Compensation Management - 6

Question : SEBI has taken an action to ban on Badla.
Answer : True
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?
Answer:15000 crores
Question :SEBI cannot investigate the affairs of mutual funds and their trustees and asset management companies.
Answer:False
Question :A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer.
Answer:0.1
Question :Securities offered in a pledge can change if a ________ agrees.
Answer:Pledgee
Question :A bidder can request for a transaction registration slip as the proof of his having entered the bid.
Answer:True
Question :SENSEX is calculated using ________ method.
Answer:Market capitalization
Question :AA rated companies can raise ________ of its net worth.
Answer:2.5 times
Question :In the book building process pricing is determined on the basis of ________.
Answer:Investor feedback
Question :What is Sweat equity ?
Answer:Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now
Question :An AMC fees :-
Answer:To be borne by the individual schemes
Question :What are the objectives of NHB?
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

Question :What are participatory notes?
Answer:Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities
Question : When can an offer be withdrawn?
Answer: Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board
Question :MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA.
Answer:False
Question :For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Answer:2

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

Question :Under section 11 B of SEBI act how many issuers were debarred?
Answer:1
Question :The continuing growth in ________ was one of the factors that contributed to the growth of credit rating.
Answer:Information technology
Question :What was the turning point in the working of Indian capital markets?
Answer:Establishment of NSE
Question :What do you understand by capital markets ?
Answer:Market for long term funds and investments in long term instruments
Question :In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes.
Answer:7
Question :What are the limitations of refinance facility?
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
Question :What is the amount invested by the FII's in the Indian Capital market?
Answer:US$14 bn
Question :The buy back of shares by Indian corporates has been very successful in India.
Answer:False
Question :The NSE Nifty index comprises of ________companies.
Answer:50
Question :Who is required to make a public announcement ?
Answer:Acquirer
Question :What are the norms for Approval of Housing finance companies by NHB?
Answer:Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
Question :What are the major factors influencing portfolio decisions?
Answer:Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk
Question :What was the reason for not introducing rolling settlements earlier in India?
Answer:Lack of depositories