Capital Market - 2

This paper has been contributed by Parul Jindal
Thanks to Parul Jindal for this paper and writing the questions from the images as images sometimes are difficult to upload and read by users.

Appeal to submitters: Please send the papers in text format, it helps community

CAPITAL MARKET                                         NOV.,2010

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