, PMS must not be involved in any litigation connected with
________.
Correct Answer Securities markets
Question What is the eligibility norm for an unlisted company for making an public issue as regards
to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Question Who suffered heavy losses during bad times of stock markets?
Correct Answer Small investors
Question The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer True
SET 8
Question What was the objective of setting up the Securities Trading corporation of India Ltd?
Correct Answer To promote secondary market in government securities
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
Question MIBOR is a security. Derivatives based on this interest rate have legal recognition under
SCRA.
Correct Answer False
Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the
securities.
Correct Answer Lead managers
Question A credit card is a payment mechanism which enables the holder to buy goods and
services on credit.
Correct Answer True
Question Final prospectus in the book building p________ess is to be filed with the ROC.
Correct Answer ROC
Question A company with highly rated instrument has the opportunity to ________ by quoting less
interest rates.
Correct Answer Reduce the cost of borrowing
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
Question What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
Question A portfolio manager could undertake the following on behalf of his clients :-
Correct Answer Hedging and arbitrage transactions
Question Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a
minimum period of :-
Correct Answer 1 year
Question One of the process of book building is that the issuer appoints a ________ also known
as the book runner.
Correct Answer Lead manager
Question The process of securitisation involves transfer of assets to a person specially created
called as ________.
Correct Answer Special purpose vehicle
Question A custodian can transfer beneficial ownership legally.
Correct Answer False
Question Apart from the portfolio management fees what percentage of returns can the portfolio
manager share from their client's profits?
Correct Answer 0
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
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
Question Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Question For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct Answer 2
Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset
management companies.
Correct Answer False
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
Question The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer True
Question Upto what percentage has the RBI permitted the banks to invest in the capital market ?
Correct Answer 0.05
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
Question What is the eligibility norm for an unlisted company for making an public issue as
regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Question Among the closed schemes, 4 long term assurance schemes were launched with a
return ranging between ________.
Correct Answer 13 - 14%
Question What was the percentage of public offering under the IPOs through the book building
method ?
Correct Answer 0.1
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be
paid from the primary market during this year?
Correct Answer 15000 crores
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
Question As per SEBI regulations, PMS must not be involved in any litigation connected with
________.
Correct Answer Securities markets
Question The process of share buy back must be completed within what period from the date of
passing the resolution?
Correct Answer 12 months
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset
management companies.
Correct Answer False
Your Answer False
Question Recently many banks have started issuing ________ which could also be used as a
debit card.
Correct Answer ATM card
Question A ________ means any persons connected with a company and who is reasonably
having access to unpublished price sensitive information.
Correct Answer Insider
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer 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
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
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Question The continuing growth in ________ was one of the factors that contributed to the growth
of credit rating.
Correct Answer Information technology
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
Question The Kumarmangalam Birla report stressed on the importance of ________ with respect to
AGM's.
Correct Answer Proxy voting / ballot systems
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
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
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Question Describe in brief the SEBI regulations for venture capital funds :-
Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
Question What is the minimum number of days for which the bid should remain open in book
building?
Correct Answer 5 days
Question As per RBI regulation, bank borrowings should not exceed how many times of the net
owned funds?
Correct Answer 4 times
Question With the introduction of ________ accounts the complaints about allotment have surely
gone down.
Correct Answer DEMAT
SET 9
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
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Question Most of the deals struck on the fist day of foreign currency options were of ________
maturity.
Correct Answer 1 year
Question What is the main objective of the promoting Discount and finance house of India
(DFHI) ?
Correct Answer Increasing transactions of money market assets
Question What is the amount of net tangible assets, company should have to make an IPO?
Correct Answer 3 crores
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
Question The process of share buy back must be completed within what period from the date of
passing the resolution?
Correct Answer 12 months
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
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
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Question Apart from the portfolio management fees what percentage of returns can the portfolio
manager share from their client's profits?
Correct Answer 0
Question What is the percentage of restriction on HFC's disbursement on project lending for
refinance ?
Correct Answer 0.3
Question MIBOR is a security. Derivatives based on this interest rate have legal recognition under
SCRA.
Correct Answer False
Question The buy back of shares by Indian corporates has been very successful in India.
Correct Answer False
Question How much should be the minimum post issue capital of the company?
Correct Answer 10 crores
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Question How many times Refinance cannot exceed net owned funds of Housing finance
companies?
Correct Answer 5 times
Question Money market mutual funds are not permitted to invest in treasury bills and commercial
paper.
Correct Answer False
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
Question The issue price for placement portion and net offer to public are not the same.
Correct Answer False
Question Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Question February UTI sought permission of SEBI to close 7 assured plans prematurely.
