Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Match
1)
Portfolio Collection of assets
Factors influencing portfolio decisions Business and Market risks
Code of conduct- Portfolio Manager Observe high standard of integrity and
fairness
SEBI Regulations Portfolio Manager must fulfill the
capital adeuacy norms
2)
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
governance in spite of norms;
Superficial commitment to vision,
mission and values
Functions of Chief Executive, ED,
Managers
;Assisting the board in decision making
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
governance in spite of norms
Superficial commitment to vision,
mission and values
Functions of Chief Executive, ED,
Managers
Assisting the board in decision making
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)
Looses the rights to vote shares Non voting
Book building Bharati Televentures
Depository Bank of securities
First to introduce rolling settlements in
the country
NSE
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%
euity
Can be delisted
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 euity 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
An acuirer who holds 15% or more but less than 75% of voting' rights can acuire
such additional
shares as would entitle him to exercise more than ________ of voting rights in an
financial year.
Correct Answer 0.05
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
Directors should not be member of more than________ committees.
Correct Answer 10
An acuirer who holds ________ shares or voting rights of a target company can
acuire further
shares only after making PA to acuire at least additional 20% of target company
from the shareholders
through an open offer.
Correct Answer 0.75
When is the security created from the date of issue of debenture?
Correct Answer Within 6 months
What is maximum percentage of regular expenses of the assets of a scheme?
Correct Answer 0.03
A rated company can raise deposit worth how many times its net worth?
Correct Answer 4 times
AA rated companies can raise ________ of its net worth.
Correct Answer 2.5 times
What percentage of underwriting in the issues obligatory to the merchant
bankers?
Correct Answer 0.05
Upto what percentage has the RBI permitted the banks to invest in the capital
market ?
Correct Answer 0.05
How much percentage of company's revenue would be accounted for by the
business with new
name?
Correct Answer 0.5
What is the minimum offer an acuirer can make ?
Correct Answer Min 20%
Renewal of portfolio fund on maturity shall be deemed as a fresh placement for
a minimum period
of :Correct Answer 1 year
For issues upto Rs. 50 crores the number of lead managers will not exceed
________.
Correct Answer 2
What is the time frame to submit a report to SEBI for acuisition transactions
arising out of firm
industry
What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liuidity needs and tax
considerations , Investment and
interest rate risk
Your Answer Investor characteristics , Liuidity needs and tax considerations ,
Investment and
interest rate risk
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
Information technology, communication and entertainment represent
________ stocks.
Correct Answer ICE
Your Answer ICE
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
The right to buy is called ________.
Correct Answer Call option
Your Answer Call option
What percentage of funds should be invested in unlisted companies?
Correct Answer 0.74
Your Answer 0.74
Who is responsible to get the securities listed on all the stock exchanges?
Correct Answer Merchant banker
Your Answer SEBI
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
What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
The depository can legally transfer beneficial ownership.
Correct Answer True
Your Answer True
Since when have the Indian Stock markets risen ?
Correct Answer 37775 ]3 june 2003
Your Answer 38200
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
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
Money market mutual funds are not permitted to invest in treasury bills and
commercial
paper.
Correct Answer False
Your Answer True
When can the American style option exercised?
Correct Answer On or before the expiry date
Your Answer On or before the expiry date
A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
What is the estimated figure of credit card defaults in India?
Correct Answer 800 crores
Your Answer 800 crores
Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer False
AA rated companies can raise ________ of its net worth.
Correct Answer 2.5 times
Your Answer 2 times
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
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
Markets have moved away from Badla system to ________ .
Correct Answer Derivatives Trading
Your Answer Derivatives Trading
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 euity 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 euity 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%
How many members are appointed by the central government?
Correct Answer 2
Your Answer 2
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
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 acuirer
Your Answer Cancel certificate issued to custodian , Inspect books of DP ,
issuers or beneficiary
owners , Investigate an acuirer
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
In order to dematerialize the securities one has to fill DRF.
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
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
When one decides to have the shares in an electronic form one has to
approach
________.
Correct Answer DP
SET 4
Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
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
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
Sweat euity shares are shares issued by company to employees or directors
to
discount.
Correct Answer True
Money market mutual funds are not permitted to invest in treasury bills and
commercial
paper.
Correct Answer False
Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
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
Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
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
What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Under which regulation is reporting mandatory in respect of acuisitions
arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
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
The Money market mutual funds (MMMFs) can invest the funds in which of
these
securities?
Correct Answer Call/notice money
What is the information to be placed before the board of directors as per the
Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , uarterly results
Your Answer Annual operating plans , Capital budgets , uarterly results
Bidder cannot revise his bids.
Correct Answer False
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
To make a public announcement the acuirer has to appoint :Correct Answer Merchant Banker
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
What information is reuired to be furnished to stock exchanges in
compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acuisition 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
Which company was responsible for spreading the euity culture in India ?
