Finance Awareness SEBI _lect 3.pptx

MCQ Marathon Session
General Awareness (Financial Awareness)
Lecture 3
SEBI Grade A

Instructions
1. Each question will have 30 seconds timer. You shall try to solve the question within that time
frame to get acclimatized to time pressure.
2. The answer to each question shall be displayed after 30 seconds along with explanation.
3. Do not ask any query other than related to that particular question.
4. Keep Calculating your marks with each question.
5. Each question is of 1.25 marks with negative marking of 0.33 marks.

Recently, Securities and Exchange Board of India (SEBI) has come out with procedural
guidelines for proxy advisors. They will alert clients within ________hours of receipt of
information about any factual errors or material revisions to the report.
A. 12
B. 15
C. 24
D. 18
E. 6
Answer: (C) 24
Question-1

Recently, Securities and Exchange Board of India (SEBI) has come out with procedural
guidelines for proxy advisors.
The new guidelines would come into force from 1st September, 2020.
Key Highlights of the guidelines
 The advisors shall formulate the voting recommendation policies and disclose the
updated voting recommendation policies to its clients.
 They shall ensure that the policies should be reviewed at least once annually.
 They will have to disclose the methodologies and the processes followed in the
development of their research and corresponding recommendations to its clients.
 They will alert clients within 24 hours of receipt of information about any factual errors
or material revisions to the report.
Question-1

Which one of the following bonds has given an issuer the right to redeem or pay the debt
before its maturity date?
A. Puttable bonds
B. Callable bonds
C. Convertible bonds
D. Non–Convertible bond
E. Zero Coupon Bonds
Answer : (B) Callable bond
Question-2

According to the operating guidelines for Portfolio Management Services at the IFSC, what
must be the minimum net worth of applicants?
A. USD 2,50,000
B. USD 3,50,000
C. USD 5,50,000
D. USD 4,50,000
E. USD 7,50,000
Answer: (E) USD 7,50,000
Question-3

Recently, SEBI has restricted AT-1 issuance only to qualified institutional buyers (QIBs).
The minimum trading lot size for AT1 instruments shall be Rs _________.
A. 1 crore
B. 50 lakh
C. 25 lakh
D. 1.5 crore
E. 2 crore
Answer: (A) 1 crore
Question-4

Which one of the following preference shares provides an additional benefit of
participating in profits of the company apart from the fixed dividend?
A. Non-Participating Preference Shares
B. Cumulative Preference Shares
C. Participating Preference Shares
D. Non-Cumulative Preference Shares
E. Redeemable Preference Shares
Answer : (C) Participating Preference Shares
Question-5

According to new guidelines for a uniform time period for listing
securities issued by SEBI, allotment of securities will be completed
by ______ trading days after receiving funds.
A. T+1
B. T+2
C. T+3
D. T+4
E. T+5
Answer: (B) T+2
Question-6

Key Highlights of Guidelines
Allotment of securities will be completed by T+2 trading days after receiving funds.
Issuer needs to make listing application and obtain approval from the stock exchange by
T+4 trading day.
In case of delay in listing of securities issued on private placement basis beyond the
timeline, the issuer will pay penal interest of 1 percent per annum over the coupon rate for
the period of delay to the investor.
Question-6

Recently, SEBI has constituted a Standing Committee Market Data Advisory Committee
(MDAC) to recommend appropriate policy for access to securities market data. Who
among the following is the head of this committee?
A. Rajesh Verma
B. Arun Goel
C. Madhabi Puri Buch
D. K V Kamath
E. Ramesh Chand
Answer (C) Madhabi Puri Buch
Question-7

Recently, SEBI has allowed unlisted InvITs to raise funds through rights issue of their units.
Minimum allotment of Rights issue to any investor must be _________.
A. Rs 3 crore
B. Rs 1 crore
C. Rs 2 crore
D. Rs 5 crore
E. Rs 4 crore
Answer: (B) Rs 1 crore
Question-8

SEBI Guideline Regarding Rights Issue
Minimum allotment to any investor will be Rs 1 crore.
The issuance will be subject to several conditions, including obtaining in-
principle approval of the stock exchanges for listing of units proposed to be
issued.
None of the respective promoters or partners or directors of the sponsor
or manager or trustee of the InvIT is a fugitive economic offender.
Investment manager on behalf of the InvIT will decide the issue price and
disclose it in letter of offer.

