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Advanced Wealth Management Course (IIBF) - Paper 3

Part I: Ch 10: Regulatory Framework

Q1.

In India, SEBI appointed the J.R. Verma Committee to recommend a regulatory framework for introduction of derivatives in the stock market.

True
False

Q2.

The standing committee on Finance, a parliamentary Committee, recommended that the minimum contract size of derivative contracts traded in the Indian markets should be pegged not below __________.

Rs. 1 lakh
Rs. 2 lakh
Rs. 3 lakh
Rs. 5 lakh

Q3.

The ‘volatility scan range’ is fixed at _________ for Index options and at _______ for options on individual stocks.

2% & 10%
2% & 7.5%
4% & 10%
4% & 7.5%

Q4.

What is the minimum initial margin applicable for Index Futures and Stock Futures?

4% for Index futures & 10% for Stock futures
4% for Index futures & 7.5% for Stock futures
5% for Index futures & 10% for Stock futures
5% for Index futures & 7.5% for Stock futures

Q5.

For Index option products the Trading Member position limits are _______ or _________ of the open interest whichever is higher.

Rs. 100 cr or 10%
Rs. 150 cr or 15%
Rs. 200 cr or 10%
Rs. 250 cr or 15%

Q6.

(I) Calendar spreads are offsetting positions in two contracts in the same underlying across different expiries. (II) The net option value is computed using the closing price of the option and is applied the next day.

Both the statements are correct
Only statement (I) is correct
Only statement (II) is correct
Both the statements are wrong

Q7.

The type/s of margins collected on derivative contracts is/are:

Initial margin
Mark to Market margin
Both (a) & (b)
None of the above

Q8.

Which committee did SEBI constitute for advice on Corporate Governance?

LC Gupta Committee
JR Verma Committee
Kumar Managalam Committee
Naresh Chandra Committee

Q9.

Which departments/divisions in SEBI address investor grievance issues?

Investor Grievance and Guidance Division
Depositories & Custodian Cell
Mutual Fund Department
Both (a) & (b)
All of the above

Q10.

Which department in SEBI can be approached for complaints relating to dematerialization or DPs?

Investor Grievance and Guidance Division
Depositories & Custodian Cell
Mutual Fund Department
Stock Exchange

Q11.

Which department in SEBI can be approached for complaints relating to non-receipt of debenture certificates, non-receipt of interest warrant?

Investor Grievance and Guidance Division
Mutual Fund Department
Depositories & Custodian Cell
RBI

Q12.

The category/s of sub-accounts permitted under FII Regulations is/are:

Broad-based/Proprietary
Foreign corporate and foreign individual
Both (a) & (b)
None of the above

Q13.

Broad-based/Proprietary sub-accounts which are allowed to individually invest upto _______ of the total issued capital.

5%
10%
15%
20%

Q14.

Proprietary funds of the FII cannot be invested through a broad-based fund.

True
False

Q15.

The payment of registration fee for foreign institutional investor is:

US$2,000
US$3,000
US$4,000
US$5,000

Q16.

Investments by each sub-account under Foreign Corporates and foreign individuals category should not exceed ________ of the issued capital.

2%
5%
10%
15%

Q17.

Sub-accounts are registered within _________ working days from the date of receipt of complete application and fees.

3 working days
5 working days
7 working days
10 working days

Q18.

For Exchange Traded Interest Rate Derivatives the Trading Member position limits are ___________ or ________ of the open interest whichever is highest.

Rs. 200 cr or 10%
Rs. 250 cr or 15%
Rs. 500 cr or 15%
Rs. 100 cr or 10%

Q19.

(I) The mark to market for Futures contracts is computed and collected as part of the SPAN Margin in the form of Net Future Value. (II) Non-resident Indians and Overseas Corporate Bodies (OCB) are not entitled to get registered as a sub-account.

Both the statements are correct
Only statement (I) is correct
Only statement (II) is correct
Both the statements are wrong

Q20.

What would be the lot size, if the share price is between Rs. 801 to Rs. 1,600?

1,000
125
500
250

Q21.

Which department in SEBI can be approached for complaints relating to collective investment schemes?

Investor Grievance and Guidance Division
Mutual Fund Department
Depositories & Custodian Cell
SEBI, itself

Q22.

The volatility estimate‘s’, is computed as per the Exponentially Weighted Moving Average methodology.

True
False

Q23.

What would be the lot size, if the share price is less than Rs. 25?

1,000
4,000
8,000
10,000

Q24.

Mini contract on the Sensex and Nifty have been permitted for derivative contract size of:

Rs. 25,000
Rs. 50,000
Rs. 10,000
Rs. 1 lakh & above

Q25.

Exposure limit has been set at the higher of _______ or _________ times standard deviation.

5% or 1.5 times
10% or 1.5 times
15% or 1.0 times
7.5% or 1.0 times

Q26.

The arbitral tribunal has to make the arbitral award within ________ months from the date of entering upon the reference.

1 month
2 months
3 months
5 months

Q27.

Which department can be approached for complaints regarding non-receipt of annual report, AGM Notice etc.?

Stock Exchange
RBI
Mutual Funds Dept
Dept of Company Affairs

Q28.

The Reserve Bank of India was established on:

April 1, 1935
April 1, 1936
March 1, 1935
March 1, 1936

Q29.

Which is the wrong code of corporate governance at supranational level?

OECD
Greenbury and Hampel Reports
ICGN
CACG

Q30.

Which is the correct example of institutional Codes of corporate governance?

Malaysian code
Vienot Report from France
Calpers and Hermes Investment Management
Greenbury and Hampel Reports

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