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 4 of 15

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Q31.
What development significantly reduced the settlement cycle in both equity and debt trading?

a.

Introduction of screen-based trading

b.

Enforcement of mark-to-market margins

c.

Liberalisation of mutual funds

d.

Dematerialisation of both equity and debt trading

Discuss
Answer: (d).Dematerialisation of both equity and debt trading Explanation:Dematerialisation significantly reduced the settlement cycle in both equity and debt trading.
Q32.
What did SEBI allow Indian companies to access in international capital markets?

a.

Direct listings on foreign stock exchanges

b.

Foreign direct investment in Indian companies

c.

Euro and Dollar issues

d.

Membership in foreign mutual funds

Discuss
Answer: (c).Euro and Dollar issues Explanation:SEBI allowed Indian companies to access international capital markets through Euro and Dollar issues.
Q33.
What documents are required for public disclosure when a company offers securities in the Indian capital market?

a.

Prospectus, Application form, and Abridged prospectus

b.

Offer document and Letter of offer

c.

Letter of intent and Financial statements

d.

Memorandum of Association and Articles of Association

Discuss
Answer: (a).Prospectus, Application form, and Abridged prospectus Explanation:Companies offering securities in the Indian capital market are required to make public disclosure through documents such as prospectus, application form, and abridged prospectus.
Q34.
After a security is listed on a stock exchange, what is the issuing company required to disclose under the listing agreement?

a.

Annual board meeting minutes

b.

Quarterly financial statements

c.

Relevant information to appraise the position of listed security holders

d.

Internal company policies

Discuss
Answer: (c).Relevant information to appraise the position of listed security holders Explanation:The issuing company is required to disclose relevant information to appraise the position of listed security holders under the listing agreement.
Q35.
What characterizes the primary markets?

a.

Purchase of existing stocks or securities

b.

Sale of new stock and bond issues to investors

c.

Daily trading of securities at index prices

d.

Trading on a securities exchange

Discuss
Answer: (b).Sale of new stock and bond issues to investors Explanation:In primary markets, new stock and bond issues are sold to investors.
Q36.
Where do existing stocks or securities get traded in the secondary markets?

a.

Over-the-counter

b.

Through underwriting

c.

In primary markets

d.

In quarterly financial meetings

Discuss
Answer: (a).Over-the-counter Explanation:Existing stocks or securities are traded in the secondary markets, usually over-the-counter or on a securities exchange.
Q37.
What is the primary market also known as?

a.

IPO market

b.

Secondary market

c.

Aftermarket

d.

Stock exchange

Discuss
Answer: (a).IPO market Explanation:The primary market is also known as the IPO market, where new securities are sold for the first time.
Q38.
What does the secondary market deal with?

a.

Initial public offerings

b.

Purchase and sale of loans between mortgage banks and investors

c.

Further capital issues by listed companies

d.

Online-based transactions

Discuss
Answer: (b).Purchase and sale of loans between mortgage banks and investors Explanation:The secondary market deals with the purchase and sale of previously issued stocks, securities, and financial instruments, including the purchase and sale of loans between mortgage banks and investors.
Q39.
Which stock exchange is considered one of the oldest in Asia and started its operation in 1875?

a.

National Stock Exchange (NSE)

b.

Bombay Stock Exchange (BSE)

c.

New York Stock Exchange (NYSE)

d.

London Stock Exchange (LSE)

Discuss
Answer: (b).Bombay Stock Exchange (BSE) Explanation:The Bombay Stock Exchange (BSE) is considered one of the oldest stock exchanges in Asia, starting its operation in 1875.
Q40.
In terms of economic development, how is the Indian equity market considered?

a.

Small relative to economic development

b.

Moderate relative to economic development

c.

Large relative to economic development

d.

Insignificant relative to economic development

Discuss
Answer: (c).Large relative to economic development Explanation:The Indian equity market is considered large relative to the country's stage of economic development.
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