The process of transforming securities holdings in physical form to
those in electronic form through a Depository Participant is called
__________.
A. Dematerialization
B. Electronization
C. Materializion
D. Demutualization
E. Rematerialization
Answer : (A) Dematerialization
Question-9

Recently, SEBI has introduced a ‘flexi-cap category’ for mutual funds (MFs), which will be
required to invest at least _______% of the corpus in equity.
A. 25
B. 30
C. 65
D. 40
E. 50
Answer: (C) 65
These will have no restrictions on investing in large-, mid- or small-cap company stocks.
Question-10

Recently, SEBI directed all open-ended debt mutual fund schemes to
maintain ____ percent of liquidity buffer.
A. 25
B. 20
C. 15
D. 10
E. 5
Answer (D) 10
Question-11

Recently, SEBI proposed to reduce the minimum offer size in an initial share sale, whereby
companies with a post-issue capital of above ₹10,000 crore would be required to offer at
least what percent stake in IPO?
A. 20
B. 10
C. 5
D. 15
E. 25
Answer: (C) 5
Question-12

Recently, “Investor Protection Fund” was seen in news. It is an initiative of which of the
following organizations?
A. NSE
B. SEBI
C. IRDAI
D. RBI
E. SIDBI
Answer: (A) NSE
• The Investor Protection Fund is administered by way of registered Trust created for the
purpose.
Question-13

Recently, SEBI introduced additional payment mechanism, including ASBA, for making
subscription and payment of balance money for calls in respect of partly paid securities
issued by listed entities. Period for payment of balance money in calls will be kept open
for _________.
A. 25 days
B. 10 days
C. 15 days
D. 20 days
E. 30 days
Answer: (C) 15 days
ASBA - Application Supported by Blocked Amount
Question-14

According to the slew of measures to curb information asymmetry arising from analyst
meets conference calls conducted by listed companies, companies need to make available
audio/video of such meetings on stock exchanges within ____ hours of the event taking
place.
A. 48
B. 36
C. 24
D. 12
E. 1
Answer: (C) 24
Question-15

Recently (December 2020), what amount of fund has been released as the 8th Instalment
as back to back loan to the States to meet the GST compensation shortfall?
A. Rs.4,000 crore
B. Rs.5,000 crore
C. Rs.7,000 crore
D. Rs.6,000 crore
E. Rs. 8,000 crore
Answer : (D) Rs.6,000 crore
Question-16

Recently, SEBI has changed the product labelling norms for the mutual fund industry.
Which of the following is not a label to measure such risks?
A. Very high
B. Moderate to high
C. Low
D. Low to moderate
E. High
Answer : (B) Moderate to high
 SEBI has introduced a new label called ‘very high’ risk.
 The existing five categories to measure risks are - low, low to moderate, moderate,
moderately high, and high.
Question-17

Recently, SEBI has levied a penalty of Rs 6 crore on the NSE for allegedly investing in six
companies unrelated or non-incidental to the stock exchange business. Which of the
following regulations of SECC 2018 has been violated by the NSE?
A. Regulation 24(2)
B. Regulation 18(2)
C. Regulation 20(2)
D. Regulation 38(2)
E. Regulation 36(2)
Answer: (D) Regulation 38(2)
Question-18

NSE has violated the provisions of regulation 38(2) of SECC (Stock
Exchange and Clearing Corporation) 2018 read with regulation 41(3) of SECC
2012.
As per Above provisions, The recognized stock exchange and recognized
clearing corporation shall not engage in activities that are unrelated or not
incidental to its activity as a stock exchange or clearing corporation, as the
case may be, except through a separate legal entity and as permitted by the
Board.

Recently, MCX has received approval of SEBI for launch of Gold Mini
options with Gold Mini bars as underlying. What is the weight of
these mini bars?
A. 150 grams
B. 25 grams
C. 10 grams
D. 100 grams
E. 50 grams
Answer : (D) 100 grams
Question-19

According to 'procedural' guidelines for proxy advisory firms,
released recently by the SEBI, Proxy Advisors shall alert clients,
within _______ hours of receipt of information, about any
factual errors and any impending material revisions to their reports.
A. 24
B. 12
C. 36
D. 6
E. 48
Answer: (A) 24
Question-20

According to timeline for exchanges regarding refund of security deposit on surrender of
membership by trading members, announced by the SEBI recently, exchanges need to
release the security deposit after ____ years from the date of receipt of surrender
application by the exchange.
A. 3
B. 4
C. 2
D. 5
E. 1
Answer: (A) 3
Exchanges need to release the security deposit after three years from the date of receipt of
surrender application by the exchange or five years from the date of disablement of Trading
Members (TM’s), whichever is earlier.
Question-21

