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 3 of 15

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Q21.
What is the regulatory involvement of the Reserve Bank of India (RBI) in the capital market?

a.

Regulating stock exchanges

b.

Managing debt through primary dealers

c.

Enforcing disclosure requirements

d.

Regulating mutual funds

Discuss
Answer: (b).Managing debt through primary dealers Explanation:RBI has regulatory involvement in debt management through primary dealers in the capital market.
Q22.
Which entity regulates primary dealers in the Government securities market?

a.

Securities and Exchange Board of India (SEBI)

b.

Reserve Bank of India (RBI)

c.

Ministry of Finance

d.

Securities Contract Regulation (SCR) Act

Discuss
Answer: (b).Reserve Bank of India (RBI) Explanation:RBI regulates primary dealers in the Government securities market.
Q23.
What significant change occurred with the enactment of the SEBI Act regarding the Capital Issues (Control) Act of 1947?

a.

Introduction of new regulatory controls

b.

Abolition of the office of Controller of Capital Issues

c.

Imposition of stricter price controls

d.

Limitation on companies' ability to raise funds

Discuss
Answer: (b).Abolition of the office of Controller of Capital Issues Explanation:The enactment of the SEBI Act led to the abolition of the office of Controller of Capital Issues.
Q24.
What power was delegated to SEBI by the Government with regard to stock exchanges?

a.

Power to issue securities

b.

Power to control pricing of shares

c.

Power to regulate stock exchanges

d.

Power to approve public issues

Discuss
Answer: (c).Power to regulate stock exchanges Explanation:The Government delegated the power to regulate stock exchanges to SEBI.
Q25.
What reforms did SEBI introduce in the primary market?

a.

Increased pricing controls

b.

Simplification of issue procedures

c.

Reduction in disclosure standards

d.

Removal of prudential norms

Discuss
Answer: (b).Simplification of issue procedures Explanation:SEBI introduced reforms in the primary market, including improved disclosure standards and simplification of issue procedures.
Q26.
What is the purpose of introducing a code of advertisement for public issues by SEBI?

a.

Reducing costs of issue

b.

Ensuring fair and truthful disclosures

c.

Limiting institutional investor participation

d.

Regulating share acquisitions

Discuss
Answer: (b).Ensuring fair and truthful disclosures Explanation:SEBI introduced a code of advertisement for public issues to ensure fair and truthful disclosures.
Q27.
What did SEBI introduce to strengthen disclosure norms in the capital market?

a.

Annual statements to stock exchanges

b.

Book building for institutional investors

c.

Cash flow statements

d.

Code of advertisement

Discuss
Answer: (c).Cash flow statements Explanation:SEBI strengthened disclosure norms by introducing cash flow statements.
Q28.
What step did SEBI take to introduce more flexibility for mutual fund managers in 1996?

a.

Imposing stricter regulations

b.

Reducing transparency

c.

Liberalising regulations with greater transparency, disclosure, and accountability

d.

Restricting the establishment of new mutual funds

Discuss
Answer: (c).Liberalising regulations with greater transparency, disclosure, and accountability Explanation:In 1996, SEBI revised regulations for mutual funds, providing more flexibility for fund managers with greater transparency, disclosure, and accountability.
Q29.
What is the purpose of the mark-to-market margins enforced by SEBI?

a.

Ensuring capital adequacy for brokers

b.

Introducing stock lending schemes

c.

Enforcing transparency in short selling

d.

Regulating foreign direct investment

Discuss
Answer: (c).Enforcing transparency in short selling Explanation:The mark-to-market margins introduced by SEBI aim to enforce transparency in short selling.
Q30.
Which organization was set up under the supervision of SEBI for clearing and settlement of trades by NSE?

a.

National Stock Exchange (NSE)

b.

Bombay Stock Exchange (BSE)

c.

National Securities Clearing Corporation Ltd. (NSCCL)

d.

Over-the-Counter Exchange of India

Discuss
Answer: (c).National Securities Clearing Corporation Ltd. (NSCCL) Explanation:Under the supervision of SEBI, NSCCL was set up by NSE for clearing and settlement of trades.
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