Tag: functions of sebi

Questions Related to functions of sebi

The strategic objective of Bombay stock exchange are __________.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. To promote, develop and maintain a well-regulated market for dealings in securities.

  2. To safeguard the interest of members and the investing public having dealings on the exchange.

  3. To promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities.

  4. All of the above

Show answer
Correct Option: D
Explanation:

BSE stands for Bombay Stock Exchange. BSE provides a host of services to capital market participants including risk management, clearing and settlement. It can be defined as a free-float market weighted stock exchange platform. The strategic objective of Bombay stock exchanges are:a) To promote, develop and maintain a well-regulated market for dealings in securities.
b) To safeguard the interest of members and the investing public having dealings on the exchange.
c) To promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities.

BSE also has a platform for trading in equities of small-and-medium enterprises (SME).

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

BSE also has a platform for trading in equities of small-and-medium enterprises (SME)- this is a true statement. SME Exchange functions within the BSE stock exchange. SME exchange can be defined as a trading platform for Small and Medium Enterprises.

The fully automated screen based trading system that it runs is called _______.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. National Exchange for Automated Trading

  2. State Exchange for Automated Trading

  3. District Exchange for Automated Trading

  4. None of the above

Show answer
Correct Option: A
Explanation:

The fully automated screen based trading system that it runs is called National Exchange for Automated Trading. It is the first exchange in the world to use satellite communication technology for trading. It is a state of the art client server based application.

NSE employs a _______ mechanism where each trading day is considered as a trading period.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. trading settlement

  2. rolling settlement

  3. settlement

  4. none of the above

Show answer
Correct Option: B
Explanation:

NSE employs a rolling settlement mechanism where each trading day is considered as a trading period. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.

Which of the following is/are true about NSE?

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. The transactions and orders are entered only through code numbers.

  2. There is no need for any stock exchange floor to transact.

  3. It has its access throughout the country.

  4. All of the above

Show answer
Correct Option: D
Explanation:
Following are true about NSE:
a) The transactions and orders are entered only through code numbers.
b) There is no need for any stock exchange floor to transact.
c) It has its access throughout the country.
Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.In NSE, the trading rights are with the trading members who offer their services to the investorsNSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.

The settlement cycle at NSE has been reduced from T+3 to T+2.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

The settlement cycle at NSE has been reduced from T+3 to T+2- this is a true statement.Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.

Identify the function(s) of NSE from the following.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. Providing a fair, efficient and transparent securities market to investors using electronic trading systems

  2. Enabling shorter settlement cycles and book entry settlements systems

  3. Meeting the current international standards of securities markets

  4. All of the above

Show answer
Correct Option: D
Explanation:
Functions of NSE are:
a) Providing a fair, efficient and transparent securities market to investors using electronic trading systems
b) Enabling shorter settlement cycles and book entry settlements systems
c) Meeting the current international standards of securities markets
Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.

NSE provides trading across sectors viz ______.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. Equities

  2. Derivatives

  3. Debt

  4. All of the above

Show answer
Correct Option: D
Explanation:

NSE provids trading across sectors viz, equities, derivatives and debt. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. 

The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.In NSE, the trading rights are with the trading members who offer their services to the investors. 
NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.

The International Securities Consultancy (ISC) of Hong Kong has helped in setting up of the NSE.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

The International Securities Consultancy(ISC) of Hong Kong has helped in setting up of the NSE. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.

 The SEBI was given a statutory status in the year _______.

commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

  1. 1990

  2. 1991

  3. 1992

  4. 1993

Show answer
Correct Option: C
Explanation:

The SEBI was given a statutory status in the year 1992.  It was set up to regulate the functions of securities market. SEBI is a body corporate having a separate legal existence and perpetual succession. SEBI promotes orderly and healthy development in the stock exchange market.