Tips for better performance and tuning in Oracle SQL and PL/SQL

1) FTS (Full Table Scans) are always bad and Index usage is always good.

2) Usage of dynamic SQL within the stored procedure code is always bad even for search procedures.

3) Empty Space in an index that gets created due to the DML operations do not get used.

4) Indexes should be rebuilt at regular intervals.

5) Indexes and statistics are the same thing. Also, histograms are needed only on indexed columns.

6) Usage of cursors is always bad so avoid them like the plague.

7) Truncate command cannot be rolled back because it is a non-logged operation.

8 ) Table variables in SQL Server are always only memory resident.

9) Column order in a covered index does not matter.

10) In the case of SQL Server, one can separate the clustered index from the table.

11) Only committed data gets written to the disk.

12) Logical I/Os (LIO) are not a cause of concern, only Physical IO (PIO) are.

13) Count(1) is better performing than count(*).

14) Issue frequent commits in the application to make the transaction faster and also improve concurrency.

15) Views are evil evil DB Objects that always slow down performance.

Learn Oracle PL/SQL day to day topics

Learn Oracle PL/SQL day to day topics

• Oracle Supplied Packages
Table Storage Statistics
DBMS_STATS
Copying Statistics to Different Databases
DBMS_ALERT Procedures
DBMS_AQ and DBMS_AQADM
DBMS_DDL
DBMS_DEBUG
DBMS_PIPE
DBMS_OUTPUT
DBMS_LOGMNR
DBMS_TRACE
DBMS_SQL
DBMS_STANDARD
DBMS_SESSION
DBMS_LOB
DBMS_JOB
The Run() Procedure
DBMS_LOCK
UTL Packages

• Advanced Features of Procedures and Functions
Autonomous Transactions
Executing Autonomous Transactions
Advantages and Restrictions
Defining an Autonomous Block
Packages and Triggers
Autonomous Triggers
Autonomous PL/SQL Blocks
Transaction Visibility
Definer's and Invoker's Rights
Using the AUTHID Clause
Resolving External References
PL/SQL Wrappers
External Procedures
Alias Library Object
Call Specifications
Mapping Procedure to an External Procedure
Mapping Function to an External Procedure

• Introduction to Object Technology
Software Development
Issues with 3GL Development
Issues with Relational Database Development
Object-Relational Development
Goals of Object-Relational Development
Functional versus Object Hierarchies
Software Evolution
Type Table
Type and Class Definitions
What is an Object?
Creating a User Defined Type
Rules on Working with User Defined Types
Defining an Abstract Data Type
Inheritance
Single versus Multiple Inheritance
Polymorphism
With and Without Polymorphism
Different Object Methodologies
What is UML?
Visual Models
Attributes
Different Types of Methods

• Object-Relational Concepts
Object-Relational Databases
Object-Relational Features
Oracle Object-Relational Features
Oracle Datatypes
Abstract Datatypes
Data Dictionary Views
The CREATE TYPE Command
Object Tables
Type Methods
The Constructor Method
Working with User Defined Datatypes
Modifying Data in Object Tables
Working with Object Tables
Object Identifiers
Defining a REF
Updating REF Values
INSERTING REF Values
Dangling REFS
The DEREF Operator
ROWIDs
DBMS_ROWID Package
Different Types of Rowids
Object Methods
Different Types of Methods
Create Type Body Command
Executing Object Methods
Differences between Packages and Objects
DDL Type Commands
MAP Method
ORDER Method
MAP versus ORDER Method
STATIC Methods
Objects and Nulls
LOBS

• Collections
Records
Creating a PL/SQL Record
PL/SQL2 Tables
Table Attributes
PL/SQL8 Tables
Create a Type Specification
CAST Operator
Operator "THE"
Queries on Nested Tables
Dynamic SQL
Executing Dynamic SQL Statements in PL/SQL
Advantages of Dynamic SQL
Advantages of DBMS_SQL
DBMS_SQL Package
DBMS_SQL Example
Advantages of Native Dynamic SQL in PL/SQL
Syntax: EXECUTE IMMEDIATE Statement
Bind Variables
Defining Modes for Bind Variables
Executing DML, DCL, and DDL Statements
Executing Dynamic Multi-row Queries
Using Schema objects with Dynamic SQL
Cursor Attributes
Assigning Nulls to Bind Variables
Issues When Executing Subprograms
Debugging
Problem Analysis
Handling Exceptions
Continuing After an Exception
Using an Inner Block to Continue after an Exception
Inner Block Approach
Function Approach
Locator Variables
Temporary Tables
Storing Debugging Information
The DBMS_TRACE Package
DBMS_TRACE Constants
Managing the Volume of Tracing Information
The DBMS_DEBUG Package
Procedures in DBMS_DEBUG
Setting up a Debug Session
Performance Tuning
Working with Object Types and Collections
Bulk Binds
Bulk Collect Into Clause
Use the RETURNING Clause
NOCOPY Hint
Memory and PL/SQL
Pinning PL/SQL Programs
KEEP Procedure
What Do I to PIN?
Relative Sizes of Code to Pin
Serially Reusable Packages
Optimizing Integer Operations
Avoid NOT NULL Constraints
Rephrase Conditional Control Statements
Additional Considerations
DBMS_PROFILER
Profiler Tables
Table PLSQL_PROFILER_DATA
Additional Object-Relational Features
Type Evolution
Inheritance
Super and Subtypes
Restrictions on Overriding
Dynamic Method Dispatch
Substitutability
The TREAT Function
NOT INSTANTIABLE
Object View Hierarchies
IS OF Operator
The SYS_TYPEID Function
Object Support in Programmatic Environments
Advanced PL/SQL (I)
CASE Expressions and Statements
Searched CASE expression
The WHEN Clause
CASE Statement
Searched CASE statement
TABLE FUNCTIONS
Pipelined versus Non-pipelined
New SQL Datatypes
Performing DML Operations Inside Table Functions
Table Function with Autonomous Block
Parallelizing Table Functions
Enhancements to Bulk Operations
Bulk FETCH
Bulk FORALL with EXECUTE IMMEDIATE
Errors in DML Operation
ADVANCED QUEUEING - New Features
Java Message Service Enhancements
Advanced PL/SQL (II) and XML
Native Compilation of PL/SQL Code
Better Integration of LOB Datatypes
Multilevel Collections
MERGE STATEMENT
New PL/SQL Supplied Packages
Cursor Subquery
XML Data Type
INSERTING INTO AN XML COLUMN
Retrieving an XML Column
Updating an XML column
XMLTYPE FUNCTIONS
Common Constructs used in Xpath Expressions
DBMS_XMLGEN
SYS_XMLGEN
SYS_XMLAGG
Accessing Metadata
The DBMS_METADATA Package
DBMS_METADATA Object Types
Customizing DDL Output
GET_XML AND GET_DDL

NCFM Derivatives Market (Dealers) Module mock test questions

Derivatives Market (Dealers) Module

Q1
Weekly options trading commenced on NSE in _______. [ 1 Mark ]

(a) NSE does not trade in Weekly options
(b) 02-Jun-2005
(c) 04-Jul-2005
(d) 04-Jun-2005
(e) I am not attempting the question

Q2
A stock is currently selling at Rs. 70. The put option to sell the stock at Rs. 75 costs Rs. 12. What is the time value of the option? [ 1 Mark ]

(a) Rs. 7
(b) Rs. 5
(c) Rs. 2
(d) Rs. 4
(e) I am not attempting the question

Q3
The value of taxable securities transaction relating to 'option in securities' is the ___________. [ 1 Mark ]

(a) aggregate of the strike price and the option premium of such option in securities.
(b) the strike price of such 'option in securities'
(c) the option premium of such 'option in securities'
(d) None of the above
(e) I am not attempting the question

Q4
An option to buy or sell a swap, that becomes operative at the expiry of the option, is called a _______. [ 1 Mark ]

(a) swaption
(b) futures
(c) basket option
(d) warrant
(e) I am not attempting the question

Q5
On NSE's options market, until the buyer pays in the premium, the premium due is deducted from the available ____________ on a real time basis. [ 1 Mark ]

(a) cash deposit
(b) liquid net worth
(c) cash and non-cash deposit
(d) effective deposit
(e) I am not attempting the question

Q6
To be eligible for options trading, the market wide position limit in the stock should not be less than Rs. ___________ . [ 3 Marks ]

(a) 250 crore
(b) 100 crore
(c) 50 crore
(d) 500 crore
(e) I am not attempting the question

Q7
In case a Future Contract is not traded in a day, which of the following prices is reckoned for daily mark to market settlement? [ 2 Marks ]

(a) Closing price of the last traded day
(b) Theoretical price
(c) Closing price of the futures contract
(d) Closing price of the underlying
(e) I am not attempting the question

Q8
You are the owner of a 2 million portfolio with a beta 1.0. You would like to insure your portfolio against a fall in the index of magnitude higher than 15%. Spot Nifty stands at 2200. Put options on the Nifty are available at three strike prices. Which strike will give you the insurance you want? [ 2 Marks ]

(a) 1,870
(b) 1,840
(c) 1,970
(d) None of the above
(e) I am not attempting the question

Q9
The maximum brokerage chargeable by a trading member in relation to trades effected in the contracts admitted to dealing on the F&O segment of NSEIL is fixed at ______ of the contract value, exclusive of statutory levies. [ 1 Mark ]

(a) 1.50%
(b) 2.50%
(c) 0.75%
(d) 3%
(e) I am not attempting the question

Q10
Ms. Shetty has sold 600 calls on DR. REDDY'S LAB at a strike price of Rs.992 for a premium of Rs.25 per call on April 1, 2002. The closing price of equity shares of DR. REDDY'S LAB is Rs. 994 on that day. If the call option is assigned against her on that day, what is her net obligation on April 01, 2002? [ 2 Marks ]

(a) Pay-out of Rs.18,300
(b) Pay-in of Rs.18,300
(c) Pay-in of Rs.13,800
(d) Pay-out of Rs.13,800
(e) I am not attempting the question

Q11
Daily Mark to Market settlement of futures takes place on ________ basis . [ 2 Marks ]

(a) T+0
(b) T+3
(c) T+5
(d) T+1
(e) I am not attempting the question

Q12
What is displayed in the NEAT Trading System Ticker Screen? [ 3 Marks ]

(a) The electronic display that continuously shows only the stock symbol, volume and price at
which each successive trade occurs.
(b) The electronic display that continuously shows only the price at which each successive
trade occurs.
(c) The electronic display that continuously shows only the stock symbol and volume at each
successive trade occurs.
(d) None of the above
(e) I am not attempting the question

Q13
Each user of the trading member in F&O segment of NSEIL is assigned a unique _________ ID [ 3 Marks ]

(a) user
(b) trading member
(c) branch
(d) exchange
(e) I am not attempting the question

Q14
_______ order allows the user to execute a contract as soon as it is entered into the system, failing which the order is immediately cancelled from the system. [ 2 Marks ]

(a) GTD
(b) IOC
(c) Limit
(d) GTC
(e) I am not attempting the question

Q15
Which of the following statement is true? [ 3 Marks ]

