LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False Question SEBI has taken an action to ban on Badla. Correct Answer True Your Answer True

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

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

Select The Blank Question 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

Select The Blank Question Securities offered in a pledge can change if a ________ agrees.

Correct Answer Pledgee Your Answer Pledgee

True/False Question A bidder can request for a transaction registration slip as the proof of his having entered the bid. Correct Answer True Your Answer True

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

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

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

Multiple Choice Multiple Answer Question What is Sweat equity ?

Correct Answer Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now Your Answer Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now

Multiple Choice Single Answer Question An AMC fees :Correct Answer To be borne by the individual schemes Your Answer To be borne by banks

Multiple Choice Multiple Answer Question What are the objectives of NHB? Correct Answer To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations Your Answer To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations

Multiple Choice Multiple Answer Question What are participatory notes? Correct Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities Your Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities

Multiple Choice Multiple Answer Question When can an offer be withdrawn?

Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board

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

Select The Blank Question For issues upto Rs. 50 crores the number of lead managers will not exceed ________. Correct Answer 2 Your Answer 2

Match The Following Question Correct Answer Your Answer Share buy back is a way of Returning surplus cash to the shareholders Have to consider buy back Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is done by the shareholders Open market purchases No minimum price stipulation No minimum price stipulation Companies holding more than 90% equity Can be delisted Can be delisted

Multiple Choice Single Answer Question

Under section 11 B of SEBI act how many issuers were debarred? Correct Answer 1 Your Answer 1

Select The Blank Question The continuing growth in ________ was one of the factors that contributed to the growth of credit rating. Correct Answer Information technology Your Answer Information technology

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

Multiple Choice Single Answer Question What 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

Select The Blank Question In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes. Correct Answer 7 Your Answer 7

Multiple Choice Multiple Answer Question What are the limitations of refinance facility? Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFCs , Not to exceed 15 % of NOF of NHB Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFCs , Not to exceed 15 % of NOF of NHB

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

True/False Question The buy back of shares by Indian corporates has been very successful in India. Correct Answer False Your Answer False

Select The Blank Question The NSE Nifty index comprises of ________companies. Correct Answer 50 Your Answer 50

Multiple Choice Single Answer Question Who is required to make a public announcement ? Correct Answer Acquirer

Your Answer Acquirer

Multiple Choice Multiple Answer Question What are the norms for Approval of Housing finance companies by NHB? Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors

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

Multiple Choice Single Answer Question What was the reason for not introducing rolling settlements earlier in India? Correct Answer Lack of depositories Your Answer Lack of depositories

Multiple Choice Single Answer Question What is the main objective of the promoting Discount and finance house of India (DFHI) ? Correct Answer Increasing transactions of money market assets Your Answer Increasing transactions of money market assets

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

Your Answer False

Multiple Choice Multiple Answer Question During the budget 2003 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5%

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

Multiple Choice Multiple Answer Question Who can buy or sell securities on containing the certificate of registration? Correct Answer Underwriter , Merchant banker , Investment advisor Your Answer Merchant banker

Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries

Multiple Choice Single Answer Question When is the share of the target company deemed to be frequently traded Correct Answer If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5% Your Answer If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5%

Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investors 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 investors holdings in an electronic form , Take active part in the trading of securities

Multiple Choice Single Answer Question What is a Point of sale terminal? Correct Answer Mechanism for collecting debit card payments Your Answer Member establishment where the sale is effected

Multiple Choice Multiple Answer Question What must be the quality of a good portfolio manager? Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience

True/False Question SEBI can investigate and inspect books of accounts and records of insiders. Correct Answer True

Your Answer True

True/False Question The depository can legally transfer beneficial ownership. Correct Answer True Your Answer True

True/False Question The issue price for placement portion and net offer to public are not the same. Correct Answer False Your Answer False

Multiple Choice Single Answer Question What is Discretionary Portfolio management service ? Correct Answer Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions. Your Answer Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions.

