Capital Market
1. What was the percentage of public offering under the IPOs through the book building method? 25%Match the following:
Objective of audit committee = looks into defaults to depositors, creditors shareholders and debenture holdersReasons of failure of corporate governance in spite of norms = superficial commitment to vision, mission and valuesFunctions of chief executive, ED, Managers = assisting the board in decision making processShare holders = lack of profitability2. Describe some of the various types of mutual funds schemes offered: pure income schemes; tax saving schemes; preference shares schemes3. The buy back of shares by Indian corporates has been very successful in India. True4. How many companies are there to do business of credit rating? 45. What is the information to be placed before the board of directors as per the Kumarmangalam report? Annual operating plans; capital budgets; quarterly results6. The process of share buy back must be completed within what period from the date of passing the resolution? 12 months7. The NSE nifty index comprises of 50 companies.
8. SEBI has to create a proper atmosphere for raising money. The atmosphere consists of rules regulations, trade practices, customs and relations. True9. SEBI creates an environment which would facilitate mobilization of adequate resources through the securities market and its efficient allocation. True10. Mergers and amalgamations of companies are also covered under the SEBI regulations, 1997. False11. What are the requirements regarding promoters contribution and lock in? in case of IPO, promoters have to necessarily offer at least 20% of the post issue capital; in case of listed companies promoters shall participate either to an 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 years12. To open a DP account, following things are required: proof of identity; proof of address; photograph13. As per RBI regulation, bank borrowing should not exceed how many times of the net owned funds? 4 times14. 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. False15. Since when have the Indian Stock markets risen? Jun-0316. For an approval of HFC one of the norms is that the promoters contribution has to be minimum 25% of paid up capital.
17. The IPO size can exceed five times the pre-issue net worth of the company. False18. Which act defines the term Stock Exchange? Securities and Exchange Board of India19. It is the responsibility of the SEBI to ensure the timely returns and allotments of the securities.
20. What do you understand by capital markets? Market for long term funds and investments in long term instruments21. What conditions are to be followed in case of rollover of debentures without the change in interest rates? Option to redeem debentures; consent of rollovers22. What is the objective of a public announcement? Ensure that the shareholders of the target company are aware of the exit opportunity available to them23. Who takes risk at the time of investment? Investor24. What is the procedure for action in case of default? Suspension of the certificate; mutual fund/AMC cease to exist; RBI to take over the mutual fund25. The certificate of deposit is/are in the form of an usance promissory note payable after 45 days from the date of issue.
26. Final prospectus in the book building process is to be filed with the SEBI.27. What are the facilities offered by NSDL? Enable surrender and withdrawal of securities to and from the depository; maintain the investors holdings in an electronic form; effect settlement of securities traded on exchanges.28. What is the main objective of the promoting Discount and Finance House of India (DFHI)? To control inflation by mopping up the liquidity in the money market29. While structuring the deal the entrepreneur seeks alternate finance.30. AA rated companies can raise 2.5 times of its net worth.
31. In case of an IPO of any security of issue size of 1 Crore or more, security shall be issued only in a Demat form. 32. What is an offer letter? Document addressed to shareholders; containing disclosures of the acquirer/PAC target company; offer letter is addressed to the acquirer33. In February 2004, UTI sought permission of SEBI to prematurely close 7, 10 schemes.34. Mutual funds have to register with: SEBI35. The price is determined in an open offer by: negotiated price, price paid by acquirer, average weekly high low of closing share of the target company36. The companies that have eroded market capitalization by Rs.20,000 crores: infosys, satyam, wipro37. The eligibility norms for a listed company for making a public issue are: if the issue size is less than five per issue net worth, if the issue size is more than or equal to five times per issue net worth than the listed company to take book building route, 60% of issue size to be allotted to QIBs38. Acquirer cannot make an offer for less than 20% of the shares. True39. The turning point in the working of Indian capital markets: establishment of NSE40. The limit for aggregate investment of FIIs NRIs and OCBs: 30%41. Certain type of acquisitions as stipulated under the regulation 3 of chapter 1 of the regulations are specifically exempted from the open offer process. True42. The public cannot give their complaints or comments on the issuer company or others connected with the issue of SEBI. False43. As per SEBI regulations, PMS must not be involved in any connected with securities market.
44. 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. False45. AA rated companies can raise 2.5 times of its net worth.