(a) Basket trading is illegal in India.
(b) NSE does not allow basket trading in it's F&O Segment.
(c) Basket trading has been discontinued in the F&O Segment.
(d) F&O Segment has a Basket trading facility.
(e) I am not attempting the question

Q16
Immediate or cancel is an order which will automatically __________ in F&O segment of NSEIL. [ 2 Marks ]

(a) be matched because it being a preferential order
(b) be cancelled if it is not matched immediately and in its entirety
(c) get stored in the system for matching, if not executed immediately
(d) cancel the unmatched portion of the order quantity
(e) I am not attempting the question

Q17
Ms. Asha sells an options contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29/Sep/2005 for Rs. 10. The strike price of the contract is Rs. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be _________. [ 1 Mark ]

(a) Rs. 10
(b) Rs. 40
(c) Rs. 53
(d) Rs. 11
(e) I am not attempting the question

Q18
A market index is very important for its use ___________. [ 2 Marks ]

(a) as a barometer for market behavior
(b) as a benchmark of portfolio performance
(c) in portfolio management
(d) All of the above
(e) I am not attempting the question

Q19
An 'authorised person' in the Futures & Options segment is ___________. [ 1 Mark ]

(a) any person who is acting in any capacity on behalf of the trading member or a participant for
any activity relating to the trades done and executed
(b) a person authorised by the exchange as an approved user of a trading member
(c) an approved user of a participant
(d) All of the above
(e) I am not attempting the question

Q20
NSCCL's on-line position monitoring system monitors open position of _____________on a real time basis. [ 1 Mark ]

(a) clearing member only
(b) trading member only
(c) clearing member and trading member
(d) dealer only
(e) I am not attempting the question

Q21
The option price is the _______. [ 3 Marks ]

(a) price paid by the buyer of the option to the seller of the option
(b) price at which an option trades in the market
(c) sum of intrinsic value plus time value of an option
(d) All of the above
(e) I am not attempting the question

Q22
Which of the following contracts are compulsorily settled on exercise date? [ 2 Marks ]

(a) In the money option contracts
(b) Deep at the money option contracts
(c) At the money option contracts
(d) Out of the money option contracts
(e) I am not attempting the question

Q23
Which of the following are derivatives? [ 2 Marks ]

(a) Options
(b) Futures
(c) Forward Rate Agreements
(d) All of the above
(e) I am not attempting the question

Q24
Initial margin is collected to __________. [ 2 Marks ]

(a) make good daily losses
(b) square-off a position on the expiry of the contract
(c) safeguard against potential losses on out-standing positions
(d) provide for losses that have already occurred
(e) I am not attempting the question

Q25
Transaction tax is payable by the __________ of the derivative instrument. [ 1 Mark ]

(a) buyer
(b) designer
(c) seller
(d) originator
(e) I am not attempting the question

Q26
The intrinsic value of a call option is the amount the option is ________. [ 1 Mark ]

(a) in-the-money
(b) at-the-money
(c) out-of-the-money
(d) above-the-money
(e) I am not attempting the question

Q27
The beta of Nifty is _______. [ 2 Marks ]

(a) 1.7
(b) 1
(c) 0
(d) (-)1
(e) I am not attempting the question

Q28
A stock broker is allowed to buy, sell or deal in securities __________. [ 1 Mark ]

(a) only on being admitted as a member of a stock exchange
(b) on submission of document with SEBI for registration
(c) on submission of document with stock exchange for admission
(d) only on having a certificate of registration granted by SEBI
(e) I am not attempting the question

Q29
The market impact cost on a trade of Rs. 3 million of the S&P CNX Nifty works out to be about 0.05%. This means that if S&P CNX Nifty is at 2000, a sell order of that value will go through at a price of Rs. _______. [ 1 Mark ]

(a) 1999
(b) 1995
(c) 1,999.50
(d) 1,995.50
(e) I am not attempting the question

Q30
ETFs can be ________. [ 1 Mark ]

(a) bought and sold on an exchange
(b) bought and sold directly with the mutual fund
(c) bought on an exchange but sold only directly to the mutual fund
(d) None of the above
(e) I am not attempting the question

Q31
Ms. Shetty has sold 300 calls on WIPRO at a strike price of Rs.1503 for a premium of Rs.28 per call on April 1, 2002. The closing price of equity shares of WIPRO is Rs. 1553 on that day. If the call option is assigned against her on that day, what is her net obligation on April 01, 2002? [ 2 Marks ]

(a) Pay-out of Rs. 21,600
(b) Pay-in of Rs.15,000
(c) Pay-out of Rs.13,400
(d) Pay-in of Rs.6,600
(e) I am not attempting the question

Q32
VaR methodology seeks to measure the amount of value that a portfolio may stand to lose within a certain horizon time period due to potential changes in ______________. [ 2 Marks ]

(a) underlying exposures
(b) underlying asset spot price
(c) underlying stock volatility
(d) underlying index volatility
(e) I am not attempting the question

Q33
Mr. A sells a futures contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29/Sep/2005 for Rs. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be ________. [ 1 Mark ]

(a) Rs. 10
(b) Rs. 80
(c) Rs. 20
(d) Rs. 51
(e) I am not attempting the question

Q34
An index put option at a strike of Rs. 2176 is selling at a premium of Rs. 18. At what index level will it break even for the buyer of the option? [ 1 Mark ]

(a) Rs. 2194
(b) Rs. 2196
(c) Rs. 2158
(d) Rs. 2162
(e) I am not attempting the question

Q35
Which of the following is the duty of the trading member? [ 3 Marks ]

(a) Sending the periodical statement of accounts to clients
(b) Maintaining unique client codes
(c) Ensuring timely pay-in and pay-out of funds
(d) All of the above
(e) I am not attempting the question

Q36
Which of the following should be disclosed separately for long and short positions, in respect of each series of equity index futures as of the balance sheet date? [ 1 Mark ]

(a) Number of equity index futures contracts having open position
(b) Number of units of equity index futures pertaining to the contracts
(c) The daily settlement price
(d) All of the above
(e) I am not attempting the question

Q37
Futures differs from forwards in the sense that ________. [ 2 Marks ]

(a) settlement of contract takes place in the future
(b) both parties are bound to give/take delivery
(c) positions are marked-to-market everyday
(d) contracts are custom designed
(e) I am not attempting the question

Q38
You have bought a portfolio of securities on the exchange. To eliminate the risk arising out of market, you should _____. [ 3 Marks ]

(a) buy index futures
(b) buy stock futures
(c) sell stock futures
(d) sell index futures
(e) I am not attempting the question

Q39
The clearing member/trading member is required to disclose to the clearing corporation details of any person(s) acting in concert who together own _____% or more of the open interest of all futures and options contracts on a particular underlying index on the stock exchange. [ 1 Mark ]

(a) 12
(b) 15
(c) 20
(d) 25
(e) I am not attempting the question

Q40
The spot price of TISCO is Rs. 2050 and the cost of financing is 10%. What is the fair price of a one month futures contract on TISCO? [ 2 Marks ]

(a) 2,082.80
(b) 2,066.30
(c) 2,085.15
(d) 2,099.40
(e) I am not attempting the question

Q41
Cyrus is short 600 WIPRO July Puts at strike Rs. 1520 for a premium of Rs. 33 each on July 22, 2002. On July 25, 2002 (the expiration day of the contract), the spot price of WIPRO closes at Rs.1553, while the July futures on WIPRO close at 1555. Does Cyrus have an obligation to the Clearing Corporation on his positions, and how much, if any? [ 2 Marks ]

(a) Yes. Rs.19,800 pay-out
(b) No pay in or pay-out on expiration of contract
(c) Yes. Rs.18,900 pay-out
(d) Yes. Rs.19,800 pay-in
(e) I am not attempting the question

Q42
Which of the following is required for personnel working in the industry in order to dispense quality intermediation? [ 1 Mark ]

(a) To follow certain code of conduct.
(b) To possess requisite skills and knowledge.
(c) To have a proper understanding of the business and skills to help it remain competitive.
(d) All of the above
(e) I am not attempting the question

Q43
June futures contract on WIPRO closed at Rs. 1153 on May 20 and at Rs. 1150 on May 21, 2002. Raju has a short position of 4000 in the June futures contract. On May 21, 2002, he sells 3000 units of 10-June-2002 expiring Put Options on WIPRO at strike price of Rs.1145 for a premium of Rs.28 per unit. What is his net obligation to / from the Clearing Corporation for May 21, 2002? [ 2 Marks ]

(a) Pay-in of Rs.32,000
(b) Pay-in of Rs.72,000
(c) Pay-out of Rs.96,000
(d) Pay-out of Rs.32,000
(e) I am not attempting the question

Q44
Assume that the base value of a market capitalization weighted index were 1000 and the base market capitalisation were Rs.35,000 crore. If the current market capitalisation is Rs.77,000 crore, the index is at Rs. ____. [ 1 Mark ]

(a) 2,110
(b) 2,350
(c) 2,250
(d) 2,200
(e) I am not attempting the question

Q45
Around 60% of the trading volume on the American Stock Exchange is from __________. [ 1 Mark ]

(a) Index Funds
(b) Index Futures
(c) ETFs
(d) Index Options
(e) I am not attempting the question

Q46
The SEBI Committee on derivatives has recommended that the exposure limits for brokers should be linked to the __________. [ 1 Mark ]

(a) daily turnover of the broker
(b) networth of the broker
(c) satisfactory margin payment track record of the broker
(d) deposits kept by the broker with the Exchange/Clearing corporation
(e) I am not attempting the question

Q47
If the annual risk free rate is 10%, then the `r' used in the Black Scholes formula should be ______. [ 1 Mark ]

(a) 0.095
(b) 0.1398
(c) 1.1
(d) None of the above
(e) I am not attempting the question

Q48
At the balance sheet date, the balance in the `initial margin equity index futures account' should be shown separately under the head ________. [ 1 Mark ]

(a) prepaid expenses
(b) current assets
(c) outstanding balance
(d) current liabilities
(e) I am not attempting the question

Q49
Hedging with index futures means ___________. [ 1 Mark ]

(a) long security, short security
(b) long index futures, short index futures
(c) long security, short index futures
(d) long security, long index futures
(e) I am not attempting the question

Q50
Which of the following is not the duty of the trading member? [ 3 Marks ]

(a) Filling of 'Know Your Client' form
(b) Assisting the client to arrange for margins
(c) Bringing risk factors to the knowledge of client
(d) Execution of Client Broker Agreement
(e) I am not attempting the question

Q51
On expiry, the settlement price of an index futures contract is _______. [ 2 Marks ]

(a) opening price of futures contract
(b) closing index value
(c) closing price of futures contract
(d) opening index value
(e) I am not attempting the question

Q52
The NEAT F&O trading system _____________. [ 3 Marks ]

(a) allows one to enter combination trades
(b) does not allow combination trades
(c) allows only a single order placement at a time
(d) None of the above
(e) I am not attempting the question