Correct Answer Reliance Industries
The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
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
When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acuirer being person died ,
Circumstances as
in opinion of board
Your Answer Statutory approvals refused , Sole acuirer being person died ,
Circumstances as in
opinion of board
True/False
The public cannot give their complaints or comments on the issuer company
or others
connected with the issue to SEBI.
Correct Answer False
SEBI has taken an action to ban on Badla.
Correct Answer True
The benefits of availing depository services are :-
back offer?
Correct Answer Minimum 15 days and not exceeding 30 days
An AMC fees :Correct Answer To be borne by the individual schemes
Apart from the portfolio management fees what percentage of returns can
the portfolio
manager share from their client's profits?
Correct Answer 0
What is the minimum number of days for which the bid should remain open
in book
building?
Correct Answer 5 days
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
ISIN is a uniue identification number for security.
Correct Answer True
What percentage of underwriting in the issues obligatory to the merchant
bankers?
Correct Answer 0.05
Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
A ________ can legally transfer beneficial ownership.
Correct Answer Depository
One of the process of book building is that the issuer appoints a ________
also known
as the book runner.
Correct Answer Lead manager
SEBI has taken an action to ban on Badla.
Correct Answer True
With the introduction of ________ accounts the complaints about allotment
have surely
gone down.
Correct Answer DEMAT
What was the percentage of public offering under the IPOs through the book
building
method ?
Correct Answer 0.1
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
Companies are not allowed to buy back securities :Correct Answer Through any/ own subsidiary company , Through any/group
of investment
When one decides to have the shares in an electronic form one has to
approach
________.
Correct Answer DP
Your Answer SEBI
The issue price for placement portion and net offer to public are not the
same.
Correct Answer False
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
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
What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
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
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
Employee stock option scheme granted to the employee is transferable.
Correct Answer False
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
reuirements 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 reuirements
relating to disclosers,
listing of instruments etc
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
The lease agreement provides for a transfer of ownership to the lessee
either at the end
The setting up of NSE consists of:Correct Answer Set up by IDBI , Euity paid up capital of Rs25 crores , Started
operations in June
1994
Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities And Exchange Board of India
LIST OF ATTEMPTED S AND ANSWERS
________ is an international credit rating company.
Correct Answer FITSCH
The acuirer is reuired to appoint a merchant banker before making a PA.
Correct Answer True
Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term
instruments
What must be the uality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
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.
Depositary facilitates transfers without having to handle money.
Correct Answer False
What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
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
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
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
As per SEBI regulations, PMS must not be involved in any litigation
connected with
________.
Correct Answer Securities markets
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
The public cannot give their complaints or comments on the issuer company
or others
connected with the issue to SEBI.
Correct Answer False
What is the status of Stock exchanges today?
Correct Answer Joint stock companies
Since when have the Indian Stock markets risen ?
Correct Answer 37775
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
Apart from the portfolio management fees what percentage of returns can
the portfolio
manager share from their client's profits?
Correct Answer 0
What is the percentage of restriction on HFC's disbursement on project
lending for
refinance ?
Correct Answer 0.3
Markets have moved away from Badla system to ________ .
Correct Answer Derivatives Trading
MIBOR is a security. Derivatives based on this interest rate have legal
recognition under
SCRA.
Correct Answer False
The buy back of shares by Indian corporates has been very successful in
India.
Correct Answer False
What is government's move towards Stock Exchanges ?
Correct Answer Demutulisation
How much should be the minimum post issue capital of the company?
Correct Answer 10 crores
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
A portfolio manager need not necessarily sell or purchase securities
separately for each
client.
Correct Answer False
For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
The VCs to flourish reuires a well developed ________.
Correct Answer Capital market
What should be done if the address of investor changes?
Correct Answer Inform DP and update records , Inform different companies
When did the concept of corporate governance evolve?
Correct Answer During the watergate scandal
How many times Refinance cannot exceed net owned funds of Housing
finance
companies?
Correct Answer 5 times
Money market mutual funds are not permitted to invest in treasury bills and
commercial
paper.
Correct Answer False
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
The issue price for placement portion and net offer to public are not the
same.
Correct Answer False
What are the salient features of Hire Purchase ?
Correct Answer Finance company purchases the euipment supplier and lets it
on hire , During
the contract hirer can opt for an early repayment and purchase the asset ,
Hirer may be reuired to
make down payment
What is Sweat euity ?
Correct Answer Euity shares issued by the company to the employees ,
Issued to directors at a
discount , For consideration other than cash for providing now
Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
February UTI sought permission of SEBI to close 7 assured plans
prematurely.
Correct Answer True
The service charge is levied for allowing subscribers for entry into or exit
from mutual
schemes is called as ________.
________.
Correct Answer DP
The depository can legally transfer beneficial ownership.
