Capital Market MCQ | SEBI MCQ JAIIB PPB

April 15, 2021
capital market mcq jaiib

Here is the next quiz in the quiz/MCQ series for Principles and Practices of Banking subject of JAIIB. This post covers the topics of Capital Market MCQ and SEBI MCQ. Answers are given at the end of the quiz.

Q1. How many SEBI recognised stock exchanges are currently active in India? 

  1. Nine
  2. Eleven
  3. Twenty One
  4. Twenty Five

Answer: (1)
There are currently nine active SEBI registered stock exchanges operating in India. There are BSE Ltd, Calcutta Stock Exchange Ltd, India International Exchange (India INX), Indian Commodity Exchange Limited, Metropolitan Stock Exchange of India Ltd., Multi Commodity Exchange of India Ltd., National Commodity & Derivatives Exchange Ltd., National Stock Exchange of India Ltd., NSE IFSC Ltd.  Apart from these, The Hyderabad Securities and Enterprises Ltd (erstwhile Hyderabad Stock Exchange), Coimbatore Stock Exchange Ltd, Saurashtra Kutch Stock Exchange Ltd ,Mangalore Stock Exchange, Inter-Connected Stock Exchange of India Ltd, Cochin Stock Exchange Ltd, Bangalore Stock Exchange Ltd , Ludhiana Stock exchange Ltd, Gauhati Stock Exchange Ltd, Bhubaneswar Stock Exchange Ltd, Jaipur Stock Exchange Ltd, OTC Exchange of India , Pune Stock Exchange Ltd, Madras Stock Exchange Ltd, U.P.Stock Exchange Ltd, Madhya Pradesh Stock Exchange Ltd, Vadodara Stock Exchange Ltd, Delhi Stock Exchange Ltd and Ahmedabad Stock Exchange Ltd have been granted exit by SEBI

Q2. In which year National Stock Exchange started its operations?  
  1. 1990
  2. 1991
  3. 1992
  4. 1993

Answer: (3)
NSE was incorporated in 1992

Q3. Which among the following taxes is levied on doing any sale/purchase of security transaction on stock exchange? 
  1. Long Term Equity Tax
  2. Securities Transaction Tax (STT)
  3. GST
  4. Income Tax

Answer: (2)
Securities transaction tax (STT) is a tax levied at the time of purchase and sale of securities listed on stock exchanges in India. Securities are tradable investment instruments such as shares, bonds, debentures, equity-oriented mutual funds (MFs) and so on and are issued either by companies or by the Indian government.The rate of STT differs based on the type of security traded and whether the transaction is a purchase or a sale.

Q4. All equity/stock settlements in India happens on ___ basis
  1. T+4
  2. T+3
  3. T+2
  4. T+1

Answer: (3)
All equity/stock settlements in India happen on a T+2 basis.

Q5. When an unlisted company makes a fresh issue of securities for the first time to public, it is called?
  1. FPO
  2. Rights Issue
  3. Bonus Issue
  4. IPO

Answer: (4)
An unlisted company announces initial public offering (IPO) when it decides to raise funds through sale of securities or shares for the first time to the public.

Q6. When an already listed company makes a fresh issue of securities to the public,  it is called?
  1. FPO
  2. Rights Issue
  3. Bonus Issue
  4. IPO

Answer: (1)
When an already listed company issue shares to the public, it is called Follow on public offer or FPO

Q7. When a listed company proposed to issue fresh securities to its existing shareholders,  it is called? 
  1. FPO
  2. Rights Issue
  3. Bonus Issue
  4. IPO

Answer: (2)
When a company offers more of its shares to current shareholders, usually to raise extra capital, it called a rights issue

Q8. Name the document that has to be filed with SEBI before a company makes public issue? 
  1. ROC
  2. Invits Doc
  3. Draft Document
  4. Offer Document

Answer: (4)
Offer document means Prospectus in case of a public issue or offer for sale and Letter of offer in case of a rights issue, which is filed with the Registrar of Companies (ROC) and Stock Exchanges. An offer document covers all the relevant information to help an investor to make his/her investment decision

Q9. Retail individual investor’ means an investor who applies or bids for securities of or for a value of not more than  _____
  1. Rs. 1,00,000
  2. Rs. 2,00,000
  3. Rs. 3,00,000
  4. Rs. 4,00,000

Answer: (2)
‘Retail individual investor’ means an investor who applies or bids for securities of or for a value of not more than Rs. 2,00,000. All applicants, other than QIBs or individuals applying for less than Rs. 2,00,000 are considered as NIIs.

Q10. Who among the following helps a company to issue shares and get listed in stock exchange?  
  1. Investment Banker
  2. Asset Manager
  3. Merchant Banker
  4. Relationship Manager

Answer: (3)
A merchant bank is a firm or financial institution that invests equity capital directly in businesses and often provides those businesses with advisory services.

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