Q53
Santosh is bearish about ABC Ltd.and sells ten one-month ABC Ltd.futures contracts at Rs.2,96,000. On the last Thursday of the month, ABC Ltd.closes at Rs.310. He makes a _________. (assume one lot = 100) [ 1 Mark ]

(a) profit of Rs. 7,000
(b) loss of Rs. 7,000
(c) profit of Rs. 14,000
(d) loss of Rs. 14,000
(e) I am not attempting the question

Q54
A stock broker applies for registration to SEBI _________. [ 1 Mark ]

(a) through stock exchange(s) of which he or she is admitted as a member
(b) directly
(c) through association of members
(d) through Ministry of Finance
(e) I am not attempting the question

Q55
NCFM stands for ___________. [ 1 Mark ]

(a) National Certification in Financial Management
(b) National Certification in Financial Markets
(c) NSE's Certification in Financial Markets
(d) NSE's Certification in Financial Management
(e) I am not attempting the question

Q56
In Indian context, derivative includes:
A) A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security;
B) A contract which derives its value from the prices, or index of prices, of underlying securities; [ 2 Marks ]

(a) A
(b) B
(c) Both of the above
(d) None of the above
(e) I am not attempting the question

Q57
The futures price is ________. [ 2 Marks ]

(a) the price of a contract in the future
(b) spot price plus cost of carry
(c) the price at which a futures contract trades in the market
(d) the price set by the exchange
(e) I am not attempting the question

Q58
Index options on the S&P CNX Nifty can be exercised ___________. [ 2 Marks ]

(a) any time on or before maturity
(b) upon maturity
(c) any time upto maturity
(d) on a date pre-specified by the trading member
(e) I am not attempting the question

Q59
A trading member allowed to clear his own trades only is known as _________. [ 1 Mark ]

(a) Trading member - clearing member
(b) Trading members are not allowed to clear their own trades
(c) professional clearing member
(d) self clearing member
(e) I am not attempting the question

Q60
The initial margin amount is large enough to cover a one-day loss that can be encountered on ______% of the days. [ 2 Marks ]

(a) 95
(b) 50
(c) 99
(d) 90
(e) I am not attempting the question

NCFM Compliance Officers (Brokers) Module mock test papers

Compliance Officers (Brokers) Module

Q1
Spot delivery contract means delivery & payment on the ________ [ 2 Marks ]

(a)next day of the contract
(b)same day as the date of the contract
(c)same day as the date of the contract or on the next day
(d)delivery on the date of the contract and payment on the next day
(e)I am not attempting the question

Q2
Fraud as per the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 includes ___________. (Select the odd one). [ 1 Mark ]

(a)general comments made in good faith in regard to the trends in the securities market
(b)a promise made without any intention of performing it
(c)a suggestion as to a fact which is not true by one who does not believe it to be true
(d)an active concealment of a fact by a person having knowledge or belief of the fact
(e)I am not attempting the question

Q3
Principal officer as per SEBI (Portfolio Managers) Regulations, 1993 means ___________ [ 1 Mark ]

(a)a director of the portfolio manager who is responsible for the activities of portfolio
management and has been designated as principal officer by the portfolio manager
(b)a director of the portfolio manager who is not responsible for the activities of portfolio
management but may have been designated as principal officer
(c)a director of the portfolio manager who is responsible for the activities of portfolio management but may not have been designated as principal officer by the portfolio manager
(d)a director of the portfolio manager who is not responsible for the activities of portfolio management and has not been designated as principal officer
(e)I am not attempting the question

Q4
While preparing the CTCL file, the date format should be _________. [ 2 Marks ]

(a)DDMMYY
(b)YYDDMM
(c)DDMMYYYY
(d)YYYYDDMM
(e)I am not attempting the question

Q5
Where the scheme of Corporatisation and demutualisation of a stock exchange is approved, it shall be published __________. [ 2 Marks ]

(a)immediately by the SEBI in the Official Gazette and within 7 days by the Recognised Stock
Exchange in two daily newspapers as specified by the SEBI
(b)within 7 days by the SEBI in the Official Gazette and by the Recognised Stock Exchange in
two daily newspapers as specified by the SEBI
(c)within 7 days by the Recognised Stock Exchange in two daily newspapers as specified by the SEBI
(d)immediately by the SEBI in the Official Gazette and by the Recognised Stock Exchange in
two daily newspapers as specified by the SEBI
(e)I am not attempting the question

Q6
The words and expressions used and not defined in the SEBI Act,1992, shall have the meanings assigned to them as in the ___________. [ 1 Mark ]

(a)SEBI (Disclosure and Investor Protection) Guidelines, 2000
(b)Companies Act, 1956 or the SEBI (Disclosure and Investor Protection) Guidelines, 2000
(c)Securities Contracts (Regulation) Act, 1956 or the Depositories Act, 1996
(d)Companies Act, 1956 or the Industries (Development & Regulation) Act
(e)I am not attempting the question

Q7
State which of the following is true? As per SEBI (Ombudsman) Regulations, 2003, in order to be appointed as an Ombudsman ____________ [ 1 Mark ]

(a)a person should be below thirty five years of age
(b)a person should be above fifty five years of age
(c)a person should be below forty five years of age
(d)a person should be above forty five years of age
(e)I am not attempting the question

Q8
State which of the following is false? SEBI shall take into account the following, for considering the grant of a certificate of registration to a trading or clearing member [ 1 Mark ]

(a)The applicant has financial liabilities payable to the creditors of his company
(b)The applicant is not subjected to disciplinary proceedings
(c)The applicant has adequate infrastructure to effectively undertake his activities
(d)The applicant is eligible to be admitted as a trading member
(e)I am not attempting the question

Q9
The procedure for obtaining registration certificate by the stock brokers, sub-brokers, etc. is __________. [ 1 Mark ]

(a)partly specified in Section 12 and partly determined by the SEBI (Stock Brokers and Sub Brokers) Rules 1992
(b)specified in Section 12 of the SEBI (Stock Brokers and Sub Brokers) Rules 1992
(c)as per the SEBI (Disclosure and Investor Protection) Guidelines, 2000
(d)determined by the SEBI (Stock Brokers and Sub Brokers) Rules 1992
(e)I am not attempting the question

Q10
Underwriting as per the SEBI (Underwriters) Rules, 1993 means ___________. [ 1 Mark ]

(a)an agreement to subscribe to the securities of a body corporate when the existing shareholders of the body corporate subscribe to the securities offered to them
(b)an agreement to subscribe to the securities of a body corporate when the public subscribe to the securities offered to them
(c)an agreement to subscribe to the securities of a body corporate when the existing shareholders of the body corporate or the public do not subscribe to the securities offered to
them
(d)an agreement to subscribe to the securities of a body corporate when the existing shareholders of the body corporate and the public subscribe to the securities offered to
them
(e)I am not attempting the question

Q11
Who can be penalised u/s 15B of the SEBI Act,1992, for failure to enter into agreement with clients? [ 1 Mark ]

(a)An Investor
(b)An Investor Association
(c)A registered intermediary
(d)FIIs
(e)I am not attempting the question

Q12
Choose the correct statement. Stock-broker is the member of the Stock Exchange but sub-broker is not the member of the Stock Exchange [ 1 Mark ]

(a)No, neither of them are member of the Stock Exchange.
(b)No, the stock broker is not the member of the Stock Exchange, but sub-broker is the
member of the Stock Exchange
(c)No, both the Stock broker and sub-broker are members of the Stock Exchange.
(d)Yes, the stock broker is the member of the Stock exchange, but sub-broker is not the
member of the Stock Exchange.
(e)I am not attempting the question

Q13
A Trading member may appear through a legal practitioner only if the Constituent is represented through a legal practitioner in an Arbitration matter [ 3 Marks ]

(a)TRUE
(b)FALSE
(c)I am not attempting the question

Q14
State which of the following is not a manipulative, fraudulent and unfair trade practice? [ 2 Marks ]

(a)An intermediary not disclosing to his client transactions entered into on his behalf including taking an option position.
(b)An intermediary providing his clients with such information relating to a security as cannot be verified by the clients before dealing in such security.
(c)An intermediary reporting trading transactions to his clients entered into on their behalf in an
inflated manner in order to increase his commsission and brokerage.
(d)An intermediary issuing contract notes
(e)I am not attempting the question

Q15
The SEBI is exempted to comply with the provisions of ____________. [ 1 Mark ]

(a)Securities Contract (Regulation) Act, 1956
(b)Income Tax Act,1961
(c)SEBI Act, 1992
(d)Companies Act, 1956
(e)I am not attempting the question

Q16
Broker, Sub- Broker agreement has been prescribed by _________. [ 1 Mark ]

(a)the SEBI
(b)the RBI
(c)the Central Govt
(d)None of the above
(e)I am not attempting the question

Q17
Which of the following terms is not defined under the Securities Contract (Regulation) Act, 1956? [ 2 Marks ]

(a)Stock Exchange
(b)Government Securities
(c)Commodity Futures
(d)Recognised Stock Exchange
(e)I am not attempting the question

Q18
Which of the following books of accounts is required to be maintained by the member of a Recognised Stock Exchange? [ 1 Mark ]

(a)Register containing names and addresses of other members of the recognised stock exchange
(b)Securities misplaced book
(c)Minutes books of the meetings with other members
(d)Sauda Book
(e)I am not attempting the question

Q19
The SEBI has powers to issue directions to any company in respect of __________. [ 2 Marks ]

(a)matters specified in Section 12A of the SEBI Act
(b)matters specified in Section 11A of the SEBI Act
(c)matters specified in Section 1o of the SEBI Act
(d)matters specified in Section 12 of the SEBI Act
(e)I am not attempting the question

Q20
What is the possible action against a stock broker or a sub broker, for failure to satisfy the net worth or capital adequacy norms, if any, specified by the SEBI? [ 2 Marks ]

(a)Monetary penalty
(b)Action under the Enquiry Proceeding Regulations
(c)Prosecution
(d)None of the above
(e)I am not attempting the question

Q21
What is the liability under SEBI (Stock Broker and Sub-Broker) Regulations, 1992, for contravention of the Act, rules or the regulations ? [ 2 Marks ]

(a)Suspension
(b)Prosecution u/s 24 of the Act
(c)Monetary penalty
(d)None of the above
(e)I am not attempting the question

Q22
Currently, institutional trades on exchanges make the use of _________ [ 2 Marks ]

(a)XTP System
(b)STP System
(c)MTP System
(d)ATP System
(e)I am not attempting the question

Q23
Exchange can revise the price bands of a specific security by way of ________. [ 2 Marks ]

(a)only through a broadcast message
(b)announcing through info vendors
(c)public notice
(d)issuing circular
(e)I am not attempting the question

Q24
As per SEBI (Portfolio Managers) Regulations, 1993, state which of the following is false? Investment of funds of the client by a portfolio manager can be made in ____________. [ 1 Mark ]

(a)trade bill
(b)certificate of deposit
(c)commercial paper
(d)Any or all of the above
(e)I am not attempting the question

