SEBI Grade A- Expected Questions on

Security Market
Q.1 Which of the following statement b) Central government in consultation
about OTC derivatives is/are not with SEBI chief
correct? c) A board formed by SEBI with SEBI
a) OTC derivatives contract involve chief as head
counterparty defaulting. d) Central government in consultation
b) Forward rate agreement is one of the with Chief justice of India
products of OTC derivative market. e) Chief Justice of India in consultation
c) The trading is done over telephone or with finance minister
any other means of communication.
d) All are correct Q.5 When the interest paid to the seller
e) B and C by buyer for carrying over a transaction
from one settlement period to another
Q.2 An agreement between two parties the charge is referred as -
to exchange cash on or before a specified a) Backwardation
future date based on underlying value of b) AAGR
commodity, currency or stocks is termed c) Contango
as ? d) Balance charge
a) Options e) None of these
b) Futures
c) Swaps Q.6 Asia's first stock exchange is -
d) Forwards a) NSE
e) None of these b) BSE
c) NSDL
Q.3 Which of the following are not G- d) SENSEX
security? e) None of these
a) State development loans
b) Dated G-Secs Q.7 Which of the following sentence/s
c) Treasury bills is/are correct?
d) Cash Management bills a) Hedging is important function of
e) Promissory notes commodity future market as it manage
price risk.
Q.4 The presiding officer of Securities b) Hedger don’t use future markets as it
Appellate Tribunal is appointed by - contains risk factor.
a) Chief justice of India with c) Hedging does not allow transfer of
consultation of SEBI Chief price risk to other who are willing to
bear such risk
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d) Both a) and b) Q.12 Which of the following is not a
e) Both a) and c) factor affecting issuers for choosing any
instruments?
Q.8 SEBI is established under which a) Servicing
act? b) Cost
a) SEBI Act 1992 c) Risk reward ratio
b) SEBI Act 1956 d) Debt equity ratio
c) SEBI Act 1996 e) SEBI regulations
d) Depositories act 1996
e) None of these
Q.13 Which of the following is/are
Q.9 National Stock Exchange was incorrect statement/s about
recognised as stock exchange under SCR instruments?
act 1956 in which year? a) Derivative instruments are the
a) 1990 instruments which derive their value
b) 1993 from other assets.
c) 1994 b) Future , options and swaps are types
d) 1956 of derivative instruments.
e) 1992 c) Instruments created by combining
preferences and equity are hybrid
Q.10 SEBI appellate tribunal is instruments.
established under which section of SEBI d) Both a) and d)
act 1992? e) All are correct
a) Section 30
b) Section 20K Q.14 The trader who either buys or sells
c) Section 10K contracts and hold the contracts for
d) Section 15K longer period of time are called -
e) Section 30K a) Hedger
b) Aggregator
Q.11 The strategy followed to fool c) Position Trader
traders by signalling that the rising d) Speculator
trend of stock has been reversed but in e) None of these
actual it has not, the situation is termed
as - Q.15 The oldest stock exchange of India
a) Bear Hug is -
b) Bear Trap a) National stock exchange
c) Market maker b) Madras stock exchange
d) Maple leaf c) Native share and stock broker
e) None of these association
d) Ahmedabad share and stock broker
association
e) Calcutta stock exchange association

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Q.16 When there is fixed rate issue and Q.20 When the difference between spot
its conditions are accepted as being contract and future contract declined
conventional to a particular securities continuously and become zero on the
market is termed as - date of maturity it is termed as -
a) Venture issue a) Convergence
b) Value investing rate b) Settlement price
c) Junk bond c) Offset
d) Jitney d) Backwardation
e) Vanilla issue e) None of these

Q.17 Which of the following is not the Q.21 Equity share capital is defined
function of commodity derivative under which act?
exchange? a) SEBI Act 1956
a) Ensure transparency in trading b) Companies act 1956
b) Design the standardized contract for c) Companies act 2013
trading. d) SCR act 1992
c) For the fair trading it provide rules e) RBI act 1934
and regulations
d) All of these Q.22 Consider the following statements
e) None of these about Exchange traded funds.