46. The general obligations of mutual fund are: 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 auditor47. The concept of corporate governance evolved: during the Watergate scandal48. Refinance cannot exceed net owned funds of Housing finance companies these many times. 5 times49. These HFCs are not eligible to draw further refinance: whose overdue of over 3 months exceed 5% of the aggregate demand of the year50. The process of securitization involve transfer of assets to a person specially created called as: special purpose vehicleMatch the following:
MS Verma Committee=Dual flotation
Hero Honda
=FY 2003 03 dividend Rs 187
VSNL
=FY 2003 03 dividend Rs 172
Castrol
=FY 2003 03 dividend Rs 145
51. Money market mutual funds are not permitted to invest in treasury bills and commercial paper. False52. The procedure for making an application to the takeover panel for seeking exemption is: acquirer to make an application in a standard format of SEBI53. The setting up of NSE consists of: Set up by SEBI, Equity paid up capital of Rs25 crores, started operations in June 199454. The limitations of refinance facility are: cannot exceed 5 times NOF, not to exceed 50% of total loan funds of HFCs, not to exceed 15% of NOF of NHB55. An offer letter is: document addressed to the shareholders, containing disclosures of the acquirer / PAC target company, offer price56. The system of rolling settlement followed in India is: transaction + 257. As per the recommendations of the Kumarmangalam Birla committee report the key components of an audit committee are: board, internal auditor, external auditor58. Takeover means: acquirer takes over the control of the target company59. No mutual fund shall invest more than 10% of its NAV in equity shares. False60. Credit rating is: An isolated function of credit risk evaluation61. The IPO size can exceed five times the pre-issue net worth of the company. False62. The eligibility norms for an unlisted company for making a public issue are: 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 per issue net worth
63. The merchant bankers should act as Custodian of the investors money and put a lot of responsibility on them.
64. During the budget 2003-04, finance minister made some announcements which he hopes will make investors think in terms of returning to stock market: 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 receiver65. Information technology, communication and entertainment represent ICE stocks.
66. An offer can be withdrawn when: statutory approvals refused, sole acquirer being person died, circumstances as in opinion of board67. RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. False68. Mortgage backed securitization is: securitization dealing with backing of assets69. Constant change would be one of the reasons for failure of corporate governance. True70. The person who change the composition of securities: fund manager71. The ESOPs are: 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
Match the following:
Objective of audit committee
=look into defaults to depositors
Reasons of failures of corporate governance in =superficial commitment to vision,
Spite of norms
Functions of chief executive, ED, Managers
=assisting the board in decision
Shareholders
=should effectively participate in
72. 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 1 year.
73. The maximum percentage of regular expenses of the assets of a scheme is: 3%74. The person who is responsible to get the securities listed on all the stock exchanges: Merchant banker75. With the introduction of DEMAT accounts the complaints about allotments have surely gone down.
76. The most important objective for an investor is: Protection of the value of the investment77. The falling interest rates on bank deposits and bonds have forced many investors to look at stock market. True78. Of the net tangible assets the percentage of assets that should be held in monetary assets for a company to make an IPO is: 50%79. How are the stages in the process of book building broadly into? Syndicate formation, issue process, IPO80. Dematerialized shares have distinctive numbers. False81. What are the major factors influencing portfolio decisions? Investor characteristics, liquidity needs and tax considerations, investment and interest rate risk
82. Certain type of acquisitions as stipulated under the regulation 3 of chapter 1 of the regulations are specifically exempted from the open offer process. True83. When one decides to have the shares in an electronic form, one has to approach the DP.
84. What percentage of funds should be invested in unlisted companies? 74%85. What must be the quality of a good portfolio manager? Sound general knowledge, analytical ability and marketing skills, experienceMatch the following:
Dutch Auction
=Price of the buy back is done by
Open market purchases
=no minimum price stipulation
Companies holding more than 90% equity=can be delisted
Share buy back is a way of
=returning surplus cash to the
86. How many companies are there to do business of credit rating? 487. Final prospectus in the book building process is to be filed with the ROC.
88. 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 5% of voting rights in an financial year.
89. When did the concept of corporate governance evolve? During the Watergate scandal90. What should be done if the address of an investor changes? Inform DP and update records, inform different companies91. Who suffered heavy losses during the bad times of the stock markets? Small investors92. Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. True93. SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies. False94. SENSEX is calculated using market capitalization method.
95. What conditions are to be followed in case of rollover of debentures without the change in interest rates? Option to redeem debentures, consent of rollovers, fresh credit rating96. ISIN is an unique identification number for security. True97. An acquirer who holds 75% shares or voting rights of a target company can acquire further shares only after making PA to acquire at least additional 20% of the target company from the shareholders through an open offer.
98. Mutual funds can do investments in any security by way of private placement by an associate or group company of the sponsor. False99. Sweat equity shares are shares issued by a company to employees or directors at a discount. True100. Switching of acceptance between different offers is not possible. FalseMatch the following:
Overall economic conditions=factor for obtaining value of a firm
Minimization of taxes
=investors ensures at the time of
Rs 25,200
=SEBI application fee
First stage financing
=provided to expand initial capital
101. What are the requirements regarding promoters contribution and lock in?: 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 an extent of 20% of proposed or post issue; in case of an issue of capital the minimum contribution shall be locked in for a period of 3 years
102. What information is required to be furnished to stock exchanges in compliance of SEBI regulations 1997?: Details of proposed acquisition need to be filled with stock exchanges at least four days before the date; any person holding more than 15% but less than 75% voting rights shall be disclosed within two days; annual disclosures
103. What is the main advantage of a rolling settlement? Quicker payments104. 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? Through book building process105. No mutual fund under all its schemes should own more than 10% of any companys paid up capital carrying voting rights.
106. Among the closed schemes, four long term assurance schemes were launched with a return ranging between 13 - 14%.
107. Who is required to make a public announcement? Acquirer108. While structuring the deal the entrepreneur seeks voting control.