Q25
State which of the following is true, as per the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002? [ 2 Marks ]

(a)An officer who has conducted an inspection in respect of alleged violation by an intermediary
shall be appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(b)An officer who has dealt in the matter of alleged violation by an intermediary shall be
appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(c)No officer who has dealt in the matter of alleged violation by an intermediary shall be
appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(d)An officer who has conducted an investigation in respect of alleged violation by an intermediary shall be appointed as an enquiry officer for the purpose of holding an enquiry into the matter.
(e)I am not attempting the question

Q26
State which of the following is not a price sensitive information as per the SEBI (Prohibition of Insider Trading) Regulations, 1992? [ 1 Mark ]

(a)Expansion plans
(b)Change in the Board of Directors of the company
(c)Issue of securities
(d)Amalgamation
(e)I am not attempting the question

Q27
Exchange Traded Interest Rate Derivates has been introduced in Indian Financial Market by ________. [ 2 Marks ]

(a)NSCCL
(b)NSDL
(c)RBI
(d)SEBI
(e)I am not attempting the question

Q28
State which of the following is true? As per the SEBI (Prohibition of Insider Trading) Regulations, 1992 ___________ [ 2 Marks ]

(a)A listed company is required to intimate to stock exchanges information received
pertaining to initial disclosure and continuous disclosures within 5 days of receipt thereof
(b)A listed company is required to intimate to stock exchanges information received pertaining to initial disclosure and continuous disclosures within 7 days of receipt thereof
(c)A listed company is not required to intimate to stock exchanges information received pertaining to initial disclosure and continuous disclosures
(d)A listed company is required to intimate to stock exchanges information received pertaining to initial disclosure and continuous disclosures within 2 days of receipt thereof
(e)I am not attempting the question

Q29
State which of the following is false? A stock broker or sub-broker shall be liable for prosecution under Section 24 of the SEBI Act if he ____________ [ 2 Marks ]

(a)fails to pay penalty imposed by the adjudicating officer
(b)indulges in insider trading in violation of SEBI (Prohibition of Insider Trading) Regulations, 1992
(c)acts as an unregistered sub-broker or deals with an unregistered sub-broker
(d)violates SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market)
Regulations, 2003
(e)I am not attempting the question

Q30
In demat environment, a security can have a distinctive number [ 2 Marks ]

(a)TRUE
(b)FALSE
(c)I am not attempting the question

Q31
A Clearing Member of a particular sub-segment can clear deals through ________. [ 3 Marks ]

(a)the Clearing Corporation of that particular sub-segment
(b)any Clearing Corporation
(c)Clearing Corporation of the National Stock Exchange only
(d)None of the above
(e)I am not attempting the question

Q32
Collective Investment Scheme means __________. [ 1 Mark ]

(a)investment by investors in more than one scheme at the same time
(b)contributions or payments by investors, which are pooled and utilised for
product / property scheme or arrangement, managed on behalf of investors
(c)investment scheme run by mutual funds
(d)investment made by investors collectively
(e)I am not attempting the question

Q33
Details of Clients in the F&O Segment, having order value of more than Rs. 1 lakh, have to be furnished to the Exchange as per ________. [ 1 Mark ]

(a)Details are not required to be furnished
(b)SEBI guidelines
(c)Income Tax guidelines
(d)RBI guidelines
(e)I am not attempting the question

Q34
An appeal against the order or decision of the SAT shall be made within __________. [ 1 Mark ]

(a)45 days from the receipt of the order
(b)60 days from the receipt of the order
(c)40 days from the receipt of the order
(d)50 days from the receipt of the order
(e)I am not attempting the question

Q35
Exposure of Settlement Guarantee Fund to any single bank shall not be ___________. [ 3 Marks ]

(a)more than 10% of total liquid assets forming part of SGF
(b)no limits
(c)more than 50% of total liquid assets forming part of SGF
(d)more than 15% of total liquid assets forming part of SGF
(e)I am not attempting the question

Q36
The Clearing Corporation cannot suo moto annul any deal [ 2 Marks ]

(a)TRUE
(b)FALSE
(c)I am not attempting the question

Q37
The SEBI Act came into force on _________. [ 1 Mark ]

(a)30th January,1992
(b)1st January,1992
(c)15th January,1992
(d)1st February,1992
(e)I am not attempting the question

Q38
When shall SEBI reject the scheme of Corporatisation and Demutualisation of a Recognised Stock Exchange? [ 2 Marks ]

(a)In the interest of trade and also in the public interest after giving the concerned
Recognised Stock Exchange an opportunity of being heard.
(b)On its own without giving the concerned Recognised Stock Exchange an opportunity to be
heard
(c)When the concerned Recognised Stock Exchange has not produced the required documents
and supportings
(d)None of the above.
(e)I am not attempting the question

Q39
The application for the recognition or renewal of recognition of a Stock Exchange as per the SC(R)R, 1957 is made in _________. [ 2 Marks ]

(a)Form A-I
(b)Form C
(c)Form C-I
(d)Form A
(e)I am not attempting the question

Q40
Under the SC(R)R, 1957, what shall be the status of the members nominated by SEBI on the governing bodies of the Recognised Stock Exchange? [ 2 Marks ]

(a)Same status but powers differ in some respect from those exercised by the other members of the governing body
(b)Different status and powers from the other members of the governing body
(c)Status superior to that of the other members of the governing body
(d)Same status and powers as other members of the governing body
(e)I am not attempting the question

Q41
As per section 17A of the SC(R)R, 1957, the periodical returns to be submitted by every Recognised Stock Exchange shall contain __________. [ 2 Marks ]

(a)number of shares delivered through the clearing house
(b)any matter specified by the SEBI
(c)the number of securities listed and delisted during the previous three months
(d)All of the above
(e)I am not attempting the question

Q42
Surrender of Membership by a Trading Member has to be approved by ___________. [ 1 Mark ]

(a)the Exchange
(b)the Clearing Member
(c)the RBI
(d)All of the above
(e)I am not attempting the question

Q43
Which of the following statements is true? [ 2 Marks ]

(a)Fraudulent or unfair trade practice does not includes any act amounting to arriving at a
fair of price of a security
(b)Fraudulent or unfair trade practice does not include any act amounting to manipulation of price
of a security.
(c)Manipulation of price of security is not a fraudulent practice
(d)Fraudulent or unfair trade practice does not include any omission amounting to manipulation of price of a security
(e)I am not attempting the question

Q44
The term 'Contract' is defined under the Securities Contract (Regulation) Act, 1956 as ________. [ 2 Marks ]

(a)a contract for or relating to the purchase or sale of commodities
(b)a contract for or relating to the purchase or sale of real estate instruments
(c)a contract for or relating to the purchase or sale of securities
(d)None of the above.
(e)I am not attempting the question

Q45
Short sale means a sale of security _________. [ 3 Marks ]

(a)where the seller sells his shares within a short period after he purchased the same shares
(b)where the seller does not have an exercisable & unconditional right on the shares
(c)where the buyer has no right on sale of securities
(d)where the sale takes place within a short period
(e)I am not attempting the question

Q46
The Fund constituted under the SEBI Act,1992, for meeting expenses and crediting sums received by SEBI is named as ___________. [ 1 Mark ]

(a)Securities and Exchange Board of India General Fund
(b)Consolidated Fund of India
(c)SEBI General Receipt and Expenditure Fund
(d)Consolidated General Fund of Securities and Exchange Board of India
(e)I am not attempting the question

Q47
Co-operative societies can be clearing members [ 2 Marks ]

(a)False, except in certain conditions.
(b)TRUE
(c)FALSE
(d)True, except in certain conditions
(e)I am not attempting the question

Q48
Exchange furnishes turnover details to SEBI [ 1 Mark ]

(a)FALSE
(b)TRUE
(c)I am not attempting the question

Q49
State which of the following is false, as per the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002? [ 1 Mark ]

(a)If the enquiry officer has recommended a minor penalty, the Chairman cannot impose
major penalty
(b)If the enquiry officer has recommended a minor penalty, the Member of SEBI can impose major penalty subject to giving notice to the intermediary to make a written submission.
(c)If the enquiry officer has recommended a minor penalty, the Chairman of SEBI can impose
major penalty subject to giving notice to the intermediary to make a written submission.
(d)I am not attempting the question

Q50
The Books of accounts and documents shall be maintained and preserved by the members of a Recognised Stock Exchange for a period of _______ [ 2 Marks ]

(a)four years
(b)five years
(c)three years
(d)two years
(e)I am not attempting the question

Q51
No trading member shall be eligible to continue or be nominated on the Executive Committee of a stock exchange, if ________. [ 2 Marks ]

(a)his certificate of registration as a stock broker has been cancelled by the Securities and Exchange Board of India or he has been expelled by the Exchange
(b)if his certificate of registration as a stock broker or his trading rights have been suspended by the Securities and Exchange Board of India or the Exchange
(c)if he falls in the category of Notified Persons as per the Special Courts (Trial of Offences Relating to Transaction in Securities) Act, 1992 and two years have not elapsed from the date the member is denotified under the said Act
(d)All of the above
(e)I am not attempting the question

Q52
State which of the following is false? As per SEBI (Prohibition of Insider Trading) Regulations, 1992, SEBI has the right to investigate and inspect the books of accounts of an insider or any other person specified therein under Section 11 of the SEBI Act, 1992, for the following purposes [ 2 Marks ]

(a)To investigate into the books to verify any errors
(b)To investigate into the books on complaints received from intermediaries on the allegations of insider trading
(c)To investigate the books suo moto on the basis of its own knowledge or information in its
possession in order to protect the interest of investors in securities against breach of these
regulations.
(d)To investigate into the books on complaints received from investors of allegations of insider
trading
(e)I am not attempting the question

Q53
As per the SEBI (Ombudsman) Regulations, 2003, a panel of persons, out of which, a person may be appointed as Stipendiary Ombudsman shall remain in force for a period of ___________. [ 2 Marks ]

(a)five years
(b)three years
(c)two years
(d)four years
(e)I am not attempting the question

Q54
New securities can be admitted as per NSE (CM Segment) Trading Regulation ________. [ 2 Marks ]

(a)Part A
(b)Part B
(c)Part C
(d)None of the above
(e)I am not attempting the question

Q55
To whom can an appeal be made if a recognised stock exchange has delisted the securities of a listed company? [ 2 Marks ]

(a)High Court
(b)Central Government
(c)Supreme Court
(d)Securities Appellate Tribunal
(e)I am not attempting the question

Q56
As per the SEBI (Underwriters) Regulations, 1993, an underwriter whose application for renewal of certificate has been refused ____________. [ 1 Mark ]

(a)cannot continue to act as an underwriter even for existing commitments underwritten during
the validity period of the certificate
(b)shall continue to act as an underwriter for a period of 30 days from the date of receipt of the
communication from the SEBI
(c)shall continue to act as underwriter
(d)cease to act as underwriter from the date of receipt of the communication from the SEBI
(e)I am not attempting the question

