NISM Series II-B: Registrars to... - National Institute of Securities Markets (NISM)

Created on November 15, 2022 By

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NISM Series II-B: Registrars to an Issue and Share Transfer Agents (Mutual Funds) Certification Examination

1 / 40

The denomination in which equity capital is issued is called______

Fair Value

Market Value

Face Value

All of the above

2 / 40

Debt capital has fixed _______

Income

Expenses

Maturity

All of the above

3 / 40

Companies prefer equity capital because it is less expensive.

TRUE

FALSE

4 / 40

The Authorised capital of the company can be raised if the company wants to increase the capital once it is fixed.

TRUE

FALSE

5 / 40

A 20% dividend declared on face value of Rs 10 and market price of Rs 120 translates into a dividend payout of Rs. _____

Re 1

Rs 2

Rs 4

Rs 6

6 / 40

When market price goes up dividend yield ______

Goes up

Goes down

Remains unaffected

All of the above

7 / 40

The price of at which rights shares are issued are decided by ________

Investors

SEBI

RoC

Company

8 / 40

Retail investors usually participate in the equity of a company at its inception stage

TRUE

FALSE

9 / 40

A company may not declare a dividend even if there are profits.

TRUE

FALSE

10 / 40

Preference share holders get preference over debenture holders in the payment of dividend.

TRUE

FALSE

11 / 40

Preference share holders and debenture holders are creditors of the company.

TRUE

FALSE

12 / 40

Rights shares, if subscribed to, maintains the investors proportionate holding of the investor in the company.

TRUE

FALSE

13 / 40

Warrants are usually issued along with _________

Equity

Stock Options

Debentures

Futures

14 / 40

The non-convertible portion of a partly convertible debenture is ________ on maturity.

Re-invested

Repaid in cash

Either (a) or (b)

None of the above

15 / 40

The underlying stocks of a DR issue are held by a __________

Depository Participant

Depository

RTA

All of the above

16 / 40

Warrants have to be compulsorily exercised by the holder on the specified date.

TRUE

FALSE

17 / 40

Convertible debentures may be fully or partly converted into equity shares.

True

False

18 / 40

A sponsored DR issue has existing shareholders offering their shares for conversion into DRs.

True

False

19 / 40

Call and put options modify the _________ of the bond.

Coupon

Maturity

Both (a) and (b)

None of the above

20 / 40

The government uses ______________ to borrow for the short-term.

ADR

GDR

Shares

Treasury Bills

21 / 40

Bonds with sinking fund provisions alter the maturity of the bond.

True

False

22 / 40

Fixed deposits raised by companies are unsecured but rated borrowings.

True

False

23 / 40

CPs are mostly issued to banks because the stamp duty is lower.

True

False

24 / 40

The corporate bond market is dominated by public issues of bonds.

True

False

25 / 40

The type of expenses that can be charged to a fund and the limit is decided by _______

AMC

Trustee

SEBI

None of the above

26 / 40

Mutual funds have lower risks because of ________

Corpus of funds

Portfolio diversification

Both (a) and (b)

None of the above

27 / 40

Units of a mutual fund have a similar connotation as shares of a company.

True

False

28 / 40

The unit capital of a fund is the number of units issued x NAV of the fund.

True

False

29 / 40

The funds of each scheme are maintained in a separate bank account.

True

False

30 / 40

The Apex regulator of the securities markets is ________

RBI

AMFI

SEBI

SAT

31 / 40

The RBI is responsible for the issue of __________

ADR

GDR

IDR

None of the above

32 / 40

Insider trading is controlled by the regulations of __________

MoF

SEBI

RBI

None of the above

33 / 40

The IEPF is funded by unpaid dividends remaining unclaimed for at least_________

3 years

5 years

6 years

7 years

34 / 40

SEBI’s guidelines apply to government securities.

TRUE

FALSE

35 / 40

IRDA regulates the activities of the insurance industry only.

True

False

36 / 40

The protection of investor interest is a secondary objective of SEBI.

TRUE

FALSE

37 / 40

Stock exchanges have been given complete powers to regulate and are not controlled by SEBI.

True

False

38 / 40

SEBI has the power to enforce penalties.

True

False

39 / 40

At least _______ trustees must be independent of the sponsor.

25%

33.33%

50%

66.66%

40 / 40

An AMC must have a minimum net worth of __________

Rs 1 Lac

Rs 3 lac

Rs 1 Crore

Rs 10 Crore

Your score is

The average score is 62%

0%