Question 1

ALBM (Automated Lending &Borrowing Mechanism) was introduced by

Accepted Answer

ALBM (Automated Lending & Borrowing Mechanism) was introduced by NSCCL (National Securities Clearing Corporation Ltd.), which is a subsidiary of NSE (National Stock Exchange of India Limited), to facilitate lending and borrowing of securities.

Question 2

under public issue of shares, reservation for permanent employees

Accepted Answer

Under public issue of shares, reservation for permanent employees is 10%.

Question 3

The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956

Accepted Answer

Section 81 of the Companies Act, 1956 specifies the conditions to be satisfied by a public company for issuing right shares. This section deals with the right of pre-emption of existing shareholders to be offered shares in a new issue in proportion to their existing holdings.

Question 4

----------- is a method of cancellation of shares

Accepted Answer

Buy back is a method of cancellation of shares where a company purchases its own shares from the marketplace and reduces the amount of outstanding stock.

Question 5

Which of the following is / are method of Buy back of shares

Accepted Answer

All the options listed, Tender offers, Open offers, and Dutch Auction, are methods through which a company can buy back its shares from shareholders.

Question 6

Over the Counter Exchange of India commenced operation in the year

Accepted Answer

The Over the Counter Exchange of India (OTCEI) commenced operations in 1992, aimed at providing a trading platform for smaller companies that did not meet the requirements to be listed on the main stock exchanges.

Question 7

Members of the OTCEI are---------- only

Accepted Answer

OTCEI (Over the Counter Exchange of India) membership is restricted to corporate entities only.

Question 8

The whole sale market segment for NSE is meant for

Accepted Answer

The wholesale market segment for NSE (National Stock Exchange) is primarily meant for government securities, which are traded in large volumes by institutional investors.

Question 9

As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at -------

Accepted Answer

As per SEBI guidelines, a new company which has not completed 12 months of commercial production must issue shares at par value, ensuring fairness and transparency in the initial valuation of the company.

Question 10

National Stock Exchange (NSE) established in the year

Accepted Answer

The National Stock Exchange (NSE) was established in the year 1992 to bring about transparency in the Indian capital markets.

Question 11

Method of trading in NSE is

Accepted Answer

The National Stock Exchange (NSE) utilizes a screen-based order-driven system, where orders match electronically, making trading more transparent and efficient.

Question 12

Method of trading in OTCEI is

Accepted Answer

The answer of Method of trading in OTCEI is
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Question 13

-------- are eligible to list in OTCEI

Accepted Answer

OTCEI (Over the Counter Exchange of India) was established to help small and medium-sized companies that are not listed on other stock exchanges to raise capital and provide liquidity to their shares.

Question 14

Discount and Finance House of India (DFHI) mainly deals in

Accepted Answer

DFHI primarily deals in treasury bills, which are short-term government securities.

Question 15

-------- of shares is the first step in depository process

Accepted Answer

Immobilisation of shares is the first step in the depository process, where physical share certificates are converted into electronic form and held in a depository account.

Question 16

In depository system, --------- is a link between depository and the owner.

Accepted Answer

Depository Participant acts as an intermediary between the depository and the investor (owner), facilitating the holding and transacting in securities in the dematerialized form.

Question 17

"A central location for keeping securities on deposit" is

Accepted Answer

A depository is specifically designed for the purpose of holding securities such as stocks, bonds, and other financial instruments in electronic or physical form. It facilitates the buying, selling, and holding of securities, making it the correct choice for a central location for keeping securities on deposit.

Question 18

The group of shares which are not permitted for short selling are

Accepted Answer

Shares that belong to the T group are not permitted for short selling. This is because the T group typically includes securities that are traded on a trade-to-trade basis, meaning they have to be delivered on the day of the transaction and cannot be sold without first taking delivery, which is a requirement that is incompatible with the concept of short selling.

Question 19

--------- group includes shares of companies which have failed to comply with listing requirements

Accepted Answer

The Z group on stock exchanges includes shares of companies that have failed to comply with listing requirements or are in some form of financial distress.

Question 20

In listed scrips, --------- group includes small cap stocks.

Accepted Answer

The 'S' group in listed scrips typically includes small cap stocks, which are stocks of smaller companies with lower market capitalization.

Quiz 7: Stock Market and Securities Trading in India