109. A trusted deed has to be executed for rollover of debentures without changing interest rates.
110. What are the different kinds of stock exchanges in India? Voluntary non profit making organizations, joint stock companies limited by shares, joint stock companies limited by a guarantee
111. In case of an IPO of any security of issue size of 10 crores or more, security shall be issued only in a demat form.
112. The Money Market Mutual Funds (MMMFs) can invest the funds in which of these securities? Call/notice money113. A manufacturing company whose issue and project have been appraised by a public financial institution or a bank and has also participated in its funding may get its shares listed on the stock exchange. True114. What are the SEBI guidelines for issue of debt instruments? Credit rating, maturity more than 18 months, appoint debenture trustee, debenture redemption reserve to be created
115. How much should be the minimum net worth of an AMC? Not less than 10 crores116. What are the factors that determine the value of a firm? Overall economic condition; demand and supply capital; degree of popularity of the industry
117. The main features of commercial paper are: short term financial instrument; negotiable and transferable instrument; companies issue it for raising short term debt
Match the following:
Factors influencing portfolio decisions=business and market risks
Code of conduct- portfolio manager=observe high standard of
SEBI regulations
=portfolio manager must fulfil the
Portfolio
=collection of assets
118. The capital adequacy ratio for NBFCs has been fixed at: 12%119. A Escrow account is created for the purpose of distributing receivables to the investors on the securitization deal.
120. BSE introduced an equity stock index known as SENSEX.
121. An option is: a contract which gives the buyer the right to buy, sell specified quantity of underlying assets at a specific price on or before the specified time.
122. The features of mutual fund are: 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 many be in the form of stock, bond, money market securities
123. To make a public announcement the acquirer has to appoint: merchant banker124. A rolling settlement is one in which: trades outstanding at the end of the day have to be settled125. To open a DP account, following things are required: proof of identity; proof of address; photograph126. The main objective of credit appraisal is to: assess the repayment capacity; assess the borrowing capacity; assess the installment being paid
127. The right to buy is called call option.
128. The benefits of availing depository services are: no stamp duty; reduction in paperless work; reduction in transaction cost
129. In the book building process pricing is determined on the basis of investor feedback.
130. The refinance made available to any HFC is not to be more than: 60% of its outstanding housing loans131. A rated company can raise deposit worth these may times its net worth: 2 times132. The banks are flushed with funds due to less credit off take. True133. Under employee stock purchase scheme the share can be allotted without any waiting period. True134. Reporting is mandatory under regulation 3(4) in respect of acquisitions arising out of firm allotment in public misuses right issues inter-se transfer etc.: True135. The procedure for action in case of default is: suspension of the certificate; mutual fund / AMC cease to exist; subject to the directions of the board with regard to records
136. The percentage that RBI has permitted the banks to invest in the capital market. 5%137. The NSE Nifty Index comprises of 50 companies.
138. Sweat equity means: equity shares issued by the company to the employee; equity issued to directors at a discount; equity issued to students
139. The time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment in public issues, right issues etc. 21 days140. Companies are not allowed to buy back securities: 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
141. SEBI has recently allowed book building upto an extent of: 100%142. A mutual fund shall not invest more than 10% of its NAV in equity shares in cases of open ended schemes. True143. A mutual fund scheme shall not invest more than 10% of its NAV in unrated debt by a single issuer.
144. As per RBI regulation, bank borrowings should not exceed these many times of the net owned funds. 5 times145. 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. True146. An AMC fees has to be borne by: the individual schemes147. The individual investor can use the book building facility for making an application. True148. The mutual funds issue: Units149. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with: Scheduled Commercial Bank.
150. ISIN is a unique identification number for security. True151. The reason for not introducing
152. SEBI has taken an action to ban on Badla. True
1. Which Act defines the term Stock Exchange?Securities Contract Regulation Act
2. What are the preconditions for trading on the net?A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility
3. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
4. Sweat equity shares are shares issued by company to employees or directors to discount. True
5. Money market mutual funds are not permitted to invest in treasury bills and commercial paper. False
6. Under various SEBI regulations how many brokers suspended?8
7. Describe the regulatory aspects of mutual funds :-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
8. Who forms the Asset management company (AMC)?Group of trustees
9. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.Scheduled Commercial Bank
10. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
11. Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc?Regulation (3) 4
12. Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and underwriters.True
13. The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
14. Call/notice money
15. What is the information to be placed before the board of directors as per the Kumarmangalam report? Annual operating plans , Capital budgets , Quarterly results
16. Bidder cannot revise his bids.False
17. What are ESOP's ?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
Match The Following
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
1. How does SEBI react to the Scams in participatory notes issuance?Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters
2. While structuring the deal the entrepreneur seeks ________.Voting control
3. DRR is treated as part of general reserve for consideration of bonus issue of proposals.True
4. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
5. What precautions are to be taken with respect to delivery instruction slip?
DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id
6. Reliance group has added over 10000 crores in market capital.True
7. 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.0.05
8. ________ is an international credit rating company.FITSCH
9. The appointment of a ________ is mandatory in a offer process.Merchant Banker
10. What is the eligibility norm for an unlisted company for making an public issue as regards to its net worth?Net worth of the company should not be less than 1 crore
11. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.Scheduled Commercial Bank
12. To make a public announcement the acquirer has to appoint :-Merchant Banker
13. What is a more contemporary definition of corporate governance?Corporate Governance is all about promoting corporate fairness, transparency and accountability
14. What information is required to be furnished to stock exchanges in compliance of SEBI regulations 1997 ?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
15. Which company was responsible for spreading the equity culture in India ?Reliance Industries
16. The merger of GTB and UTI was called off due to intervention of ________SEBI and RBI
17. 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.45
18. When can an offer be withdrawn?Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board
19. The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.False
20. SEBI has taken an action to ban on Badla.True
21. The benefits of availing depository services are :-No stamp duty , Reduction in paperless work , Reduction in transaction cost
22. What are the facilities offered by NSDL?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
23. RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.False
24. Directors should not be member of more than________ committees.10
25. What was the turning point in the working of Indian capital markets?Establishment of NSE
26. Under section 11 B of SEBI act how many issuers were debarred?1
27. A portfolio manager need not necessarily sell or purchase securities separately for each client.
28. False
29. A portfolio manager has to assure a guaranteed return to his client.False
30. What is a call option?Right to buy
31. For an approval of HFC one of the norms is that the promoter's contribution has to be minimum
32. ________ of paid up capital.0.3
33. What was the turning point in the working of Indian capital markets?Establishment of NSE
34. What is the time frame stipulated by SEBI for members intending to avail of the buy back
35. offer?Minimum 15 days and not exceeding 30 days
36. How does SEBI react to the Scams in participatory notes issuance?Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters
37. What is government's move towards Stock Exchanges ?Demutulisation
38. What is the main objective of credit appraisal ?
Assess the repayment capacity
39. What are the norms for Approval of Housing finance companies by NHB?Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
40. A bidder can request for a transaction registration slip as the proof of his having entered the
41. bid.True
42. What are the major factors influencing portfolio decisions?Investment and interest rate risk , Investor characteristics , Liquidity needs and tax considerations
43. Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned.True
44. As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Securities markets
45. In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes.7
46. At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset.True
47. The company intending to buy back their shares must open a ________ account as per SEBI
48. regulations.Escrow
Match The Following
Correct Answer Your Answer
Rs. 8000 crores= Current shortfall in UTI schemes
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
1. The right to buy is called ________.Call option
2. The buy back of shares by Indian corporates has been very successful in India.False
3. In order to dematerialize the securities one has to fill DRF.True
4. What are the SEBI guidelines for issue of debt instruments?Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture redemption reserve to be created
5. Since when have the Indian Stock markets risen ?37775
6. SEBI has taken an action to ban on Badla.True
7. The VCs to flourish requires a well developed ________.Capital market
Match The Following
Rematerialisation RRF
NSE Settlement cycle T + 3 Settlement
RBI
Gilt securities mobilization
Non corporate benefit Bonus
1. In 2001 a case of rigging and short selling based insider trading was noticed in the case of proposed merger of ________.UTI Bank with GTB
2. The benefits of availing depository services are :-Reduction in paperless work , Reduction in transaction cost , No stamp duty
3. For issues upto Rs. 50 crores the number of lead managers will not exceed ________.2
4. How is a share buy back a useful mechanism in preventing hostile takeovers?Share buyback reduces the floating stock in the market thereby reducing the scope for araider to acquire enough stock to gain management control.
5. To open a DP account, following things are required :-Proof of identity , Proof of address , Photograph
6. What is the objective of a credit information company?To ascertain the credit worthiness of individuals/organizations and make the data available to all banks
7. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
8. Mutual funds can do investments in any security issued by way of private placement by an associate or group company of the sponsor.False
9. Which company was responsible for spreading the equity culture in India ?Reliance Industries10. What information is required to be furnished to stock exchanges in compliance of SEBI regulations 1997 ?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
11. Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and underwriters.True
12. 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. True
13. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.Scheduled Commercial Bank
14. Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges?SCRA , Depository Act
15. What are the stages in the process of book building broadly divided into?Syndicate formation , Issue process
16. What are the eligibility norms for an unlisted company for making a public issue?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
17. What is the most common complaint of the investors?Non receipt of refund orders and allotment advise
18. What is a more contemporary definition of corporate governance?Corporate Governance is all about promoting corporate fairness, transparency and accountability
19. What are the eligibility norms for a listed company for making a public issue?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
20. What is the eligibility norm for an unlisted company for making an public issue as regards to its net worth?Net worth of the company should not be less than 1 crore
21. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
22. What is the underwriter paid ?Commission
23. ________ is an international credit rating company.FITSCH
24. The acquirer is required to appoint a merchant banker before making a PA.True
25. Hire Purchase transactions are liable to ________.Sales tax
26. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
27. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
28. What is Discretionary Portfolio management service ?Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.
29. Depositary facilitates transfers without having to handle money.
False
30. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
31. 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?15000 crores
32. The features of mutual Fund are :-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
33. 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.False
34. As per SEBI regulations, PMS must not be involved in any litigation connected with ________.Securities markets
35. What qualities do the merchant bankers need to possess?Knowledge and information about various aspects of capital markets , Ability to evaluate and analyze , Update the knowledge
36. Describe the stock lending mechanism:-Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates , Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee
37. What are the limitations of refinance facility?Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 15 % of NOF of NHB
38. The process of share buy back must be completed within what period from the date of passing the resolution?12 months
Match The Following
10 HDFC foreign currency deal Global investors pumping funds in India Specific Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign currency deal
1. When did the trading in foreign currency options start in India?37809
2. What is the main objective of credit appraisal ?
Assess the repayment capacity
3. SEBI cannot investigate the affairs of mutual funds and their trustees and assetmanagement companies.False
4. In the L & T reliance case, Reliance was fined ________.Rs. 5 lacs
5. Recently many banks have started issuing ________ which could also be used as a debit card. ATM card
6. A ________ means any persons connected with a company and who is reasonably having access to unpublished price sensitive information.Insider
7. SENSEX is calculated using ________ method.Market capitalization
8. Match The Following
9. Correct Answer Your Answer
10. Share buy back is a way of Returning surplus cash to the shareholders Returning surplus cash to
11. the shareholders
12. Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is done by
13. the shareholders
14. Open market purchases No minimum price stipulation No minimum price stipulation
15. Companies holding more than 90% equity Can be delisted Can be delisted
16. The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.False
17. Under section 11 B of SEBI act how many issuers were debarred?1
18. A portfolio manager need not necessarily sell or purchase securities separately for each client. False
19. RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.False
20. Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and underwriters.True
21. What is the system of rolling settlement prevalent in the USA ?
+ 3
22. What is the most important objective for an investor?Protection of the value of the investment
23. The following are some of the regulations governing the NBFC's issued by RBI :-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
24. What do you mean by venture capital?
Providing seed, start up capital and first stage financing
25. What was the turning point in the working of Indian capital markets?Establishment of NSE
26. The continuing growth in ________ was one of the factors that contributed to the growth of credit rating. Information technology
27. 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 ________.1 year
28. A portfolio manager has to assure a guaranteed return to his client.False
29. Describe E-trading :-Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office
30. The Kumarmangalam Birla report stressed on the importance of ________ with respect to AGM's. Proxy voting / ballot systems
31. The SEBI guidelines do not make it mandatory for the securities purchased under the buy back arrangement to be extinguished and physically destroyed.False
32. What are the SEBI guidelines for issue of debt instruments?Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture redemption reserve to be created
33. Which company was responsible for spreading the equity culture in India ?Reliance Industries
34. Describe in brief the SEBI regulations for venture capital funds :-VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy
35. What is the minimum number of days for which the bid should remain open in book building?5 days
36. As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? 4 times
37. With the introduction of ________ accounts the complaints about allotment have surely gone down. DEMAT
38. Information technology, communication and entertainment represent ________ stocks.ICE
39. The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.False
40. In order to dematerialize the securities one has to fill DRF.True
41. In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form.10 crores
42. What are the obligations of a company in a share buy back?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.
43. The DP opens investor account in the system and gives an account number also known as ________. BO ID
44. As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? 4 times
45. What are the factors that determine the value of a firm?
Degree of popularity of the industry , Overall economic condition , Demand and supply capital
Match The Following
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 adequacy norms
1. What are the major factors influencing portfolio decisions?Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk
2. The refinance made available to any HFC is not to be more than :-60% of its outstanding housing loans
3. Information technology, communication and entertainment represent ________ stocks.ICE
4. The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.False
5. The right to buy is called ________.Call option
6. What percentage of funds should be invested in unlisted companies?0.74
7. Who is responsible to get the securities listed on all the stock exchanges?Merchant banker
8. A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer. 0.1
9. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
10. The depository can legally transfer beneficial ownership.True
11. Since when have the Indian Stock markets risen ?37775
12. Describe the regulatory aspects of mutual funds :-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
13. Describe in brief the SEBI regulations for venture capital funds :-Must disclose investment strategy , VCF's must be registered , Cannot carry out another activity
14. Money market mutual funds are not permitted to invest in treasury bills and commercial paper. False
15. When can the American style option exercised?On or before the expiry date
16. A portfolio manager has to assure a guaranteed return to his client.False
17. What is the estimated figure of credit card defaults in India?800 crores
18. Depositary facilitates transfers without having to handle money.False
19. AA rated companies can raise ________ of its net worth.2.5 times
20. Describe E-trading :-Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office
21. What are the eligibility norms for an unlisted company for making a public issue?
22. 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
23. Markets have moved away from Badla system to ________ .Derivatives Trading
24. During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :-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
25. How many members are appointed by the central government?
2
26. Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges?SCRA , Depository Act
Match The Following
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 = Decision making
1. Which companies have eroded market capitalization by Rs20 000 crores?Infosys , Satyam , Wipro
2. What does SEBI do with its power?Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer
3. Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if there is an underlying asset.True
