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SEBI Grade A 2020 – Phase-I is going to be conducted very soon and consists of 5 sections, namely – General Awareness, English Language, Quantitative Aptitude, Test of Reasoning and Awareness about Securities Market. The 5 sections are not separately timed and the questions can be attempted in any order but within the given time limit. The below post gives the detailed questions answers for SEBI Grade A Securities Market Awareness. Read with full ATTENTION and SHARE IT. For all Current Affairs Archive CLICK HERE
Securities Market Awareness for SEBI Grade A/ RBI Grade B
Q1. Who is the regulator of Capital Market in India?
A. Reserve Bank of India
B. Insurance Regulatory and Development Authority
C. Securities and Exchange Board of India
D. National Bank for Agriculture and Rural Development
Explanation: (C) Securities and Exchange Board of India regulates -- Capital Market, Mutual Funds, Commodity Market and Credit Rating Agencies.
- RBI regulates -- Banking and Financial Sector, Money Market
- IRDAI regulates -- Insurance Sector
- Pension Fund Regulatory and Development Authority (PFRDA) regulates -- Pension Sector
- NABARD regulates -- Rural Sector Financing.
- SIDBI regulates -- Small and Medium Enterprises (SME) Financing
- NHB National Housing Bank regulates -- Housing Finance
Q2. Under which Act the term "securities" has been defined in Section 2(h)?
A. Securities Contracts (Regulation) Act, 1949
B. Securities Contracts (Regulation) Act, 1956
C. Securities Contracts (Regulation) Act, 2013
D. Securities Contracts (Regulation) Act, 1935
Explanation: (B) Under Securities Contracts (Regulation) Act, 1956, the term "securities" has been mentioned.
The term “securities” has been defined in Section 2(h) of the Securities Contracts (Regulation) Act, 1956. The Act defines securities to include:
- Shares, scrips, stocks, bonds, debentures, debentures stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;
- Derivative;
- Governments securities;
- Units or any other instruments issued by any collective investment scheme to the investor in such schemes.
Q3. A bond which does not pay any coupon payment during the term of the bond?
A. Floating rate bond
B. Callable bond
C. Zero coupon bond
D. Puttable bond
Explanation: (C) Zero Coupon Bond- A zero coupon bond does not pay any coupons during the term of the bond.
- The bond is issued at a discount to the face value, and redeemed at face value.
- The effective interest earned is the difference between face value and the discounted issue price value.
For example: A bond with a face value of Rs. 100 may be issued at Rs. 85 for five years. After five
years, the bondholder will get Rs. 100, implying an interest income of Rs. 15.
Q4. What does "S" stands for in ISDA?
A. Shares
B. Swaps
C. Systematic
D. Syndicated
Explanation: (B) ISDA stands for International Swaps and Derivatives Association.
- ISDA is a trade organization of participants in the market for over-the-counter derivatives. ISDA Mater
- Agreement govern the OTC derivatives transactions.
- It is headquartered in New York City.
- It is founded in 1985.
Q5. ISIN (International Securities Identification Number) is a unique alpha-numeric identification number allotted to each security. It is of how many digits?
A. Six
B. Twelve
C. Eight
D. Ten
Explanation: (B) The International Securities Identification Number (ISIN) is a code that uniquely identifies a specific securities issue.
- It is a Twelve digit number. Its structure is defined in ISO 6166.
