Banking and Finance/Level04/S1

 This content is prepared by Dipika Mahesh Vocational Teacher Banking and Finance Ambala Haryana

Q1. What are the market segments?

Ans. Securities market provide a channel for allocation of savings to those who have a productive need for them.

Q2. When was Companies Act made?

Ans. Companies Act. 1956

Q3. What is the other name of Secondary market?

Ans. Stock exchange and After market.

Q4. What is the full form of OTC?

Ans. Over the Counter.

Q5. What is OTC?

Ans. OTC market are informal markets where trades are negotiated.

Q6. What is Index?

Ans. An index is used to give information about the price movement of products in the financial, commodities on any other markets.

Q7. What is Index of NSE?

Ans. NIFTY 50

Q8. Which shares issue in Primary market?

Ans. Fresh issue or IPO (Initial Public Offering)

Q9. What is the use of Market capilisatisation Ratio?

Ans. It is used as a measure of Stock market size.

Q10. What is Turnover?

Ans. Turnover for a share is computed by multiplying the traded quantity with the price at which the trade takes place.

Q11. What is the use of Turnover ratio?

Ans. It is used as a measure of trading activity on liquidity in the stock markets.

Q12. In which year SCRA was Established?

Ans. Securities contracts Regulation Act (SCRA), 1956

Q13. What is securities?

Ans.  Savings are linked to investments by a variety of intermediaries through a range of complex financial products called ‘securities’ .

Q14. Who are participants?


  1. The investors

  2. The issuers

  3. The intermediaries

Q15. What are the types of Investors?


  1. Individual Investors

  2. Corporate Investors

  3. Foreign Venture Capital Investor

  4. FII’s

Q16. What are the different market segments?

Ans. Four different segments: -  Wholesale debt market, Capital market, Futures Options and Currency derivation segment.

Q17. When Wholesale debt market is established in India?

Ans. This segment of NSE commenced its operations in June 1994.

Q18. When Capital market segment is established in India?

Ans. This segment at NSE commenced its operation in November 1994.

Q19. Futures & Options segment is made?

Ans. Futures & options segment are establiste in June 2000.

Q20. In which year currency derivation segment are made?

Ans. This segment at NSE commenced its operations on 29th August 2008.

Q21. In which year SEBI was establish in India?

Ans. The securities market regulation in India, was established under SEBT Act 1992.

Q22. What are the main Objective of SEBI?


  1. Protecting the interest of investor in securities.

  2. Promoting the development of the securities market.

  3. Regulating the securities market.

Q23. In which year SBTS are establish in India?

Ans. Screw Based Trading System was establish in India in November 3,1994.

Q24. In which year IEPF was established in India?

Ans. The investor Education and Protection Fund was established in 2001.

Q25. When was India’s First volatility index launched by NSE?

Ans. In April 2008.

Q26. Which pair for the first time launched by NSE in India?

Ans. USD-INR (US Dollar-Indian Rupees)

Q27. In which year Direct Market Access was established?

Ans. In April, 2008

Q28. What are Products?

Ans. All the schemes of the financial market are offered by the broker for selling the securities is know as products.

Q29. Who is a Stock Broker?

Ans. A stock broker is an intermediary who arranges to buy and still the securities on the behalf of clients.

Q30. Who is stock broker According to SEBI?

Ans. According to SEBI Regulation, 1992, a stock broker is a member of a stock exchange and requires to hold a certificate of registration from SEBI in under to buy sell or deal in securities.

Q31. There are no entry/exit barrier to the membership of NSE (True/False)

Ans. True.

Q32. What is SC(R)A?

Ans. Securities Contracts Regulations Act, 1956.

Q33. What is SC(R)R?

Ans. Securities Contracts Regulation Rules, 1957.

Q34. Who are become a member of NSE?


  1. Individuals;

  2. Partnership firm;

  3. Limited Liability Partnership firm;

  4. Companies

Q35. In which year limited Liability Partnership Act was establish?

Ans. Limited Liability Partnership Act, 2008.

Q36. In which year Indian Partnership Act was establish?

Ans. Indian Partnership Act, 1932

Q37. When was Companies Act made?

Ans. Companies Act, 2013

Q38. What is the full form of TM?

Ans. Trading Member.

Q39. What is the full form of CM?

Ans. Capital Market

Q40. Write is the full form of WDM?

Ans. Wholesale Debt Market Segment

Q41. Write the full form of F&O?

Ans. Future & Options segment.

Q42. What is the full form of PCM?

Ans. Professional clearing member.

Q43. What is the full form of CD?

Ans. Currency Derivation.

Q44. Write the name of two types of membership?

Ans. (i). Normal

        (ii). Alpha

Q45. What is the meaning of Normal membership?

Ans. Unrestricted business expansion

Q46. What is the meaning of Alpha membership?

Ans. For focused proprietory trading with limited clientele. 

Q47. Which segment is not related to the alpha membership?

