Professional Documents
Culture Documents
(Dealers Module)
Question Bank
CONTENTS
Chapter 1:
Chapter 2:
Trading Membership
Chapter 3:
Trading
22
Chapter 4:
44
Chapter 5:
Legal Framework
62
Chapter 6:
71
79
Title
Weights(%)
Chapter 1:
Chapter 2:
Chapter 3:
10
20
30
Chapter 4:
Chapter 5:
Chapter 6:
25
9
6
Chapter 1
An Overview of the Indian Securities Market
Q1:
_____________ has two interdependent and inseparable segments namely the primary and the
secondary market
(a)
Debt market
(b)
Auction market
(c)
Money market
(d)
Securities market
Q2:
_______________ describes trading that takes place off organised exchanges, usually over the
telephone.
(a)
(b)
(c)
Money market
(d)
Securities market
Q3:
In terms of the Companies Act, 1956, an issue becomes public if it results in allotment to
______________.
(a)
(b)
(c)
(d)
Q4:
(a)
Debt instruments
(b)
Equity instruments
(c)
(d)
Long term
(b)
Mid term
(c)
Sort term
(d)
Define term
All clients
(b)
Institutional clients
(c)
Individual clients
(d)
International clients
RBI
(b)
NSE
(c)
SEBI
(d)
Central Government
Q8:
The secondary market enables participants who hold securities to adjust their holdings in
response to changes in their assessment of ____________.
(a)
Risk
(b)
Return
(c)
(d)
Q9:
(a)
June 2000
(b)
November 2001
(c)
June 2005
(d)
August 2009
Q10:
(a)
(b)
Investors in securities
(c)
The intermediaries
(d)
Q11:
_______________are consumers (they subscribe for and trade in securities) of securities issued
by issuers.
(a)
The issuers
(b)
Investors
(c)
Intermediaries
(d)
Q12:
____________ ensures a high standard of service from intermediaries and supply of quality
securities and non-manipulated demand for them in the market.
(a)
The regulator
(b)
(c)
Investors
(d)
Intermediaries
Q13:
__________ are required to disclose any material risk factors and give justification for pricing in
their prospectus.
(a)
The regulator
(b)
The issuers
(c)
Investors
(d)
Intermediaries
Q14:
(a)
(b)
Rights issue
(c)
(d)
Q15:
(a)
Allotted
(b)
made
(c)
Traded
(d)
Q16:
(a)
(b)
(c)
(d)
Q17:
Individual scrip-wise price bands of ________either way have been imposed for all securities
except those available for stock options.
(a)
10%
(b)
20%
(c)
30%
(d)
50%
Q18:
____________ are required to comply with Disclosure and Investor Protection guidelines and
then access the market.
(a)
Issuers
(b)
Investors
(c)
Intermediaries
(d)
Merchant banker
Q19:
The Disclosure and Investor Protection guidelines aim to secure full disclosure of relevant
information about the issuer and the nature of the securities to be issued so that _________ can
take an informed decision.
(a)
Intermediary
(b)
Investor
(c)
Merchant banker
(d)
Banks
Q20:
Merchant banker in consultation with _________ determines the issue price of shares.
(a)
Issuer
(b)
SEBI
(c)
Intermediary
(d)
NSE
Q21:
Shares of companies which have entered into a listing agreement with an exchange are called
______________.
(a)
Permitted shares
(b)
Admitted shares
(c)
Listed shares
(d)
Agreed shares
Q22:
Shares permitted for trading without entering into a listing agreement are called
_____________.
(a)
Permitted shares
(b)
Admitted shares
(c)
Listed shares
(d)
Agreed shares
Q23:
(a)
(b)
Issuer
(c)
Stock Broker
(d)
Registrar to issue
Q24:
Which of the following is facilitate the investor to apply for IPOs without making a payment ?
(a)
(b)
ASBA
(c)
Stock Broker
(d)
Q25:
(a)
5 Crore or more
(b)
10 Crore or more
(c)
25 Crore or more
(d)
Q26:
NSE's Certification in Financial Markets does NOT allow flexibility in terms of ______.
(a)
Examination date
(b)
Candidates presence
(c)
Examination time
(d)
Q27:
(a)
Exchanges
(b)
Indices
(c)
Depositories
(d)
Regulators
Q28:
(a)
June 2003
(b)
November 2001
(c)
June 2001
(d)
June 2000
Chapter 1 Answers:
1 (d)
2 (a)
3 (a)
4 (c)
5 (c)
6 (b)
7 (d)
8 (c)
9 (d)
10 (d)
11 (b)
12 (a)
13 (b)
14 (d)
15 (c)
16 (b)
17 (b)
18 (a)
19 (b)
20 (b)
21 (c)
22 (a)
23 (b)
24 (b)
25 (b)
26 (b)
27 (c)
28 (d)
Chapter 2
Trading Membership
Q1:
(a)
Access to a nation-wide trading facility for equities, derivatives, debt and hybrid instruments /
products.
(b)
Ability to provide a fair, efficient and transparent securities market to the investors.
(c)
Dealing with an organization which follows strict standards for trading and settlement at par
with those available at the top international bourses.
(d)
Q2:
(a)
(b)
NSE
(c)
NSDL
(d)
NSCCL
Q3:
A stockbroker shall take adequate steps for redress of grievances of the investors within
_________ of the date of the receipt of the complaint.
(a)
One month
(b)
Two month
(c)
Three month
(d)
Six month
Q4:
(a)
One
(b)
Two
(c)
Five
(d)
Any number of
Rs. 240