Saturday, February 26, 2011

Capital Market 2010

Capital Market - 2

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,
They are negotiable and transferable instruments
Labels: Capital Market

Capital Market - 1

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

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

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


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

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


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

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

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

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

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

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


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


Match The Following
Question
Correct Answer

Share buy back is a way of
Returning surplus cash to the shareholders


Dutch Auction
Price of the Buy back is done by the shareholders

Open market purchases
No minimum price stipulation

Companies holding more than 90% equity
Can be delisted

Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were debarred?
Correct 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


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


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


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


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

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


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

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

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


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

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


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


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

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

Multiple Choice Single Answer
Question
What is a Point of sale terminal?
Correct Answer
Mechanism for collecting debit card payments

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


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


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

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

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

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

Match The Following
Question
Correct Answer

Charge card
Form of plastic money

Warning Bulletin
Authenticity test

Credit information company
SBI, HDFC bank

Credit card issuing company
Visa/Master Card


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