Stock exchanges - class-XII
Comprehensive quiz on Indian stock exchanges (NSE, BSE, OTCEI) and SEBI regulation for class XII
Questions
NSE commenced futures trading in the year.
- $1999$
- $2000$
- $2001$
- $2002$
The settlement cycle in NSE is?
- $T+5$
- $T+3$
- $T+2$
- $T+1$
Clearing and settlement operations of NSC is carried out by.
- NSDL
- NSCCL
- SBI
- CDSL
National Stock Exchange of India was recognised as stock exchange in the year.
- $1992$
- $1993$
- $1994$
- $1995$
To be listed on NSEI, the minimum capital requirements for a company.
- Rs. $5$ crores
- Rs. $3$ crores
- Rs. $6$ crores
- Rs. $1$ crores
The OTCEI is a company incorporated under the Companies Act 1956.
- True
- False
The on-line trading system of BSE is known as _____.
- BOLT
- NEAT
- GUI
- None of the above
OTCEI is advantageous to the company because it _____.
- makes investment in stocks easier
- provides method of raising funds through capital market instruments which are priced fairly
- provides definite liquidity to investors
- all of the above
The identity of members is trading in NSE is withheld by the National stock exchange. Identify the advantage stated.
- Wide coverage
- Transparency of NSE
- Effective matching of order in NSE
- Confidential trading in NSE
Which of the following is/are advantage(s) of OTC Market?
- Dealers can operate both in new issues and secondary market at their option.
- It is a transparent system of trading with no problem of bad or short deliveries.
- Family concerns and closely held companies can go public through OTC.
- All of the above.
Which of the following is true about OTCEI?
- It was set-up to provide small and medium companies an access to the capital market for raising finance.
- This segment provides a trading platform for a wide range of fixed income securities.
- It was incorporated in 1992.
- It launched the capital market segment in November 1994.
______ segment provides a trading platform for a wide range of fixed income securities that include central government securities.
- Capital Market
- Whole Sale Debt Market
- OTCEI
- Any of the above
NSE ensures equal access for investors all over the country with the help of appropriate communication network.
- True
- False
NSE launched the capital market segment in _______.
- November 1993
- November 1991
- November 1992
- November 1994
In NSE, the trading rights are with the ______ who offer their services to the investors.
- trading members
- RBI
- SEBI
- all of the above
The NSEI was established by ______.
- financial institutions
- insurance companies
- banks
- all of the above
_______ segment of NSE provides an efficient and transparent platform for trading in equity.
- Whole Sale Debt Market
- Retail Sale Debt Market
- Capital Market
- Money Market
Meeting international benchmarks and standards is one of the objectives of NSE.
- True
- False
NSE is managed by professionals, who do not directly or indirectly trade on the exchange.
- True
- False
NSE launched the futures and options segment in ____ for various derivative instruments.
- June 2000
- June 2001
- June 2010
- June 2005
Participants of OTC include _____.
- Investors
- Companies which list their shares on OTCEI
- Settlement bank
- All of the above
OTC Exchange of India was incorporated in ____.
- 1990
- 1991
- 1992
- 1993
The OTC Exchange will not list and trade in companies listed on any other exchange.
- True
- False
Which of the following is/are the demerits of OTCEI?
- Poor liquidity of Scrips
- Delay in Settlement
- Lack of Transparency
- All of the above
Identify the promoter(s) of OTCEI from the following.
- SBI Capital Markets Ltd.
- IFCI
- IDBI
- All of the above
BSE is the second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT).
- True
- False
OTCEI offers computerized screen-based trading ________________.
- True
- False
Before BOLT was introduced in 1995, people used to trade standing in the trading ring.
- True
- False
Which of the following paved way to the establishment of SEBI?
- Unofficial private placements
- Rigging of prices
- Unofficial premium on new issues
- All of the above
BSE also provides depository services through its _______ arm.
