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Internal audit should be conducted ______________.

Yearly

Half yearly

Every Quarter

Once in 2 years

Internal audit can be conducted by ______________.

Chartered Accountant only

Compliance officer of the Broker/Clearing Member

Chartered Accountant, Company Secretary, Cost and Management accountant who do not have any conflict of interest

Any finance professional

Internal Audit report should be submitted to the Stock Exchanges _____________.

Within 1 month of the end of the half year period

Within 2 months of the end of the half year period

As soon as the report is completed by the Auditor

Within 3 months of the end of the financial year

Financial System intermediaries includes

Banks, Custodians, Stock Exchanges, Depositories

Banks, Custodians, RBI, SEBI only

Investors only

Corporate only

Debenture holder has the right to

Interest

Dividend

Vote

None of the above

Exchange Traded Fund (ETF) can be based on

Debt instrument

Treasury Bills

Commercial Paper

Stocks, Indices or Commodities

Public issue application processing is carried out by

Bankers to the issue

Merchant Bankers

Stock Exchange

Registrar and Share Transfer Agent

All of the following are the functions of SEBI under SEBI Act, 1992, EXCEPT:

Regulating the business in other securities markets but not in stock exchanges

Promoting and regulating self‐regulatory organisations

Regulating substantial acquisition of shares and take‐over of companies

Prohibiting insider trading in securities

Penalty may be payable by an intermediary under SEBI Act if it fails to:

(a) File any return or furnish any information, books or other documents within the time specified as in the regulations

(b) Maintain books of account or records

(d) None of the above

As per SCRR, the trading members of the stock exchanges are required to maintain the counterfoils or duplicates of contract notes issued to clients for how many years?

Members of the stock exchanges are required to preserve which of the following documents as per the Securities Contracts (Regulation) Act.

Networth certificate

Books and accounts and other documents for specific period of time

Registration certificate

All of the above

Which of the following is not considered as “Price Sensitive” information?

Periodical financial results of the company;

Intended declaration of dividends (both interim and final);

Issue of securities or buy‐back of securities

Routine product promotion material

Disclosures made under SEBI (Prohibition of Insider Trading) Regulations, 2015 should be maintained by the company for a period of _____.

1 year

2 years

3 years

5 years

Every person on appointment as a key managerial personnel or a director of the company has to disclose his holding of securities of the company as on the date of appointment within _________of such appointment.

15 days

10 days

30 days

7 days

Under code of conduct specified within SEBI (Prohibition of Insider Trading) Regulations, 15 pre‐cleared trades shall be executed within _______

2 trading days

7 trading days

2 calendar days

7 calendar days

Which of the following cannot be considered as “Fraud”

a promise made without any intention of performing it;

a representation made in a reckless and careless manner whether it be true or false;

any such act or omission as any other law specifically declares to be fraudulent,

General comment made in good faith

In cases of fraud, SEBI can ___________ the registration of an intermediary?

(a) Cancel

(b) Suspend

(d) None of the above

The investigating authority has under the Regulation powers to:

Call for information or records

Undertake inspection of any book, or register, or other document

To examine orally and to record the statement of the person concerned

All of the above

Fraud includes an intermediary providing his clients with such information relating to a security as cannot be verified by the clients before their dealing in such security. State whether True or False?

True

False

Record of transactions to be maintained under the Prevention of Money Laundering Act includes cash transactions of the value of more than ________.

Rs.10 lakh

Rs. 20 lakh

Rs. 25 lakh

Rs. 1 crore

Which of the following is INCORRECT: Money laundering is a mechanism by which:

Funds generated through criminal means are transformed as if they originated from a legitimate source.

Funds generated through regular business is deployed for new venture

“Every Banking Company, financial institution orintermediary shall maintain a record of which of the following?

All cash transactions of the value of more than Rupees ten lakhs or its equivalent in foreign currency;

All series of cash transactions integrally connected to each other which have been valued below Rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month;

All cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine and where any forgery of a valuable security has taken place;

All of the above

Records maintained under Rule 3 of the PMLA Rules should be maintained for

5 years

7 years

10 years

15 years

The application for registration by a sub‐broker is required to be accompanied by a recommendation letter from____________?

Stock Exchange

Stock Broker

SEBI

None of the above

Is the Stock broker required to pre‐intimate SEBI about shifting the location where it keeps its books of accounts? State Yes or No.

Yes

A Stock Broker when dealing with a client must disclose whether it is acting as a Principal /Agent. State whether True or False.

True

False

Statement of accounts for funds and securities should be sent to the client on what basis?

Quarterly

Annually

Once in six months

Fortnightly

Client‐On‐Boarding function is performed by ____________.

Front office

Middle office

Back office

Stock Exchange

For Securities Lending and Borrowing (SLB) transactions, who provides for suitable arbitration mechanism for settling the disputes?

SEBI

Stock Exchanges

Approved Intermediary

Investor Association

When an investor gets the best available price in the market, he places which type of order?

Stop loss order

Limit order

Market order

Contract note should be issued

Within 24 hours of trade execution

Within 48 hours of trade execution

Within 3 days of trade execution

Immediately upon a successful transaction

Extreme loss margin covers the expected loss in situations that go beyond

99 percent value at risk estimates

95 percent Value at risk estimates

90 percent value at risk estimates

69 percent value at risk estimates

Acceptable liquid asset will include

Cash

Liquid Group (I) equity share with Exchange specified exposure limit

Bank Guarantee

All of the above

Minimum margin percentage on index futures shall be:

7.5 percent scaled up by look ahead period

5 percent scaled up by look ahead period

10 percent scaled up by look ahead period

12.5 percent scaled up by look ahead period

Trading members are required to submit networth certificate at what intervals?

Annually

Half yearly basis

Fortnightly

As and when sought from SEBI

Settlement in cash market takes place on

T+1 day

T+2 days

T+3 days

T+7 days

Futures and options contract are:

(a) Cash Settled

(b) Physically settled

(d) None of the above

Exercise style for options contracts in India is ____________.

American style

European Style

Contingency plan for outsourcing arrangement by brokers should provide for:

Potential consequences of business disruption

Maintenance of appropriate IT security and robust disaster recovery capabilities

Periodic tests of the critical security procedures and systems

All of the above

Investor complaint can be related to

Non‐Issuance of the Documents by the Trading Member

Non‐receipt of funds / securities

Non‐receipt of margin/security deposit given to the Trading Member

All of the above

Investor grievance can be towards

(a) Listed Company

(b) Broker

(d) Both (a) and (b)

When an Investor Complaint is received by the Stock Exchange it should be addressed

Within 10 days

Within 15 days

Within 2 weeks

Within 45 days

SCORES is the investor grievance redressal system of the

Stock Exchange

SEBI

Stock Broker

RBI

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