Q57
The Securities and Exchange Board of India may require, further information or clarifications, regarding the dealings in securities, to consider the application for grant of certificate of registration to a stock broker. For this purpose, the following can appear on behalf of the applicant [ 1 Mark ]

(a)any employee of the company
(b)Principal officer of the company.
(c)a shareholder of the company
(d)Auditor of the company
(e)I am not attempting the question

Q58
Model format of Risk Disclosure documents has been prescribed by SEBI for the trading members to give to all clients mandatorily [ 2 Marks ]

(a)FALSE
(b)TRUE
(c)I am not attempting the question

Q59
Rolling segment is different from Trade to Trade segment [ 2 Marks ]

(a)FALSE
(b)TRUE
(c)I am not attempting the question

Q60
Under Rule 10 of Securities Contract (Regulation) Rules, 1957, maximum how many persons can be nominated on the governing body of the Recognised Stock Exchange? [ 2 Marks ]

(a)Five
(b)Four
(c)Three
(d)Seven
(e)I am not attempting the question


--------------------------------------------------------------------------------

NCFM Test at NSE Centres in different cities/locations

Test at NSE Centres



Test Centre Test Centre Contact Numbers

1 National Stock Exchange of India Ltd.
"Exchange Plaza",
Bandra Kurla Complex,
Bandra (East),
Mumbai-400051 Tel : 022 - 26598171-72
022 - 26598216 / 8252
022 - 26598100 - 114
Fax : 022 – 26598393
Email : ncfm@nse.co.in

2 National Stock Exchange of India Ltd.
4th Floor,
Jeevan Vihar Building
Parliament Street
New Delhi-110001 Tel : 011-23344313-27
Fax : 011-23366658
Email : ncfm_delhi@nse.co.in

3 National Stock Exchange of India Ltd.
1st Floor, Park View Apartments
99, Rash Behari Avenue
Kolkata – 700 029 Tel : (033) 24631802-1805,
24631809-1812 (Board Nos)
Fax. (033) 24631791, 24631806
Email : ncfm_kolkata@nse.co.in

4 National Stock Exchange of India Ltd.
7th Floor, Arihant Nitco Park
90, Dr.Radhakrishnan Salai
Mylapore
Chennai - 600 004 Tel : 044-28475100
Fax : 044-28473633
Email : ncfm_chennai@nse.co.in


5 National Stock Exchange of India Ltd.
H No.3-6-322
Mahavir House, IInd Floor
Chamber no.203 & 204
Basheerbagh
Hyderabad : 500029 Tel : 040-23227084/5
Fax : 040-23227086
Email : ncfm_hyderabad@nse.co.in

6 National Stock Exchange of India Ltd.
406 Sakar II
Near Ellis Bridge
Ahmedabad – 380 006 Tel : 079-26580212 - 13
Fax : 079-26576123
Email : ncfm_ahmedabad@nse.co.in

NCFM Beginers module questions

Q1 Capital Employed is equal to _________. [ 2 Marks ]

(a) Fixed Assets + Current Assets +Current Liabilities
(b) Fixed Assets + Current Assets - Current Liabilities
(c) Fixed Assets - Current Assets + Current Liabilities
(d) Fixed Assets - Current Assets - Current Liabilities
(e) I am not attempting the question

Q2 If a client buys shares worth Rs. 2,55,000 and sells shares worth Rs. 3,45,000 through a broker, then the maximum brokerage payable to the broker is _____________. [ 2 Marks ]

(a) Rs. 20000
(b) Rs. 15000
(c) Rs. 25000
(d) Rs. 10000
(e) I am not attempting the question

Q3 Return on Total Asset is equal to __________. [ 2 Marks ]

(a) Gross Income/Average Total Asset
(b) Average total asset/Gross Income
(c) Return on Equity/Average total Asset
(d) Net income /Average Total Asset
(e) I am not attempting the question

Q4 Which of the following is a benefit of participation in a depository? [ 1 Mark ]

(a) No stamp duty on transfer of securities.
(b) Elimination of risks associated with physical certificates such as bad delivery, fake securities,etc.
(c) Nomination facility.
(d) All of the above
(e) I am not attempting the question

Q5 The benchmark stock market index of India is ________. [ 1 Mark ]

(a) Dow Jones
(b) Nikkei 225
(c) S&P 500
(d) the Nifty
(e) I am not attempting the question

Q6 Which of the following is not true about offer of shares through normal public issue? [ 2 Marks ]

(a) In normal Public issue, investors bid for shares at the floor price or above and after the closure of the process the price is determined for allotment of shares.
(b) In case of the normal public issue the demand for an issue is known at the close of the issue.
(c) In case of offer of shares through normal public issue price at which securities will be allotted is known to an investor in advance .
(d) None of the above
(e) I am not attempting the question

Q7 At 8% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after one year. [ 3 Marks ]

(a) Rs. 108
(b) Rs. 118
(c) Rs. 208
(d) Rs. 98
(e) I am not attempting the question

Q8 At 6% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after two years. [ 3 Marks ]

(a) Rs. 224
(b) Rs. 112.36
(c) Rs. 122.46
(d) Rs. 124.30
(e) I am not attempting the question

Q9 The Margin which takes care that all daily losses must be met by the investor by depositing of further collateral by the close of business, the following day is known as _________. [ 1 Mark ]

(a) Mark to Market Margin
(b) Minimum Margin
(c) Cross Margin
(d) Initial Margin
(e) I am not attempting the question

Q10 What is the present value of Rs. 6000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ]

(a) Rs. 5429.02
(b) Rs. 6000
(c) Rs. 5700
(d) Rs. 6300
(e) I am not attempting the question

Q11 What is the dividend yield of ABC Co Share having a face value of Rs 100, market value of 360 and an annual dividend of Rs 10? [ 1 Mark ]

(a) 1%
(b) 2.77%
(c) 10%
(d) 4%
(e) I am not attempting the question

Q12 Earnings Per Share (EPS) is calculated by _________. [ 2 Marks ]

(a) Gross Profit / No. of equity shareholders
(b) Net Profit / No. of equity shareholders
(c) Gross Profit / No. of Ordinary shares outstanding
(d) Net Profit / No. of Ordinary shares outstanding
(e) I am not attempting the question

Q13 Which amongst these is not a Debt market instrument? [ 1 Mark ]

(a) Public Sector Units bonds
(b) Corporate Securities
(c) FIIs
(d) Government Securities
(e) I am not attempting the question

Q14 Which rate of return accounts for intra-year compounding? [ 2 Marks ]

(a) Effective
(b) Stated
(c) Both of the above
(d) None of the above
(e) I am not attempting the question

Q15 ___________ is a good indicator of the stock market behaviour. [ 1 Mark ]

(a) Reliance
(b) TISCO
(c) Infosys
(d) Nifty index
(e) I am not attempting the question

Q16 Market Capitalisation is _____________. [ 2 Marks ]

(a) Value of shares of the company held by Foreign Investors
(b) No. of shares issued by a company multiplied by it's market price
(c) Value of shares held by promoters of the company
(d) Value of shares in the company held by the public
(e) I am not attempting the question

Q17 What is the present value of Rs 10000 receivable after 1 year discounted at 10% p.a.? [ 2 Marks ]

(a) 11000
(b) 10000
(c) 9000
(d) 9090.9
(e) I am not attempting the question

Q18 What factor/s affect the interest rate? [ 3 Marks ]

(a) Government borrowings
(b) Supply of money
(c) Inflation rate
(d) All of the above
(e) I am not attempting the question

Q19 Which of the following needs to be considered by an investor, while investing? [ 3 Marks ]

(a) Assess risk-return profile of the investment.
(b) Know the liquidity and safety aspects of the investment.
(c) Obtain written documents explaining the investment.
(d) All of the above
(e) I am not attempting the question

Q20 Money market mutual funds can invest in _______. [ 3 Marks ]

(a) treasury bills
(b) certificate of deposits
(c) commercial paper
(d) All of the above
(e) I am not attempting the question

Q21 Which of the following is not true about a debt instrument? [ 1 Mark ]

(a) It signifies a ownership right in the company.
(b) It carries interest paying obligation.
(c) It has a fixed maturity.
(d) None of the above
(e) I am not attempting the question

Q22 Which type of corporate action splits the existing shares of a particular face value into smaller denominations? [ 1 Mark ]

(a) Stock Split
(b) Bonus Issue
(c) Buy Back
(d) Right Issue
(e) I am not attempting the question

Q23 How many securities are there in Nifty index? [ 1 Mark ]

(a) 30
(b) 100
(c) 500
(d) 50
(e) I am not attempting the question

Q24 Which of the following is TRUE about Primary Markets? [ 2 Marks ]

(a) Primary Markets are markets where commodities are sold.
(b) Primary Market is the place where public can buy and sell securities from one another.
(c) Primary Markets refer to the mobilization of funds from the public by corporates through the issue of shares / debentures.
(d) Primary Markets are places where only short term instruments are traded.
(e) I am not attempting the question

Q25 The future value of a Rs.10,000 investment done today, which gives an annual rate of return of 20% per annum, after one year should be ____________. [ 3 Marks ]

(a) Rs. 12,200
(b) Rs. 12,500
(c) Rs. 12,000
(d) Rs. 12,640
(e) I am not attempting the question

Q26 Which of the following problems have been eliminated by Depositories? [ 1 Mark ]

(a) Reduction in the share transfer time to the buyer.
(b) Risk of stolen, fake, forged shares.
(c) Stamp duty on transfer of shares in dematerialized form.
(d) All of the above
(e) I am not attempting the question

Q27 Which of the following is not a benefit of investing in mutual funds? [ 2 Marks ]

(a) Investment in Mutual funds leads to diversification of holdings.
(b) Mutual funds are managed by professional fund managers.
(c) Mutual Funds regularly provide investors with information on the value of their investments.
(d) None of the above
(e) I am not attempting the question

Q28 Funds which invest only in the stocks comprising an index and aim to give returns commensurate with the index returns are called _________. [ 2 Marks ]

(a) Index Funds
(b) Active Funds
(c) Dormant Funds
(d) None of the above
(e) I am not attempting the question

Q29 Depositories are like banks for securities. [ 1 Mark ]

(a) TRUE
(b) FALSE
(c) Dormant Funds
(d) None of the above
(e) I am not attempting the question

Q30 At 12% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after one year. [ 3 Marks ]

(a) Rs. 114
(b) Rs. 112
(c) Rs. 102
(d) Rs. 113
(e) I am not attempting the question

Q31 The future value of a Rs.10,000 investment, which gives an annual rate of return of 20% per annum, after two years would grow to _________ (assume discrete compounding) [ 3 Marks ]

(a) Rs. 14,400
(b) Rs. 14,000
(c) Rs, 14,250
(d) Rs. 14,500
(e) I am not attempting the question

Q32 An investment should provide an after-tax return which is ________. [ 3 Marks ]

(a) at least higher than the rate of inflation
(b) less than the rate of inflation
(c) equal to the rate of inflation
(d) None of the above
(e) I am not attempting the question

Q33 Which of the following is not true about ADR? [ 1 Mark ]