4. In order to dematerialize the securities one has to fill DRF.True
5. What are the obligations of a company in a share buy back?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.
6. The DP opens investor account in the system and gives an account number also known as ________. BO ID
7. As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? 4 times
8. What are the factors that determine the value of a firm? Overall economic condition , Demand and supply capital , Degree of popularity of the industry
1. What are the major factors influencing portfolio decisions?Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk
2. The refinance made available to any HFC is not to be more than :-60% of its outstanding housing loans
3. RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.False
4. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
5. What is dematerialization ?Physical certificates converted into electronic from , Credited into investors account with his/ her DP
6. ________ is in the form of a usance promissory note payable after 45 days from the date of issue. Certificate of Deposit
7. Which company was responsible for spreading the equity culture in India?Reliance Industries
8. What was the turning point in the working of Indian capital markets?Establishment of NSE
9. What is the amount of net worth accompany should have for opting for an IPO ?
1 Crore
10. The process of securitisation involves transfer of assets to a person specially created called as ________.Special purpose vehicle
11. A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of open ended schemes.True
12. What is a put option?Right to sell
13. Venture capital finance is risk finance for entrepreneurial growth oriented companies.True
14. Who can change the composition of securities?Fund manager
15. Employee stock option scheme granted to the employee is transferable.False
16. The following are some of the regulations governing the NBFC's issued by RBI :-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
17. 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. True
18. What was the turning point in the working of Indian capital markets?Establishment of NSE
19. Deposits can be accepted for a maximum period of :-5 years
20. Which company was responsible for spreading the equity culture in India ?Reliance Industries
21. Since when have the Indian Stock markets risen ?37775
22. In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes?Software
23. In 2001 a case of rigging and short selling based insider trading was noticed in the case of proposed merger of ________.UTI Bank with GTB
24. ________ are a kind of portfolio schemes.Mutual funds
25. What is equipment leasing ?Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee
26. What are the factors that determine the value of a firm?
Overall economic condition , Demand and supply capital , Degree of popularity of the industry
27. Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. False
28. No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights.0.1
29. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
30. Describe E-trading :-Screen based trading in place of traditional ring ,
31. Communication through the net , Operate in stock market privately through home or office
32. 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?Through book building process
33. Which is the favorite destination for venture funds?BPO
34. Who issues participatory notes?Associates of India based foreign brokerages , Domestic institutional brokerages
35. For a VCF to be registered with SEBI what is the registration fee ?5 lacs
Match The Following
Correct Answer Your Answer
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
1. Money market mutual funds are not permitted to invest in treasury bills and commercial paper. False
2. What are the norms for Approval of Housing finance companies by NHB?Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
3. Describe the regulatory aspects of mutual funds :-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
4. What is the limit for aggregate investment of FII's NRI's and OCB's?0.3
5. Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned.True
6. 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?15000 crores
7. 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.4
8. What is the objective of public announcement?
Ensure that the shareholders of the target company are aware of the exit opportunity available to them
9. A portfolio manager has to assure a guaranteed return to his client.False
10. 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.False
11. Who can change the composition of securities?Fund manager
12. Employee stock option scheme granted to the employee is transferable.False
13. The following are some of the regulations governing the NBFC's issued by RBI :-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
14. 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. True
15. What was the turning point in the working of Indian capital markets?Establishment of NSE
16. Deposits can be accepted for a maximum period of :-5 years
17. Which company was responsible for spreading the equity culture in India ?Reliance Industries
18. Since when have the Indian Stock markets risen ?37775
19. In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes?Software
20. In 2001 a case of rigging and short selling based insider trading was noticed in the case of proposed merger of ________.UTI Bank with GTB
21. ________ are a kind of portfolio schemes.Mutual funds
22. What is equipment leasing ?Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee
23. What are the factors that determine the value of a firm?Overall economic condition , Demand and supply capital , Degree of popularity of the industry
24. Mergers and amalgamations of companies are also covered under the SEBI regulations 1997.
25. Correct Answer False
26. The DP opens investor account in the system and gives an account number also known as ________. BO ID
27. Constant change would be one of the reasons for failure of corporate governance.True
28. In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form.10 crores
29. The company opting for an IPO should have net worth of at least Rs. 1 crore in each of the preceding two years.True
30. What are the facilities offered by NSDL?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
31. Describe in brief the SEBI regulations for venture capital funds :-VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy
32. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
33. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
34. When did the trading in foreign currency options start in India?37809
35. What is dematerialization?Credited into investors account with his/ her DP , Physical certificates converted into electronic from
36. No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights.0.1
37. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
38. Describe E-trading :-Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office
39. 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?Through book building process
40. Which is the favorite destination for venture funds?BPO
41. Who issues participatory notes?Associates of India based foreign brokerages , Domestic institutional brokerages
42. For a VCF to be registered with SEBI what is the registration fee ?5 lacs
43. Match The Following
44. Correct Answer Your Answer
45. Ready forward transaction (Repo) Interbank sale and repurchase of securities
46. Interbank sale and repurchase of securities
47. Commercial paper Means of raising short term debt by companies Means of
48. raising short term debt by companies
49. STCI Operations in call money markets Operations in call money markets
50. Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05
51. Money market mutual funds are not permitted to invest in treasury bills and commercial paper. False
52. What are the norms for Approval of Housing finance companies by NHB?Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