1. Only those institutions can deal with
Q.18 Which of the following is correct ETF who are financially sound.
about Foreign Currency Convertible 2. ETF can be traded throughout the
Bond? trading day.
a) It is issued in currency which is 3. Traders can short or buy ETFs on
different from issuers domestic margin.
currency. Which of the above is/are correct?
b) It pays interest at nominal rate a) 1 only
c) They are not tradable on stock b) 2 and 3
exchange c) 1 and 2
d) Both a) and b) d) 1 and 3
e) All are correct e) All are correct

Q.19 Which of the following is the Q.23 Which of the following is not
registry or depository of government India's credit rating agency?
securities in India? a) ONICRA
a) Finance commission b) FITCH
b) Public debt office c) CRISIL
c) Monetary policy department d) ICRA
d) Department of government and bank e) All are India's credit rating agencies
accounts
e) Department of currency management
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Q.24 The term of the presiding officer of e) 1 lakh each day
Securities appellate tribunal is -
a) 3 years or 60 years of age whichever is Q.28 SEBI increased the minimum net
earlier worth requirement for registration of
b) 5 years or 62 years of age whichever is debenture trustees from 2 crore to-
earlier a) 5 crore
c) 5 years 68 years of age whichever is b) 4 crores
earlier c) 10 crores
d) No such term is mentioned d) 15 crores
e) 3 years 62 years of age whichever is e) 6.5 crores
earlier
Q.29 The reports of the accounts of
Q.25 Who chaired a 24- member panel board is prepared by Comptroller and
constituted by SEBI for the issues auditor general of India is presented to
related to regulations and development central government -
of IPOs? a) half yearly
a) Vinod Rai b) Quarterly
b) Ajay Tyagi c) Annually
c) S K Mohanty d) Bi - monthly
d) Vijay Kelkar e)No tenure defined in act
e) T V Mohandas Pai
Q.30 INX, India's first international
Q.26 Which of the following statement exchange of India established by -
about Initial public offer is correct? a) South Asian stock exchange
a) Promoter or director or selling b) AMFI
shareholder are eligible for IPO. c) NSE
b) In special cases if the director is d) BSE
fugitive economic offender is eligible to e) Government of India
make IPO.
c) Wilful defaulters are not eligible for Q.31 Who coined the term SENSEX?
IPO. a) Deepak Mohoni
d) Both b) and c) b) V Balasubramaniam
e) None of these c) Vikram Limaye
d) Rajiv Lall
Q.27 The penalty for the person entering e) Vinod Rai
into agreement with his client and
registered as an intermediary under Q.32 Which of the following is correct
SEBI act and he fails to fulfil the statement?
requirements of agreement is - a) Defence of India act 1939 act as
a) 5 Lakh each day legislation for the regulation of stock
b) 50 thousands each day exchanges.
c) 25 thousands each day
d) 75 thousands each day
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b) Securities contract act 1956 was d) 10 crore
enacted on the recommendation of L M e) Other than these options
Sanghvi committee.
c) In the native share and stock brokers Q.36 Hang Seng, RTSI and FTSE 100
association, natives of India as well as are -
foreigners could be the brokers of the a) Stocks
exchange. b) Indexes
d) Both a and c c) Risks
e) None of these are correct d) Schemes
e) Not related to Stocks
Q.33 Which of the following is true
about recent measures by SEBI to Q.37 Who has the power to remove
improve transparency in investment member of SEBI board?
expenses. a) Finance minister
a) Upfront commission charges are b) Prime Minister
increased for regulators. c) Central government
b) Front loading commission is d) Chief justice of India
abolished in case of SIP e) None of these
c) All schemes related expenses shall be
paid from scheme only not from books Q.38 What does 'O' stands for in LODR?
of Asset Management Company. a) Objects
d) Both a and c b) Opinion
e) All are correct c) Obligations
d) Open
e) None of these
Q.34 Who is the chairman of the
committee formed by SEBI to advice on Q.39 Who are debenture trustees?
matters related to development of a) A person on entity, holding debenture
alternative investment and startup eco- stock for benefit of another party
system in country? b) A organisation who trade as a
a) N R Narayan Murthy individual entity in stock exchange.
b) Ajay Tyagi c) A fund which is formed for
c) V Balasubramaniam debentures
d) Ajay Kumar d) All can be definition of debenture
e) Gopal Jain trustee
e) None of these
Q.35 What is the minimum paid up
capital requirement for listing of Q.40 An option used at the time of IPO
companies on BSE through IPO? or listing of any stock to ensure a
a) 5 crore successful opening price is termed as -
b) No minimum requirement a) Call
c) 1 crore b) Put
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c) Green shoe Which of the above are correct
d) Over the counter statement/s?