Correct Answer True
Question The service charge is levied for allowing subscribers for entry into or exit from mutual
schemes is called as ________.
Correct Answer Load
Question For an approval of HFC one of the norms is that the promoter's contribution has to be
minimum ________ of paid up capital.
Correct Answer 0.3
SET 10
Question The liability of the underwriters in the MS shoes case was estimated to be ________.
Correct Answer Rs. 500 crores
Question Largest deal struck on Day 1 of foreign currency option got underway in India was of
________.
Correct Answer Standard Chartered Bank
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
Question Venture capital finance is risk finance for entrepreneurial growth oriented companies.
Correct Answer True
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
Question The continuing growth in ________ was one of the factors that contributed to the growth
of credit rating.
Correct Answer Information technology
Question At the inception of the hire purchases transaction the finance company records the hire
purchase installment receivable as current asset.
Correct Answer True
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Question When one decides to have the shares in an electronic form one has to approach
________.
Correct Answer DP
Question Who can buy or sell securities on containing the certificate of registration?
Correct Answer Underwriter , Merchant banker , Investment advisor
Question Describe in brief the SEBI regulations for venture capital funds :-
Correct Answer Must disclose investment strategy , VCF's must be registered , Cannot carry out
another activity
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Question What is the underwriter paid ?
Correct Answer Commission
Question How is a share buy back a useful mechanism in preventing hostile takeovers?
Correct Answer Share buyback reduces the floating stock in the market thereby reducing the
scope for a raider to acquire enough stock to gain management control.
Question The process of securitisation involves transfer of assets to a person specially created
called as ________.
Correct Answer Special purpose vehicle
Question If the unlisted company does not satisfy the criteria of net worth profitability and issue
size how can it come out with a public issue?
Correct Answer Through book building process
Question Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a
minimum period of :-
Correct Answer 1 year
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
Question How many points the sensex went up in January 2000 during the ketan parekh scam?
Correct Answer 700 points
SET 11
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.
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Question Acquisition finance, which provide funding for acquiring another company are often
closely held or fairly owned.
Correct Answer True
Question What is the information to be placed before the board of directors as per the
Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Question What is the eligibility norm for an unlisted company for making an public issue as
regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Question Who suffered heavy losses during bad times of stock markets?
Correct Answer Small investors
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Question The capital Adequacy ratio for NBFC's has been fixed at :-
Correct Answer 0.12
Question A significant portion of the investment through the participatory notes is managed by
________ entities.
Correct Answer 114
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
Question ________ is in the form of a usance promissory note payable after 45 days from the
date of issue.
Correct Answer Certificate of Deposit
Question In the wake of boom of which sector the Indian mutual fund launched various sector
specific schemes?
Correct Answer Software
Set 12
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
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
Question The portfolio manager has to place the funds of all their clients in a separate account to
be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Question 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
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
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
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
Question The merchant bankers should act as ________ of the investor's money and put a lot of
responsibility on them.
Correct Answer Custodian
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Question Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
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
Question The portfolio manager has to place the funds of all their clients in a separate account to
be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Question As per the recommendations of the Kumarmangalam Birla committee report who are the
key components of an audit committee.
Correct Answer External auditor , Board , Internal auditor
Question SEBI can investigate and inspect books of accounts and records of insiders.
Correct Answer True
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
Question What is the amount of net worth accompany should have for opting for an IPO ?
Correct Answer 1 Crore
Question A credit card is a payment mechanism which enables the holder to buy goods and
services on credit.
Correct Answer True
Question When are VCF's entitled to get its units listed on stock exchange?
Correct Answer After expiration of 3 years form date of issuance of units
Question 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
Question A portfolio manager could undertake the following on behalf of his clients :-
Correct Answer Hedging and arbitrage transactions
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
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
Question Constant change would be one of the reasons for failure of corporate governance.
Correct Answer True
Question Final prospectus in the book building p________ess is to be filed with the ROC.
Correct Answer ROC
Question Recently, SEBI has allowed buy back of shares upto ________% of the total shares
without requirement of a special resolution
Correct Answer 10
SET 13
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
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Question As per SEBI regulations, PMS must not be involved in any litigation connected with
________.
Correct Answer Securities markets
Question Venture capital finance is risk finance for entrepreneurial growth oriented companies.
Correct Answer True
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
Question What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Any appointment of auditors , Minimum paid up capital 1 crore , At least 2
directors
Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
Question Describe some of the various types of mutual funds schemes offered?
Correct Answer Open ended vs. closed ended , Pure income schemes , Tax saving schemes
Question Sweat equity shares are shares issued by company to employees or directors to
discount.
Correct Answer True
Question Money market mutual funds are not permitted to invest in treasury bills and commercial
paper.