Ans. Future & Options.

Q48. Future & Options segment which has to be taken in combination with

Ans. Cash segment
Q50. Which type of trading member are eligible to trade in interest rate futures?

Ans. Trading member registered in future & options and ID segment are eligible to trade in interest rate futures. 

 Q51. What is the full form of NSCCI?

Ans. National Securities Clearing Corporation limited. 

Q52. Write the full form of CSD?

Ans. Collaterial Security Deposit.

Q53. Write the full form of MRC?

Ans. Membership Recommendation committee. 

Q54. What is TM & SCM?

Ans. Trading and Self Clearing Membership. 

Q55. What is TM & CM?

Ans. Trading and Clearing Membership.

Q56. Write the full form of FEMA?

Ans. Foreign Exchange Management Act, 1999.

Q57. Write the full form of CRAR?

Ans. Capital Risk Adequacy Ratio.

Q58. What is the full form of NPA?

Ans. Non Performing Asset 

 Q59. Who are authorised Person?

Ans. Authorised Person is “Any person-individual, partnership firm, limited liability Partnership or body Corporate Who is appointed as such by a stock broker and who provide access to trading platform of a stock exchanges as an agent of the stock broker.

Q60. Who is Sub-broker?

Ans. Sub-broker is an important intermediary between stock broker and client in capital market segment. 

Q61. What should be age is mandatory for become a sub-broker?

Ans. Should not be less than 21 years of age.

Q62. What is the full form of UCC?

Ans. Unique Client Code.

Q63. What is the full form of PAN?

Ans. Permanent Account Number.

Q64. What is the full form of UDR?

Ans. Uniform Documentary Requirement.

Q65. Write the full form of MCA?

Ans. Member Constituent Agreement.

Q66. Write the full form of RDD?

Ans. Risk Disclosure Document.

Q67. What is Contract Note?

Ans. Contract Note is a Confirmation of trade done on a particular day for and on behalf of a client. A Stock broker should issue on contract note to his clients for trades.

Q68. What is duration for Payment/Delivery of securities to the clients?

Ans. Every TM should make payment to his clients or deliver the securities purchased within one working day of pay out unless the client was requested otherwise.

Q69. What is the maximum brokerage is fixed in contract price?

Ans. 2.5%

Q70. What is the full form of ISC?

Ans. Investor Service Cell

Q71. In which year Arbitration and Conciliation Act was made?

Ans. Arbitration and Conciliation Act, 1996.

Q72. What is Arbitration?

Ans. Solution of disputes with the help of third party without approaching to the court, is called Arbitration.

Q73. The reference to arbitration should be filled within________ from the date when the dispute arose.

Ans. Six month.

Q74. What is standard warning are written in time of a dervisement of securities?

Ans. Standard warning is legible fonts which states, “Investment in securities market are subject to market risk, read all the related documents carefully before investing”.  

Q75. In standard warning both the visual and the voice over reiteration containing__________ running for at________ may be considered as clear. 

Ans. 17 words running for at least 5 seconds.

Q76. Shall not contain misleading or deceptive testimonials in advertisement. (True/False)

Ans. True.

Q77. What is BTST?

Ans. Buy Today and Sell Tomorrow.

Q78. What is ATST?

Ans. Acquire today and Sell Tomorrow.

Q79. No celebrities shall form part of the advertisement material. (True/False)

Ans. True.

Q80. Copy of the advertisement shall be sumitted to the exchange___________ in advance before its issue. 

Ans. At least Seven Days.

Q81. When was ICDR made?

Ans. Issue of capital and Disclosure Requirement Regulation, 2009 

Q82. In which year Interest rate Future was established?

Ans. 31st August, 2009

Q83. Write the full form of ASBA?

Ans. Application Supported by Blocked Amount.

Q84. The primary market issuance is done either through__________ and __________.

Ans. Public issue and private Amount.

Q85. When was Depositories Act made?

Ans. Depositories Act, 1998.

Q86. Write the name of two Depositories?

Ans. (i). NSDL

        (ii). CDSL

Q87. Write the full form of FCCB?

Ans. Foreign Currency Convertible Bonds.

Q88. Write the full form of ADR?

Ans. American Depository Receipt

Q89. Write the full form of GDR?

Ans. Global Depository Receipt

Q90. In which year securities Lending & Borrowing Scheme was allowed?

Ans. In April, 2008

Q91. Securities in the form of equity or debt can be issued in Domestic/international market. (True/False)

Ans. True

Q92. The securities market has two ______________ and ______________ segment that is Primary market and Secondary market. 

Ans. Independent and Insparable.

Q93. Who is the regulation of participants in security market?


  1. Securities and Exchange Board of India(SEBI)

  2. Reserve Bank of India(RBI)

  3. Ministry of Corporate Affairs (MCA)

  4. Department of Economic Affairs (DEA)

Q94. Write the Another name of Mutual Fund?

Ans. Units of Collective investment scheme.

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