(a) ADR represents the foreign shares of the company held on deposit by a custodian bank in the company's home country.
(b) ADRs may be used in public or private markets inside or outside US.
(c) ADRs do not eliminate the currency risk associated with an investment in a non-U.S. company.
(d) An ADR is a U.S. dollar denominated form of equity ownership in a non-U.S. company.
(e) I am not attempting the question

Q34 What are the segments of Securities Market? [ 1 Mark ]

(a) Primary market and Secondary market
(b) New issues market
(c) Primary market
(d) Secondary market
(e) I am not attempting the question

Q35 Which instrument among these is considered the most challenging and rewarding investment option, when compared to other investment options? [ 3 Marks ]

(a) Equity
(b) Fixed Deposit
(c) Bonds
(d) Treasury Bill
(e) I am not attempting the question

Q36 'Bid' means the _____________. [ 3 Marks ]

(a) Seller's price
(b) Traded Price
(c) Market price
(d) Buyer's price
(e) I am not attempting the question

Q37 Profit and Loss account of a company shows _______. [ 2 Marks ]

(a) The revenues and expenses during particular period of time.
(b) The revenues and expenses of the company at a particular point of time.
(c) The financial position of the company at a particular point of time.
(d) None of the above
(e) I am not attempting the question

Q38 Which instrument among these have historically shown to give the highest returns when invested over long periods? [ 3 Marks ]

(a) Debentures
(b) Equity
(c) Fixed Deposit
(d) Bank Deposit
(e) I am not attempting the question

Q39 The lenders use ______________ ratio to assess debt servicing capacity of a firm. [ 2 Marks ]

(a) Interest Coverage ratio
(b) Debt-Asset Ratio
(c) Acid-test Ratio
(d) Current Ratio
(e) I am not attempting the question

Q40 _______ funds do not have a fixed date of redemption. [ 2 Marks ]

(a) Open ended funds
(b) Close ended funds
(c) Diversified funds
(d) Both A and B
(e) I am not attempting the question

Q41 'Ask' means the ________. [ 3 Marks ]

(a) Buyer's price
(b) Seller's price
(c) Market price
(d) Traded Price
(e) I am not attempting the question

Q42 ________________ is maintained by NSE to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the Exchange. [ 1 Mark ]

(a) Investor Education and Reimbursement Fund (IERF)
(b) Investor Reimbursement Fund (IRF)
(c) Investor Education and Protection Fund (IEPF)
(d) Investor Protection Fund (IPF)
(e) I am not attempting the question

Q43 At 10% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after one year. [ 3 Marks ]

(a) Rs.101
(b) Rs. 110
(c) Rs.115
(d) Rs. 109
(e) I am not attempting the question

Q44 What is the present value of Rs. 3000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ]

(a) Rs. 3150
(b) Rs. 2714.51
(c) Rs. 2850
(d) Rs. 2970
(e) I am not attempting the question

Q45 The future value of a Rs.12,000 investment made today, which gives an annual rate of return of 10% per annum, after one year should be _________. [ 3 Marks ]

(a) Rs. 12,200
(b) Rs. 12,500
(c) Rs. 13,200
(d) Rs. 13,100
(e) I am not attempting the question

Q46 Nifty index is used in _________. [ 1 Mark ]

(a) Derivatives
(b) Index Funds
(c) Exchange Traded Funds (ETFs)
(d) All of the above
(e) I am not attempting the question

Q47 Demutualisation of stock exchanges refer to _________. [ 3 Marks ]

(a) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange are segregated from one another
(b) the legal structure of an exchange whereby the ownership and the management at the exchange are segregated from one another
(c) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange vests in one person
(d) None of the above
(e) I am not attempting the question

Q48 Which securities can an investor invest in? [ 1 Mark ]

(a) Shares
(b) Debentures
(c) Mutual Funds
(d) All of the above
(e) I am not attempting the question

Q49 _____________ gives the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date. [ 1 Mark ]

(a) Put Option
(b) Forward
(c) Future
(d) Call Option
(e) I am not attempting the question

Q50 The holders of which instrument are members of the company and have voting rights? [ 3 Marks ]

(a) Treasury Bill
(b) Commercial Paper
(c) Debenture
(d) Equity
(e) I am not attempting the question

________________________________________

NCFM CORPORATE GOVERNANCE MODULE MOCK TEST QUESTIONS

CORPORATE GOVERNANCE MODULE

Q1
Cadbury Report came out in _____. [ 1 Mark ]

(a) 1993
(b) 1992
(c) 1991
(d) 1994
(e) I am not attempting the question

Q2
As per Clause 49 of the Listing Agreement, non-executive directors shall be required to disclose their shareholding: [ 1 Mark ]

(a) In the associate companies other than the listed company in which they are proposed to be
appointed
(b) In the group companies of the listed company in which they are proposed to be appointed
(c) In other companies other than the listed company in which they are proposed to be
appointed
(d) In the listed company in which they are proposed to be appointed as directors
(e) I am not attempting the question

Q3
There are 13 directors in Company A. What shall be the quorum at the Board meeting? [ 1 Mark ]

(a) 4
(b) 3
(c) 2
(d) 5
(e) I am not attempting the question

Q4
The term 'material unlisted Indian Subsidiary' mean an unlisted subsidiary incorporated in ________. [ 1 Mark ]

(a) Incorporation is not required
(b) US
(c) Europe
(d) India
(e) I am not attempting the question

Q5
A listed company is required to lay down procedures to inform board members about the risk assessment and minimization procedures. This information is given as per Clause _____ of the listing agreement. [ 1 Mark ]

(a) 49
(b) 36
(c) 51
(d) 12
(e) I am not attempting the question

Q6
Information regarding sale of material nature, of investments, subsidiaries, assets, which is not in normal course of business has to be placed before _________. [ 1 Mark ]

(a) Audit Committee
(b) Senior Management
(c) Board of Directors
(d) All of the above
(e) I am not attempting the question

Q7
Shareholder grievance committee shall be headed by a _________. [ 1 Mark ]

(a) Executive Director
(b) Chairman of the Board of Directors
(c) Non- Executive Director
(d) Functional head
(e) I am not attempting the question

Q8
As per Clause 49 of the Listing Agreement, a statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice shall be certified by: [ 1 Mark ]

(a) Statutory auditors
(b) Internal auditors
(c) Audit Committee
(d) Practicing Company Secretary
(e) I am not attempting the question

Q9
State which of the following is false: As per Clause 49 of the Listing Agreement, the role of the Audit Committee shall include the following: [ 1 Mark ]

(a) Reviewing with the management the adequacy of internal control systems
(b) Reviewing with the management the adequacy of secretarial audit
(c) Reviewing with the management the adequacy of internal audit function
(d) None of the above
(e) I am not attempting the question

Q10
As per the sub-clause V of Clause 49 of the Listing Agreement, CFO includes _____. [ 1 Mark ]

(a) Chairman of the Audit Committee
(b) Head of Accounts department
(c) Whole time finance director
(d) Chairman
(e) I am not attempting the question

Q11
As per Sub-clause V of Clause 49 of the Listing Agreement, certification is required to be done by the: [ 1 Mark ]

(a) Executive Director of the company
(b) CEO and CFO of the company
(c) Independent Director of the company
(d) Company Secretary of the company
(e) I am not attempting the question

Q12
Board meetings should be held at ________ intervals. [ 1 Mark ]

(a) Bimonthly
(b) Annual
(c) Monthly
(d) Regular
(e) I am not attempting the question

Q13
Clause 49 was introduced in the Listing Agreement pursuant to the recommendations of the report of the Kumar Mangalam Birla Committee: [ 1 Mark ]

(a) FALSE
(b) False, only amendments were made to the Clause
(c) TRUE
(d) False, Clause 49 existed prior to the set up of the Committee
(e) I am not attempting the question

Q14
State which of the following is true: As per Section 292A of the Companies Act, 1956, the following shall have the right to vote in an Audit Committee meeting: [ 1 Mark ]

(a) The members of the audit committee
(b) The internal auditors
(c) The director in charge of finance
(d) The statutory auditors
(e) I am not attempting the question

Q15
The inclusion of an independent director in a Board brings ______. [ 1 Mark ]

(a) Independence in management
(b) A more practical approach to the decision making process
(c) Objective view
(d) A more knowledgeable view and a more professional view
(e) I am not attempting the question

Q16
As per Clause 49 of the Listing Agreement, the disclosures on remuneration shall be made in the Annual Report in the: [ 1 Mark ]

(a) Chairman's speech
(b) Disclosure section
(c) Remuneration section
(d) Corporate Governance section
(e) I am not attempting the question

Q17
Announcement in respect to the unaudited quarterly results should be made in the newspaper within _______. [ 1 Mark ]

(a) 72 hours from the closure of the Board meeting.
(b) 48 hours from the closure of the Board meeting
(c) 7 days from the date of the Board meeting
(d) 15 minutes of the closure of the Board meeting
(e) I am not attempting the question

Q18
Training programme of directors should include __________ [ 1 Mark ]

(a) Laws applicable to the company.
(b) Accounting Standards.
(c) Simulation
(d) Provisions of laws.
(e) I am not attempting the question

Q19
As per Clause 49 of the Listing Agreement, a statement in summary form of transactions with related parties in the ordinary course of business shall be placed before the relevant committee [ 1 Mark ]

(a) Monthly
(b) Annually
(c) Periodically
(d) Quarterly
(e) I am not attempting the question

Q20
The presence of independent directors would improve _______. [ 1 Mark ]

(a) Board effectiveness
(b) Board independence
(c) Board performance
(d) Corporate governance
(e) I am not attempting the question

Q21
While submitting the Compliance Certificate under Clause 49 (VII) of the Listing Agreement to the Stock Exchanges the certificate should be ______. [ 1 Mark ]

(a) Sent along with the Annual Report
(b) annexed to the Directors; Report
(c) Annexed to the Annual Report
(d) Annexed to the Corporate Governance Report
(e) I am not attempting the question

Q22
As per Clause 49 of the Listing Agreement to be denoted as an independent director, an individual should not be an executive of the company in the immediately preceding _______. [ 1 Mark ]

(a) 5 years
(b) 1 year
(c) 3 years
(d) 2 years
(e) I am not attempting the question

Q23
As regards, disclosure regarding changes in accounting policies in the CEO/CFO certificate, _________ [ 1 Mark ]

(a) No disclosure is required to be made.
(b) Significant changes should be disclosed only on directive of the SEBI.
(c) Significant changes should be disclosed.
(d) Changes in the accounting policies in the last two years should be made.
(e) I am not attempting the question

Q24
The credibility and effectiveness of a non executive director in the board room will depend on ________. [ 1 Mark ]

(a) Qualifications
(b) His ability to acquire governance as well as company specific knowledge and skills
(c) Adaptability
(d) Capability to align his objectives with the objectives of the company
(e) I am not attempting the question

Q25
As regards disclosure under item 'General Shareholder Information' rating of which organization shall be indicated in the Corporate Governance Report: [ 1 Mark ]