Correct Answer False
Question Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Question Constant change would be one of the reasons for failure of corporate governance.
Correct Answer True
Question One of the process of book building is that the issuer appoints a ________ also known
as the book runner.
Correct Answer Lead manager
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 , RBI to take over
the mutual fund
Question What is the amount of net worth accompany should have for opting for an IPO ?
Correct Answer 1 Crore
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 0.25
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Your Answer False
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Question Which stock exchange was used by ketan parekh for buying operations?
Correct Answer Kolkatta
Question The continuing growth in ________ was one of the factors that contributed to the growth
of credit rating.
Correct Answer Information technology
Question Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a
minimum period of :-
Correct Answer 1 year
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
SET 14
Question Of the net tangible assets how much percentage of assets should be held in monetary
assets for a company to make an IPO?
Correct Answer 0.5
Question Which stock exchange was used by ketan parekh for buying operations?
Correct Answer Kolkatta
Question Apart from the portfolio management fees what percentage of returns can the portfolio
manager share from their client's profits?
Correct Answer 0
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Question What was the percentage of public offering under the IPOs through the book building
method ?
Correct Answer 0.1
Question Final prospectus in the book building p________ess is to be filed with the ROC.
Correct Answer ROC
Question When is the security created from the date of issue of debenture?
Correct Answer Within 6 months
Question February UTI sought permission of SEBI to close 7 assured plans prematurely.
Correct Answer True
Question The process of securitisation involves transfer of assets to a person specially created
called as ________.
Correct Answer Special purpose vehicle
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Question Of the net tangible assets how much percentage of assets should be held in monetary
assets for a company to make an IPO?
Correct Answer 0.5
Question Which stock exchange was used by ketan parekh for buying operations?
Correct Answer Kolkatta
Question Apart from the portfolio management fees what percentage of returns can the portfolio
manager share from their client's profits?
Correct Answer 0
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Question Final prospectus in the book building p________ess is to be filed with the ROC.
Correct Answer ROC
Question When is the security created from the date of issue of debenture?
Correct Answer Within 6 months
Question February UTI sought permission of SEBI to close 7 assured plans prematurely.
Correct Answer True
Question The process of securitisation involves transfer of assets to a person specially created
called as ________.
Correct Answer Special purpose vehicle
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
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
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer False
Your Answer True
Question The issue price for placement portion and net offer to public are not the same.
Correct Answer 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
Question The continuing growth in ________ was one of the factors that contributed to the growth
of credit rating.
Correct Answer Information technology
Question What is the eligibility norm for an unlisted company for making an public issue as
regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Question 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
Question MIBOR is a security. Derivatives based on this interest rate have legal recognition under
SCRA.
Correct Answer False
Question Describe some of the various types of mutual funds schemes offered?
Correct Answer Open ended vs. closed ended , Pure income schemes , Tax saving schemes
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
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
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer False
Question The merchant bankers should act as ________ of the investor's money and put a lot of
responsibility on them.
Correct Answer Custodian
Question Which stock exchange was used by ketan parekh for buying operations?
Correct Answer Kolkatta
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
Question A bidder can request for a transaction registration slip as the proof of his having entered
the bid.
Correct Answer True
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
Question Explain the important achievements of SEBI :-
Correct Answer Takeover code formulated , Proper disclosure to investors through prospectus
mandatory , Guidelines for merchant banker
Question Largest deal struck on Day 1 of foreign currency option got underway in India was of
________.
Correct Answer Standard Chartered Bank
Question Most of the deals struck on the fist day of foreign currency options were of ________
maturity.
Correct Answer 1 year
Question An acquirer who holds ________ shares or voting rights of a target company can
acquire further shares only after making PA to acquire at least additional 20% of target company from
the shareholders through an open offer.
Correct Answer 0.75
Question A portfolio manager need not necessarily sell or purchase securities separately for each
client.
Correct Answer False
Question What percentage of funds should be invested in unlisted companies?
Correct Answer 0.74
Question What is the percentage of restriction on HFC's disbursement on project lending for
refinance ?
Correct Answer 0.3
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
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
SET 16
Question For an approval of HFC one of the norms is that the promoter's contribution has to be
minimum ________ of paid up capital.
Correct Answer 0.3
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Question What is the time frame stipulated by SEBI for members intending to avail of the buy back
offer?
Correct Answer Minimum 15 days and not exceeding 30 days
Question 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
, Issue participatory notes by FII to non regulated entities
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
Question A bidder can request for a transaction registration slip as the proof of his having entered
the bid.
Correct Answer True
Question Acquisition finance, which provide funding for acquiring another company are often
closely held or fairly owned.