Select The Blank Question In case of a public issue by a listed company participation by promoters in the proposed issues in excess of the required minimum percentage shall also be looked in for a period of ________. Correct Answer 1 year Your Answer 1 year

True/False Question

RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False Your Answer False

Match The Following Question Correct Answer Your Answer Charge card Form of plastic money Form of plastic money Warning Bulletin Authenticity test Authenticity test Credit information company SBI, HDFC bank SBI, HDFC bank Credit card issuing company Visa/Master Card Visa/Master Card Ques1:- In India there are presently _____ companies, in the business of Credit Rating? Ans:- 4 Ques2:- Dematerialized shares have distinctive numbers. Ans:- False Ques3:- Sweat equity shares means equity shares issued by a company to employees at a discount. Ans:- True Ques4:- In case of public issue by a listed company, participation by promoters in the proposed issue in excess of the required minimum % shall also be locked in for a period of ________ years. Ans:- 1 Ques5:- The person who changes the composition of securities? Ans:- Fund Manager Ques6:- Qualities of a merchant banker? Ans:- Knowledge and information about various aspects of the capital market, Ability to evaluate and analyse the various aspects, Update their knowledge Ques7:- Which company come out with a unique product called bonus debentures? Ans:- Hindustan lever Ques8:- The venture capital can flourish only when there is a well developed _______________? Ans:- Capital market Ques9:- The report is required to be submitted to SEBI along with a fee of Rs.________ /report. Ans:- 10,000 Ques10:- The amount of net worth a company should have for opting for an IPO is Ans:- 1 crore Ques11:- BSE introduced an equity stock index known as _________ Ans:- Sensex Ques12:- The company should have a track record of dividend payment of 3 years out of the immediately preceding 5 years.

Ans:- True Ques13:- Precautions to be taken with respect to delivery instruction slip? Ans:- DIS number must be pre-printed, account number must be stamped, target account id be filled Ques14:- Regulations for venture capital funds are Ans:- VCFs must be registered, VCFs cannot carry on any other activity, VCFs must disclose the investment strategy Ques15:- Minimum post issue capital of a company should be ? Ans:- 10 crores Ques16:- Letter of offer is? Ans:- document addressed to the shareholders, containing disclosures of the acquirer/PACs, offer price Ques17:- HFCs disbursement on project lending is restricted to? Ans:- 30% Ques18:- Match the following:Business analysis determinates of revenue growth Market position nature and basis of competition Operating advantage technology risk Financial risk interest coverage Ques19:- The acquirer is required to appoint _________ before making a PA. Ans:- Merchant banker Ques20:- The right to buy is called ______? Ans:- Call option Ques21:- Regulatory aspects of the mutual funds are/ Ans:- AMC shall launch no scheme unless the trustee approve such scheme, document of each scheme pay filling fees, offer document shall contain disclosures Ques22:- The person responsible for maintaining Escrow account in securitisation? Ans:- Trustee Ques23:- _______ is the international credit rating company. Ans:- FITSCH Ques24:- A Commercial paper is ? Ans:- short term financial instrument, Means of raising short term debt issue,

Multiple Choice Single Answer Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Your Answer 15000 crores True/False Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies. Correct Answer False Your Answer False Select The Blank Question 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 Select The Blank Question Securities offered in a pledge can change if a ________ agrees. Correct Answer Pledgee Your Answer Pledgee True/False Question A bidder can request for a transaction registration slip as the proof of his having entered the bid. Correct Answer True Your Answer True Select The Blank Question SENSEX is calculated using ________ method. Correct Answer Market capitalization Your Answer Market capitalization Select The Blank Question AA rated companies can raise ________ of its net worth. Correct Answer 2.5 times Your Answer 2.5 times Select The Blank Question In the book building process pricing is determined on the basis of ________. Correct Answer Investor feedback Your Answer Investor feedback Multiple Choice Multiple Answer Question What is Sweat equity ? Correct Answer Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now Your Answer Equity shares issued by the company to the employees , Issued to directors at a discount , For

consideration other than cash for providing now Multiple Choice Single Answer Question An AMC fees :Correct Answer To be borne by the individual schemes Your Answer To be borne by banks Multiple Choice Multiple Answer Question What are the objectives of NHB? Correct Answer To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations Your Answer To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations Multiple Choice Multiple Answer Question What are participatory notes? Correct Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities Your Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities Multiple Choice Multiple Answer Question When can an offer be withdrawn? Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board True/False Question MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA. Correct Answer False Your Answer False Select The Blank Question For issues upto Rs. 50 crores the number of lead managers will not exceed ________. Correct Answer