e) None of these a) 1 only
b) 2 only
Q.41 Which of the following is an online c) Both 1) and 2)
platform for grievance redressal system d) Either 1) or 2)
of SEBI? e) None of these
a) PENCIL
b) SCORES Q.45 What is QIP?
c) SEBI a) It is scheme which allow to trade with
d) SCRA foreign trader.
e) No such platform available. b) A method which uses available
information and forecasting techniques
Q.42 Which of the following statement for better performance than a portfolio.
about new KYC norms of FPI is correct? c) The method of raising resources
a) NRIs, OCIs and RIs are allowed to be available for listed companies from
the part of FPIs if their holding is less domestic market.
than 25%. d) A method of representing difference
b) According to the new KYC rules, between advances and declines of
Custodians should maintain records in security prices.
original for at least 5 years. e) None of these
c) NRIs is now permitted to hold non
controlling stake in FPI Q.46 Who is the head of Secondary
d) Both b) and c) market advisory committee?
e) All are correct a) Jayanth R Verma
b) Anup Bagachi
Q43 Which of the following is not c) Dipak Gupta
money market instrument? d) Vinod Rai
a) Commercial bills e) Uday Kotak
b) Certificate of deposits
c) Treasury bills Q.47 When a commodity or security is
d) Commercial paper purchased at underpriced rate and sold
e) All of these at overpriced rate than it is termed as -
a) Appreciations
Q.44 Consider the statements about b) Arbitrage
Securities appellate tribunal? c) Bond valuation
1.Civil courts have the power to take d) Asset striper
decision on the proceedings on the e) None of these
matter dealt by SAT.
2.The SAT can accept the appeal after Q.48 Which of the following is referred
the expiry of 45 days period only if there as pulse of Indian domestic stock
is sufficient reason for not filing appeal market?
within the period. a) Nifty
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b) SEBI e) Other than given options
c) NSE
d) Mutual funds Q.53 When the scheme got approval for
e) S&P BSE Sensex corporatisation or demutualisation from
SEBI, the stock exchange must ensure
Q.49 When a listed issuer issued shares how much percent of equity shares
or convertible securities to a selected should be held by public other than
group of investors the mechanism shareholders?
termed as - a) 25%
a) Resource mobilisation b) 20%
b) Preferential allotment c) 50%
c) Qualified institutional placement d) 51%
d) Arbitration e) 45%
e) None of these
Q.54 Which of the following is incorrect
Q.50 Who is the CEO of India about the power of recognised stock
International Exchange? exchange?
a) Ashish Kumar Chauhan a) They can make rules for restricting
b) Ajit Ranade voting rights to members only.
c) Anand Sinha b) Rules made by them are final and
d) V Balasubramaniam cannot be amended by central
e) None of these government.
c) They can restrict the right of member
Q.51 Who is a stabilising agent? to appoint another person as his proxy
a) A merchant banker responsible for to attend and vote in meetings.
stabilising price of equity shares under a d) Both a) and c)
green shoe options. e) All are correct
b) A banker to an issue registered with
the board offers facility of ASBA. Q.55 ISIN stands for -
c) An institution registered with RBI to a) Institutional securities identification
stabilize prices. Number
d) A specialized bank to deal with the b) Indian securities identification
intermediaries for price stabilisation. Number
e) None of these c) International securities identification
Number
Q.52 When a company take over the d) Industrial securities identification
control of another company it is termed Number
as - e) Indian Stock Identification Number
a) Bear Hug
b) Acquisition Q.56 When stock exchange delist the
c) Amalgamation securities, the aggrieved investor or
d) Takeover company may file an appeal before -
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a) SEBI b) Hostile
b) SAT c) Negotiated
c) Supreme Court d) Backflip
d) Central government e) All are the types of takeover
e) None of these
Q.61 Finance commission was
Q.57 Which of the following is not one of established under which article of
the step of rematerialization process? Indian constitution?
a) Fill Remat request form. a) Article 350
b) Depository participant intimate b) Article 270
depository about the request through c) Article 290
system. d) Article 280
c) Depository participant submit the e) Article 120
request to registrar.
d) Registrar updates accounts and Q.62 Which of the following is correct
dispatches certificate to investors. about Secondary market?
e) All are the steps a) It is known as existing securities
market.