- Central Depository Services Ltd. (CDSL)
- National Securities Depository Limited (NSDL)
- NSE
- SEBI
Which of the following is the basic function of stock exchange?
- Pricing of Securities
- Safety of Transaction
- Contributes to Economic Growth
- Providing Liquidity and Marketability to Existing Securities.
SEBI was to function under the overall administrative control of the _______ of the Government of India.
- Ministry of Finance
- Ministry of Commerce
- Ministry of Company Affairs
- Ministry of Economy
The Securities and Exchange Board of India was established by the Government of India _____.
- as a cooperative society
- as a banking authority
- as an interim administrative body
- none of the above
Identify the development function of SEBI.
- Investor education.
- Promotion of fair practices and code of conduct of all SROs.
- Training of intermediaries
- All of the above
BSE provides a host of services to capital market participants including ________.
- risk management
- clearing
- settlement
- all of the above
The strategic objective of Bombay stock exchange are __________.
- To promote, develop and maintain a well-regulated market for dealings in securities.
- To safeguard the interest of members and the investing public having dealings on the exchange.
- To promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities.
- All of the above
BSE also has a platform for trading in equities of small-and-medium enterprises (SME).
- True
- False
The fully automated screen based trading system that it runs is called _______.
- National Exchange for Automated Trading
- State Exchange for Automated Trading
- District Exchange for Automated Trading
- None of the above
NSE employs a _______ mechanism where each trading day is considered as a trading period.
- trading settlement
- rolling settlement
- settlement
- none of the above
Which of the following is/are true about NSE?
- The transactions and orders are entered only through code numbers.
- There is no need for any stock exchange floor to transact.
- It has its access throughout the country.
- All of the above
The settlement cycle at NSE has been reduced from T+3 to T+2.
- True
- False
Identify the function(s) of NSE from the following.
- Providing a fair, efficient and transparent securities market to investors using electronic trading systems
- Enabling shorter settlement cycles and book entry settlements systems
- Meeting the current international standards of securities markets
- All of the above
NSE provides trading across sectors viz ______.
- Equities
- Derivatives
- Debt
- All of the above
The International Securities Consultancy (ISC) of Hong Kong has helped in setting up of the NSE.
- True
- False
The SEBI was given a statutory status in the year _______.
- 1990
- 1991
- 1992
- 1993
SEBI has stopped the practice of making a preferential allotment of shares unrelated to market prices.
- True
- False
Which of the following is/are the development function(s) of SEBI?
- Registration of brokers and sub-brokers.
- Registration of collective investment schemes and Mutual Funds.
- Investor education.
- Training of intermediaries
BSE (Bombay Stock Exchange) is located on ______ street in Mumbai.
- Juhu
- Penag
- Arthrur
- Dalal
Direct supervision over depositories and mutual funds is undertaken by _______.
- NBFCs
- RBI
- SEBI
- all of the above
The powers of controller of capital issues of India is now shifted to _______.
- ministry of finance
- SEBI
- AMFI
- ministry of corporate affairs
The Securities and Exchange Board of India is not entrusted with which of the following functions?
- Investor Protection
- Ensuring fair practices by companies
- Promotion of efficient service by brokers
- Improving the earnings of equity holders
Securities Exchange Board of India (SEBI) was established in __________.
- $1956$
- $2001$
- $1988$
- $1984$
The ________ market is also known as the stock market or stock exchange, which is the market for the purchase and sale of existing securities.
- primary
- capital
- money
- secondary
Which of the following objectives states the key role of SEBI in economic development of the country?
- Prevention of trading malpractices
- Regulation of capital market
- Enforcement of corporate governance on companies
- Promoting and developing capital market
Which of the following is a regulatory function of SEBI?
- Prohibition of fraudulent and unfair trading
- Regulation of takeover bids by companies
- Undertaking measures to develop capital market
- Conducting research
Appointment of independent directors is the part of Corporate Governance as per the ________.
- SEBI
- Indian companies act
- Government of India
- RBI