What must be the minimum net worth of the mutual fund sponsors to make the
contribution towards the net-worth of the Asset Management Company?
A. Rs 250 crore
B. Rs 100 crore
C. Rs 50 crore
D. Rs 150 crore
E. Rs 200 crore
Answer: (B) Rs 100 crore
• Net worth of the AMC must be maintained till the time AMC starts making profit for five
consecutive years.
Question-22

According to the new stress parameters, issued by the SEBI recently,
price movements of how many years will be scanned for stress
testing?
A. 5 years
B. 20 years
C. 15 years
D. 25 years
E. 10 years
Answer (C) 15 years (earlier it was 10 years)
Question-23

Stress testing is a risk management technique used
in financial institutions and investment portfolios to
assess the capital level necessary to endure future
financial situations.

Which one of the following organizations has recently (October 2020) launched the 'RuPay
Festive Carnival'?
A. RBI
B. NPCI
C. Ministry of Finance
D. SEBI
E. SIDBI
Answer : (B) NPCI
Under it, discounts up to 65% on purchase of various branded items using RuPay card will be
provided
Question-24

Recently (November 2020), IRDAI has sets up a panel to revisit retail business of
engineering tariff. Who among the following is the head of this panel?
A. B V R Mohan Reddy
B. Dewang Mehta
C. R Chandrasekaran
D. Nandan Nilekani
E. Girish Bapat
Answer: (C) R Chandrasekaran
Question-25

Recently, RBI has revised housing finance norms for housing finance firms. According to
these norms, Home financiers must have what percent of their assets in housing finance by
31st March 2020?
A. 70
B. 30
C. 40
D. 50
E. 60
Answer: (E) 60
Question-26

Under the Co-lending Model (CLM) scheme, announced by the RBI, banks can provide
loans along with ________ to priority sector borrowers based on a prior agreement.
A. Regional Rural Banks
B. Foreign banks
C. Small Finance Banks
D. Non banking Financial Companies
E. Insurance Companies
Answer: (D) Non banking Financial Companies
Question-27

Practice of using assets as back up for debt other than the debt they are primarily
pledged for is known as ________.
A. Cross margining
B. Cross hedging
C. Cross collateralization
D. Cross debt
E. None of the above
Answer : (C) Cross collateralization
Question-28

Recently, SEBI has enhanced foreign investment cap of MFs from $ 300 mn to
___________.
A. $600 mn
B. $500 mn
C. $400 mn
D. $900 mn
E. $800 mn
Answer: (A) $600 mn
SEBI has capped the overall industry limit at $7 billion.
Question-29

Recently, SEBI has set-up an expert group to review
norms related to share-based staff benefit, issue of
sweat equity. Who among the following is the head of
this expert group?
A. Santosh Haldankar
B. Vikram Shroff
C. Sandip Bhagat
D. Narayan Shankar
E. Pavan Vijay
Answer: (C) Sandip Bhagat
Question-30

Recently, IRDAI has sets up a panel, headed by __________, to
examine need for standard cyber liability insurance product.
A. P Umesh
B. Kriti Parikh
C. Biplab Kumar Sharma
D. Bibek Debroy
E. B P Jeevan Reddy
Answer: (A) P Umesh
Question-31

Which of the following organizations has published first-ever
‘nowcast’ - an estimate based on high-frequency data?
A. CRISIL
B. RBI
C. SBI
D. IMF
E. ADB
Answer: (B) RBI
Question-32

Regulatory Sandbox Programme has named 2 startups to be a part of
it. Which of the following has announced this programme?
A. EPFO
B. SIDBI
C. RBI
D. SEBI
E. IRDAI
Answer: (C) RBI
Question-33

Recently, SEBI has launched SMARTs program to strengthen investor education framework.
SMART stands for __________.
A. Securities and Mutual Fund Trainer
B. Stock Market Trainer
C. Securities Market Training
D. Stock Market Training
E. Securities Market Trainer
Answer: (E) Securities Market Trainer
Question-34

Recently, the RBI has informed that legitimate public lending activities can be undertaken
by banks, non-banking financial companies (NBFCs) registered with RBI and other
entities who are regulated by the ________under statutory provisions.
A. Central Government
B. NABARD
C. State Governments
D. SEBI
Answer: (E) State Governments
Question-35