Q.58 According to the Securities b) It is a volatile market.
contracts rules 1957, public sector c) Bonus shares and Government
company whose public shareholding securities are the instruments of
below 25% on the commencement of secondary market.
Securities contract regulation (second d) Both a) and c)
amendment) 2018 can increase its e) All are correct
public shareholding to at least 25%
within- Q.63 Which of the following factor
a) 4 years determine interest rates?
b) 1 year a) Supply of money
c) 6 months b) RBI policies
d) 2 years c) Demand for money
e) 3 years d) Inflation rate
e) All
Q.59 Horizontal, Vertical, conglomerate
and Market extension are the type of - Q.64 Future contract on Oman crude oil
a) Acquisition is launched by -
b) Merger a) NASDAQ
c) Takeover b) BSE
d) Substantial Acquisition c) NSE
e) None of these d) FTSE
e) None of these
Q.60 Which of the following is not the
type of takeover? Q.65 An individual investor holding
a) Bail out maximum number of futures and
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options contract at a given time is Q.69 Confirmation of trades done on a
termed as - particular day on behalf of client by
a) Put option trading members is termed as -
b) Position limit a) Confirm trade
c) Trading limit b) Contract note
d) Limit order c) Final deal
e) Odd Lot d) Deal confirmed
e) None of these
Q.66 Consider the following statement
about Finance commission? Q.70 Order entry, modification and
1.Finance commission is a statutory cancellation of stocks took place -
body. a) In trading session
2.Finance commission recommends b) Pre- opening session
Presidents on the distribution of taxes c) Second Thursday of each month
between centre and state. d) Any time in a day
3.Recommendation of Finance e) None of these
commission is binding to President.
Which of the above is/are correct Q.71 Who is not the member of
statement/s? composition of finance commission?
a) 1 and 3 a) Chairman having experience in public
b) 2 and 3 affairs
c) 2 only b) A person having special knowledge of
d) 3 only economics.
e) All 1, 2 and 3 c) A judge of Supreme Court
d) A person with knowledge of finance
Q.67 Country's first Real estate and accounts
investment trust offer with SEBI is filed e) All are the members of commission
by -
a) Blackstone and NASDAQ Q.72 An order to buy or sell a stock once
b) Blackstone and Embassy Group the price of stock reaches a specified
c) Aditya Birla and Adani transmission price is known as -
d) AIA engineering and embassy group a) Stop order
e) Other than given options b) Short term order
c) Stop limit order
Q.68 SEBI has lifted ban on which of d) Good till cancelled order
following commodities? e) None of these
a) Gold
b) Oil Q.73 Who are called as the Remisiers of
c) Tur and Urad Dal BSE?
d) Silver a) Jobbers
e) None of these b) Sub brokers
c) Authorized clerks
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d) Commission brokers Q.78 Forensic audit is defined as -
e) None of these a) Audit is done to examine company's
financial information for evidence.
Q.74 The designated depository b) A forensic test is followed by audit of
participants will have to provide number company.
of foreign portfolio investors to SEBI by- c) Narco test of Director of company
a) End of the month followed by audit of company accounts.
b) 15th working day of each month d) All are correct
c) Regularly e) None of these
d) Last Thursday of month
e) 5th working day of each month Q.79 Who has the authority to
determine qualification of members of
Q.75 Which of the following statement is finance commission?
incorrect about 15th Finance a) President
commission? b) Parliament
a) 15th finance commission takes 1971 c) Finance minister
census as the base for devolution of d) Supreme Court
funds. e) None of these
b) The recommendations of 15th finance
commission will come in effect from 1st Q.80 Minimum investment period for
April 2020. bank fixed deposits is-
c) It is headed by N K Singh. a) 1 month
d) All are correct b) 6 months
e) All are incorrect c) 30 days
d) 15 days
Q.76 Who are authorized clerks? e) 60 days
a) He does trading on behalf of stock
broker. Q.81 Which of the following is correct
b) He gets client to the broker. about venture capital funds?
c) He is independent and professional 1. It offers networking opportunities
brokers. 2. It helps in developing new products.
d) All of these 3. They have the authority to influence
e) None of these decisions of investors.
Choose the correct statement/s.