Correct Answer True
What is issued by mutual funds?
Correct Answer Units
What must be the uality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
Who can buy or sell securities on containing the certificate of registration?
Correct Answer Underwriter , Merchant banker , Investment advisor
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
DRR is treated as part of general reserve for consideration of bonus issue of
proposals.
Correct Answer True
What is the underwriter paid ?
Correct Answer Commission
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 acuire enough stock to gain management control.
The process of securitisation involves transfer of assets to a person specially
created
called as ________.
Correct Answer Special purpose vehicle
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
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
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 ,
What is euipment leasing ?
Correct Answer Contractual agreement where the lessor of euipment
transfers the right to use
Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , uarterly results
________ are a kind of portfolio schemes.
Correct Answer Mutual funds
What does SEBI do with its power ?
Correct Answer Cancel certificate issued to custodian , Inspect books of DP ,
issuers or
beneficiary owners , Investigate an acuirer
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
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
Who suffered heavy losses during bad times of stock markets?
Correct Answer Small investors
What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
The capital Adeuacy ratio for NBFC's has been fixed at :Correct Answer 0.12
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
A significant portion of the investment through the participatory notes is
managed by
________ entities.
Correct Answer 114
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
Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
What are the features of a Certificate of deposit?
Correct Answer It is a document title to a time deposit , Freely negotiable and
marketable , Can
Correct Answer 4
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
Recently, SEBI has allowed buy back of shares upto ________% of the total
shares
without reuirement of a special resolution
Correct Answer 10
Directors should not be member of more than________ committees.
Correct Answer 10
SET 13
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
DRR is treated as part of general reserve for consideration of bonus issue of
proposals.
Correct Answer True
The setting up of NSE consists of:Correct Answer Set up by IDBI , Euity paid up capital of Rs25 crores , Started
operations in June
1994
Who was the first to introduce rolling settlement in India?
Correct Answer NSE
As per SEBI regulations, PMS must not be involved in any litigation
connected with
________.
Correct Answer Securities markets
Venture capital finance is risk finance for entrepreneurial growth oriented
companies.
Correct Answer True
What is an offer letter?
Correct Answer Document addressed to the shareholders , Containing
disclosures of the acuirer
/ PAC target company , Offer price
Information technology, communication and entertainment represent
________ stocks.
Correct Answer ICE
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.
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
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
Describe some of the various types of mutual funds schemes offered?
Correct Answer Open ended vs. closed ended , Pure income schemes , Tax
saving schemes
Sweat euity shares are shares issued by company to employees or directors
to
discount.
Correct Answer True
A custodian can transfer beneficial ownership legally.
Correct Answer False
What is the underwriter paid ?
Correct Answer Commission
In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Money market mutual funds are not permitted to invest in treasury bills and
commercial
paper.
Correct Answer False
Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Constant change would be one of the reasons for failure of corporate
governance.
Correct Answer True
One of the process of book building is that the issuer appoints a ________
also known
as the book runner.
Correct Answer Lead manager
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
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 , Operate in
stock market
privately through home or office
Directors should not be member of more than________ committees.
Correct Answer 10
The continuing growth in ________ was one of the factors that contributed to
the growth
of credit rating.
Correct Answer Information technology
Explain the important achievements of SEBI :Correct Answer Takeover code formulated , Proper disclosure to investors
through prospectus
mandatory , Guidelines for merchant banker
What ualities 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
Select The Blank
Cash Corporate benefit such as dividend / interest received is credited
through
________ facility.
Correct Answer ECS
Your Answer EFT
What should be done if the address of investor changes?
Correct Answer Inform DP and update records , Inform different companies
Renewal of portfolio fund on maturity shall be deemed as a fresh placement
for a
minimum period of :Correct Answer 1 year
What is mortgage backed securitisation?
Correct Answer Securitisation dealing with mortgages
Which company was responsible for spreading the euity culture in India ?
Correct Answer Reliance Industries
What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Employee stock option scheme granted to the employee is transferable.
Correct Answer False
SET 14
What should be done if the address of investor changes?
Correct Answer Client gives his money for investment to the portfolio
manager and leaves it to
him to make all the investment decisions.
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
Largest deal struck on Day 1 of foreign currency option got underway in
India was of
________.
Correct Answer Standard Chartered Bank
Most of the deals struck on the fist day of foreign currency options were of
________
maturity.
Correct Answer 1 year
Bidder cannot revise his bids.
Correct Answer False
________ are a kind of portfolio schemes.
Correct Answer Mutual funds
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
What must be the uality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
What is the system of rolling settlement prevalent in the USA ?
Correct Answer Transaction + 3
An acuirer who holds ________ shares or voting rights of a target company
can
acuire further shares only after making PA to acuire at least additional 20%
of target company from
the shareholders through an open offer.