53. SEBI has taken an action to ban on Badla.True
54. Describe the regulatory aspects of mutual funds :-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
55. What is the limit for aggregate investment of FII's NRI's and OCB's?0.3
56. Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned.True
57. 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?15000 crores
58. 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.4
59. What is the objective of public announcement?
Ensure that the shareholders of the target company are aware of the exit opportunity available to them
60. A portfolio manager has to assure a guaranteed return to his client.False
61. 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.False
62. How does SEBI react to the Scams in participatory notes issuance?Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters
63. When one decides to have the shares in an electronic form one has to approach ________.DP
64. How does SEBI react to the Scams in participatory notes issuance?Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters
65. When one decides to have the shares in an electronic form one has to approach ________.DP
66. Which Act defines the term Stock Exchange?Securities Contract Regulation Act
67. What are the preconditions for trading on the net?A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility
68. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
69. Sweat equity shares are shares issued by company to employees or directors to discount. True70. Money market mutual funds are not permitted to invest in treasury bills and commercial paper. False
71. Under various SEBI regulations how many brokers suspended?8
72. Describe the regulatory aspects of mutual funds :-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
Match The Following
Charge card
= Form of plastic money
Warning Bulletin = Authenticity test
Credit information company = SBI, HDFC bank
Credit card issuing company = Visa/Master Card
1. Who forms the Asset management company (AMC)?Group of trustees
2. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.Scheduled Commercial Bank
3. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
4. Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? (3) 4
5. Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and underwriters.True
6. The Money market mutual funds (MMMFs) can invest the funds in which of these securities? Call/notice money
7. What is the information to be placed before the board of directors as per the Kumarmangalam report? Annual operating plans , Capital budgets , Quarterly results
8. Bidder cannot revise his bids.False
9. What are ESOPs?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
1. How does SEBI react to the Scams in participatory notes issuance?Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters
2. While structuring the deal the entrepreneur seeks ________.Voting control
3. DRR is treated as part of general reserve for consideration of bonus issue of proposals.True
4. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
5. What precautions are to be taken with respect to delivery instruction slip ?DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id
6. Reliance group has added over 10000 crores in market capital.True
7. 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. 0.05
8. ________ is an international credit rating company.FITSCH
9. The appointment of a ________ is mandatory in a offer process.Merchant Banker
10. What is the eligibility norm for an unlisted company for making an public issue as regards to its net worth?Net worth of the company should not be less than 1 crore
11. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.Scheduled Commercial Bank
12. To make a public announcement the acquirer has to appoint :-Merchant Banker
13. What is a more contemporary definition of corporate governance?Corporate Governance is all about promoting corporate fairness, transparency and accountability
14. What information is required to be furnished to stock exchanges in compliance of SEBI regulations 1997? 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
15. Which company was responsible for spreading the equity culture in India ?Reliance Industries
16. The merger of GTB and UTI was called off due to intervention of ________SEBI and RBI
17. 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.45
18. When can an offer be withdrawn?Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board
19. The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.False
20. SEBI has taken an action to ban on Badla.True
21. The benefits of availing depository services are :-No stamp duty , Reduction in paperless work , Reduction in transaction cost
22. What are the facilities offered by NSDL?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
23. RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.False
24. Directors should not be member of more than________ committees.10
25. What was the turning point in the working of Indian capital markets?Establishment of NSE
26. Under section 11 B of SEBI act how many issuers were debarred?1
27. A portfolio manager need not necessarily sell or purchase securities separately for each client. False
28. Which Act defines the term Stock Exchange?Securities Contract Regulation Act
29. What are the preconditions for trading on the net?A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility
30. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
31. Sweat equity shares are shares issued by company to employees or directors to discount. True
32. Money market mutual funds are not permitted to invest in treasury bills and commercial paper. False
33. Under various SEBI regulations how many brokers suspended?8
34. Describe the regulatory aspects of mutual funds :- 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
1. Who forms the Asset management company (AMC)?Group of trustees
2. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.Scheduled Commercial Bank
3. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
4. Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc?Regulation (3) 4
5. Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and underwriters.True
6. The Money market mutual funds (MMMFs) can invest the funds in which of these securities? Call/notice money
7. Bidder cannot revise his bids.False
8. What are ESOPs? 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
1. How does SEBI react to the Scams in participatory notes issuance?Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters
2. While structuring the deal the entrepreneur seeks ________.Voting control
3. DRR is treated as part of general reserve for consideration of bonus issue of proposals. True
4. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
5. What precautions are to be taken with respect to delivery instruction slip ?DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id
6. Reliance group has added over 10000 crores in market capital.True
7. 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. 0.05
8. ________ is an international credit rating company.FITSCH
9. The appointment of a ________ is mandatory in a offer process.Merchant Banker
10. What is the eligibility norm for an unlisted company for making an public issue as regards to its net worth?Net worth of the company should not be less than 1 crore
11. The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________.Scheduled Commercial Bank
12. To make a public announcement the acquirer has to appoint :-Merchant Banker
13. What is a more contemporary definition of corporate governance?Corporate Governance is all about promoting corporate fairness, transparency and accountability