Q.77 Which of the following section of a) 1 and 2
Securities contract (Regulation) Act, b) 1 and 3
1956 deals with Public issue and listing c) Only 2
of securities? d) All 1, 2 and 3
a) Section 31 e) None of these
b) Section 2
c) Section 21 Q.82 Which of the following statement
d) Section 17 A is correct?
e) None of these
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a) Foreign central bank cannot purchase reverse their trade to complete a
or sell dated government securities in transaction is called as
secondary market. a) Crash
b) A multilateral development bank b) Squaring off
permitted by government of India to c) Bear
float rupee bonds in India can purchase d) Limit trading
government dated securities. e) None of these
c) Both a) and b)
d) Either a) or b) Q.87 The term used to measure relation
e) None of these between stock price and movement of
whole market is -
Q.83 Which committee was constituted a) Beta
for Capital account convertibility? b) Bid
a) Kelkar committee c) Bear
b) T S Vijayan committee d) Bull
c) Tarapore committee e) None of these
d) N Balakrishnan committee
e) None of these Q.88 Who is the chairman of Financial
stability and development council?
Q.84 Who is authorised to regulate a) R Balasubramaniam
transfer or Issue of any security by b) P Radhakrishnan
resident outside the India under FEMA c) Arun Jaitely
act? d) Ajay Tyagi
a) Ministry of Home Affairs e) Urjit Patel
b) PMO
c) SEBI Q.89 Venture capital funds are
d) RBI registered under -
e) None of these a) Depositories act 1996
b) SEBI Act (venture capital fund) 1956
Q.85 According to unpublished price c) Securities Contract Act 1956
sensitive information, information d) SEBI (venture capital fund) 1996
related to which of the following may e) None of these
affect price of securities?
a) Dividends Q.90 Consider the following statements
b) Changing in capital structure about Issue of Indian depository
c) Mergers receipts.
d) Financial results 1. IDR shall be denominated in Indian
e) All rupees only.
2. The issue of IDR should comply with
Q.86 The process by which investors or the companies rule 2014 and SEBI ICDR
traders buy or sell shares and later regulations 2009.
3. An OCI cannot sell IDRs
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Choose the correct sentence/s
a) 1 only
b) 3 only
c) All 1, 2 and 3
d) 1 and 2
e) 2 and 3
Q.91 What is Blue chip?
a) A security offering
b) Name of the index
c) Best rated share
d) A method to earn profit
e) None of these
Q.92 When the dividend does not
accumulate in case of preference shares
than this shares are -
a) Cumulative preference shares
b) Non cumulative preference shares
c) Convertible preference shares
d) Participating preference shares
e) None of these
Q,93 The securities which are easily
interchangeable with another in same
class is termed as -
a) Fungible securities
b) Transferable securities
c) Future
d) Options
e) None of these
Q.94 which of the following is not
correct about debentures?
a) Debentures include bonds and
debenture stocks.
b) It is defined in Section 2(30) of
Companies Act 2013
c) Debenture holders have no voting
rights
d) Both a and c
e) All are correct
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Q.95 Which of the following best
describes Stepped coupon bonds
a) The interest rates of bond fluctuate
during tenure of bond.
b) These bonds are shared to share the
risk of future commodity price.
c) This bonds are convertible.
d) Principal and coupon portion of bond
issue is split and two separate coupon
instruments are sold to investors.
e) None of these
Q.96 Bill of exchange is defined under -
a) RBI act 1934
b) SEBI act 1956
c) The negotiable instruments act 1881
d) SCR act 1996
e) None of these
Q.97 When underwriter agrees to buy
his commitment of shares before issue
opens is termed as
a) Hard underwriting
b) Soft underwriting
c) Green shoe option
d) Differential pricing
e) Safety net
Q.98 Where is the Headquarter of
NASDAQ?
a) London
b) Mumbai
c) Singapore
d) Japan
e) New York
Q.99 Which of the following functions
are performed by company secretary in
SEBI?
a) Notify closure and re open of trading
windows.
b) Maintain records for a period of 5
years
c) Monitor the trading by employees and
connected persons
d) All these functions are performed by
Stock exchange
e) All are correct

Q.100 When the issue of shares by a

listed issuer on public right basis, where
the allotment to both public issue and
right issue is simultaneously made is
called -
a) Right Issue
b) Bonus issue
c) Composite issue
d) Public issue
e) Preferential issue

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