Correct Answer 0.75
A portfolio manager need not necessarily sell or purchase securities
separately for each
client.
Correct Answer False
What percentage of funds should be invested in unlisted companies?
Correct Answer 0.74
What is the percentage of restriction on HFC's disbursement on project
lending for
refinance ?
Correct Answer 0.3
How many members are appointed by the central government?
Correct Answer 2
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
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
What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Since when have the Indian Stock markets risen ?
Correct Answer 37775
SET 16
A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
What is a call option?
Correct Answer Right to buy
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
What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
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
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
What is government's move towards Stock Exchanges ?
Correct Answer Demutulisation
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 acuisition 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
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
Transactions that involve substantial payment towards goodwill, brand euity
or
intellectual property must be placed before the board of directors as per the
recommendations of the
Kumarmangalam Birla report.
Correct Answer True
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
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
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
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
What is the most common complaint of the investors?
Correct Answer Non receipt of refund orders and allotment advise
How many times Refinance cannot exceed net owned funds of Housing finance
companies?
Correct Answer
5 times
Your Answer
5 times
Select The Blank
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 Multiple Answer
What are the major factors influencing portfolio decisions?
Correct Answer
Investor characteristics , Liuidity needs and tax considerations , Investment and interest
rate risk
Your Answer
Investor characteristics , Liuidity needs and tax considerations , Investment and interest
rate risk
Multiple Choice Single Answer
What is the estimated figure of credit card defaults in India?
Correct Answer
800 crores
Your Answer
800 crores
True/False
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
Match The Following
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
True/False
DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer
True
Your Answer
True
True/False
February UTI sought permission of SEBI to close 7 assured plans prematurely.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Deposits can be accepted for a maximum period of :Correct Answer
5 years
Your Answer
5 years
Match The Following
Correct Answer
Your Answer
ISIN
Uniue identification number for security
Uniue 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
SEBI cannot investigate the affairs of mutual funds and their trustees and asset
management
companies.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
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 liuid assets eual 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 liuid assets eual to 15% of deposits
Multiple Choice Multiple Answer
When can an offer be withdrawn?
Correct Answer
Statutory approvals refused , Sole acuirer being person died , Circumstances as in
opinion of board
Your Answer
Circumstances as in opinion of board , Statutory approvals refused , Sole acuirer being
person died
Multiple Choice Single Answer
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
To open a DP account, following things are reuired :Correct Answer
Proof of identity , Proof of address , Photograph
Your Answer
Proof of identity , Proof of address , Photograph
Multiple Choice Multiple Answer
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
Select The Blank
Information technology, communication and entertainment represent ________ stocks.
Correct Answer
ICE
Your Answer
ICE
Select The Blank
The appointment of a ________ is mandatory in a offer process.
Correct Answer
Merchant Banker
Your Answer
Merchant Banker
Multiple Choice Single Answer
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 Multiple Answer
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
The depository can legally transfer beneficial ownership.
Correct Answer
True
Your Answer
True
True/False
ISIN is a uniue identification number for security.
Correct Answer
True
Your Answer
True
Select The Blank
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 Multiple Answer
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 Multiple Answer
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
Multiple Choice Single Answer
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
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
Multiple Choice Single Answer
What is mortgage backed securitisation?
Correct Answer
Securitisation dealing with mortgages
Your Answer
Securitisation dealing with mortgages
Multiple Choice Multiple Answer
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
Select The Blank
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
In the L & T reliance case, Reliance was fined ________.
Correct Answer
Rs. 5 lacs
Your Answer
Rs. 5 lacs
Select The Blank
The liability of the underwriters in the MS shoes case was estimated to be ________.
Correct Answer
Rs. 500 crores
Your Answer
Rs. 500 crores
Select The Blank
An acuirer who holds 15% or more but less than 75% of voting' rights can acuire 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
Multiple Choice Multiple Answer
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
Multiple Choice Multiple Answer
What is an offer letter?
Correct Answer
Document addressed to the shareholders , Containing disclosures of the acuirer / PAC
target
company , Offer price
Your Answer
Document addressed to the shareholders , Containing disclosures of the acuirer / PAC
target
company , Offer price
Multiple Choice Single Answer
What is euipment leasing ?
Correct Answer
Contractual agreement where the lessor of euipment transfers the right to use the
euipment to the
lessee
Your Answer
Contractual agreement where the lessor of euipment transfers the right to use the
euipment to the
lessee
True/False
Sweat euity shares are shares issued by company to employees or directors to discount.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
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
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
Multiple Choice Single Answer
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
Select The Blank
SENSEX is calculated using ________ method.
Correct Answer
Market capitalization
Your Answer
Market capitalization
True/False
Mergers and amalgamations of companies are also covered under the SEBI regulations
1997.
Correct Answer
False
Your Answer
False
Select The Blank
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
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
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