Indian Capital Market MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Indian Capital Market, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Indian Capital Market MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Indian Capital Market mcq questions that explore various aspects of Indian Capital Market problems. Each MCQ is crafted to challenge your understanding of Indian Capital Market principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Indian Capital Market MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Indian Capital Market. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Indian Capital Market knowledge to the test? Let's get started with our carefully curated MCQs!

Indian Capital Market MCQs | Page 15 of 15

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Q141.
What is one of the functions of SEBI (Securities and Exchange Board of India)?

a.

Regulating foreign policy

b.

Regulating agriculture practices

c.

Regulating Securities Market

d.

Regulating traffic laws

Discuss
Answer: (c).Regulating Securities Market Explanation:One of SEBI's functions is the regulation of the Securities Market.
Q142.
Which policy initiative is NOT a way for Indian companies to raise funds from the International market?

a.

FDI (Foreign Direct Investment)

b.

FCCB (Foreign Currency Convertible Bonds)

c.

ECB (External Commercial Borrowing)

d.

FCEB (Foreign Currency Exchangeable Bonds)

Discuss
Answer: (c).ECB (External Commercial Borrowing) Explanation:While FDI, FCCB, and FCEB ways for Indian companies to raise funds from the International market, ECB (External Commercial Borrowing) is not.
Q143.
What is the primary purpose of issuing depository receipts (DR)?

a.

Regulating stock prices

b.

Diversification and spread of shareholders' base

c.

Encouraging mergers and acquisitions

d.

Facilitating stock market research

Discuss
Answer: (b).Diversification and spread of shareholders' base Explanation:One of the basic purposes for the issuance of depository receipts is the diversification and spread of shareholders' base.
Q144.
Which of the following is NOT a purpose for issuing depository receipts?

a.

Raising foreign capital

b.

Gaining recognition of corporate entity in the international market

c.

Promoting insider trading

d.

Emphasizing ESOP (Employees' Stock Options Plans)

Discuss
Answer: (c).Promoting insider trading Explanation:Promoting insider trading is not a purpose for issuing depository receipts.
Q145.
_____________ refers to the substitution of paper-form securities by book-entry securities.

a.

Rematerialisation

b.

Materialization

c.

Dematerialization

d.

Prematerialisation

Discuss
Answer: (c).Dematerialization Explanation:Dematerialization refers to the substitution of paper-form securities by book-entry securities. In the context of financial markets, dematerialization involves converting physical certificates of financial instruments, such as stocks and bonds, into electronic form. This transition to electronic or digital records simplifies trading, reduces paperwork, and enhances efficiency in the securities market.
Q146.
Given below are some of the functions of SEBI . Select the odd one out?

a.

Prohibition of Collective Investment Scheme

b.

Prohibition of Insider Trading

c.

Prohibition of Unfair Trade Practices

d.

Education and Training

Discuss
Answer: (d).Education and Training Explanation:The other options focus on regulatory aspects related to market activities, while option (d) pertains to a different aspect related to enhancing knowledge and skills rather than direct regulatory prohibition.
Q147.
Depository receipts are issued to foreign investors by ____________.

a.

Domestic Custodian

b.

Overseas Depository Bank

c.

Foreign Regulator

d.

DR issuing company

Discuss
Answer: (b).Overseas Depository Bank Explanation:Depository receipts are issued to foreign investors by an Overseas Depository Bank. These banks act as intermediaries, issuing depository receipts that represent ownership of a specific number of shares in the issuing company. The depository receipts are then traded on foreign stock exchanges, allowing investors to buy and sell them as if they were shares of the company's stock.
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