IRDAI has launched ‘color codes’ for health insurance policies. Which of the following pairs
is match correctly, according to these color codes?
A. Green-easy, Blue-Moderately complex, Red-complex
B. Green-easy, Yellow-Moderately complex, Orange-complex
C. Yellow- easy, Orange-Moderately complex, Red-complex
D. Green- easy, Orange-Moderately complex, Orange- complex
E. Green-easy, Orange-Moderately complex, Red-complex
Answer: (E) Green-easy, Orange-Moderately complex, Red-complex
Question-36

IFSCA has released framework for regulatory sandbox to tap into innovative fintech
solutions. Under framework entities operating in which of the following shall be granted
certain facilities and flexibilities to experiment with innovative FinTech solutions.
A. Capital market
B. Banking
C. Insurance
D. Financial Services
E. All of the above
Answer: (E) All of the above
Question-37

Q. Recently, what is the limit increased by RBI for the contactless card payments?
A. Rs 5000
B. Rs 10000
C. Rs 2000
D. Rs 15000
E. Rs 12000
Answer : (A) Rs 5000
Question-38

The term ‘insider’ has been defined under Regulation 2(e) of SEBI (Prohibition of Insider
Trading) Regulations, __________.
A. 2008
B. 1992
C. 2001
D. 2014
E. 1995
Answer : (B) 1992
Question-39

Q. Recently, “Standup Mitra” was seen in news. It is an initiative of which one of the
following organizations?
A. Yes Bank
B. SIDBI
C. NSIC
D. EPFO
E. RBI
Answer : (B) SIDBI
Question-40

 Launched: April 2016
 Aim: to ensure access to unserved/underserved segments of women and
scheduled castes (SC) and scheduled tribes (ST) across the country by providing
them financial assistance starting from Rs 10 lakh to Rs 1 crore for setting up
greenfield enterprises.
About Standup Mitra

Recently, RBI has released guidelines, recommended by a
committee formed by RBI in 2019, to make QR codes interoperable
to strengthen the electronic payments ecosystem in India based.
Who among the following is the head of committee?
A. Deepak Pathak
B. Bimal Jalan
C. C. Rangarajan
D. Nirmala Sitharaman
E. Anurag Thakur
Answer : (A) Deepak Pathak
Question-41

Which one of the following organizations has fixed the minimum Net Owned Fund (NOF)
size for housing finance companies at Rs 25 crore?
A. SEBI
B. RBI
C. SIDBI
D. NSIC
E. Ministry of Finance
Answer : (B) RBI
Question-42

Recently, the 15th Finance Commission has submitted its
Report for 2021-22 to 2025-26 to the President of India. What is
the name of this report?
A. Finance Commission for AtamNirbhar Bharat
B. Finance Commission in Covid Times
C. Finance Commission to counter risk of Covid on Indian
Economy
D. Finance Commission for Healthy Indian Economy
Answer (B) Finance Commission in Covid Times
Question-43

Recently, RBI has become world’s first monetary authority with _________
Twitter followers.
A. 1 million
B. 2 million
C. 1.5 million
D. 2.5 million
E. 3 million
Answer: (A) 1 million
Question-44

Recently, SEBI has relaxed the requirement of mandatory mock trading sessions.
According to these requirements, Stock Exchanges need to ensure that the test
environment will be made available for at least _______ after market hours and at least
on two trading days in a week.
A. 1 hour
B. 2 hours
C. 2.5 hours
D. 1.5 hours
E. 3 hours
Answer (B) 2 hours
Question-45

Recently, SEBI has suggested relaxations in norms, including reducing holding period for
pre-issue capital and allowing discretionary allotment to all eligible investors According to
these suggestions, what should be the period for holding of 25 per cent of pre-issue capital
of the issuer company by eligible investors?
A. 2 years 6 months
B. 3 years
C. 6 months
D. 1 year 6 months
E. 1 year
Answer: (E) 1 year
Question-46

Which of the following is the most popular mode of borrowing money from the bank by
the large commercial and industrial concerns?
A. Term Loan
B. Bill Financing
C. Overdraft
D. Letter Of credit
Answer: (C) Overdraft
Question-47

__________is the person to answer for the payment or performance of another person's
debt or obligation in the event of a default by the person primarily responsible for it.
A. Issuer
B. Banker
C. Indemnifier
D. Guarantor
E. Beneficiary
Answer: (D) Guarantor
Question-48

Non Fund Based facilities do not include which of the
following statements?
A. Overdraft facility
B. Letter of credit facility
C. Guarantee facility
D. Undertaking and credit guarantee
E. All of the above
Answer: (A) Overdraft facility
Question-49

