Tag: functions of sebi

Questions Related to functions of sebi

Appointment of independent directors is the part of Corporate Governance as per the ________.

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. SEBI

  2. Indian companies act

  3. Government of India

  4. RBI

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Correct Option: A

The value of a share printed on the share certificate is called _______.

business organisation securities exchange board of india (sebi) functions of sebi sebi securities and exchange board of india (sebi)

  1. Face value

  2. Market Value

  3. Future value

  4. Current value

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Correct Option: A
Explanation:

The value of a share printed on the share certificate is called face value. Face value is also known as par value. It is determined when the shares are issued by the company depending on the capital the company wished to raise.

The objectives of the two  advisory Committees formed by SEBI are _________.

business organisation securities exchange board of india (sebi) functions of sebi sebi securities and exchange board of india (sebi)

  1. To advise SEBI on issues related to the development of primary market in India.

  2. To advise SEBI on disclosure requirements for companies.

  3. To advice the board in matters relating to the development and regulation of the secondary market in the country.

  4. All of the above

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Correct Option: D
Explanation:
SEBI was established to regulate the activities of stock exchange and to protect the interest of investor and provide safety of investment. The objectives of the two  advisory Committees formed by SEBI are as follows:
a) To advise SEBI on issues related to the development of primary market in India.b) To advise SEBI on disclosure requirements for companies.
c) To advice the board in matters relating to the development and regulation of the secondary market in the country.

_______ means the admission of securities of a company to trading on a stock exchange.

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  1. Listing

  2. 'Demat'ing

  3. 'Remat'ing

  4. None of the above

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Correct Option: A
Explanation:
Listing means the admission of securities of a company to trading on a stock exchange. Listing helps to provide ready marketability and liquidity of a company's securities. It also helps to provide free negotiability to stocks and protect the shareholders and investors' interests.

What are the objectives of Listing?

business organisation securities exchange board of india (sebi) functions of sebi sebi securities and exchange board of india (sebi)

  1. To provide ready marketability and liquidity of a companys securities.

  2. To provide free negotiability to stocks.

  3. To protect shareholders and investors interests.

  4. All of the above

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Correct Option: D
Explanation:
Listing means the admission of securities of a company to trading on a stock exchange. Objectives of listing are as follows:a) To provide ready marketability and liquidity of a company;s securities.
b) To provide free negotiability to stocks.
c) To protect shareholders and investors interests.

To get listed in a stock exchange, the company should have issued for public subscription at least the minimum prescribed percentage of its share capital (49 percent).

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  1. True

  2. False

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Correct Option: A
Explanation:

To get listed in a stock exchange, the company should have issued for public subscription at least the minimum prescribed percentage of its share capital(49%) - this is a true statement. Allotment of shares is done on a fair and reasonable manner. In order to get listed, the company must comply with certain terms and conditions. Basic function of stock exchange are providing Liquidity and Marketability to existing securities.

When the prices fall and bulls have to sell at a loss, then it is called _____.

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  1. Bullish Market

  2. Bear Liquidation

  3. Bull Liquidation

  4. Bearish Market

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Correct Option: C
Explanation:

When the prices fall and bulls have to sell at a loss, then it is called Bull Liquidation. Bull in financial term is referred as a speculator  who anticipates rise in prices of securities. Bull liquidation can be defined as a situation in which a speculator sells finding his expectation and rise in prices are not coming true.

A  _____ is a member of the stock exchange but he buys and sells securities on his behalf. 

business organisation securities exchange board of india (sebi) functions of sebi sebi securities and exchange board of india (sebi)

  1. stag

  2. jobber

  3. bull

  4. bear

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Correct Option: B
Explanation:

A  jobber is a member of the stock exchange but he buys and sells securities on his behalf. Jobber is often regarded as market maker. Jobber can be defined as a broker who is prepared to buy and sell stocks at highly competitive prices on behalf of market participants.

A ________ is a speculator who applies for new securities with the expectation that prices will rise by the tie of allotment. 

business organisation securities exchange board of india (sebi) functions of sebi sebi securities and exchange board of india (sebi)

  1. stag

  2. bull

  3. bear

  4. jobber

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Correct Option: A

A company which desires to list its securities in a stock exchange, should offer at least _____ percent of its issued capital for public subscription.

business organisation securities exchange board of india (sebi) functions of sebi sebi securities and exchange board of india (sebi)

  1. sixty

  2. fourty

  3. fifty

  4. thirty

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Correct Option: A
Explanation:

A company which desires to list its securities in a stock exchange, should offer at least 60 percent of its issued capital for public subscription. Certain rules and regulations are to be followed by the company which desires to list its securities in a stock exchange. The company should abide by all the terms and conditions mentioned by the stock exchange in order to list its securities.