SCDL

Program Name:
Subject:
Assessment Name:
Weightage:
Total Marks:
Duration:

PGDBA
Capital Market
CM - Exam
70
70
80 mins

Online Examination:
Online examination is a Computer based examination.
Online examination comprises of Total 29 Questions - Out of 70 marks.
Duration of online examination will be of 1 Hour 20 minutes (80 minutes).

Section - I Instructions:
- It is compulsory and has total 3 Subjective Questions.
- Students are required to solve any 2 Subjective Type Questions. Each question is of 5 marks.
- Section I is out of 10 Marks.
Please refer following instructions regarding Subjective examination:
- While attempting subjective examination Text formatting facility will be disabled such as use of bullets,
making the text bold, underlining the text etc. Only normal character on the key board will be available.
- Special characters available on the keyboard will be allowed.
- Students can not attempt more than 2 questions out of given 3.
- A blank (space typed) or any entry in the space provided will be considered as question is answered.
- Hand written answers are not allowed. Subjective test can be answered by using key board.
- No brail support shall be provided, but writer assistance shall be allowed. The student has to intimate it to
SCDL well in advance by completing applicable formalities.
- Answers for both the questions should not exceed more than 110 words. The maximum word limit per
answer is 55 words (for Subjective part).

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1) State the functions of SEBI.

(5)
1. Regulating the business in stock exchanges and any other securities markets. 2. Registering and
regulating the working of intermediaries who may be associated with securities markets in any manner. 3.
Registering and regulating the working of mutual funds. 4. Promoting and regulating self-regulatory
organisation. 5. Prohibiting fraudulent and unfair trade practices. 6. Promoting investor's education and
training of intermediaries of the securities market. 7. Prohibiting insider trading in securities. 8.
Regulating substantial acquisition of shares and take-over of companies. 9. Calling for information from,
undertaking inspection, conducting, inquiring and audits of the stock exchanges and intermediaries and
self-regulatory organisations in the securities market.
2) Why is credit rating expressed in terms of rating symbols?
(5)
Credit rating is expressed in terms of rating symbols for the following reasons: 1) They are easily
comprehensible to lay investors. 2) There are distinct symbols for different instruments. 3) This
differentiation is based on the degree of safety which shows investment grade and non-investment grades.
4) Securities with the same rating are of similar but NOT identical investment quality.
3) Which types of instruments are rated by credit rating mechanism?
(5)
Credit rating is used extensively for evaluating debt instruments. These include long-term instruments like
bonds and debentures as well as short-term instruments like commercial paper. In addition, fixed deposits,
certificates of deposits, structured obligations including the non-convertible portion of PCDs and
preference shares are also rated. Equity shares are not rated.

Section 1 is complete.
Please click on "Next" button to proceed.

Section - II Instructions:
- It comprises of Objective Questions Only.
- Total 60 marks are allotted for objective type questions.
- The objective questions are of following type and carries marks as given under.
Multiple Choice Multiple Response : 4 Questions - 16 Marks (Each 4 marks)
Multiple Choice Single Response : 9 Questions - 18 Marks (Each 2 marks)

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True or False
Select a Blank
Match the Column

: 5 Questions - 5 Marks (Each 1 mark)

: 5 Questions - 5 Marks (Each 1 mark)
: 4 Questions - 16 Marks (Each 4 marks)

Total Questions
Total Marks

: 27
: 60

1) Many investors are known to apply for IPOs especially during a bull run.
(1)
1] True
2] False
2) During the period 2002-2005 the growth of Indian economy was between :BLANK per annum.
(1)
1] 7% to 8%
2] 8% to 9%
3] 6% to 7%
4] 5% to 6%
3) Match the Following
(4)
1] The ONGC public issue
2] Bank of Maharashtra public issue
3] Mega IPO of Navaratna PSU
NTPC
4] Movement in bank scrips

1] Disproportionate allocation of shares

2] Allocation of shares in physical form in place of dematerialized
form
3] The size of issue was around Rs. 5000 crores
4] Statements from finance ministry
5] Proportionate allocation of shares
6] The size of issue was around Rs. 10000 crores