Which among the following is party/parties in the letter of
credit?
A. Issuing Bank
B. Advising Bank
C. Negotiating Bank
D. Reimbursing Bank
E. All of the above
Question-50

What are the various kinds of securities while taking secured loans?
1. Stock and shares
2. Book debts
3. Life Policies
4. Supply bills
5. Fixed Loans
6. Goods
A. 1,5 and 6 only
B. 1,4,5 and 6 only
C. 1,3,4,5 and 6 only
D. 1,2,4 and 5 only
E. All of the above
Question-51

Which one of the following is an investment vehicle through which
foreign investors invest in India without registering with SEBI?
A. Overseas Derivative
B. Foreign Derivative
C. Offshore Derivative
D. Outsource Derivative
E. External Derivative
Answer : (C) Offshore Derivative
Question-52

Under which one of the following schemes, a specific number of
subscribers contribute payments in installments over a defined
period, such that each subscriber is entitled to a prize amount by
lot, auction or tender.
A. Ponzi Scheme
B. Recurring Deposit Scheme
C. Chit Funds
D. Mutual Fund
E. Equity Fund
Answer : (C) Chit Funds
Question-53

A company which holds funds and manages another entity’s financial transactions and
does not have any active business operations or significant assets is known as ________.
A. Ponzi Companies
B. Shell Companies
C. Dormant Companies
D. Chit Companies
E. Mutual Fund Companies
Answer : (B) Shell Companies
Question-54

A member of the derivatives exchange and can trade on his own behalf and on behalf of
his clients is known as _________.
A. Trading Member
B. Clearing Member
C. Self Clearing Member
D. Client Trading Member
Answer : (A) Trading Member
Question-55

Capital that has been promised by investors to buy shares is known as _____________.
A. Authorised Capital
B. Subscribed Capital
C. Issued Capital
D. IPO Capital
E. Called Up Capital
Answer : (B) Subscribed Capital
Question-56

Which one of the following shares have a maturity date on which date the company will
repay the capital amount to and discontinue the dividend payment thereon?
A. Redeemable Preference Shares
B. Irredeemable Preference Shares
D. Cumulative Preference Shares
E. Non- Cumulative Preference Shares
Answer : (A) Redeemable Preference Shares
Question-57

Which one of the following is an initiative launched by Bombay Stock Exchange, providing
separate trading platform for SMEs which are listed on regional stock exchange and BSE
itself?
A. BSE for SME
B. Indo Next
C. SME Exchange
D. BSE SME Next
Answer : (B) Indo Next
Question-58

Question-59

An identification code that is provided to the client who are engaged in trading is known as
_______.
A. Unique Client Code
B. Client Identity Code
C. Client Code
D. Know Your Client Code
E. Registered Client Code
Answer : (A) Unique Client Code
Question-60

Which one of the following is a financial instrument that allows the underwriter of a public
offer to sell additional shares to the public if the demand is high?
A. Green Shoe Option
B. Blue Shoe Option
C. Initial Shoe Option
D. Bonus Shoe Option
E. Book Shoe Option
Answer : (A) Green Shoe Option
Question-61

Collection of financial instruments such as stocks, shares, bonds, mutual funds etc. is called
_________.
A. Depository
B. Index
C. Register
D. Envelope
E. Portfolio
Answer : (A) Portfolio
Question-62

Question-63

The aggregate valuation of the company based on its current share price and the total
number of outstanding stocks is called _______
A. Market Value
B. Mark to Market
C. Market Model
D. Market Capitalization
E. Market Maker
Answer : (A) Market Capitalization
Question-64

Which one of the following statements is correct regarding ‘Demutualization’?
A. It refers to segregation of Ownership from management and trading
B. It refers to segregation of trading from management and Ownership
C. It refers to segregation of management from and trading and ownership
D. It refers to segregation of ownership, management and trading from each other
Answer : (d) It refers to segregation of Ownership, management and trading from each
other
Question-65

Q. Which of the following is an umbrella organization for all retail payments system in
India?
A. RBI
B. NABARD
C. SEBI
D. NPCI
E. BBB
Answer : (D) NPCI
Question-66

Finance Awareness SEBI _lect 3.pptx

Finance Awareness SEBI _lect 3.pptx

Recommended

Recommended

More Related Content

Similar to Finance Awareness SEBI _lect 3.pptx

Similar to Finance Awareness SEBI _lect 3.pptx (20)

Recently uploaded

Recently uploaded (20)

Finance Awareness SEBI _lect 3.pptx