Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, 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 Mutual Fund,Venture Capital,Life Insurance Policies and AIFS 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 Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS 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 Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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So, are you ready to put your Mutual Fund,Venture Capital,Life Insurance Policies and AIFS knowledge to the test? Let's get started with our carefully curated MCQs!

Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 7 of 18

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Q61.
What is the primary focus of Category I - AIF?

a.

Trading in diverse and complex strategies

b.

Investing in listed and unlisted derivatives

c.

Investing in start-up projects, early-stage ventures, social ventures, SMEs, infrastructure activities, and other socially or economically desirable sectors

d.

Undertaking leverage for day-to-day operational requirements

Discuss
Answer: (c).Investing in start-up projects, early-stage ventures, social ventures, SMEs, infrastructure activities, and other socially or economically desirable sectors Explanation:Category I - AIF funds are invested in start-up projects, early-stage ventures, social ventures, SMEs, infrastructure activities, and other sectors that the Government or Regulators consider as socially or economically desirable.
Q62.
What type of funds fall under Category II - AIF?

a.

Funds investing in start-up projects

b.

Funds employing diverse and complex trading strategies

c.

Funds not falling in Category I & III and not undertaking leverage or borrowing except for day-to-day operational requirements

d.

Funds investing in listed and unlisted derivatives

Discuss
Answer: (c).Funds not falling in Category I & III and not undertaking leverage or borrowing except for day-to-day operational requirements Explanation:Category II - AIF funds do not fall in Category I & III of AIF and do not undertake leverage or borrowing except for day-to-day operational requirements, including PE funds and Debt Funds.
Q63.
What characterizes Category III - AIF funds?

a.

Investing in socially or economically desirable sectors

b.

Investing in start-up projects and early-stage ventures

c.

Employing diverse and complex trading strategies and may employ leverage, including through investment in listed and unlisted derivatives

d.

Undertaking leverage for day-to-day operational requirements

Discuss
Answer: (c).Employing diverse and complex trading strategies and may employ leverage, including through investment in listed and unlisted derivatives Explanation:Category III - AIF funds are employed in diverse and complex trading strategies and may employ leverage, including through investment in listed and unlisted derivatives, for example, Hedge Funds.
Q64.
What is the purpose of SEBI (AIFs) Regulations, 2012?

a.

To restrict funds from pooling private capital

b.

To allow unrestricted pooling of private capital

c.

To regulate funds involved in pooling private capital and investing it in accordance with a defined investment policy for the benefit of investors

d.

To govern only existing venture capital funds

Discuss
Answer: (c).To regulate funds involved in pooling private capital and investing it in accordance with a defined investment policy for the benefit of investors Explanation:SEBI (AIFs) Regulations, 2012, are issued to regulate funds involved in pooling private capital from institutional investors or High Net Worth Investors (HNI) with a view to invest such funds in accordance with a defined investment policy for the benefit of the investors and the manager of such fund, irrespective of their legal domicile.
Q65.
What is the status of existing VCFs under the AIF Regulations?

a.

They are required to seek re-registration under AIF Regulations

b.

They are not allowed to continue after the notification of AIF Regulations

c.

They can raise fresh funds after the notification of AIF Regulations

d.

They are automatically registered under AIF Regulations without any further action

Discuss
Answer: (a).They are required to seek re-registration under AIF Regulations Explanation:Existing VCFs are permitted to continue and shall be governed by the VCF Regulations until the fund or scheme managed by the fund is wound up. However, they are required to seek re-registration under AIF Regulations, subject to approval of two-thirds of their investors by value.
Q66.
How long can existing funds, falling within the definition of AIF, continue to operate without SEBI registration after the commencement of the AIF Regulations?

a.

3 months

b.

6 months

c.

9 months

d.

12 months

Discuss
Answer: (b).6 months Explanation:Existing funds falling within the definition of AIF, not registered with SEBI, may continue to operate for 6 months from the date of commencement of the AIF Regulations, or until the disposal of their application if they have already applied for registration within those 6 months. This period can be extendable up to 12 months with the permission of SEBI for special cases.
Q67.
What is the condition regarding the launch of multiple schemes under an AIF according to the AIF Regulations?

a.

Multiple schemes are allowed without separate registration from SEBI

b.

Multiple schemes are allowed only for Category I - AIF

c.

Multiple schemes are allowed, but each requires separate registration from SEBI

d.

Multiple schemes are not allowed under any circumstances

Discuss
Answer: (a).Multiple schemes are allowed without separate registration from SEBI Explanation:AIF Regulations permit the launch of multiple schemes under an AIF without separate registration from SEBI, subject to filing of an Information Memorandum with SEBI.
Q68.
What is the minimum corpus required for each scheme of an AIF according to the AIF Regulations?

a.

Rs. 10 crore

b.

Rs. 15 crore

c.

Rs. 25 crore

d.

Rs. 50 crore

Discuss
Answer: (c).Rs. 25 crore Explanation:Each scheme of an AIF shall have a corpus of at least Rs. 25 crore.
Q69.
What is the minimum investment value that the AIF shall not accept from an investor, as per the AIF Regulations?

a.

Rs. 5 lakh

b.

Rs. 10 lakh

c.

Rs. 25 lakh

d.

Rs. 1 crore

Discuss
Answer: (d).Rs. 1 crore Explanation:The AIF shall not accept an investment of value less than Rs. 1 crore from an investor, with the exception that the minimum value of investment for employees/directors of the AIF/Manager shall be Rs. 25 lakh.
Q70.
What is the maximum number of investors allowed for any scheme of an AIF, according to the AIF Regulations?

a.

500 investors

b.

750 investors

c.

1000 investors

d.

1500 investors

Discuss
Answer: (c).1000 investors Explanation:No scheme of the AIF shall have more than 1000 investors.
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