4) Commercial banks play a significant role in the

(2)
1] CD market
2] CP market
3] T bills market
4] Commercial bill market
5) The intrinsic value of the option is the :BLANK to the holder on immediate exercise of the option.
(1)
1] loss
2] gain
3] value
4] profit
6) All mutual funds have to be registered with
(2)
1] CLB
2] RBI

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3] Stock Exchanges
4] SEBI
7) Until 1987, the only mutual fund in India was
(2)
1] LIC
2] GIC
3] UTI
4] Franklin Templeton
8) Indian investors will have to look towards mutual funds to seek increase in
(2)
1] gains on investments
2] profits on investments
3] high returns on investments
4] returns on investments
9) The concept of net asset value per unit is the value represented by the ownership of one unit in the fund.
(1)
1] True
2] False
10) The initial issue expenses in respect of any scheme may not exceed six per cent of the funds raised under
that scheme.
(1)
1] True
2] False
11) Match the Following
(4)
1] Mutual fund
2] Portfolio
3] SEBI
4] RBI

1] tax benefit
2] group of securities to be invested in
3] formed in 1992
4] supervisory role in mutual fund regulation
5] group of bonds to be invested in
6] formed in 1991

12) In case of issues upto Rs. 50 crores, the number of lead managers will not exceed :BLANK .
(1)
1] two
2] four
3] three
4] one
13) Only those transactions which are outstanding at the end of the last trading day are required to be settled
by
(2)
1] deliveries
2] payments

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3] payments or deliveries
4] receipts
14) Depository/DP can be chosen by an investor as per convenience irrespective of the DP of the broker.
(1)
1] True
2] False
15) Offshore funds routed through Mauritius follow :BLANK .
(1)
1] SEBI guidelines
2] RBI guidelines
3] FMC guidelines
4] FIMMDA guidelines
16) The acquirer is required to pay consideration to all those shareholders whose shares are accepted under
the offer, within :BLANK from the closure of offer.
(1)
1] 15 days
2] 30 days
3] 45 days
4] 50 days
17) The NHB provides refinance to
(2)
1] banks
2] housing companies
3] housing finance companies
4] cooperative banks
18) The purpose for splitting of stocks in small denominations by many Indian companies was
(2)
1] To enable small investors to buy the stocks
2] To enable institutional investors to buy the stocks
3] To raise short term loans from market
4] To invest in PSUs
19) The government has allowed only a few players in the Repo markets such as
(4)
1] secondary dealers
2] brokers
3] banks
4] primary dealers
20) Match the Following
(4)
1] Put option
2] American option
3] European option
4] Strike price
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1] right to sell the option

2] can be exercised on any business day till maturity
3] can be exercised only on maturity date
4] price at which the option can be bought or sold

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5] right to buy the option

6] can be exercised even after maturity date
21) The regular expenses of an Asset Management Company (AMC) borne by individual schemes are
(4)
1] custodial fees
2] registration fees
3] registrar's fees
4] AMC fees
22) The mutual fund shall be liable to refund the application money to the applicants in case the
(4)
1] mutual fund fails to receive the minimum subscription amount
2] mutual fund fails to receive the full subscription amount
3] money received from the applicants are in excess of subscription as referred in clause (b) of sub
regulation (1)
4] money received from the applicants are in excess of subscription as referred in clause (a) of sub
regulation (1)
23) Stock exchanges constitute a market for trading in the existing
(2)
1] securities
2] shares
3] listed bonds
4] listed securities
24) Venture capital may also include investment in
(2)
1] unviable companies
2] sick companies
3] turnaround companies
4] turnaround situations
25) Credit rating is a recommendation to buy/sell a security.
(1)
1] True
2] False
26) Match the Following
(4)
1] Sustainability of funds from operations
2] Raw material sourcing
3] Project implementation record
4] Industry structure

1] financial risk analysis

2] operating advantages of company
3] management evaluation
4] business analysis
5] simple risk analysis
6] regulatory environment

27) The objectives of NHB are

(4)
1] To promote, establish, support or aid in the promotion, establishment and support of housing finance
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institutions
2] To subscribe to or purchase stocks shares bonds debentures and securities of every other description
3] To guarantee the financial obligations of these institutions and underwrite their issues of securities
4] To promote, establish, support or aid in the promotion, establishment and support of direct finance
companies

Section 2 is complete.
Please click on "Next" button to proceed.

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