(a) ICRA
(b) CRISIL
(c) CARE
(d) SMERA
(e) I am not attempting the question

Q26
As per the Listing Agreement shareholding pattern should be intimated _______. [ 1 Mark ]

(a) Quarterly
(b) Annually
(c) Bi monthly
(d) Half yearly
(e) I am not attempting the question

Q27
Training requirements for non-executive and executive directors should _________. [ 1 Mark ]

(a) Vary or be same depending upon the size of the company
(b) Same for both the classes of directors
(c) Partly vary and partly be same for both the classes of directors
(d) Vary for both the classes of directors
(e) I am not attempting the question

Q28
A company can _________. [ 1 Mark ]

(a) Disclose price sensitive information to the stock exchange if the SEBI asks for that
(b) Not disclose the price sensitive information to the stock exchange
(c) Disclose price sensitive information to the stock exchange unless the Stock Exchange is
already aware of it.
(d) Disclose price sensitive information to the stock exchange
(e) I am not attempting the question

Q29
The maximum time gap between two audit committee meetings shall not be more than ______.
[ 1 Mark ]

(a) 2 months
(b) 6 months
(c) 4 months
(d) 3 months
(e) I am not attempting the question

Q30
As per provisions of the Listing Agreement, disclosure on materially significant related party transactions that has potential conflict with the interests of the company at large is to be mandatorily made in the Report on Corporate Governance: [ 1 Mark ]

(a) Disclosure on all related party transactions is to be mandatorily made in the Report on
Corporate Governance
(b) Listed companies are not required to comply with this.
(c) Listed companies may do this on the directive of SEBI/Stock Exchange.
(d) Listed companies may do so on the directive of Registrar of Companies/Ministry of Company
Affairs.
(e) I am not attempting the question

Q31
A listed company is required to keep the Stock Exchange informed of events such as strikes, lock-outs, closure on account of power cuts, etc in order to enable the shareholders to appraise the position of the company [ 1 Mark ]

(a) After the cessation of the event
(b) At the time of occurrence of the event
(c) Annually at the end of the year.
(d) Both at the time of occurrence of the event and after the cessation of the event
(e) I am not attempting the question

Q32
As per Sub-Clause VII of Clause 49 of the Listing Agreement, a listed company is required to obtain a certificate of compliance of conditions of corporate governance from: [ 1 Mark ]

(a) Internal Auditors
(b) Practicing Advocates
(c) Practicing Cost Accountants
(d) Practicing Company Secretaries
(e) I am not attempting the question

Q33
As per the definition given by clause 49, an Independent Director should not be a shareholder of the company i.e. owning ____ percent or more of the block of voting share. [ 1 Mark ]

(a) two
(b) one third
(c) three
(d) four
(e) I am not attempting the question

Q34
The Kumar Mangalam Birla Committee was constituted by ______. [ 1 Mark ]

(a) SEBI
(b) Ministry of Company Affairs
(c) Department of Company Affairs
(d) Controller of Capital Issues
(e) I am not attempting the question

Q35
The information about risk/returns should be provided to the shareholders so that it can be ensured about adequate [ 1 Mark ]

(a) Risk management systems
(b) Knowledge management systems
(c) Information systems
(d) All of the above
(e) I am not attempting the question

Q36
As per the Listing Agreement Annual Report should be submitted to the Stock Exchange ______. [ 1 Mark ]

(a) within 15 days from the end of the year
(b) within 5 minutes of its issuance
(c) within 30 days from the end of the financial year
(d) as soon as it is issued
(e) I am not attempting the question

Q37
C a shareholder of Company A requested for copies of the register under section 301 of the Companies Act 1956. His request was turned down stating that as the register contains details about interest of directors and contracts in which they are interested, it is confidential and copies cannot be given. Is the refusal valid? [ 1 Mark ]

(a) Yes, unless the Board approves such inspection.
(b) Yes, as he is not a director, he cannot inspect such confidential documents.
(c) No. Being a member he has a right to inspect the Register.
(d) Yes, unless the shareholders pass a resolution in favor of it.
(e) I am not attempting the question

Q38
Sub-Clause VII of Clause 49 of the Listing Agreement requires certification of compliance of conditions of corporate governance. This certificate is required to be sent annually to: [ 1 Mark ]

(a) Securities and Exchange Board of India
(b) Shareholders of the company
(c) Directors of the company
(d) Auditors of the company
(e) I am not attempting the question

Q39
The Audit Committee ________ [ 1 Mark ]

(a) Can obtain outside legal or other professional advice only if the Board approves.
(b) Can obtain outside legal or other professional advice only if the members decide by way of
resolution.
(c) Can not obtain outside legal or other professional advice.
(d) Can obtain outside legal or other professional advice.
(e) I am not attempting the question

Q40
The maximum time gap between two board meetings shall not be more than _______. [ 1 Mark ]

(a) four months
(b) six months
(c) three months
(d) two months
(e) I am not attempting the question

Q41
As per Clause 49 of the Listing Agreement, details of the following transactions which are not in the normal course of business shall be placed before the relevant committee: [ 1 Mark ]

(a) Transactions above Rs.5,000/- with related parties
(b) All transactions with related parties
(c) Significant transactions with related parties
(d) Material individual transactions with related parties
(e) I am not attempting the question

Q42
As per the Listing Agreement intimation of cash bonuses should be given to the Stock Exchange _____. [ 1 Mark ]

(a) As soon as the Board meeting is over
(b) Atleast 7 days prior to the Board meeting
(c) as soon as it is issued
(d) Atleast 5 days prior to the Board meeting
(e) I am not attempting the question

Q43
As per Clause 49 of the Listing Agreement, Management Discussion and Analysis Report should include discussion on matters relating to: [ 1 Mark ]

(a) Other industries
(b) Developments in general market
(c) Macroeconomic scenario in the country
(d) Industry structure and developments
(e) I am not attempting the question

Q44
As per the Revised Clause 49 of the listing agreement who may review the functioning of the Whistle Blower mechanism, in case it exists in the company? [ 1 Mark ]

(a) Audit Committee
(b) Concerned Department Heads
(c) Senior Officers
(d) Board of Directors
(e) I am not attempting the question

Q45
Training of Board members is a must under Clause 49. [ 1 Mark ]

(a) TRUE
(b) FALSE
(c) True, provided all the directors pass a unanimous resolution.
(d) False, training of the CEO, CFO and the Chairman of every committee is mandatory.
(e) I am not attempting the question

Q46
The Company shall obtain a certificate regarding compliance of conditions of corporate governance from ______. [ 1 Mark ]

(a) Auditors
(b) Practicing Company Secretary
(c) Either of the two
(d) Both
(e) I am not attempting the question

Q47
There are ______ general types of corporate ownerships. [ 1 Mark ]

(a) 1
(b) 2
(c) 3
(d) 4
(e) I am not attempting the question

Q48
The minimum number of non-executive directors on board should be _________. [ 1 Mark ]

(a) Not less than 50%
(b) Not less than 33%
(c) Not less than 60%
(d) Not less than 75%
(e) I am not attempting the question

Q49
As per Clause 49 of the Listing Agreement, Chairman of the Remuneration Committee should be: [ 1 Mark ]

(a) Chairman of the company
(b) Managing Director of the company
(c) Executive Director of the company
(d) Independent Director of the company
(e) I am not attempting the question

Q50
As per Section 297 of the Companies Act, 1956, certain contracts require the consent of: [ 1 Mark ]

(a) Audit Committee Meeting
(b) Managing Director of the Company
(c) Shareholders at a General Meeting
(d) Board of Directors
(e) I am not attempting the question

Q51
The OECD Principles of Corporate Governance provides insight into corporate governance framework at a _________. [ 1 Mark ]

(a) Micro level
(b) Working level
(c) Macro level
(d) Upper level
(e) I am not attempting the question

Q52
As per Clause 49 of the Listing Agreement, the format for quarterly compliance certificate is required to be made as per : [ 1 Mark ]

(a) Annexure IA of Clause 49
(b) Annexure IC of Clause 49
(c) Annexure IB of Clause 49
(d) Annexure ID of Clause 49
(e) I am not attempting the question

Q53
Annual Report of a listed company contains a brief statement on the company's philosophy on code of governance. The is conforming [ 1 Mark ]

(a) Clause 49 of the listing agreement
(b) Clause 38 of the listing agreement
(c) Clause 51 of the listing agreement
(d) Clause 41 of the listing agreement
(e) I am not attempting the question

Q54
Under Clause 49 of the Listing Agreement, the unaudited financial results should be furnished to the Stock Exchange within ___________. [ 1 Mark ]

(a) 1 month from the end of the half year
(b) 1 month from the end of the quarter.
(c) 2 months from the end of the half year.
(d) 2 months from the end of the quarter.
(e) I am not attempting the question

Q55
The filing under Clause 41 of the Listing Agreement should be made within _______. [ 1 Mark ]

(a) Within 15 days from the end of the quarter
(b) as soon as the meeting is over
(c) 15 minutes from the closure of the concerned meeting
(d) Within 30 days from the end of the half year
(e) I am not attempting the question

Q56
As per Section 292A of the Companies Act, 1956, an Audit Committee of the Board shall comprise of not less than: [ 1 Mark ]

(a) Four directors
(b) Two directors
(c) Three directors
(d) Five directors
(e) I am not attempting the question

Q57
X & Y, both directors of Company A are brothers who stay in the same apartment. Company A decided to do away with sending notice to X as Y promised to inform X about the meeting? Is the contention of Company A valid? [ 1 Mark ]

(a) Yes, if all directors agree
(b) yes, only if X agrees
(c) No
(d) Yes
(e) I am not attempting the question

Q58
Management Discussion and Analysis report should form part of the ______. [ 1 Mark ]

(a) Audit Report to Board
(b) Annual Report to Shareholders
(c) Compliance report to Stock Exchanges
(d) All of the above
(e) I am not attempting the question

Q59
State which of the following is true: As per Clause 49 of the Listing Agreement, reviewing with the management the annual financial statements before submission to the Board for approval includes [ 1 Mark ]

(a) Disclosures of material related & non-related party transactions
(b) Disclosure of any party transactions
(c) Disclosure of any related party transactions
(d) Disclosure of the list of relatives
(e) I am not attempting the question

Q60
As per the OECD Principles of Corporate Governance-2004, corporate governance framework should recognize the rights of stakeholders through _______________ agreements. [ 1 Mark ]

(a) mutual
(b) no
(c) tacit
(d) formal
(e) I am not attempting the question

Q61
State which of the following is false: As per Clause 49 of the Listing Agreement, the report of the Remuneration Committee should comprise of: [ 1 Mark ]

(a) Composition of the committee
(b) Remuneration policy
(c) Attendance during the year
(d) Location and time where the meetings were held
(e) I am not attempting the question

Q62
Report on Corporate Governance forms clause 49(__) of the listing agreement. [ 1 Mark ]

(a) VI
(b) IV
(c) VII
(d) V
(e) I am not attempting the question

Q63
Whistle blower is ____. [ 1 Mark ]