Correct Answer True
Question As per SEBI regulations, PMS must not be involved in any litigation connected with
________.
Correct Answer Securities markets
Question In February 2004, UTI sought permission of SEBI to prematurely close ________
schemes.
Correct Answer 7
Your Answer 8
Question At the inception of the hire purchases transaction the finance company records the hire
purchase installment receivable as current asset.
Correct Answer True
Question The company intending to buy back their shares must open a ________ account as per
SEBI regulations.
Correct Answer Escrow
Question The buy back of shares by Indian corporates has been very successful in India.
Correct Answer False
Question What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture
redemption reserve to be created
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 38200
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
Question For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct Answer 2
Question How is a share buy back a useful mechanism in preventing hostile takeovers?
Correct Answer Share buyback reduces the floating stock in the market thereby reducing the scope
for a raider to acquire enough stock to gain management control.
Question 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
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
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
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
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
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
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
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 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
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
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
Question
When is the share of the target company deemed to be frequently traded
Correct Answer
If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5%
Your Answer
If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5%
Question
When did the trading in foreign currency options start in India?
Correct Answer
37809
Your Answer
37809
Question
How many times Refinance cannot exceed net owned funds of Housing finance companies?
Correct Answer
5 times
Your Answer
5 times
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
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
Question
What is the estimated figure of credit card defaults in India?
Correct Answer
800 crores
Your Answer
800 crores
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
Question
Correct Answer
Your Answer
Book building
Bharati Televentures
Bharati Televentures
Depository
Bank of securities
Bank of securities
True/False
Question
DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer
True
Your Answer
True
True/False
Question
February UTI sought permission of SEBI to close 7 assured plans prematurely.
Correct Answer
True
Your Answer
True
Question
Deposits can be accepted for a maximum period of :-
Correct Answer
5 years
Your Answer
5 years
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 financial institutions
SET up by IDBI and other financial institutions
custodian
Helps register and safeguard the securities of its clients
Helps register and safeguard the securities of its clients
True/False
Question
SEBI cannot investigate the affairs of mutual funds and their trustees and asset management
companies.
Correct Answer
False
Your Answer
False
Question
The following are some of the regulations governing the NBFC's issued by RBI :-
Correct Answer
All the NBFC's must register with RBI , Without the registration certificate no company can undertake
activities of NBFC , All companies must be liquid assets equal to 15% of deposits
Your Answer
All the NBFC's must register with RBI , Without the registration certificate no company can undertake
activities of NBFC , All companies must be liquid assets equal to 15% of deposits
Question
When can an offer be withdrawn?
Correct Answer
Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board
Your Answer
Circumstances as in opinion of board , Statutory approvals refused , Sole acquirer being person died
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.
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
Question
As per the recommendations of the Kumarmangalam Birla committee report who are the key
components of an audit committee.
Correct Answer
Board , Internal auditor , External auditor
Your Answer
Board , Internal auditor , External auditor
Question
Information technology, communication and entertainment represent ________ stocks.
Correct Answer
ICE
Your Answer
ICE
Question
The appointment of a ________ is mandatory in a offer process.
Correct Answer
Merchant Banker
Your Answer
Merchant Banker
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
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
True/False
Question
The depository can legally transfer beneficial ownership.
Correct Answer
True
Your Answer
True
True/False
Question
ISIN is a unique identification number for security.
Correct Answer
True
Your Answer
True
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
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
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
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
Question
When is the security created from the date of issue of debenture?
Correct Answer
Within 6 months
Your Answer
Within 6 months
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
Question
What is mortgage backed securitisation?
Correct Answer
Securitisation dealing with mortgages
Your Answer
Securitisation dealing with mortgages
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
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%
Select The Blank
Question
In the L & T reliance case, Reliance was fined ________.
Correct Answer
Rs. 5 lacs
Your Answer
Rs. 5 lacs
Question
The liability of the underwriters in the MS shoes case was estimated to be ________.
Correct Answer
Rs. 500 crores
Your Answer
Rs. 500 crores
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
0.05
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
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
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
True/False
Question
Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer
True
Your Answer
True
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
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
False
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
1 year
Question
SENSEX is calculated using ________ method.
Correct Answer
Market capitalization
Your Answer
Market capitalization
True/False
Question
Mergers and amalgamations of companies are also covered under the SEBI regulations 1997.
Correct Answer
False
Your Answer
False
Question
Not more than ________ of funds may be invested by way of subscription to IPO of the company who's
share are proposed to be listed.
Correct Answer
0.25
Your Answer
0.2
True/False
Question
At the inception of the hire purchases transaction the finance company records the hire purchase
installment receivable as current asset.
Correct Answer
True
Your Answer
True
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