2 Your Answer 2 Match The Following Question Correct Answer Your Answer Share buy back is a way of Returning surplus cash to the shareholders Have to consider buy back Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is done by the shareholders Open market purchases No minimum price stipulation No minimum price stipulation Companies holding more than 90% equity Can be delisted Can be delisted Multiple Choice Single Answer Question Under section 11 B of SEBI act how many issuers were debarred? Correct Answer 1 Your Answer 1 Select The Blank Question The continuing growth in ________ was one of the factors that contributed to the growth of credit rating. Correct Answer Information technology Your Answer Information technology Multiple Choice Single Answer Question What was the turning point in the working of Indian capital markets? Correct Answer Establishment of NSE Your Answer Establishment of NSE Multiple Choice Single Answer Question What 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 Select The Blank Question In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes. Correct Answer 7 Your Answer 7 Multiple Choice Multiple Answer Question What are the limitations of refinance facility? Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 15 % of NOF of NHB Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to exceed 15 % of NOF of NHB Multiple Choice Single Answer Question What is the amount invested by the FII's in the Indian Capital market? Correct Answer US$14 bn Your Answer US$14 bn True/False Question The buy back of shares by Indian corporates has been very successful in India. Correct Answer False Your Answer False Select The Blank Question The NSE Nifty index comprises of ________companies. Correct Answer 50 Your Answer 50 Multiple Choice Single Answer Question Who is required to make a public announcement ? Correct Answer Acquirer Your Answer Acquirer

Multiple Choice Multiple Answer Question What are the norms for Approval of Housing finance companies by NHB? Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk Multiple Choice Single Answer Question What was the reason for not introducing rolling settlements earlier in India? Correct Answer Lack of depositories Your Answer Lack of depositories Multiple Choice Single Answer Question What is the main objective of the promoting Discount and finance house of India (DFHI) ? Correct Answer Increasing transactions of money market assets Your Answer Increasing transactions of money market assets True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question During the budget 2003 - 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend reduced to 12.5% Multiple Choice Single Answer

Question What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment in public issues right issues etc? Correct Answer 21 days Your Answer 21 days Multiple Choice Multiple Answer Question Who can buy or sell securities on containing the certificate ofregistration? Correct Answer Underwriter , Merchant banker , Investment advisor Your Answer Merchant banker Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries Your Answer Reliance Industries Multiple Choice Single Answer Question When is the share of the target company deemed to be frequently traded Correct Answer If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5% Your Answer If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5% Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on exchanges Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investor's holdings in an electronic form , Take active part in the trading of securities Multiple Choice Single Answer Question What is a Point of sale terminal? Correct Answer Mechanism for collecting debit card payments Your Answer Member establishment where the sale is effected Multiple Choice Multiple Answer Question

What must be the quality of a good portfolio manager? Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience True/False Question SEBI can investigate and inspect books of accounts and records of insiders. Correct Answer True Your Answer True True/False Question The depository can legally transfer beneficial ownership. Correct Answer True Your Answer True True/False Question The issue price for placement portion and net offer to public are not the same. Correct Answer False Your Answer False Multiple Choice Single Answer Question What is Discretionary Portfolio management service ? Correct Answer Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions. Your Answer Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions. Select The Blank Question In case of a public issue by a listed company participation by promoters in the proposed issues in excess of the required minimum percentage shall also be looked in for a period of ________. Correct Answer 1 year Your Answer 1 year True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue

certificate of deposits. Correct Answer False Your Answer False Match The Following Question Correct Answer Your Answer Charge card Form of plastic money Form of plastic money Warning Bulletin Authenticity test Authenticity test Credit information company SBI, HDFC bank SBI, HDFC bank Credit card issuing company Visa/Master Card Visa/Master Card