(a) An employee involved in marketing products
(b) An employee or ex-employee providing information on violations of law, financial
malpractice etc
(c) An ex-employee intimating instances of violations of law, malpractice etc
(d) An advertising agent
(e) I am not attempting the question

Q64
As per Clause 49 of the Listing Agreement, the Company is required to disclose in the Annual Report: [ 1 Mark ]

(a) The number of non-convertible instruments held by non-executive directors
(b) The number of shares and convertible instruments held by non-executive directors
(c) The number of shares and convertible instruments held by non-executive directors in other
companies
(d) None of the above
(e) I am not attempting the question

Q65
Interested directors can participate in discussions pertaining to the contract he is interested.
[ 1 Mark ]

(a) FALSE
(b) True, provided he does not vote
(c) TRUE
(d) True, provided the quorum is present
(e) I am not attempting the question

Q66
A separate _______ cell has to be set up by stock exchanges to monitor the compliance of revised clause 49 by the companies. [ 1 Mark ]

(a) Evaluating
(b) Monitoring
(c) Enforcing
(d) None of the above
(e) I am not attempting the question

Q67
Atleast _____ independent director on the board of Directors of the holding company shall be director on the board of directors of a material non listed Indian subsidiary company. [ 1 Mark ]

(a) 3
(b) 4
(c) 1
(d) 2
(e) I am not attempting the question

Q68
As per Clause 49 of the Listing Agreement, a statement in summary form of transactions with related parties in the ordinary course of business shall be placed before the : [ 1 Mark ]

(a) Shareholders committee
(b) Executive committee
(c) Remuneration committee
(d) Audit committee
(e) I am not attempting the question

Q69
If in respect of any item in the format laid down in Clause 41 of the Listing Agreement varies by ______________ from the respective unaudited results as determined after review by the auditors, the company shall explain the reasons thereof. [ 1 Mark ]

(a) 20%
(b) 20% or more
(c) 30% or more
(d) 30%
(e) I am not attempting the question

Q70
Commencement of Commercial Operations or Production has to be reported to Stock Exchange under clause ____. [ 1 Mark ]

(a) 50
(b) 43
(c) 36
(d) 41
(e) I am not attempting the question

Q71
For compliance of conditions of clause 49 of the listing agreement, the Board of Directors of a listed company is required to set up: [ 1 Mark ]

(a) Remuneration Committee
(b) Audit Committee
(c) Both Audit Committee and Remuneration Committee
(d) Audit Committee, Remuneration Committee and Investor's Grievance Committee
(e) I am not attempting the question

Q72
A director shall not be a member in more than ____ committees. [ 1 Mark ]

(a) 9
(b) 10
(c) 11
(d) 12
(e) I am not attempting the question

Q73
As per Clause 49 of the Listing Agreement, the following person shall act as the Secretary to the Audit Committee: [ 1 Mark ]

(a) Company Secretary
(b) Finance Director
(c) Chief Financial Officer
(d) Statutory Auditor
(e) I am not attempting the question

Q74
A listed company is required to _____________ a half-yearly declaration of financial performance to ____________. [ 1 Mark ]

(a) mandatorily; each shareholder
(b) mandatorily; each household of shareholders
(c) non-mandatorily; each shareholder
(d) non-mandatorily; each household of shareholders
(e) I am not attempting the question

Q75
State which of the following is false: As per Clause 49 of the Listing Agreement, the role of the Audit Committee shall include reviewing with the management: [ 1 Mark ]

(a) The qualifications in the final audit report
(b) The functioning of the Whistle Blower Mechanism
(c) The quarterly financial statements
(d) The annual financial statements
(e) I am not attempting the question

Q76
A is the Company Secretary of X Co. Ltd listed in the National Stock Exchange complying with Clause 49 of the Listing Agreement places the summary statement containing related party disclosures before the designated Committee at each of its meeting. D a director of X Co. Ltd. contended that the statement was required to be placed before the Committee every year and not at every meeting. Is the contention of D valid? [ 1 Mark ]

(a) No. The Clause says periodically
(b) No. The Clause says quarterly
(c) No. The Clause says monthly
(d) Yes.
(e) I am not attempting the question

Q77
The Annual Report of a company is required to be sent to the stock exchange along with:
[ 1 Mark ]

(a) Certificate from practicing company secretary regarding compliance of conditions of
Corporate Governance as per Clause 49
(b) Certificate from the Chief Executive Officer of the company regarding compliance of conditions of Corporate Governance as per Clause 49
(c) Certificate from the senior management regarding compliance of conditions of Corporate
Governance as per Clause 49
(d) None of the above
(e) I am not attempting the question

Q78
As per Clause 49 of the Listing Agreement the Board should comprise of _______. [ 1 Mark ]

(a) More than fifty percent but less than sixty percent non-executive directors
(b) Not less than fifty percent non-executive directors
(c) Less than fifty percent non-executive directors
(d) fifty percent non-executive directors
(e) I am not attempting the question

Q79
As per Clause 49 of the Listing Agreement the code of conduct should be displayed on the ______. [ 1 Mark ]

(a) Annual report of the company
(b) Notice board of the company
(c) Website of the company
(d) Press release
(e) I am not attempting the question

Q80
As per Clause 49 of the Listing Agreement, the Shareholder's Grievance Committee should comprise of: [ 1 Mark ]

(a) Four Directors
(b) Three Directors
(c) Two Directors
(d) None of the above
(e) I am not attempting the question

Q81
The revised clause 49 is not applicable to ________. [ 1 Mark ]

(a) Indian Banks
(b) Listed Development Financial Institutions
(c) Mutual Fund
(d) All of the above
(e) I am not attempting the question

Q82
State which of the following is false: As per Clause 49 of the Listing Agreement, the role of the Audit Committee shall include: [ 1 Mark ]

(a) Assisting the statutory auditor
(b) Recommending the appointment, re-appointment and replacement or removal of the
statutory auditor
(c) Approval of payment to statutory auditors
(d) None of the above
(e) I am not attempting the question

Q83
As per the OECD Principles of Corporate Governance-2004, corporate governance framework should promote [ 1 Mark ]

(a) Transparent and efficient markets
(b) Large and open markets
(c) Responsible & ernst investors
(d) None of the above
(e) I am not attempting the question

Q84
As per Clause 49 of the Listing Agreement, senior management means: [ 1 Mark ]

(a) Personnel of the company who are members of its core management team
(b) Personnel of the company who are members of the Executive Committee
(c) Personnel of the company who are members of the Audit Committee
(d) Personnel of the company who are members of the Board of Directors
(e) I am not attempting the question

Q85
As per Clause 49 of the Listing Agreement, non-executive directors are required to disclose their shareholding: [ 1 Mark ]

(a) Prior to their appointment
(b) On 1st April every year
(c) Immediately after appointment
(d) On 31st March every year
(e) I am not attempting the question

Q86
For the purpose of reckoning the limit of Chairmanship of Committees, _________. [ 1 Mark ]

(a) Only membership of Audit Committee and Shareholders Grievance Committee shall be
considered
(b) Chairmanship of any Committee may be considered in absence of Audit Committee/
Shareholders GrievanceCommittee.
(c) Only Chairmanship of Audit Committee and Shareholders Grievance Committee shall be
considered.
(d) Only Chairmanship of Remuneration Committee shall be considered in the absence of Audit
Committee.
(e) I am not attempting the question

Q87
As per Clause 49 of the Listing Agreement one of the areas of training for directors could be [ 1 Mark ]

(a) History and organisation structure
(b) Information systems being used by the company
(c) Industry statistics
(d) Business model of the company
(e) I am not attempting the question

Q88
The compliance report thus submitted should be signed by ______. [ 1 Mark ]

(a) Statutory Auditors
(b) Chairman of the Company
(c) Either Compliance officer or the CEO of the company
(d) Managing Director of the Company
(e) I am not attempting the question

Q89
A presentation made by the company to ____________ can either be hosted on company's website or stock exchange website. [ 1 Mark ]

(a) Institutional investors
(b) Institutional investors and analysts
(c) QIBs and analysts
(d) Analysts
(e) I am not attempting the question

Q90
An independent director should not be related to persons occupying positions [ 1 Mark ]

(a) In the senior management
(b) At the board level or at one level below the board
(c) Reporting to the senior management
(d) In the finance department
(e) I am not attempting the question

Q91
As per Clause 49 of the Listing Agreement, Quorum for Audit Committee meeting shall be:
[ 1 Mark ]

(a) Three members or one-third of the members of the Committee whichever is greater
(b) Four members or one-third of the members of the Committee whichever is greater
(c) Two members or one-third of the members of the committee whichever is greater
(d) None of the above
(e) I am not attempting the question

Q92
As per Clause 49 of the Listing Agreement, information on recruitment of which level of officers are required to be placed before the Board? [ 1 Mark ]

(a) Middle level
(b) Just below the board level
(c) Board level
(d) Upper level
(e) I am not attempting the question

Q93
The fees/compensation to the non-executive directors requires previous approval of ________. [ 1 Mark ]

(a) Board of Directors' in board meeting
(b) shareholders in general meeting
(c) Both of the above
(d) Approval from SEBI is required
(e) I am not attempting the question

Q94
As regards disclosure pertaining to Means of Communication in the Corporate Governance Report __________ results are to be made. [ 1 Mark ]

(a) Bi monthly
(b) Half yearly
(c) Quarterly
(d) Annually
(e) I am not attempting the question

Q95
Discussion on financial performance with respect to operational performance should form the part of _____. [ 1 Mark ]

(a) Director's Report
(b) Auditors Report
(c) Corporate Governance Report
(d) Management Discussion and Analysis
(e) I am not attempting the question

Q96
Preparation of annual report and accounts is a key element of _________ by the companies. [ 1 Mark ]

(a) Valuations
(b) Assessment
(c) Reporting
(d) Enquiring
(e) I am not attempting the question

Q97
As per Annexure I (d) of Clause 49 of the Listing Agreement, every listed company is __________ required to establish a whistle blower policy. [ 1 Mark ]

(a) Mandatorily
(b) Non-mandatorily, but where all the present employees give their consent is
(c) Mandatorily on directive of the CLB
(d) Non-mandatorily
(e) I am not attempting the question

Q98
Blue Ribbon Committee was sponsored by ______. [ 1 Mark ]

(a) NYSE and NYMEX
(b) NYSE and NASDAQ
(c) NYSE and NCDEX
(d) NYSE and NASD
(e) I am not attempting the question

Q99
The credibility and effectiveness of a non executive director in the board room will depend on [ 1 Mark ]

(a) His ability to acquire governance as well as company specific knowledge and skills
(b) Motives
(c) Adaptability to issues & concerns raised
(d) Qualifications that he has acquired
(e) I am not attempting the question

Q100
A holds 1.95% of the share capital of Company B. If he wishes to enter into a contract with Company B, is he required to comply with Section 299 of the Companies Act 1956? [ 1 Mark ]

(a) No. as holding is not 2 %
(b) Yes as holding more than 1% of the Share capital
(c) No. as holding is less than 2%
(d) Yes
(e) I am not attempting the question