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540

Question 1

SEBI’s recent regulations for stock exchanges state that they need to have a minimum net worth of Rs 100 crores and an annual trading of Rs 1000 crore. So, accordingly many stock exchanges have been de-recognised and some will be de-recognised soon. Only 3 stock exchanges are permanent now. Two of those are BSE and NSE. Which is the third one?

Correct! Wrong!

Question 2

National Stock Exchange (NSE) was established in 1992. It was needed as there was inefficiency and lack of transparency in the existing stock exchanges. Also, the existing stock exchanges operated as mutual organisations which led to conflict of interest between brokers and investors. So, a committee was formed which recommended establishment of NSE. Who was the chairman of that committee?

Correct! Wrong!

Question 3

The shareholding norms in a recognised stock exchange stipulate that a person cannot hold more than 5% paid up equity share capital of the stock exchange. What is the maximum shareholding limit for a depository/stock exchange/banking company/insurance company/public financial institution?

Correct! Wrong!

Question 4

At least what percent of the shareholding in a recognised stock exchange shall be held by public?

Correct! Wrong!

Question 5

Which of the following statements are correct with respect to Public Interest Directors in a recognised stock exchange?
Statement 1: Public Interest Directors are nominated for a term of 5 years.
Statement 2: maximum age limit for Public Interest Directors is 65 years.
Statement 3: A Public Interest Director cannot become shareholder director unless there is a cooling-off period of 3 years after ceasing to be a Public Interest Director.

Correct! Wrong!

Question 6

Few statements regarding the governing board of a stock exchange are given below.
Statement 1: the number of shareholder directors shall not be less than the number of public interest directors.
Statement 2: the managing director is considered part of shareholder directors.
Statement 3: the chairperson is elected by the governing board from amongst the shareholder directors.
Which of the following statements are correct?

Correct! Wrong!

Question 7

There are various types of delivery in stock exchanges. What do we call a delivery where payment for and delivery of securities are made on the date fixed by the stock exchange?

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Question 8

Margin trading is a practice where investor/trader uses borrowed funds from a broker buy/short sell a financial asset. The financial asset forms the collateral for borrowed funds. Which of the following statements is not correct regarding margin trading?

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Question 9

Demutualisation refers to segregation of ownership and management of the stock exchange from the trading rights of the members. SEBI issued scheme of demutualisation of BSE and other Regional Stock Exchanges in 2003.
Given below are few statements regarding demutualisation.
Statement 1: As per 2003 scheme, the board of a stock exchange should consist of 51% public interest/ shareholder directors and only 49% broker directors.
Statement 2: as per the scheme, 51% shareholding of the stock exchange should be divested to public/ investors other than trading member brokers and only 49% of shareholding can remain with the trading member brokers.
Statement 3: A committee under Justice MH Kania was constituted to look into the matter of corporatisation and demutualisation of stock exchanges.
Which of the above three statements are correct?

Correct! Wrong!

Stock Exchanges

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