14. What information is required to be furnished to stock exchanges in compliance of SEBI regulations 1997 ?
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
15. Which company was responsible for spreading the equity culture in India ?Reliance Industries
16. The merger of GTB and UTI was called off due to intervention of ________SEBI and RBI
17. 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.45
18. When can an offer be withdrawn?Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board
19. The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.False
20. SEBI has taken an action to ban on Badla.True
21. The benefits of availing depository services are :-No stamp duty , Reduction in paperless work , Reduction in transaction cost
22. What are the facilities offered by NSDL?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
23. RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.False
24. Directors should not be member of more than________ committees.10
25. What was the turning point in the working of Indian capital markets?Establishment of NSE
26. Under section 11 B of SEBI act how many issuers were debarred?1
27. A portfolio manager need not necessarily sell or purchase securities separately for each client.
28. False
29. ________ is an international credit rating company.FITSCH
30. The acquirer is required to appoint a merchant banker before making a PA.True
31. Hire Purchase transactions are liable to ________.Sales tax
32. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
33. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
34. What is Discretionary Portfolio management service ?Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.
35. Depositary facilitates transfers without having to handle money.
False
36. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
37. 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?15000 crores
38. The features of mutual Fund are :-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
39. 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.False
40. As per SEBI regulations, PMS must not be involved in any litigation connected with ________.Securities markets
41. What qualities do the merchant bankers need to possess?Knowledge and information about various aspects of capital markets , Ability to evaluate and analyze , Update the knowledge
42. Describe the stock lending mechanism:-Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates , Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee
43. What are the limitations of refinance facility?Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 15 % of NOF of NHB
44. The process of share buy back must be completed within what period from the date of passing the resolution?12 months
45. When did the trading in foreign currency options start in India?37809
46. What is the main objective of credit appraisal ?Assess the repayment capacity
47. SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies. False
48. In the L & T reliance case, Reliance was fined ________.Rs. 5 lacs
49. Recently many banks have started issuing ________ which could also be used as a debit card. ATM card
50. A ________ means any persons connected with a company and who is reasonably having access to unpublished price sensitive information.Insider
51. SENSEX is calculated using ________ method.Market capitalization
1. The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI.False
2. Under section 11 B of SEBI act how many issuers were debarred?1
3. A portfolio manager need not necessarily sell or purchase securities separately for each client. False
4. RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits.False
5. Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and underwriters.True
6. What is the system of rolling settlement prevalent in the USA ?Transaction + 3
7. What is the most important objective for an investor?Protection of the value of the investment
8. The following are some of the regulations governing the NBFC's issued by RBI :-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
9. What do you mean by venture capital?
Providing seed, start up capital and first stage financing
10. What was the turning point in the working of Indian capital markets?Establishment of NSE
11. The continuing growth in ________ was one of the factors that contributed to the growth of credit rating. Information technology
12. 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 ________.1 year
13. A portfolio manager has to assure a guaranteed return to his client.False
14. Describe E-trading :-Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office
15. The Kumarmangalam Birla report stressed on the importance of ________ with respect to AGM's. Proxy voting / ballot systems
16. The SEBI guidelines do not make it mandatory for the securities purchased under the buy back arrangement to be extinguished and physically destroyed.False
17. What are the SEBI guidelines for issue of debt instruments?Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture redemption reserve to be created
18. Which company was responsible for spreading the equity culture in India ?Reliance Industries
19. Describe in brief the SEBI regulations for venture capital funds :-VCF's must be registered , Cannot carry out another activity , Must disclose investment strategy
20. What is the minimum number of days for which the bid should remain open in book building?5 days
21. As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? 4 times
22. With the introduction of ________ accounts the complaints about allotment have surely gone down. DEMAT
23. ________ is an international credit rating company.FITSCH
24. The acquirer is required to appoint a merchant banker before making a PA.True
25. Hire Purchase transactions are liable to ________.Sales tax
26. What do you understand by capital markets ?Market for long term funds and investments in long term instruments
27. What must be the quality of a good portfolio manager?Sound General knowledge , Analytical ability and marketing skills , Experience
28. What is Discretionary Portfolio management service ?Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.
29. Depositary facilitates transfers without having to handle money.
False
30. What is the amount invested by the FII's in the Indian Capital market?US$14 bn
31. 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?15000 crores
32. The features of mutual Fund are :-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
33. 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.False
34. As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Securities markets
35. What qualities do the merchant bankers need to possess?Knowledge and information about various aspects of capital markets , Ability to evaluate and analyze , Update the knowledge
36. Describe the stock lending mechanism:-Involves two parties one who is willing to lend and other who wishes to borrow securities at market related rates , Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee
37. What are the limitations of refinance facility?Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 15 % of NOF of NHB
38. The process of share buy back must be completed within what period from the date of passing the resolution?12 months
39. What was the objective of setting up the Securities Trading corporation of India Ltd?To promote secondary market in government securities
40. What are the salient features of Hire Purchase ?Finance company purchases the equipment supplier and lets it on hire , During the contract hirer can opt for an early repayment and purchase the asset , Hirer may be required to make down payment
41. A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of open ended schemes.True
42. ________ are a kind of portfolio schemes.Mutual funds
43. Who takes risk at the time of investment ?Investor
44. MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA. False
45. It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities. Lead managers
46. A credit card is a payment mechanism which enables the holder to buy goods and services on credit. True