Tag: securities exchange board of india (sebi)

Questions Related to securities exchange board of india (sebi)

NSE commenced futures trading in the year.

  1. $1999$

  2. $2000$

  3. $2001$

  4. $2002$


Correct Option: A
Explanation:

The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on June 12, 2000.

The settlement cycle in NSE is?

  1. $T+5$

  2. $T+3$

  3. $T+2$

  4. $T+1$


Correct Option: A
Explanation:

In a rolling settlement , each trading day is considered as a trading period and trades executed during the day are settled based on net obligations for the day. In India, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working day after a trade.

Clearing and settlement operations of NSC is carried out by.

  1. NSDL

  2. NSCCL

  3. SBI

  4. CDSL


Correct Option: A
Explanation:

The clearing and settlement operations of NSE are carried out by NSCCL. NSCCL (National Securities Clearing Corporation Ltd.) 

National Stock Exchange of India was recognised as stock exchange in the year.

  1. $1992$

  2. $1993$

  3. $1994$

  4. $1995$


Correct Option: A
Explanation:

1992

The National Stock Exchange of India Limited is the leading stock exchange of India, located in Mumbai. The NSE was established in 1992 as the first demutualized electronic exchange in the country.

To be listed on NSEI, the minimum capital requirements for a company.

  1. Rs. $5$ crores

  2. Rs. $3$ crores

  3. Rs. $6$ crores

  4. Rs. $1$ crores


Correct Option: A
Explanation:

To be listed on NSEI, the minimum capital requirements for a company is Rs. 3 crores.

Investors can sell their mutual funds whenever they want.

  1. True

  2. False


Correct Option: A
Explanation:

Investors can sell their mutual funds whenever they want- this is a true statement. If the investors wish to redeem mutual funds, they can redeem at any time. Mutual funds do not have a fixed maturity period. Mutual fund is a collective investment that pools together the money of a large number of investors to purchase a number of securities, like stocks, bonds, etc.

The fund manager always invests in more than one asset class (equities, debts, money market instruments etc.) to spread the risks. It is called ______.

  1. diversification

  2. liquidity

  3. expert management

  4. all of the above


Correct Option: A
Explanation:

The fund manager always invests in more than one asset class (equities, debts, money market instruments etc.) to spread the risks. It is called diversification. In terms of finance, diversification can be defined as a process of allocating capital in such a way that the exposure to any particular asset gets reduced. It helps to reduce risk and volatility by investing in variety of assets.

The OTCEI is a company incorporated under the Companies Act 1956.

  1. True

  2. False


Correct Option: A
Explanation:

The OTCEI is a company incorporated under the Companies Act 1956. OTCEI was set up to provide small and medium companies an access to capital market for raising finance.  OCTCEI is advantageous to the company because it provides methods of raising funds through capital market instruments which are priced fairly.

The on-line trading system of BSE is known as _____.

  1. BOLT

  2. NEAT

  3. GUI

  4. None of the above


Correct Option: A
Explanation:

The on-line trading system of BSE is known as BOLT. BOLT is a screen-based automated trading platform. It can be referred as a centralized exchange-based trading system of BSE. It helps the investors to trade from anywhere in the world on BSE trading platform.

OTCEI is advantageous to the company because it _____.

  1. makes investment in stocks easier

  2. provides method of raising funds through capital market instruments which are priced fairly

  3. provides definite liquidity to investors

  4. all of the above


Correct Option: B