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Exam Oriented Important Questions

Descriptive Questions

  1. Explain the Factoring and the various types of factoring involved?
  2. Discuss the role of Issuing and Paying Agent and credit rating agency against Commercial Paper?
  3. Discuss the conditions subject to which the company can issue shares with differential voting rights?
  4. What is initial disclosure requirement to be made by a person under SEBI (Insider trading) regulations 1992.
  5. What are the compliances to be made by the company under SEBI (Prohibition of Insider Trading) Regulations 1992?
  6. What does it mean by a Person Acting in Concert under SEBI (SAST) Regulations 2011.
  7. Discuss the conditions of continuous disclosure required to be made under the Insider regulations.
  8. What is SCORES? Briefly discuss the salient features of SCORES.
  9. Explain the utilization of Investor Education and Protection Fund established under SEBI (Investor Protection and Education Fund) Regulations 2009.
  10. Explain rollover of non-convertible portion of partly convertible debentures under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.
  11. What do you understand by Qualified Institutional Placement
  12. What do you understand by external commercial borrowings (ECBs) ? Discuss the types of ECBs under the automatic route.
  13. What are the criteria for compulsory delisting by stock exchanges
  14. Explain the concept of ASBA in an IPO
  15. Discuss briefly the surveillance system adopted by the stock exchange.
  16. What is SAT. Explain the process of appeal to SAT.
  17. What are the conditions of IDR.
  18. What is Ombudsman in stock market operations? Discuss his role in Investor’s protection.
  19. State the SEBI regulations relating to issue of rights shares.
  20. Discuss briefly the composition of 'audit committee' in terms of listing agreement and enumerate its role and responsibilities.

State, with reasons in brief, whether the following statements are true or false

  1. Dematerialisation of shares is optional
  2. Commercial paper is a secured money market instrument.
  3. Venture capital pools are similar to hedge funds.
  4. Demutualisation aims to convert a stock exchange from ‘not for profit’ to ‘for profit’ company.
  5. A Listed company is required to appoint compliance officer.
  6. Camel Model is used for rating banking companies ( Ans: No it is used for Non Banking Finance Companies)
  7. A Foreign Currency Convertible Bond is a Quasi Debt Instrument (Ans: yes, as it can be converted into equity shares at a later date)
  8. In Basket Trading System, Investor buys or sells all the fifty scrips in one go.
  9. Grading of IPO is not mandatory & it does not help in relative assessment of fundamentals of the issue.
  10. Margin Trading act as a curb on short selling and short buying (Ans: True, it has been implemented to put a check on the tendency of short buying/selling as it will provide stability to the common investors)

Fill in the Blanks

  1. In case of an IPO, ______% of shares held by promoters are locked in for a period of 3 years (20%)
  2. Camel Model encompasses ______
  3. Special Margin is imposed on the scrip which witnesses abnormal price/volume movements.
  4. Green Shoe Option is a stabilization tool for post listing price of newly issued shares.
  5. Commodity Pools are the investment trusts, syndicates or similar enterprises that are operated for the purpose of trading commodity futures.
  6. All certificates in depository are interchangeable and known as Fungible.
  7. Clause 49 of the listing agreement deals with Corporate Governance.
  8. Equity Linked Saving Scheme has a lock in period of 03 years.
  9. Revised carry forward system is introduced in the place of Badla.
  10. The Principal Officer of the company is responsible for timely submission of cash transaction report (CTR) and Suspicious Transaction Report (STR) to Financial Intelligence Unit – India (FIU-Ind).

Abbreviations

  1. SGL: Subsidiary General Ledger
  2. TFTS: Trade for Trade Settlement
  3. REMFS: Real Estate Mutual Fund Scheme
  4. STP: Straight Through Processing.
  5. UIN: Unique Identification Number
  6. ECN: Electronic Communication Network
  7. MCFS: Modified Carry Forward System
  8. SPDR: Standard and Poors Depository Receipt
  9. SMILE: Securities Market Infrastructure Leveraging Expert Task Force
  10. STR: Suspicious Transaction Report
  11. SIP: Systematic Investment Plan
  12. SWP: Systematic Withdrawal Plan
  13. HNI: High Net worth Individuals
  14. IPP – Institutional Placement Program
  15. NDS – Negotiated Dealing System
  16. RTGS – Real Time Gross Settlement
  17. NEFT – National Exchange Fund Transfer
  18. BOLT – BSE Online Trading System
  19. NEAT – National Exchange Fund Transfer

Difference Between:-

  1. Pure and Hybrid Instruments.
  2. Book Closure Date and Record Date.
  3. Hedge Fund & Leverage Fund.

Must Read Topics for Upcoming Exam

  1. Factoring
  2. IOSCO
  3. Basic Service Demat Account
  4. Alternative Investment Fund
  5. Angel Investor
  6. Hedge Fund, Private Equity Fund, Leverage Fund, Fund of Fund, Tracking Stock, Mortgage Backed Security, Disaster Bond, Deep Discount Bond, Equi-Pref, Leverage Fund, FOF, Shares with DVR.
  7. Derivatives (Futures and Options)
  8. IPO Grading and Camel Model
  9. T+2 Settlement System, Direct Market Access, Surveillance and Market Abuse.
  10. SME Exchange.
  11. Infrastructure Debt Fund & Real Estate Mutual Funds + Schemes of Mutual Funds.
  12. External Commercial Borrowing.
  13. IDR Conditions
  14. Powers and Penalties of SEBI + SAT
  15. Clause 49 of Listing Agreement + Audit Committee + Delisting Conditions
  16. Book Building, Green Shoe Option, Qualified Institutional Placement, ASBA, Anchor Investor, Right Issue, Bonus Issue and Promoter Contribution, Preferential Issue, Institutional Placement Program
  17. Insider Trading – Initial Disclosure, Trading Window, Role of CS in Insider Trading
  18. Take Over Code – Open Offer, Disclosures and Exemptions.
  19. Investor Protection – Ombudsman, IEPF and Scores.
  20. Treasury Bill
  21. Road Shows, Offering Circular, FCCB & FCEB
  22. Restriction on the Business of Collective Investment Management Company.
  23. Mezzanine Financing
  24. Inflation Index National Saving Certificate
  25. Debenture Guidelines – DEBT MARKET, Roll Over of Debentures