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 Mutual Funds MCQ and SEBI MCQ. Answers are given at the end of the quiz.
Q1. Name the application process that allow an investor to apply for issue using his bank account. Under this process, the application money is debited from applicant bank account only if his application is selected for allotment.
ASBA means “Applications Supported by Blocked Amount”. ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed.
Banks which are certified by SEBI to allow retail individual investor to apply in IPO’s using ASBA payment method, are known as ‘Self Certified Syndicate Banks (SCSBs)’. These banks has capability to block the IPO Application amount until IPO allotments are done.
The Securities and Exchange Board of India Act, 1992 was act passed to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto. Accordingly the Security and Exchange Board of India was established on 12 April 1992
The Securities and Exchange Board of India Act, 1992 was act passed to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto
Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial muscle to evaluate and invest in the capital markets. In terms of clause 2.2.2B (v) of DIP Guidelines, a ‘Qualified Institutional Buyer’ shall mean:
A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) before it can collect funds from the public
SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated with the sponsors
SEBI Regulations require 50% of the directors of AMC must be independent
Net Asset Value (NAV) is a fund’s market value per unit. It is calculated by dividing the total value of all the assets in a portfolio, minus all its liabilities.
A mutual fund that invests in growth stocks/equities (an emerging company) to attain maximum capital appreciation is a growth mutual fund.
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Tags: Mutual Funds MCQ, Mutual Funds MCQ JAIIB
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